Personal Finance--Unit 5

Saving in Loan Association

A financial institution that traditionally specializes in savings accounts and mortgage loans

Credit Union

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

Commercial Bank

A profit institution that offers a full range of financial services, including checking, savings, and lending

Point of Sale Transaction

A purchase by a debit card of a good or service at a retail store, restaurant or else where

Bank Reconciliation

A report that accounts for the differences between the bank's statement and the checkbook balance

Money Market Account

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

Certificate of Deposit (CD)

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

Direct Deposit

An automatic deposit of net pay to an employee's designated bank account

Overdraft Protection

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

Compounding

The process in which interest is earned in both the principle (the original amount you deposited) and any previously earned interest

Endorsement

The signature of the payee (party to whom the check has been written)

Stop Payment Order

This is a request that a bank or another financial institution not cash a particular check

Debit Card

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

Automated Teller Machine

A computer terminal that allows for the withdrawal of cash from an account

Annual Percentage Yield (APY)

The amount of interest a $100 would earn after compounding for one year

Rate of return

The percentage of increase in the value of your savings from earned interest