javi 2.1-2.5 key terms

check account

an account at a bank that allows a customer to deposit money, make withdrawals, and make transfers from the funds on deposit

electronic funds transfer

the process of moving funds electronically from an account in one bank to an account in another

payee

the receiver of the transferred funds

drawer

the owner of the check

direct deposit

used to deposit payroll or government checks directly into an account

account number

appears on all checks and deposit slips, as well as on paper and bank statements

bank statement

includes all transactions that have occurred for a period of around one month

balancing/reconciling

you should compare the banks records with your own to make sure no mistakes have been made

interest rate

the proportion of the balance that will be paid by the bank

principal

interest is based on interest rate and…

annual percentage rate (apr)

the yearly interest rate that is paid by a bank, expressed as a percent

maturity

specified date in the future

compound interest

money earned on the money deposited plus previous interest

annual percentage yield (apy)

the simple interest rate that would be required to give the same dollar amount of interest that the compound gave