| A | B |
|---|
| interest | the amount of money the bank pays you for the use of your money |
| principal | the amount of money deposited |
| time | the number of years or months for which interest is paid |
| interest rate | the percentage of the principal paid for the use of your money |
| compound interest | interest earned on interest |
| savings account | an account from which you can easily withdraw your money |
| liquid assets | assets you can quickly and easily turn into money |
| low minimum balance | a stated minimum balance kept in a savings account |
| savings deposit slip | filled out when you put money in a savings account |
| savings withdrawal slip | filled out when taking money out of a savings account |
| money market deposit account | a type of savings plan that usually earns higher interest than a regular savings account an limited check-writing ability |
| variable | changes - sometimes daily |
| certificate of deposit | a special type of savings account - interest rate is higher than regular savings account or an MMDA |
| yield | refers to interest rate |
| matures | when a CD reaches the end of the stated time period for cashing in |
| Individual Retirement Accounts | savings accounts that offer a way to save for retirement and enjoy tax benefits |
| deferred | means put off |
| Internal Revenue Service | arm of the government that collects taxes |
| electronic funds transfer system | gradually replacing paper-based banking procedures |
| payee | person or business to whom a payment is made |
| direct deposit | having a paycheck put directly into an employees account |
| automatic teller machine | computer terminal where a bank customer can perform financial transactions |
| personal identification number | the number used to identify yourself at an ATM |
| code | another method of identification at an ATM |
| online banking | use of the Internet to perform banking activities |
| opint-of-sale transfer | allows a customer to pay a retailer by using a debit card instead of a check or currency |
| debit card | activate a financial transaction in a store at the point of sale |
| bank money order | buyer of this pays the amount of the purchase plus a service charge |
| traveler's checks | obtained if you don't want to carry a large amount of cash while traveling |
| safe-deposit boxes | rented containers inside a bank's vault |
