Financial Accounts Overview

Study flashcards focusing on various types of financial accounts, interest calculations, account security, and best practices for managing finances.

Transactional Account

Put money here when you need easy access; does not earn interest.

High-yield Savings Account

A savings account that pays a higher interest rate than standard accounts.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Investment Accounts

Accounts used for investing in stocks, bonds, or mutual funds to grow money over time.

Simple Interest

Interest earned only on the original principal amount.

Compound Interest

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

Direct Deposit

Automatically depositing earnings directly into a bank account to save time and avoid fees.

Two-Factor Authentication

A security process in which the user provides two different authentication factors to verify their identity.

Phishing Scams

Fraudulent attempts to obtain sensitive information by disguising as a trustworthy entity.

Transaction Alert

Notifications set up to monitor account activity regularly to detect suspicious transactions.

Purchasing Power

The value of money expressed in terms of the amount of goods or services that one unit of money can buy.

Account Security

Measures taken to protect financial accounts from unauthorized access or fraud.