Financial Services
Savings and Loan Associaiton
A financial institution that traditionally specialized in savings accounts and mortgage loans.
Trust
A legal agreement that provides for the management and control of assets by one party for the benefit of another.
Automatic Teller Machine
A computer terminal used to conduct banking transactions.
Mutual Savings Bank
A financial institution that is owned by depositors and specializes in savings accounts and mortgage loans.
Commercial Bank
A financial institution that offers a full range of financial services to individuals, businesses, and government agencies.
Debit Card
A plastic access card used in computerized banking transactions; also called a cash card or ATM card.
Compounding
A process that calculates interest basedon previously earned interest.
Money Market Account
A savings account offered by banks, savings and loan associations, and credit unions that requires a minimum balance and has earnings based on market interest rates.
Certificate of Deposit
A savings plan requiring that a certain amount be left on deposit for a stated time period to earn a specified interest rate.
Money Market Fund
A savings-investment plan, offered by investment companies, with earnings based on investments in various short-term financial instruments.
Asset Management Account
An all-in-one account that includes savings, checking, borrowing, investing, and other financial services for a single fee; also called a cash management account.
Overdraft Protection
An automatic loan made to checking account customers to cover the amount of checks written in excess of the available balance in the checking account.
Share Draft Account
An interest-bearing checking account at a credit union.
Share Account
A regular savings account at a credit union.
Credit Union
A user-owned, nonprofit, cooperative financial institution that is organized for the benefit of its members.
Rate of Return
The percentage of increase in the value of increase in the value of savings as a result of interest earned; also called yield.
Annual Percentage Yield
The percentage rate expressing the total amount of interest that would be received on a $100 deposit based on the annual rate and frequency of compounding for a 365-day period.