checking, savings, and peer to peer accounts

commercial/retail bank

-most common form of bank
-have savings, checking, give loans, may have credit cards

credit union

-is a nonprofit cooperative
-may charge lower fees and loan rates
-owned by members

savings and loan institution

-focus on providing loans and morgages
-can offer savings and checking
-higher interest rates
-more common in south

check

what you use to write out pay a bill

register

where you check withdrawals

balance

how much money you have in your account

deposit slip

paper to fill out when depositing money to bank

credit

companies give you money with the understanding you will pay it back in the future

principle

how much money you borrowed

interest

amount of money you pay to borrow the money

time frame

how long you have to pay back

effects of bad credit

-difficulty in getting credit
-high interest rates

overdraft

-spend more than you have
-could pull from savings

overdraft protection

-allows you to spend on debit even if there is not enough money
-fee

why you should have a checking account

-dont get charged extra fees
-makes things easier to pay for (bills)

FDIC

what backs banks?

NCUA

what backs credit unions?