| A | B |
|---|
| savings plan | a strategy for using money to reach important goals and to advance your financial security. |
| emergency fund | is an amount of money you can easily access in case of unexpected expenses. |
| SMART goal | something you want to achieve stated in terms that are specific, measurable, achievable, realistic, and time based. |
| savings account | an account designed for accumulating money for future use. |
| annual percentage yield (APY) | the rate of yearly earnings from an account, including compound interest. |
| interest-bearing savings account | a type of demand deposit account that pays interest and allows for regular deposits and withdrawals. |
| high-yield savings account | an account that pays a higher interest rate than passbook and statement savings accounts. |
| money market account | a type of savings account that requires a higher minimum balance than regular savings accounts, but it offers a higher interest rate. |
| certificate of deposit (CD) | a savings account that requires a deposit of a fixed amount of money for a fixed period of time. |
| simple interest | interest earned only on the principal, which is the amount of money originally deposited. |
| compound interest | an amount calculated using the principal (money deposited) plus the interest it earns. The interest previously earned is included in the total before new interest earnings are computed. |
| Rule of 72 | an equation that estimates how long it will take to double an investment with a fixed interest rate. |
| tax exempt | means free of certain taxes. |
| tax deferred | taxes on the principal and/or earnings are delayed until the funds are withdrawn. |
| online-only bank | also called an Internet-only bank, is a financial institution that conducts customer transactions via the Internet. |
| share account | a savings account at a credit union. |
| brokerage firm | a place where you can purchase a variety of investment products as well as open savings accounts. |
