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What is money that is going to be left in a financial institution for months referred to as?
The option to have your pay directly deposited into a designated bank account. Direct Deposit saves time, money, effort and improves safety.
With your authorization, your bank will withdraw the amount of your monthly payment or bill from your bank account. It provides convenience and assures that your payment will be made on time.
A Debit Card is electronically linked to a checking account and allows the user to essentially write an electronic check anywhere where the Electronic Clearing Company is accepted (Visa/Mastercard). An ATM Card allows the user to access their accounts only through an ATM machine. Except if the POS machine is on the ATM network.
What is the difference when you use your PIN number or sign the transaction receipt when using a Debit Card?
If you enter your PIN number the transaction will count as a PIN transaction and may reduce the number of permitted PIN transactions. This could result in a potential fee. Signing uses the Visa/Master Card electronic network and does not count as a PIN transaction. The same process takes place with both methods.
Federal Deposit Insurance Corporation insures each account in a federally chartered bank up to $250,000 per account.
This is a for-profit institution that offers a full range of financial services, including checking, savings, and lending. They are chartered by either the federal or state government?
Commercial Bank
This deposit type institution traditionally specialized in savings accounts and mortgage loans. However today they offer many of the same services as traditional banks.
This deposit type institution is a nonprofit financial institution that is owned by its members and organized for their benefit. Their fees and loan rate are generally lower than those at commercial banks.
Credit Unions
This nondeposit-type institution combines your money with that of other investors in order to buy stocks, bonds, and other securities.
Investment Companies
This account is traditionally called a passbook account and is ideal if you plan to make frequent deposits and withdrawals. They require little or no minimum balance and allow you to withdraw money quickly. The trade off for convenience is that the interest rate is very low.
In this type of account the depositor deposits money into an interest bearing account for a predetermined period of time. During that time the money cannot be withdrawn without a fee. The interest rate is usually higher because of the time the money will remain in the account.
Certificate of Deposit
This type of accounts interest rate changes with market fluctuations. The account usually has a higher interest rate than a savings account but also has higher minimum deposit requirements. It generally allows a limited number of checks to be written on the account.
According to this act financial institutions have to inform you of the terms and conditions of all savings accounts, including fees, interest rates and the annual percentage yield.
What is the difference between the APR and the APY? Explain
DAILY DOUBLE
The APY tells you how much interest a financial institution would pay on a $100 deposit for one year. APR is the flat rate and does not take into account compounding interest.
Restrictions, Fees and Charges, Interest and Special Services should all be considered when opening a ___________ account?
Checking Account
This is a report that accounts for the differences between bank statement and your checkbook balance.
Bank Reconciliation
Stop-payment order
This is an automatic loan made to you if you write a check for more money than you have in your account.
Overdraft Protection
This is the process in which funds are delivered from your checking account to the payee when a check is written as payment. By law institutions are limited to holding funds from checks drawn on local banks to no more than 5 business days.
Check Clearing
A card issued by a financial institution, that allows you to withdraw money from your accounts or pay for purchases by deducting funds directly from your account.
Debit Card
Computer terminals that let you withdraw cash from you account, make deposits, and transfer money from one account to another.
This is the process in which interest is earned on both the principal and on any previously earned interest.
Compounding Interest
This is the machine used to process electronic payments for debit card transactions.
This is the percentage of increase in the value of your savings from earned interest.
Rate of Return