EverFi Banking Basics 1, 2, & 3
Mutual, Index, & Exchange-Traded Funds
A mix of stocks, bonds, and other investments.
Loan Officer
Advises, evaluates, and signs off on loans to individuals and businesses.
Transparent
Banks must tell you when the money you are depositing will be available to you to use.
Credit Union banks
Banks that are not-for-profit institutions that are co-owned by their members
Online banks
Banks that can only be accessed on the internet
Brick and Mortar banks
Banks that have physical buildings
Investing Goal
Better for long-term goals; college; retirement; risky; higher (10%) return each year
Savings Goal
Better for short-term goals; buying a car; emergency fund; not too risky; low (1%) return each year
Date
Cannot be post-dated; has to be a current.
Skimmers
Devices on debit card machines that steal your card information.
BAD things about ONLINE banks
Difficult to deposit cash; Internet connection could glitch; May not have access to checking accounts
GOOD things about ONLINE banks
Earn a little more interest; Pay a little less interest on your loans; More ATMs
Compound Interest
Earn interest on your money AND on the earned interest.
Simple Interest
Earn interest on your money.
BAD things about CASH ADVANCE/PAYDAY LOANS
Fees; lots of interest; could fall into a bad loan cycle
Cash Advance and Payday Loans
For people without accounts at a bank or credit union; Get money quickly; high risk
GOOD things about CREDIT UNIONS
Free checking account - low deposit, low fees; Low rates on loans; Online banking; Join with members who have same values as you
GOOD things about BRICK and MORTAR banks
Get cash for checks; debit card; loans; deposit; use their website; speak to someone in person
BAD things about CREDIT UNIONS
Have to eligible to join; Fewer branches available in your area
Customer Service Representative
Helps customers/members with any questions.
Teller
Helps with account transactions (deposits/withdrawals)
Branch Manager
Manages all the employees at a specific location.
GOOD things about CASH ADVANCE/PAYDAY LOANS
Money quickly; 24/7 Access
PIN
Personal Identification Number needed to use a debit card.
ATM Awareness
Plenty of lighting; be aware of your surroundings; pay attention to suspicious people; shield the keypad;
Endorse
Record of you approving the check to be transferred to your bank account.
Money Market
Saving account - offers higher interest rate; usually require higher minimum balance.
CD (Certificate of deposit)
Savings account that stores money for a pre-set period of time.
529
Savings plan - you can save your post-tax money for certain education expenses and interest will grow tax-free.
Stocks
Share of ownership in a company.
18
The age you need to be to open your OWN banking accounts.
Safe by FDIC (Federal Deposit Insurance Corp)
The money you deposit into your account is federally insured up to a certain amount.
Routing Number
This number, in left corner of your check, is used to identify your bank.
Account Number
This number, in the middle of your check, is a unique number assigned to your bank account.
Checking Account
Used for everyday transactions through checks and debit cards. (fees vary) (may earn interest)
Savings Account
Used to store money for longer-term goals. (limited withdrawals) (usually earns interest)
Overdraft
When you accidentally spend more money than is in your account.
Payee
Who the check is written to.
Accountable
You can file complaints about your bank with a regulatory agency.
Protected
You may not be financially responsible for electronic transactions you didn't give permission for.
Bonds
a debt investment where you lend money to a company and get interest in return.
BAD things about BRICK and MORTAR banks
earn little interest; pay higher fees; closed after certain hours
ATM fee
fee for using ATM that belong to other banks
