Credit
Borrowing money with the promise to pay it back later a.k.a. your "financial trustworthiness"
What is credit?
Account type used for everyday banking; Typically non/low interest bearing.
What is a checking account?
When you don't have enough funds in your account to cover your transaction
What is an overdraft?
Account type to store money and potentially earn interest on; Funds are still accessible without early withdrawal penalty.
What is a savings account?
The extra money you pay (percentage rate) a financial institution when you borrow money
What is interest?
A recurring monthly charge, that banks assess to cover the administrative costs of keeping an account open and providing basic services
What is a maintenance fee?
Machine that allows bank customers to access their accounts and perform various transactions, such as withdrawals, deposits, and balance inquiries.
What is an Automated Teller Machine (ATM)?
The total rate of return for an interest-bearing account over a 1-year period
What is Annual Percentage Yield (APY)?
Staying below 30% of limit
What is the max credit utilization?
A plan that tracks income and expenses, allocate funds to different categories, and achieve financial goals; How you spend and manage money.
What is a Budget plan?
Detailed explanation about the recent transactions on your account, including your beginning balance, your deposits, withdrawals, debit card transactions and any automatic bill payments
What is a bank statement?
Account that holds a fixed amount of money for a fixed period of time (term) without being withdrawn, where the bank pays you interest.
What is a Certificate of Deposit (CD)?
Experian, TransUnion, Equifax are examples of what?
What is a credit reporting agency?
Type of ACH payment where funds are electronically deposited into your bank account
What is a Direct Deposit?
Centralized system for moving money between financial institutions (typically within the USA)
What is an Automated Clearing House (ACH)?
Withdrawal limits from savings account (6)
What is Regulation D?
Two biggest influences on your credit score
What are Payment history and amount of debt?
Provides deposit insurance to protect your money in the event of a bank failure. Your deposits are automatically insured to at least $250,000.
What is the Federal Deposit Insurance Corporation (FDIC)
Central Bank of United States; Includes the Reserve Banks, the Federal Open Market Committee, and the board of Governors...Regulates ALL banks
What is the Federal Reserve?
Earning interest on principal and previously earned interest, meaning your interest starts earning interest too
What is Compound Interest?