Checking Accounts and Banking Services Flashcards
What should a check be written in
black or blue ink
a cancelled check
a check that has cleared your account
Overdraft
a check written for more money than in your account
bounced check
when the check is bad or invalid
floating a check
hope you deposit money to cover if before the check clears
competitive equality banking act of 1987
requires that funds are available within 3 business days of deposit
Do checking accounts need a minimum balance
yes
Joint account
2 or more people on the account
what check number should you start with
1500
written amount
use “AND” to separate $ and c
what’re the numbers at the bottom of a check
first is the routing number and the second is the account number
bank reconciliation
process of matching your checkbook register with the bank statement
Blank endorsement
signature of the payee exactly as the front says
FDIC
Federal Deposit Insurance Corporation - insurance which protects the deposits of customers against loss up to $250,00 per account
Certified Check
personal check that the bank guarantees
cashier’s check
a check written by a bank with it’s own funds
overdraft protection
your checks will be covered even if you have insufficient funds in your checking account
Stop payment order
a request that the bank not honor a specific check
safe deposit box
place to store valuables
truth in savings act of 1993
no hidden fees or charges without consent
compound interest
interest that grow your savings substantially
principal
the amount of money you deposit into a savings account
interest
represents earning on principal
Annual percentage year (APY)
actual interest rate an account pays, stated on a yearly basis with the compounding included
liquidity
a measure of how quickly you can get your cash without loss of value
certificate of deposit (CD)
time deposit; a deposit that earns a fixed interest rate for a specific time
maturity date
date on which an investment becomes due
automatic deductions
letting the bank automatically transfer money
how long do you have to cash a check
6 months
what happens when you use an ATM thats not your bank
you get charged
how to you mark a bad check
write VOID across it
do credit cards have interest
yes
how does compound interest work
the more your money compounds, the more you build (yearly vs. monthly)
high liquidity
low interest
