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It is a product offered by banks that offers higher interest rates in return for larger deposit amounts and longer deposit terms. Customers must leave the deposit untouched for a predetermined period of time.
What is a certificate of deposit (CD)?
This number represents an individual's creditworthiness based on their credit history.
What is a credit score?
Type of insurance that covers damage to your home and possessions in the event of certain disasters.
What is homeowners' insurance?
Type of tax that is levied by the federal government on individuals' earnings
What is an income tax?
These securities represent ownership in a corporation and come with voting rights and potentially a share of the dividends
What are stocks?
What is 20%
What is the Annual Percentage Rate (APR)?
Type of insurance that is required by law in many places and covers your liability for injuries to others and damage to their vehicles in an auto accident where you are at fault.
What is liability insurance?
U.S. agency responsible for the collection of taxes and the enforcement of tax laws.
What is the Internal Revenue Service (IRS)?
This type of fund pools money from many investors to purchase a diversified portfolio of stocks and bonds managed by a professional.
What is a mutual fund?
Retirement savings account, often offered by employers, that allows employees to save and invest a portion of their paycheck before taxes are taken out.
What is a 401-k program?
The maximum credit score attainable, based on common scales, like FICO.
What is 850?
Type of insurance that provides a death benefit to the beneficiary when the insured person passes away and can also offer a cash value component as an investment opportunity.
What is life insurance?
This term describes an allowable reduction to taxable income, such as mortgage interest or charitable donations. It can potentially lower your tax liability if you qualify.
This marketplace allows buyers and sellers to trade shares of publicly traded companies.
What is a stock exchange?
Type of retirement account that allows for tax-free growth and tax-free withdrawals in retirement under certain conditions.
What is a ROTH-IRA?
The three major credit reporting agencies in the United States.
What are TransUnion, Experian, and Equifax?
This insurance term refers to the amount you pay out of pocket before the insurance company starts to pay its share of the costs.
What is a deductible?
Type of tax imposed on the profits earned from selling an asset like stocks or real estate. It's typically higher if the asset was owned for a short period of time.
What is a capital gains tax?
This term refers to an investment strategy where the investor buys securities that appear underpriced by some form of fundamental analysis.
What is value investing?
Strategy of systematically investing equal amounts of money at regular intervals in the same investment, regardless of the market conditions.
What is dollar-cost averaging?
Tthe percentage of a borrower’s total available credit that is currently being used.
What is the credit utilization ratio?
The percentage of medical costs that a policyholder is responsible for paying after the deductible has been met.
What is coinsurance?
This system of taxation increases the tax rate as the taxable amount increases.
What is a progressive tax system?
Type of investment fund that trades on stock exchanges, much like stocks, and holds assets such as stocks, commodities, or bonds, but often has lower fees than mutual funds
What is an exchange traded fund (ETF)?