chapter 5
share draft account
an interest bearing checking account at a credit union
rate of return
the percentage 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
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
ATM
a computer terminal used to conduct banking transactions; also called a cash machine
trust
a legal agreement that provides for that management and control of assets by one party for the benefit of another
debit card
a plastic access card used in a computerized banking transactions; also called a cash card
compounding
a process that calculates interest based on previously earned interest
share account
a regular savings account at a credit union
money market account
a savings account offered by banks, savings and loan associations, and credit unions that requires a minim balance and has earnings based on market interest rates
certificate of deposit
a savings plan requiring that a certain amount be left on a deposit for a started time period to earn a specified interest rate
credit union
a user-owned, non-profit, 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; also called cash management account