| A | B |
|---|
| Principal | amount of money deposited |
| Time | # of yrs or mos. the $ is deposited |
| Rate of Interest | amt. paid on each $ saved |
| Interest | $ you earn by allowing bank to use your money |
| simple interest | amt. of $ earned on the money deposited |
| compound interest | interest on interest |
| annually | every year |
| semiannually | every 6 months |
| quarterly | every 3 months |
| monthly | every month |
| daily | every day |
| yield | amt. of $ you will earn in interest |
| savings accounts | acct. with low rate of interest/few restrictions |
| liquidity | flexibility |
| CD | Certificate of Deposit |
| MMDA | Money Market Deposit Accounts |
| EFTS | Electronic Fund Transfer Systems |
| ATM | Automated Teller Machine |
| Nonnegotiable | Cannot be cashed |
| POS | Point-of-sale transfers |
| PIN | personal identification number |
| Congress in 1979 | Electronic Fund Transfers Act |
| certified check | personal check certified by bank |
| cashier's check | signed by the cashier of the bank |
| traveler's check | can buy in various amounts/used as cash |
| money order | register check or cashier check |
| safe-deposit boxes | containers to rent inside a bank |
| debit card | used like a check/transfers $ directly from acct. |
| preauthorized transfers | pays bills for you |
| 4% | .04 |
| 5 3/4% | .0575 |
| 12 1/4% | .1225 |
| 7 1/2% | .0750 |
