Banking Services
check-cashing outlets
charge high fees (sometimes 2 or 3 percent) just to have a paycheck or government check cashed.
pawn shops
charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items).
check printing fee
a fee you automatically pay the bank when purchasing checks, it's deducted from your checking account
point-of-sale transaction
a purchase by a debit card of a good or service at a retail store, a restaurant, or elsewhere
what is a per check fee?
it's a fee you pay depending on a certain amount of checks you pay or you pay the fee every time you write a check
what do automatic payments pay for?
loan payments, utility companies, etc
what is another term for monthly service fee and what is it for?
maintenance fee; it's a fee the bank charges you each month for having an account with them
check-deferral services
allow consumers to get a cash advance on their next paycheck. However, these short-term loans are very expensive. A $200, two-week advance may cost over $30 (with annual costs exceeding $900).
interest-bearing account
an account that earns interest on the balance for the depositor. the minimum balance is usually $1,000
electronic cash
companies are developing electronic replicas of all existing payment systems—cash, check, credit cards, and coins.
what are 3 examples of electronic banking services?
direct deposit, online banking, and automatic payments
whats is the term for a minimum deposit that earns interest?
interest rate earned
what is a phone inquiry fee?
when you call the bank to check the balance of your balance or to see if a check has been deposited
what is a direct deposit?
your earnings directly deposited to your bank account
rapid-refund tax services
provide "instant refunds" when you pay to have your federal tax return prepared. However, this "instant refund" is a loan with interest rates as high as 120 percent.
with a regular checking account, there is usually a minimum balance required to waive the monthly service fee. this type of account usually offers unlimited check writing privileges.
regular checking
teller fee
some banks may charge a fee if you use a teller to make deposits or withdrawals more than a set number of times each month. banks that charge this fee do so to encourage you to use an ATM for your basic banking transactions.
fee for helping you balance your checkbook
some banks will help you balance your checkbook. others might charge you for this service
whenever you lose a check or need to make sure a check is not paid by the bank for some other reason, what is the fee called?
stop-payment fee
when a deposited check makes your account bounce
return deposit item
what is another term for smart cards?
"electronic wallets"
a few you pay every time you use and automatic teller machine
atm-use fee
what does ATM stand for?
automatic teller machine
if you do not plan to write many checks, a free or low-cost checking account might be right for you. the charge for a low-cost checking account is often no more than $5 per month. however, there may be a limit to the number of checks you can write.
free/low cost checking
overdraft fee is also called a what?
non-sufficient funds (NSF) : a fee you pay the bank when you want to return a check
rent-to-own programs
offer an opportunity to obtain home entertainment systems or appliances for a small weekly fee. However, the amount paid for the item usually far exceeds the cost if the item were bought on credit.
what are stored-value cards used for?
telephone services, transit fares, highway tolls, laundry services, library fees, and school lunches
what is electronic/atm checking?
this account usually requires you to use direct deposit. if you do not plan to use teller services often, an electronic checking account might be right for you. this type of account usually allows you to write an unlimited amount of checks per month without incurring a fee for each check you write. you may be charged for in-person teller services.