Chapter 2 checking accounts

debit card

a card that allows the user to withdraw money from their account to obtain cash or make purchases.

overdraft penalty

a fee to cover the processing of your bad check

atm

a machine that allows you to perform basic banking functions

online banking

allows account holders to access their account information, view transaction history and perform banking transactions via the internet

minimum account balance

amount of money you must keep in the account to avoid service charges, qualify for special service or earn interest on the checking account

Interest bearing account

an account that earns interest

overdraft protection

arrangement with the bank to cover checks so they will not bounce

balance/reconcile

compare the amount of money in an account

pin#

four digit code connected to the debit card; verifies your identity

overdrawn

having a negative balance in your account

statement balance

how much money you have in your checking account as of the statement date

deposit/credit

money you put into your account

identity theft

stealing someone's, identifying information and using it to make purchases or to get other benefits

eft

the movement of funds using computer systems, telephones or electonic terminals

debit

withdrawal from your account

check

written order specifying the amount of money to be paid and the name of the person or company who should receive the funds.