Banking Study Guide Flashcards
(16 cards)
Bank
a financial establishment that invests money deposited by customers, pays it out when required, makes loans at interest, and exchanges currency
Credit Union
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates
FDIC
Federal Deposit Insurance Corporation - U.S. gov corporation supplying deposit insurance to depositers in American commerical banks and savings banks
Bank Statement
an official document that summarizes your account activity over a certain period of time, typically 1 month
Simple Interest
an interest charge that borrowers pay lenders for a loan
Compound Interest
interest accumulated from a principal sum and previously accumulated interest
Overdraft Fee
when you don’t have enough money in your account to cover your transactions so you are feed by the bank
ATM Fee
charged for the convenience of withdrawing cash from a specific ATM, generally when the ATM operator doesn’t belong to your banks network
Maintenance Fee
a fee charged by a financial institution for maintaining an investors account
Minimum Balance Fee
a fee banks may charge when your account balance dips below a certain dollar amount
Debit Card
a payment card that takes money straight from your account
Emergency Fund
a cash reserve that specifically set aside for emergencies
Payroll Card
visa card that employer puts money on instead of giving a physical check, usually used for people who don’t have/cant have a bank account
Prepaid Card
a gift card with a lot of fees
Routing Number
9 digit number that identify a bank or credit union in a financial transaction
Account Number
a unique set of digits assigned to an account when you open a bank account
