Direct Deposit
an automatic deposit of net pay to employee's bank account
Automated Teller Machine
a computer terminal that allows a withdrawal of cash from an account
Debit Card
a cash card that allows you to withdrawal money to pay for purchases from your checking or savings account
Point of Sale Transaction
a purchase by a debit card of a good or a service at a retrial store or a restaurant
Commercial Bank
A for-profit institution that offers a full range of financial services including checking, savings and lending
Savings and Loan Association
a financial that specializes in savings and mortgage loans
Credit Union
a non profit financial institution owned by its members organized for their benefit
Certificate of deposit
A saving alternative where money is left on deposit over a period time to earn a specific rate or return
Money Market Account
A savings account that requires a minimum balance and earns interest that varies from month to month
Rate of Return
A percentage of increase in the value of your savings from earned interest
Compounding
A process where interest is earned on both the principal (the original amount you deposited) and on any previously earned interest
Annual Percentage Yield
The amount of interest that a 100 dollar deposit would earn after compounding for one year
Overdraft Protection
An automatic loan made to an account if the balance will not cover checks written
Stop Payment Order
A request that a bank not cash a particular check
Endorsement
A signature of the payee; the party to whom the check has been written
Bank Reconciliation
A report that accounts for the differences between the bank statement and the checkbook balance
Credit
An arrangement to receive cash, goods or services now and pay for them in the future
Consumer Credit
The use of credit for personal needs
Creditor
An entity that lends money
Closed In Credit
Credit as a one time loan that you will pay back over a period of time
Open In Credit
A loan with a certain limit on the amount of money you can borrow
Line of Credit
The maximum amount of money a creditor will allow you to borrow
Grace Period
A time period where no finance charges will be made to your account
Finance Charge
The dollar amount you pay to use credit
Net Income
Take-home pay
Annual Percentage Rate
The cost of credit on a yearly basis expressed as a percentage
Collateral
A form of security to help guaranty that the creditor will be repaid
Simple Interest
Interest computed only on the principal (amount that you borrowed)
Minimum Monthly Payment
The smallest amount you can pay and remain in good standing
Credit Rating
A measure of a persons ability and willingness to make payments on time
Cosigning
You will agree to be responsible for loan payments if the other person fails to make them
Bankruptcy
A legal process in which some or all of assets of a debtor are distributed among creditors