Banking Flashcards
Credit Union
not-for-profit financial institution for group members (ex. Teachers have credit unions),
Debit Card
Money is deducted from your account using a PIN
What does PIN stand for?
Personal Identification Number
What is a PIN?
4 digit code used at ATM and Debit card machines at checkout
When creating your PIN….?
It should be a unique number combination and should NOT be your birthday or social security number
Minimum balance checking
You pay a fee if your balance drops below a certain amount
Credit Card
Able to but without cash, have to pay back later
Debit Transaction
To REMOVE money from checking account
Balance
Amount of money in your account
Transfer
Moving money from one account to another
Fee
Money charged for a service (internet banking, stop payment, overdraft, going below minimum balance, using another bank’s ATM)
Overdraft
When you write a check asking for more money that you have in your account
Bounced Check
The check written for more money than money in your balance
What is the FDIC?
Federal Deposit Insurance Corporation
Insures up to $250,000 for banks
Deposit
To ADD money into your checking account
If you make a mistake on your check…
Write “VOID” across the entire check
What is an endorsement on a check?
Your signature on the back of the check to confirm both parties have agreed to exchanges the written amount
Blank Endorsement
LEAST SAFE - name with no written instructions
ex. ANDREALOU LAGUERAS
Restrictive Endorsement
Can be deposited into a bank account, but not cashed
ex. FOR DEPOSIT ONLY - ANDREALOU LAGUERAS
Full Endorsement
MOST SAFE - able to your check give to someone else who can endorse and cash/deposit it
ex. PAY TO THE ORDER OF ANDREALOU LAGUERAS
Outstanding Check
A written check that you haven’t cashed/deposited yet
Not included in your account statement
Bank account statement
The bank’s record of your transactions for the month.
Includes checks paid, deposits, and service charges
3 advantages of mobile banking
- can check bank balance, mortgages, loans, bank statements, investments, and savings accounts
- can pay bills and transfer $$$ to other accounts
- go paperless - no mail!
-can set up/cancel direct debits and standing orders
Peer to peer payment
To pay your friends back digitally
