Personal finance unit 3

direct payment

Authorize bills to be paid by a specific depository institution account.

Home banking can be performed in what ways?

Banking apps, internet, etc.

Depository Institutions

Business which offers multiple services in banking and finance

interest rate

The percentage used annually to calculate the total interest either earned or paid from an account supplied by a depository institution.

commercial bank

Full-service institutions because they offer a wide variety of services.

checking account

Paper checks or debit cards are used to withdraw money deposited into an account to pay for items.

Federal reserve bank

Part of the central banking system in the United States.

PIN

Personal identification number required for debit cards to be used.

You send a check to someone three months ago, but you were informed the check was never received. What is the first thing you should do?

call the bank, put a stop payment on it, and then issue a new check if you want.

Where can ATMs be found ?

financial institutions, supermarkets, convenience stores, gas stations

Characteristics of commercial banks

largest depository institutions, Considered full-service depository institutions because offer a wide variety of services and products, available to a variety of consumers

How long does a depository institution's online bill pay keep your payment history for?

2 years

Credit Union

A nonprofit financial institution that is owned by its members and organized for their benefit.

debit card

A plastic card that looks like a credit card but is electronically connected to the card holder's depository institution.

Direct Deposit

Allows paychecks and benefit checks to be directly deposited into a specified depository institution account.

What are ATMs?

Electronic computer terminals which offer automated, computerized banking

If a check has cleared the bank, could it still "bounce"?

No, once a check has been cashed and through the banking system it cannot be bounced.

mutual fund

Stocks, bonds, other investments managed by a brokerage firm.

Can you divide your checks into multiple accounts with direct deposit?

Yes

If you add a restrictive phrase like "for deposit only", is an endorsed check the same as cash?

Yes

Online bill pay allows individuals to do what?

automatically save payment info so they do not have to worry about paying bills every month because the bank does it for you.

What is the difference between a debit card and a credit card?

money is automatically removed from the account when the purchase is made, where as a credit card money is taken out once a month.

Characteristics of credit unions

non-profit cooperative depository institution, owned by members who share a common bond.

What are some features of direct deposits and direct payments?

paycheck will already be in account, do not need to go to the bank, easily divide paychecks, can get paycheck even if they are absent that day.

What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?

protects depository institution accounts, insures commercial banks and savings and loan institutions.

What benefit is provided by financial institutions?

security, convenience, wide variety of services (loans, credit cards, safety deposit box)

One type of online banking called "Recurring Payment" allows the consumer to...

set up scheduled payments for bills like electricity.

What are some hints that give it away that you have received a scam email?

strange email attachments, spelling errors, weird/no subject, asks for personal information.

What are 3 advantages of online banking?

you can request transfers, pay bills, and automate your savings without visiting the bank branch. 24 hour access, notifications for bills.