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800 Vocabulary
PF
| Term | Definition |
|---|---|
| bank | a financial institution licensed to receive deposits and provide services |
| Federal Deposit Insurance Corporation (FDIC) | independent federal agency that insures deposits in bank accounts up to $250,000 |
| National Credit Union Administration (NCUA) | independent federal agency that insures deposits in credit unions up to $250,000 |
| unbanked | people who don’t have bank accounts |
| underbanked | people who have savings or checking accounts but still use alternative financial products and services |
| retail banks | for-profit financial institutions that accept deposits and offer a variety of deposit accounts and financial services |
| credit unions | nonprofit financial institutions that are owned and operated by their member; offer deposit accounts and lending services similar to a retail bank but at a lower cost |
| online banks | also known as internet banking; all transactions done online; no physical location |
| overdraft protection | an option offered by banks to cover overspending an account and then charge a fee for it |
| overdraft fee | a penalty charged if the account holder spends more than their account balance, causing the available balance to go below zero |
| liquidity | how quickly you can access the money in an account or the value of an asset without the penalty or fee |
| checking account register | also called a leger; a lined and divided journal to record checking account activity |
| direct deposit | option to allow automatic electronic deposit of your payroll checks |
| reconciling | the process of making sure you and the bank agree on how much money is in your checking account |