EverFi Banking Basics 1, 2, & 3

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Mutual, Index, & Exchange-Traded Funds

A mix of stocks, bonds, and other investments.

Loan Officer

Advises, evaluates, and signs off on loans to individuals and businesses.

Transparent

Banks must tell you when the money you are depositing will be available to you to use.

Credit Union banks

Banks that are not-for-profit institutions that are co-owned by their members

Online banks

Banks that can only be accessed on the internet

Brick and Mortar banks

Banks that have physical buildings

Investing Goal

Better for long-term goals; college; retirement; risky; higher (10%) return each year

Savings Goal

Better for short-term goals; buying a car; emergency fund; not too risky; low (1%) return each year

Date

Cannot be post-dated; has to be a current.

Skimmers

Devices on debit card machines that steal your card information.

BAD things about ONLINE banks

Difficult to deposit cash; Internet connection could glitch; May not have access to checking accounts

GOOD things about ONLINE banks

Earn a little more interest; Pay a little less interest on your loans; More ATMs

Compound Interest

Earn interest on your money AND on the earned interest.

Simple Interest

Earn interest on your money.

BAD things about CASH ADVANCE/PAYDAY LOANS

Fees; lots of interest; could fall into a bad loan cycle

Cash Advance and Payday Loans

For people without accounts at a bank or credit union; Get money quickly; high risk

GOOD things about CREDIT UNIONS

Free checking account - low deposit, low fees; Low rates on loans; Online banking; Join with members who have same values as you

GOOD things about BRICK and MORTAR banks

Get cash for checks; debit card; loans; deposit; use their website; speak to someone in person

BAD things about CREDIT UNIONS

Have to eligible to join; Fewer branches available in your area

Customer Service Representative

Helps customers/members with any questions.

Teller

Helps with account transactions (deposits/withdrawals)

Branch Manager

Manages all the employees at a specific location.

GOOD things about CASH ADVANCE/PAYDAY LOANS

Money quickly; 24/7 Access

PIN

Personal Identification Number needed to use a debit card.

ATM Awareness

Plenty of lighting; be aware of your surroundings; pay attention to suspicious people; shield the keypad;

Endorse

Record of you approving the check to be transferred to your bank account.

Money Market

Saving account - offers higher interest rate; usually require higher minimum balance.

CD (Certificate of deposit)

Savings account that stores money for a pre-set period of time.

529

Savings plan - you can save your post-tax money for certain education expenses and interest will grow tax-free.

Stocks

Share of ownership in a company.

18

The age you need to be to open your OWN banking accounts.

Safe by FDIC (Federal Deposit Insurance Corp)

The money you deposit into your account is federally insured up to a certain amount.

Routing Number

This number, in left corner of your check, is used to identify your bank.

Account Number

This number, in the middle of your check, is a unique number assigned to your bank account.

Checking Account

Used for everyday transactions through checks and debit cards. (fees vary) (may earn interest)

Savings Account

Used to store money for longer-term goals. (limited withdrawals) (usually earns interest)

Overdraft

When you accidentally spend more money than is in your account.

Payee

Who the check is written to.

Accountable

You can file complaints about your bank with a regulatory agency.

Protected

You may not be financially responsible for electronic transactions you didn't give permission for.

Bonds

a debt investment where you lend money to a company and get interest in return.

BAD things about BRICK and MORTAR banks

earn little interest; pay higher fees; closed after certain hours

ATM fee

fee for using ATM that belong to other banks


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