Ch 6 Managing Your Personal Finances - Terms
Terms in this set (20)
Annual Percentage Yield (APY)
The actual interest rate an account pays, stated on a yearly basis with the compound interest included.
Money you have authorized your bank or other organization to move from one account to another at regular intervals.
Certificate of Deposit (CD)
A time deposit that earns a fixed rate of interest for a specified length of time.
Interest paid on the original principal plus accumulated interest.
Your net pay is deposited electronically into your bank account.
Early Withdrawal Penalty
An amount you must pay if you take out any part of your money in a certificate of deposit before the maturity date.
Money in the forms of student loans, grants, or work-study programs that a student may receive to help pay for their education.
A form of educational funding that is awarded based on financial need and that does not have to be repaid.
Earnings on principal.
A measure of how quickly you can get your cash without loss of value.
How much you will receive (principal plus accrued interest from date of deposit) if you choose to redeem your certificate of deposit.
The date on which an investment becomes due for payment.
Money Market Account
A type of savings account that offers a more competitive interest rate than a regular savings account.
Payroll Savings Plan
A plan in which you authorize your employer to make automatic deductions from your paycheck each pay period.
1. The amount of money you deposit into a savings account.
2. The amount borrowed on which the borrower pays interest.
Safety of Principal
A guarantee that you will not lose your savings deposit, even if the bank or other financial institution fails and goes out of business.
A cash allowance awarded to a student to help pay education costs.
A form of federal financial aid for which you pay no interest until after you have completed your education, or are no longer enrolled in school.
A form of federal financial aid that starts accruing interest as soon as you use it to pay for tuition or other education costs.
A program that permits students to work at the campus or other college location to earn money.