Banking and Checking

Debit Card

A cash card that allows you to withdraw money or pay for purchases from your checking or savings account.

Returned Check Fee

A charge a credit card company may assess to a customer's account if the customer attempts to pay a credit card bill with a check that is returned unpaid. This discourages credit card customers from submitting checks that they know will not clear because their checking account has insufficient funds.

Cashier's Check

A check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Bounced Check (NSF)

A check that cannot be processed because the writer has insufficient funds. It will be often be returned to the writer along with a penalty fee for Non-Sufficient Funds.

Certified Check

A check that is guaranteed by a bank.

Payee

A person to whom money is paid, especially the person to whom a check is made payable.

Money Order

A printed order for payment of a specified sum, issued by a bank or post office.

Point of Sale Transaction

A purchase by a debit card of a good or service at a retail store, a restaurant, or elsewhere.

Stop Payment Order

A request that a bank or other financial institution not cash a particular check.

Money Market Account

A savings account that requires a minimum balance and earns interest that varies from month to month.

Certificate of Deposit

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

Credit Card

A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.

Overdraft Protection

An automatic loan made to an account if the balance will not cover checks written.

Regular Savings Account

Best if you make frequent deposits and withdrawals. These accounts: Require little to no minimum balance. Allows you to withdraw money on demand.

Bank Statement

Is a monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits and a running bank balance.

FDIC (Amount of Coverage)

Protects deposits in banks. Insures federally chartered banks up to $250,000.00 per person, per bank.

Endorsement

The Signature of the payee, the party to whom the check has been written.

Annual Percentage Yield (APY)

The amount of interest that a $100 Deposit would earn, after compounding, for one year.

Floating a Check

The amount of time between when an individual writes and submits a check as payment and when the individual's bank receives the instruction to move funds from the account.

Checkbook Register

The journal used to record all the checks, cash payments, and outlays of cash during an accounting period.

Rate of Return

The percentages of increase in the value of your savings from earned interest.

Regular Checking Account

Usually no minimum balance, but sometimes monthly service charges if: The account requires a minimum balance. Your account drops below that amount.