15 terms

Lesson 2: Battle of the Banks

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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.
bank fees
money that a bank deducts from an account in return for services the bank provides or as a penalty for the account holder's misuse of the account.
checking account
type of deposit account which lets the account holder write checks or use a debit card to pay bills or buy goods and services.
commercial bank
a standard bank, with both business and retail/consumer divisions.
consumer bank
the division of a commercial bank that deals directly with individual customers; also called a retail bank.
consumer credit
short term loans to consumers made primarily through credit card use for the purchase of goods or services for personal, family, or household purposes.
debit card
a plastic card used to make purchases which deducts money directly from the card holder's checking account when used.
deposit insurance
U.S. government insurance that protects a depositor from loss in the event the bank is unable to repay depositors.
Federal Deposit Insurance Corporation
"FDIC"; an independent agency of the U.S. government which insures the funds deposited in banks and savings associations.
financial services
businesses that manage money and provide financial advice, products, and services such as banks and insurance companies.
minimum balance requirement
the minimum amount of dollars an account holder can have in their bank account without being charged a fee for having a low balance.
Money Market Account
"MMA"; an interest-bearing account which typically pays a higher interest rate than a savings account and provides the account holder with limited withdrawals.
savings account
a type of deposit account that earns interest on the money in the account.
Savings & Loan
"S&L"; specialized banks originally created to promote homeownership and savings, which now function like standard commercial banks; also referred to as a thrift.
time deposit account
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.
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