Banking Terms
A bank account you use to store money and pay for things with a debit card, checks, or online payments.
What is a Checking Account?
Interest paid on the principal alone.
What is Simple Interest?
A sum of money that is taken out of your bank account, either in cash or through an electronic transfer.
What is a Withdrawal?
Money set aside for unanticipated expenses or loss of income
What is Emergency Fund?
An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards.
What is a Digital Wallet?
A bank account that earns interest on the money you keep in it, helping your savings grow over time.
What is a Savings Account?
A certain amount of money that must be kept in an account as required by that particular financial institution.
What is Minimum Balance?
Automated Teller Machine - a computer terminal that you can do many banking features at.
What is an ATM?
To sign the back of a check made out to you so it can be cashed or deposited
What is Endorse?
A mobile banking tool that allows you to deposit checks to your bank account using your mobile device
What is a Mobile Deposit?
A monthly document prepared by your financial institution which shows all of the transactions related to your account.
What is a Statement?
Reinvesting earned interest back into the principal, so that interest is calculated on both the initial amount and the accumulated interest.
What is Compound Interest?
Money you put into your account.
What is a Deposit?
Protection provided by the Federal Deposit Insurance Corporation; protects the deposits of customers against loss up to $250,000 per account
What is FDIC Insurance?
A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch
What is an Online Savings Account?
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.
What is Pay Yourself First?
A monthly fee that some banks charge to provide access to checking or savings accounts.
What is Maintenance Fee?
An automatic electronic deposit of net pay to an employee's designated bank account.
What is Direct Deposit?
A form you fill out to credit money to your account when you make a deposit.
What is a Deposit Slip?
A digital payment method that allows you to transfer funds from your bank account to that of another person
What is a Person-to-Person Payment (or P2P)?