| A | B |
|---|
| checking account | a demand deposit account on which checks are drawn |
| check | a written order to a bank to pay a stated amount to the person or business named on the face of the check |
| check register | a tool that can ge used to track checking account transactions |
| deposit | money added to a checking or savings account |
| withdrawal | when you take money from your account |
| postdated check | a check written with a date that will occur in the future |
| debit card | a bank card used to withdraw or deduct money from your checking account |
| endorsement | a signature, with or without instructions, written on the back of a check |
| electronic funds transfer | the use of a computer-based system to move money from the drawer's account ot the payee's account |
| bank reconciliation | the process of adjusting the check register and bank statement balances so that they agree |
| savings account | a demand deposit account designed for the accumulation of money in a safe place for future use |
| liquid | the capability to withdraw money at any time without penalty |
| principal | the sum of money set aside on which interest is paid |
| simple interest | interest computed on principal once in a certain period of time |
| compound interest | interest earned on both principal and previously earned interest |
| annuity | a fixed amount set aside on a regular basis over time |
| Rule of 72 | a quick formula for computing how long it will take to double money invested at a given interest rate |
| money market account | a type of savings account that earns the market rate of interest on the money deposited |
| certificate of deposit | a time deposit that pays a fixed rate of interset for a specified length of time |
| U.S. savings bond | a bond issued by the federal government that pays a guaranteed minimum rate of interest |
| cashier's check | a check issued against bank funds |
| certified check | a personal check that the bank guarantees |
| stop payment | an instruction to the bank not to honor a check that has been issued or lost |
| smart card | a card that contains a computer chip that stores electronic money |
| overdraft protection | a bank service that covers a shortage in your account |
| Internet banking | accessing and managing your account online |
| safe deposit box | a secure container located in a bank vault |
| bounced check | a check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds |
| inactive account | an checking account or savings account that does not meet minimum usage requirements |
| floating a check | writing a check and planning to make a deposit later to cover it before the check is processed |
