The Purpose of Banks
This is the main role of the bank.
What is storing money and providing financial services?
A financial institution that is owned by its members and offers lower fees.
What is a credit union?
This type of account is used for daily transactions, like paying bills.
What is a checking account?
Monitoring this regularly can help you avoid overdraft and identity fraud.
What is your bank account?
According to 1 Corinthians 4:2, this is required of stewards.
What is to be found faithful?
Banks make money primarily by charging this on loans.
These banks operate entirely online without physical branches.
What are online banks?
A fee charged when you spend more money than is available in your account.
What are overdraft fees?
The term for spending less money than you earn and keeping track of your finances.
What is living within your means?
This term refers to the ability to access your funds immediately, often through a debit card or check.
What is liquidity?
This federal program insures deposits in most banks.
What is the FDIC (Federal Deposit Insurance Corporation)?
This type of institution specializes in providing home loans.
What are mortgage lenders?
A card linked to your checking account that allows you to make purchases directly.
What is a debit card?
This practice helps ensure you don't accidentally spend more than you have.
What is balancing your checkbook (or reconciling your account)?
FDIC and NCUA will insure your deposit up to this amount.
What is $250,000
This term describes the money banks lend to borrowers.
What are loans?
The two primary types of financial institutions people use for banking services.
What are banks and credit unions?
What is an account statement?
Before opening an account, you should always read and understand these.
What are the terms and conditions?
Setting up this, is the best way to make sure your paycheck makes it to your account safely.
What is Direct Deposit?
Banks often offer these accounts to encourage saving and pay interest on deposits.
What are savings accounts?
This type of financial institution focuses on helping people invest their money.
What is investment firms?
This term for money banks pay you for keeping funds in a savings account.
What is interest?
These are two habits of responsible banking that can help you build wealth.
What are saving regularly and avoiding unnecessary fees?
This service helps you avoid bouncing checks by automatically covering insufficient funds in your account, often for a fee. However, it can cost you more money in the long run.
What is overdraft protection?