direct deposit |
an automatic deposit of net pay to an employee’s designated bank account |
automated teller machine (ATM) |
a computer terminal that allows a withdrawal of cash from an account |
debit card |
a cash card that allows you to withdraw money or pay for purchases from your checking or savings account |
point-of-sale transaction |
a purchase by a debit card of a good or service at a retail store, a restaurant, or elsewhere |
commercial bank |
a for-profit institution that offers a full range of financial services, including checking, savings, and lending |
savings and loan association (S&L) |
a financial institution that traditionally specialized in savings accounts and mortgage loans but now offers many of the same services as commercial banks |
credit union |
a nonprofit financial institution that is owned by its members and organized for their benefit |
certificate of deposit (CD) |
a savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return |
money market account |
a savings account that requires a minimum balance and earns interest that varies from month to month |
rate of return |
the percentage of increase in the value of your savings from earned interest |
compounding |
the process in which interest is earned on both the principal—the original amount you deposited—and on any previously earned interest |
annual percentage yield (APY) |
amount of interest that a $100 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 or other financial institution not cash a particular check |
endorsement |
the 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 your checkbook balance |