Banking Institutions
What is a bank institution?
A financial organization that provides services like saving, lending, and managing money.
What is investing?
Putting money into assets like stocks or real estate to grow wealth over time.
What is a checking account?
A bank account used for daily transactions like paying bills or shopping.
What is a savings account?
A bank account designed to save money and earn interest.
What is a paycheck?
A document or direct deposit payment for work performed, typically issued by an employer.
What is the main role of a bank?
To store money, offer loans, and provide financial services to individuals and businesses.
What is a stock?
A share in the ownership of a company.
What is a debit card?
A card linked to your checking account, used to spend money directly from your account.
How does a savings account earn interest?
The bank pays you a percentage of your account balance over time.
What are payroll deductions?
Money taken out of a paycheck for taxes, benefits, and other contributions.
What is the difference between a bank and a credit union?
A bank is for-profit, while a credit union is a nonprofit organization owned by its members.
What is a bond?
A loan you give to a government or company in exchange for interest payments.
Do checking accounts earn interest?
Most checking accounts do not earn interest, but some high-interest accounts do.
Is there a limit to withdrawals from a savings account?
Yes, federal regulations limit certain types of withdrawals to six per month.
What is net pay?
The amount of money you take home after deductions.
What does FDIC stand for?
Federal Deposit Insurance Corporation, which insures deposits in banks up to $250,000.
What does diversification mean in investing?
Spreading investments across different assets to reduce risk.
What is overdraft protection?
A service that prevents transactions from being declined when your account lacks funds, often with a fee.
What is the purpose of a savings account?
To safely store money for future use or emergencies while earning interest.
What is gross pay?
The total amount you earn before any deductions.
What is a bank branch?
A physical location where customers can access banking services.
What is a dividend?
A portion of a company’s profits paid to its shareholders.
What is the main benefit of a checking account?
Easy access to your money for daily use and bill payments.
Can you use a debit card with a savings account?
Some banks allow it, but it’s less common than with checking accounts.
How often are paychecks issued?
Paychecks are typically issued weekly, biweekly, semimonthly, or monthly, depending on the employer.