Banking Unit Review

ATM

Automated Teller Machine, used to withdraw cash or check account balance.

Bank Statement

A report that shows all the transactions in your account, typically sent once a month.

Interest

Earnings on savings, calculated as a percentage of the savings balance.

Debit Card

A card linked to your checking account, used for withdrawals and purchases.

Direct Deposit

An electronic transfer of your paycheck directly into your bank account.

FDIC Insurance

Federal insurance that protects your bank deposits up to $250,000.

Maintenance Fee

A fee charged by some banks each month to keep your checking or savings account open.

Minimum Balance

The required amount you must maintain in your account to avoid fees.

Mobile Deposit

A feature that allows you to deposit checks using your banking app.

Overdraft Fee

A fee charged when transactions exceed the available funds in your account.

Traditional Savings Account

A standard account for saving money, typically offering lower interest rates.

Online Savings Account

A high-interest savings account managed online.

Money Market Account

A savings account with higher interest rates but usually requires a higher minimum balance.

Certificate of Deposit (CD)

A time deposit account that earns interest at a fixed rate for a specified term.

Compound Interest

Interest calculated on the initial principal and on the accumulated interest.

'Pay Yourself First' Strategy

The practice of allocating a portion of income for savings before spending.

Emergency Fund

Savings set aside to cover unexpected expenses.

Inflation

The rate at which prices for goods and services rise, eroding purchasing power.

P2P Payment Apps

Applications that allow users to transfer money to each other via mobile devices.

Digital Wallet

An electronic system that stores payment information for transactions, e.g. Apple Pay.

Bank Profit

Earnings from fees and interest on loans while paying lower interest on deposits.