CCFE Depository Institutions

three examples of a depository institution

commercial bank, credit union, savings banks

what is a commercial bank

for profit and provides services to customers and businesses

what is a credit union

not for profit, made to help members, members are people with a common bond, lower fees

what is the FDIC (Federal Deposit Insurance Corp.)

insures depository inst. that have coverage against loss, $250,000 per depositor

what is the NCUA (National Credit Union Admin.)

insurance protections for credit unions, each depositor is insured against loss up to a max of $250,000

what is interest

price paid for using someone else’s money

5 examples of saving tools

safe-deposit box, financial advice, credit, transaction and savings tools, special needs payment instruments

what is credit

allow you to borrow money from the financial institution in exchange for your promise to repay those funds in the future

what is financial advice

dep. inst. offer information and advice regarding a range of financial topics

what is a safe-deposit box

secured box that you can store valuable personal items in (in case of fires) like birth certificates, wills, social security cards, etc

what are special needs payment instruments

travelers checks, certified checks, cashiers checks

what is a checking account and what is it known as

quick access to funds for transactions, can transfer money with checks, debt cards, or withdrawing cash, known as share draft

what is a savings account and what is it known as

most common, for money not for daily expenses, known as share account

what is the difference between online banking and mobile banking

online= secure website | mobile= app

what is a debit card

allow customers easy access into savings and checking accounts, can withdraw or transfer funds

what is an overdraft fee

charged if you withdraw more money from your account than is available

what is an ATM fee

may charge you for using an ATM that belongs to another institution

what is a minimum balance fee

if you go below a minimum account balance you may be charged a fee