Personal finance Chapter 4 terms
money order
a check issue by a bank, post office, stores to allow you to make a payment
cashiers check
a check issued by a financial institution,
commercial bank FDIC
a full institution that offers a full range of financial services to individuals, business . organized as corporations with investors FDIC to 250,000.00 per
certified check
a personal check with guaranteed payment.
money market accounts
a savings account offered by banks, savings, and loan associations and credit unions that require a minimum balance and has earnings based on market interest rates
CD
a savings plan requiring a certain amount to be left on deposit for a stated time period to earn specific interest
travelers checks
allow you to make payments when you are away from home. It requires that you sign these checks twice.
special endorsement
allows you to transfer a check to someone else with the words," pay to the order of" followed by the name of the person and then your signature
checking accounts
an account that allows you to make payments by transferring money to others for daily business activities. generally called demand deposits
restrictive endorsement
consists of the words For Deposit only followed by your signature
blank endorsement
is just your signature which should be used only when you are actually depositing or cashing the check.
savings account
provides safe storage of funds for future use commonly referred to as time deposits
truth in lending Act
requires disclosure of fees, interest rates and APY
credit union
user owned, non-profit cooperative institution that is organized for the benefits of the members NCUA National Credit Union Association
services provided
Direct deposit- paychecks or other regular income fund transfers-- transfer money from accounts debit card- or cash card a plastic access card used in computerized banking transactions that deducts money directly and immediately from your account ATM--obtain cash, transfer funds or check account balances. some have fees
