NGPF Banking Unit

Bank Statement

Monthly document from your bank that shows all transactions in your account.

Check Cashing Store

A business that cashes checks and gives the customer cash in exchange for a fee.

Credit

An increase to your account.

Debit

A sum of money deducted from your account.

Debit Card

A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called "check card"

Digital Wallet

An application that runs on mobile devices. It securely stores your payment information and allows you to pay for items without physical cards.

Direct Deposit

An automatic increase of net pay to an employee's bank account.

Endorse

Sign the back of a check so that is can be deposited or cashed

Federal Deposit Insurance Corporation

An agency that protects deposits of customers again loss up to $250,000 per account

On-line Bill Pay

A banking technology that allows you to schedule payments over the internet

Overdraft Fee

A charge to your account when you spend more money than you have.

Person to Person Payment

A digital payment that transfers funds from your bank account to someone else's bank account.

Prepaid Card

A card that is loaded with a specific cash amount before you use it but then looks and works like a credit card until the full value is spent.

Unbanked

A term used to describe a person who does not have a bank account

Underbanked

People who have savings or checking accounts but still use alternative financial products and services

50-20-30 Rule

A popular savings rule of thumb to divide your savings into different categories

Certificate of Deposit

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

Compound Interest

Reinvesting earned interest back into the principal to exponetially grow money.

Emergency Fund

Money set aside for unplanned expenses

Interest

The amount earned as a benefit of depositing money in a savings account

Minimum Balance

A specific amount of money that a bank or credit union requires in order to open or maintain a particular account.

Money Market Account

A type of account that may allow debit card and check writing privileges.

National Credit Union Administration

An agency that regulates and charters credit unions and insures their deposits.

Online Bank

A bank that does not have a physical branch

Principal

The original amount of money on deposit

Rule of 72

a technique for estimating the number of years required to double your money at a given rate of return

Simple Interest

Money paid on the principal alone