Ch 5 Vocab
Money added to a checking, savings, or other financial account
Deposit
What is one thing you need to bring with you to open a bank account?
Address, phone number, photo ID, social security, signature card, cash, etc.
How is your debit card protected, in case it is lost or stolen?
A personal identification number (PIN)
A savings account typically pays you ______
Interest
What is one thing you can do through internet banking?
Electronic payment of bills, Transfer of money between accounts, Checking that deposits are posted, Seeing which checks have been processed, Seeing interest or fees that have been posted
A written order to a bank to pay the stated amount to a person or business
Check
At what age can you open a bank account without a parent/guardian?
18 years old
What can you do at an ATM?
Deposit cash, deposit checks, withdraw cash, check balance, transfer money between accounts, etc
Simple interest formula:
Interest (I) = Principle (P) x Rate (R) x Time (T)
Who sets the rate?
The bank
Why would you need to visit a bank in person?
Opening a new account, withdrawing cash, serious issue with your bank account, etc.
Money deducted from an account and electronically transferred to another party
Automatic withdrawal
Which card is linked to your checking account?
Debit card
What is one way you can protect your banking information?
Keep cards and account information in a safe place, Protect your PIN or password when using cards, Don’t share your card information with others or on unknown apps/websites
When choosing a savings option, you should consider...
1. The amount to save
2. The length of time you will save
3. The interest you can earn
Generally, is online banking safe?
Yes
A check that is returned by the bank for non-sufficient funds (NSF); also called a bad check
Bounced check
Why would you want to set up direct deposit for your paycheck?
Automatic, safer, have your money in your checking account immediately, you do not need to pick up your check from work, no need to travel to the bank
What is bank reconciliation?
Making sure your bank statement matches your personal financial records.
What does IRA stand for?
Individual Retirement Account
What is one issue with internet banking?
identity theft, fraud, use of weak passwords, phishing attacks, unsecured networks and devices, insider threats, and system flaws
A signature or instructions written on the back of a check authorizing a bank to cash or deposit the check
Endorsement
The FDIC (Federal Deposit Insurance Corporation) insures accounts for up to $________ per depositor per bank
$250,000
What kind of fee might your bank charge you?
Failure to maintain a minimum balance fees, Overdraft fees, ATM fees, Monthly service fees, Check fees
What does CD stand for?
Certificate of Deposit
What accounts can you access online?
All of them (checking, savings, IRA, investments, CDs, money market accounts, etc)