| A | B |
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| Annual Percentage Yield (APY) | Method of calculating interest rate on loans and credit cards that does not take into account the compounding effects of interest. |
| Annual Percentage Rate (APR) | Method of calculating interest rate on loans and credit cards; the annual rate of interest without taking into account the compounding of interest within that year. Provides borrowers with a bottom-line number they can easily compare to rates charged by other potential lenders |
| Automated Teller Machine (ATM) | An electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller. |
| Bank | A financial institution licensed as a receiver of deposits and is regulated by the national government or central bank. Two types: commercial/retail and investment |
| Bank Statement | A bank's record of all the transactions in a checking account. |
| Blank Endorsement | Signature by the creator of an instrument, such as a check, which enables any holder of the instrument to assert a claim for payment. Most well-known example is a check made payable to "cash" and endorsed on the back with the signature of the account holder. This type of signature is considered much riskier than others. |
| Cancelled Check | Checks that have been cashed |
| Cashier's check | A check written by a financial institution on its own funds |
| Certificate of Deposit | A savings instrument offered by commercial banks and insured by the FDIC that entitle the bearer to receive interest. The instrument bears a maturity date, a specified fixed interest rate and can be issued in any various amounts. The term(length) generally ranges from one month to five years. |
| Check | Written order directing a bank to pay money on demand to the person or company named on it |
| Check Float | The amount of time it takes for money to leave your checking account. |
| Checkbook Register | The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals. |
| Checking Account | An account at a bank against which checks can be drawn by the account depositor; either non-interest bearing or very low interest bearing |
| Checking Account Number | Number on checks which denote which account the money is to be taken from |
| Commercial Bank | A financial institution that accepts demand deposits and makes loans and rovides other services for the public |
| Compound interest | Earning interest on previous interest. |
| Credit Card | A card that authorizes the delivery of cash, goods or services for future payment with interest, according to a specific repayment schedule |
| Credit Union | A non-profit financial that is owned and operated entirely by its members |
| Debit Card | A card, issued by a financial institution, that allows consumers to make purchases, withdrawals, or other types of electronic fund transfers directly from checking or savings accounts |
| Demand deposit | A type of bank account from which funds may be withdrawn at any time |
| Deposit | to put cash and or check(s) into an account so that the account is increased |
| Depository Institutions | A financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. |
| Deposits in Transit | Money that has been received by an individual or company and has been deposited at the bank, but which has not yet been processed and posted to the account by the bank; therefore, the funds are not available for use |
| Direct Deposit | An individuals net pay is deposited electronically into their bank account |
| Electronic Funds Transfer (EFT) | Electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems |
| Endorse | To sign a check in order to authorize it |
| Endorsement | Signature of the payee on the back of the check |
| FDIC | Federal Deposit Insurance Corporation; Insures bank accounts up to $100,000 per account |
| Federal Reserve System | The central bank of the United States including 12 specific branches; also known as "the Fed" |
| Fiscal Policy | The means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. |
| Individual Retirement Account (IRA) | A retirement plan that allows workers to set aside money each year in tax-deferred savings |
| Insufficient Funds Check (NSF) | A term used to indicate that the depositor's account is inadequate to cover the check |
| Interest Rate | The price paid for using someone else’s money, expressed as a percentage of the amount borrowed |
| Interest-Bearing Account | Pays earned interest on the balance for the depositor |
| Joint Account | Allows two people to share equal responsibility for the account |
| Liquidty | The ability to convert an asset to cash quickly |
| Monetary Policy | The actions of a central bank (The Fed) that determine the size and rate of growth of the money supply, which in turn affects interest rates; maintained through actions such as increasing the interest rate, changing the amount of money banks need to keep in the vault (bank reserves). |
| Money Market Account | An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability. This account offers the account holder benefits typical of both savings and checking accounts. |
| Money Order | Certificate that allows the stated payee to receive cash on-demand, usually issued by governments and banking institutions |
| Outstanding Check | A check that has been written by an individual or business (and deducted from their bank/cash account) but it has not yet cleared the bank account on which it is drawn. As a result, the bank account balance will be greater than the balance in the checkbook register |
| Overdraft | A check written for more money than your account contains. |
| Overdraft Protection | A line of credit that allows you to spend more funds than your actual balance |
| Payday Loans | Type of loan that is often given to borrowers experiencing cash flow difficulties; characterized by small-dollar, short-term, unsecured lending |
| Payee | A person to whom a check is written |
| Payer | Person signing a check to release money |
| Principal | The original amount of money invested or lent |
| Reconciliation | Comparing and adjusting the checkbook record to balance with the bank statement |
| Restrictive endorsement | Signature by the creator of an instrument, such as a check, that places a limitation on the use of a check. Most common example is the phrase "For Deposit Only" written along with the payee's signature on the back of a check. Other wording includes..."Pay to the Order of...", "For deposit to account #xxxx". |
| Returned Check | Consumer doesn't not have enough in account to cover a written check. A fee is charged against the account and the check is returned |
| Routing/ABA number | A unique code present on a check that identifies a particular bank or finance institution issuing the check |
| Safe Deposit | A box in a bank's vault for the safe storage of a customer's valuables |
| Savings Account | An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time. |
| Service Charge | A fee a bank charges for handling a checking account |
| Special Endorsement | Signature by the creator of an instrument, such as a check, authorizing payment to an entity other than the entity to which the check was originally written. This type of endorsement consists of a signature and a statement identifying the entity to which the check should be paid. |
| Stop-payment order | A request that a bank or other financial institution not cash a particular check |
