Banks
The owners of commercial banks
What are shareholders?
Instead of profits going to investors, these institutions return earnings to members through lower fees and better interest rates.
What is a credit union?
This type of bank account is designed for frequent transactions like daily purchases, bill payments, and withdrawals.
What is a checking account?
This type of bank account is designed for saving money over time and earning interest.
What is a savings account?
The five factors that make up a credit score are:age of credit history, credit mix, new credit/inquiries, payment history, and ________________.
What is credit utilization (balances)?
What a bank earns due to your participation
Because of their structure, credit unions often offer lower ______________ on loans and higher __________ on savings.
What are interest rates?
This card is linked to a checking account and allows you to make purchases or withdraw cash directly from your balance.
What is a debit card?
This is the money the bank pays you for keeping your money in a savings account.
What is interest?
In order to establish credit, it is recommended that you utilize three options. One option is to become a _________________. This option allows you to be added to someone's credit account and build credit without the legal responsibility.
What is authorized user?
This type of institution accepts deposits and offers checking and savings accounts to individuals for a profit and is owned by shareholders.
What is a commercial bank?
These are typically lower at credit unions compared to traditional banks due to their nonprofit status.
What are fees?
This machine lets you take out cash from your checking account.
What is an ATM?
This is the main reason people use a savings account instead of a checking account.
What is saving money for the future?
A _________________ allows you to build credit by borrowing and paying back money with a safety net.
What is a secured credit card?
Banks often invest in _____________, resulting in features like mobile check deposit and online bill pay.
What is technology?
Compared to large banks, credit unions often have fewer of these physical service locations.
What are branches?
This is a monthly charge some banks take just for having a checking account.
What is a fee?
This type of savings account usually offers a higher interest rate than a traditional savings account
What is a high-yield savings account?
The number of times that you apply for credit.
What is a credit inquiry?
This federal agency offers protection and insures deposits up to $250,000 per depositor.
What is the FDIC?
Compared to major banks, credit unions often have smaller networks of these machines for withdrawing cash
What is an ATM?
This is the most common source of money added to a checking account, where an employer sends a worker’s pay directly into the account.
What is direct deposit?
This type of bank account requires you to leave your money untouched for a set period of time in exchange for a higher interest rate.
What is a certificate of deposit (CD)?
A credit score is the number that lets creditors know how likely you are to pay your debts. It ranges between __________ and ____________.
What is 300 and 850?