Personal Finance Chapter 4
trust
a legal agreement that provides for the management and control of assets by one party for the benefit of another
debit card
a plastic access card used in computerized banking transactions; also called a cash card
certificate of deposit
a savings plan requiring that a certain amount be left on deposit for a slated time period to earn a specified interest rate
credit union
a user-owned, nonprofit, cooperative financial institution that is organized for the benefit of its members
asset management account
an all-in-one account that includes savings, checking, borrowing, investing, and other financial services for a single fee; aka cash management account
mutual savings bank
a financial institution that is owned by depositors and specializes in savings accounts and mortgage loans
savings and loan association
a financial institution that traditionally specialized in savings accounts and mortgage loans.
money market fund
a savings-investment plan offered by investment companies, with earnings based on investments in various short-term financial instruments
automatic teller machine
A computer terminal used to conduct banking transactions; also called a cash machine.
commerical bank
A financial institution that offers a full range of financial services to individuals, businesses, and government agencies.
compounding
A process that calculates interest based on 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.
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
rate of return
The percentage of increase in the value of your savings from earned interest.
annual percentage yield
The percentage rate expressing the total amount of interest that would be recieved on $100 deposit based on the annual rate and frequency of compounding for 365-day period.