Financial Institutions and Services

This set of flashcards covers key concepts related to financial institutions and services, including types of deposit and credit services, as well as investment options.

Deposit Services

Services provided by financial institutions to keep money safe and allow withdrawals.

Certificate of Deposit (CD)

A type of deposit service that requires leaving funds in the account for a set time with a fixed interest rate.

Checking Account

A convenient account that allows transactions using checks, debit cards, or online banking, usually with low or no interest.

Deposit Insurance

Insurance provided by the federal government to protect depositors, up to $250,000, in case the financial institution fails.

Money Market Deposit Account

An account that earns higher interest rates than regular savings accounts, with certain withdrawal limits.

Automated Teller Machines (ATMs)

Electronic outlets that allow customers to perform basic transactions without a bank teller.

Debit Card

A plastic card used for purchases, directly withdrawing funds from the user's checking account.

Online Banking

The ability to conduct financial transactions via a secure website using a computer or mobile device.

Credit Card

A loan that allows the cardholder to borrow money up to an approved credit limit with a promise to repay later.

Mortgage

A type of loan used to purchase a home or business property, with varying interest rates.

Individual Retirement Account (IRA)

An account for retirement savings that offers tax advantages and penalties for early withdrawal.

Payday Loan

A short-term loan provided with minimal requirements, often with high interest rates.