COPYRIGHTED MATERIAL
WHAT DOES THAT MEAN?
TERM
DEFINITION
bank fees
money that banks deduct from an account in return for services the bank provides or as a penalty for the account holder’s misuse of the account. “CD”; a financial product commonly sold by banks; CDs are similar to savings accounts but earn a higher interest rate and have time restrictions on withdrawal. type of deposit account which lets the account holder write checks or use a debit card to pay bills or buy goods and services. the division of a commercial bank that deals directly with individual customers; also called a retail bank. short term loans to consumers made primarily through credit card use for the purchase of goods or services for personal, family, or household purposes. a plastic card used to make purchases which deducts money directly from the card holder’s checking account when used. U.S. government insurance that protects a depositor from loss in the event the bank is unable to repay depositors. “FDIC”; an independent agency of the U.S. government which insures the funds deposited in banks and savings associations. businesses that manage money and provide financial advice, products, and services such as banks and insurance companies. the minimum amount of dollars an account holder can have in their bank account without being charged a fee for having a low balance. “MMA”; an interest-bearing account which typically pays a higher interest rate than a savings account and provides the account holder with limited withdrawals. a type of deposit account that earns interest on the money in the account. “S&L”; specialized banks originally created to promote homeownership and savings, which now function like standard commercial banks; also called a thrift. a type of bank account that pays a higher rate of interest in exchange for the account holder’s agreement to not withdraw the funds before a set date; Certificate of Deposit. a standard bank, with both business and retail/consumer divisions.
Certificate of Deposit
checking account
commercial bank consumer bank
consumer credit
PRODUCT PREVIEW
debit card
deposit insurance
Federal Deposit Insurance Corporation
financial services
minimum balance requirement Money Market Account savings account Savings & Loan
time deposit account
Access vocab ashcards at www.c21publishing.com
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Chapter 2 | Battler of the Banks
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