Managing Your Cash and Savings

Flashcards focusing on key vocabulary related to managing cash and savings, including definitions of various financial institutions, accounts, and concepts.

Depository Financial Institutions

Institutions that accept deposits from consumers, including commercial banks, credit unions, and savings and loan associations.

Credit Unions

Non-profit financial cooperatives that focus on customer service and provide a variety of financial services at lower fees.

Federal Deposit Insurance Corporation (FDIC)

A government agency that insures deposits at commercial banks, S&Ls, and savings banks up to $250,000 per depositor.

Checking Accounts

Demand deposits that allow account holders to withdraw funds whenever needed.

Savings Accounts

Time deposits that are expected to remain on deposit longer than demand deposits.

Electronic Funds Transfer Act of 1978

Law describing the rights and responsibilities of electronic fund transfers, including reporting lost or stolen cards.

Overdraft Protection

An arrangement with a bank that ensures checks will be paid even if they overdraw the account.

Certificate of Deposit (CD)

A savings account requiring a minimum deposit and a fixed time commitment to earn a higher yield.

Truth in Savings Act

A law requiring banks to provide clear and truthful information about deposit accounts.

Nominal Rate of Interest

The stated interest rate before taking inflation or compounding into account.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Money Market Deposit Accounts

Interest-earning accounts offered by banks that typically require a higher minimum balance.

Safe Deposit Boxes

Secure storage places for valuable items and important documents, not covered by FDIC insurance.

Truncated Check

A paper check that has been converted into a digital image.

Canceled Check

A check that has been processed and paid, serving as proof of payment.

Cashier's Checks

Checks issued and guaranteed by a bank, often used for large transactions.

Travelers Checks

Pre-printed checks that can be used in place of cash or credit cards while traveling.

US Treasury Bills (T-bill)

Short-term government securities issued at a discount with returns free from state and local taxes.

Emergency Funds

Savings set aside for unexpected expenses or emergencies.