Personal Finance: Savings and Payment Services

These flashcards cover key vocabulary terms and concepts related to Savings and Payment Services in personal finance.

Savings Account

A deposit account that allows you to save money and earn interest.

CD (Certificate of Deposit)

A time deposit that requires a fixed term and often offers higher interest rates.

Checking Account

A demand deposit account that allows for withdrawals and deposits.

ATM (Automated Teller Machine)

A machine that permits withdrawal and deposit of cash and checks.

Direct Deposit

An electronic payment method where funds are deposited directly into a bank account.

Money Market Account

A savings account that usually earns a higher interest rate and may require a higher minimum balance.

Investment Company

An institution that pools money from investors to purchase securities.

Credit Union

A member-owned financial cooperative that provides various financial services.

Online Banking

A service that allows customers to conduct financial transactions via the internet.

Emergency Fund

A savings reserve for unexpected expenses or financial emergencies.

Interest Rate

The percentage charged on borrowed money or earned on savings.

FDIC (Federal Deposit Insurance Corporation)

A corporation that insures deposits in U.S. banks to protect consumers.

Liquidity

The degree to which an asset can be quickly converted to cash without loss of value.

Payday Loan

A short-term loan with high fees and interest, typically intended to cover expenses until the next paycheck.

Truth in Savings Act

Legislation requiring disclosure of fees, interest rates, and annual percentage yields for savings accounts.

Cashier's Check

A check issued by a bank, guaranteed to be paid as it is drawn from the bank's own funds.

Pawnshop

A business that provides loans to individuals in exchange for personal property as collateral.

Travelers Check

A secure payment method that can be replaced if lost or stolen.

Smart Card

A prepaid or stored-value card that can be used for electronic transactions.

Bump Rate CD

A certificate of deposit that allows the holder to increase the interest rate at some point during the term.