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Urbana- FMDepository
Depository Institutions
| Question | Answer |
|---|---|
| Interest | Money gained or lost. |
| Check 21 | money is automatically withdrawn from an account when a check is written |
| savings tools | savings account, money market deposit account, and certificate of deposits |
| savings account | pays the least interest. Keeps money safe for emergencies or expensive items |
| money market account | pays higher interest rate than savings; may withdraw money |
| Certificate of Deposit | pays highest interest on a lump sum of money, for a specific period of time, pay penalty fee if withdrawn early. |
| FDIC | Federal Deposit Insurance Corporation- insures bank accounts upto $250,000 |
| NCUA | Insures credit union accounts upto $250,000 |
| Credit Union | Members make decisions and share profits. Cheapest loans. Limited services |
| Bank | Private or public and full service. Can provide all forms of savings tools allowed to give financial advice |
| Savings & Loan | Limited service-not allowed to give financial advice has some savings tools. |
| interest rate | Percentage used annually to calculate interest |
| Bouncing a Check | insufficient funds |
| Deposit | Put money into an account |
| Withdrawl | Take money out of an account |
| Specific | State exactly the goal you want to reach |
| Measurable | the amount of money needed to reach the goal |
| Attainable | 3 steps needed to reach your goal |
| Realistic | 2 things you are willing to give up |
| Time bound | the amount of time needed to reach a goal |
| 21st Century Act(Check 21) | Difficult to bounce a check, money is automatically withdrawn |
| Debit Card | used to take money out of your checking account or savings |
| Checks | Legal documents used like cash |
| Interest-earning | pays a small amount of interest |
| Depository Institution | A business that offers & sells financial services to people |