Types of Financial Institutions
A for-profit institution owned by shareholders; provides services like checking, savings, and loans.
bank
A secure place to keep money; different types are designed to meet different needs and financial goals of individuals.
account
Services provided by a financial institution to manage spending, saving, payments, investments, and more.
Financial Services
A bank card linked to a bank account that can be used to withdraw money from its linked account and make purchases online or in person.
debit card
Insures credit unions for $250,000 per depositor, per insured credit union, for each account ownership type.
National Credit Union Administration
A not-for-profit financial institution owned entirely by its members who share a common bond.
credit union
This account allows for frequent transactions and provides easy access to funds.
checking account
Provides the ability to manage money online with a mobile device or computer.
online banking
A written document that directs the bank to pay a specific amount of money to the name to which the document has been issued.
check
A federal guarantee of savings bank deposits initially of up to $2500, raised to $5000 in 1934, and frequently thereafter; continues today with a limit of $250,000
Federal Deposit Insurance Corporation
The central bank of the U.S. that serves as a bank for other banks and the government.
The Federal Reserve
A financial account in which people can deposit their money for future use and earn interest.
savings account
A service provided by a financial institution that allows its customers to use mobile devices to conduct financial transactions.
mobile banking
a transaction that involves taking money out of the account.
withdrawal
The lowest dollar amount required to open or maintain a financial account.
minimum balance
One of the benefits of having an account at a financial institution.
Safe and secure
An account that generally offers higher interest rates than savings and checking accounts.
money market account
An optional service provided on financial accounts that links the account to another account and allows transactions to be paid when there is not enough money in the account to cover the transaction.
overdraft protection
How easily an asset can be converted to cash.
liquidity
Money set aside that you can access quickly for unexpected expenses.
emergency fund
The procedures and strategies used to manage accounts and your money, such as keeping money in a financial account at a bank.
Sound Financial Management
A savings alternative in which money is left on deposit for a stated period of time to earn a specific interest rate.
certificate of deposit
When deposited funds will be accessible for use.
availability of funds
When deposited funds will be accessible for use.
availability of funds
The net gain or loss over a period of time expressed as a percentage of the initial investment.
rate of return