Professional Documents
Culture Documents
Banking 101
What will you learn today
An introduction to common terms and concepts
you will come across
Additional resources
Why should you bank?
Protect your money
Withdrawal
To take money out of an account
Includes withdrawals from ATM or teller, debit card
purchases, checks you write, or online bill payments
Does not include credit card purchases
Transfers
Can be automatic
Available Balance
The amount of money in your account that you have
access to (i.e. after waiting for a check to clear)
Minimum Balance
The amount of money youre required to keep in an
account to avoid fees or to keep the account open
Overdrawing your account
Means you took out more money than you have
in the in that account
Checks can bounce
Debit purchases can be denied
Examples
You earn interest from a bank if you have a
savings account
You pay interest to a lender if you have a loan
Compound interest
Interest not only on your original deposit plus the
interest your deposit has earned over time
Paying your credit card bills Does not build your credit
on time can build good credit history