Interest & Fees
- Fees that a bank may charge to handle your account
- It may be a flat rate or a per-check charge
- Some fees are based on the account balance.
Monthly Fees
- Are the most common type of bank.
- Providing services such as business loans, accepting deposits, and offering basic investment products to both individuals and private businesses.
Commercial Banks
The minimal monetary amount that must be kept in the account in order to maintain certain perks or to keep it open.
What is this balance called?
What can happen if you fall below the required amount?
Minimum balance
If you fall below the required amount, you could be charged a fee or denied interest payments, or your bank might even close your account.
Payment cards that can be used to make transactions instead of cash and are deducted directly from a consumer's checking account.
Debit Cards
What is overdraft protection?
Overdraft protection is a service provided by a bank that protects against nonsufficient funds. If you spend more than what is in your checking account, overdraft protection covers the purchase.
The monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate (APR). It is the amount of money a lender or financial institution receives for lending out money.
Interest
- A type of bank open to a specific category of people who are eligible for membership.
- Offers personalized and lower-cost banking services to their members.
- Tend to request higher interest rates on deposits than banks & lower rates on loans.
Credit Unions
In this account, a customer can deposit money in that they do not need right away, with a limited amount of withdrawals depending on the bank used.
Savings Account.
A small plastic card issued by banks allowing the holder to purchase goods or services on credit.
The consumer is then responsible for either paying off the monthly balance, the minimum payment, or the interest on the balance.
Credit Cards
Will you be charged for using an ATM?
You won't be charged to use your own bank's ATM or, sometimes, ATMs in your bank's network.
But you might be charged, by both your bank and the other bank, for using a non-network ATM.
A method of calculating the interest charge on a loan, determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
Simple Interest
This type of bank helps corporations with bond & stock purchases and sales.
Investment Banks
Type of account that allows customers to access their deposited funds with ease, and they can use it to make their financial transactions such as paying bills.
Checking Account
When the account is opened, this card establishes that the person is authorized to cash checks for this account.
If there is ever a question on a check’s signature, the card is used to verify a signature.
Signature Authorization Card.
A common method to teach compounding interest. It states that if you divide the number 72 by an investment’s annual return, you will determine the number of years it will take to double in value.
The Rule of 72
When the balance or principal is multiplied by the interest rate more than one time a year.
It can be figured daily, weekly, monthly, quarterly, or semi-annually
Compound Interest
This is a type of insurance that protects the consumer’s accounts in a commercial bank up to $100,000.
Federal Deposit Insurance Corporation (FDIC).
In what ways can customers access the funds in their account.
-Writing a check.
- Using a debit card to withdraw money or make payments.
- Setting up automatic transfers to another account.
- Type of card that contains a chip that stores currency and processes transactions.
- Can verify and perform financial transactions in an "offline" mode, versus traditional debit/credit cards.
Stored Value Cards (SVCs).
Fun Fact= Currently, SVCs are in use in over 80 military bases and installations in 19 countries (including the U.S.), and on board over 135 Naval ships.
A financial penalty charged by a credit card lender or other company when a check you wrote for payment is returned by your bank unpaid.
This typically happens because your account doesn't have sufficient funds to cover the payment.
A Returned Check Fee.
If a check is stolen or lost, what will alert the bank to not cash this check.
Stop Payment
Type of Insurance that protects investors in a brokerage firm. It is abbreviated as SIPC.
The Securities Investor Protection Corporation (SIPC).
- A type of account that holds a fixed amount of money for a defined period of time.
- It pays a fixed interest rate on the amount held
A Certificate of Deposit
A plastic credit-card-sized card that stores information on a microprocessor or memory chip rather than the magnetic stripe found on ATMs and credit cards.
A Smart Card
A purchased certificate to pay a specified amount to a specific payee.
Money Order