Automated Teller Machine (ATM):
A machine that allows account holders to make deposits or withdrawals and perform other transactions 24 hours a day at most locations. To use an ATM, you need an ATM card and a Personal identification Number
(PIN). Automated Teller Machine (ATM) Card: A plastic card with a
magnetic strip. With an ATM card and a PIN, you can make deposits or withdrawals from ATMs.
Automated Teller Machine (ATM) Network: A regional, national or international network
that enables consumers to do transactions at ATMs. Your financial institution must belong to the network for you to use the network ATM.
Balance: The amount of money
you have in your deposit account. Balancing: Comparing your account records to the monthly or quarterly statement provided by your financial institution, adding any interest earned
and subtracting any fees charged. When you have finished, the closing balance on the institution's statement should equal the balance shown in your records, after taking into consideration any outstanding
transactions. Banks: Financial institutions that are businesses operating under federal and state regulations. They offer a variety of services such as savings accounts, checking
accounts, safe deposit boxes, loans and investments. Accounts in most banks are insured against loss by the Federal Deposit Insurance Corporation (FDIC). Basic Checking Account: A
checking account that usually allows a limited number of deposits and withdrawals for a minimum fee. Bounced Checks: When a check you wrote reaches the financial institution and
there is not enough money in your account to cover it, your institution returns the check to the person or business you wrote it to, and charges you a fee (often as much as $25). Checks returned to the
person or business you wrote them to are said to "bounce." Put money in your account to cover the check, as it will be redeposited. Branch: Financial institutions may have
several locations: a central or main location and others. Other locations are called branches. Cashier's Check: You provide cash or money from your account in the
amount of the check plus a service charge (usually from $2 to $5), and tell the institution for whom the check is intended. The institution writes a check (also called a bank check or teller's check) for you
that is guaranteed not to bounce. Available from financial institutions. Certificate of Deposit (CD): A specialized savings account that involves depositing money for a fixed period
of time (such as three or six months, one or five years). Money usually earns more interest in a CD than in a regular savings account. Longer periods may result in higher interest rates. Taking out money
sooner than you promised means paying penalties and possibly losing any interest you may have earned. Certified Check: A check you write and take to your financial institution. The
institution will mark it "certified" for a fee (usually from $2 to $5) and place a hold on the funds in your account until the check clears. A certified check is guaranteed not to bounce. Checks: Forms from your financial institution or available through mail-order companies. Checks allow you to send money from your checking account through the mail or pay at stores
without the risk of losing cash, and serve as receipts for payments you make in person or by mail. Checkbook: A plastic folder with pockets for holding checks and your checkbook
register. Checkbook Register: A booklet for keeping track of deposits, withdrawals and checks written on your checking account, essential for making sure you always know how much
money is in your account. Checking Account: A deposit account that allows you to write checks, to pay bills or for purchases. The checks are drawn on money you deposit. Clears: A check you write clears when the amount of the check has been withdrawn from your checking account by the financial institution. Closing Balance: On your
monthly or quarterly statement, the closing balance is the amount of money in your account at the end of the statement time period. The closing balance reflects any fees or service charges and withdrawals
taken from your account, plus all deposits and interest added to your account during the statement time period. Club Account: A type of savings account that you "join" to
save money for a special reason, such as holidays or a family vacation. Club accounts typically require that regular deposits be made. Interest rates are usually lower than for regular savings accounts. Cooperatives: Member-owned, member-controlled, not-for-profit organizations that exist for the benefit of those using their services. Credit Unions:
Nonprofit financial institutions owned by members who have something in common. You must be within the credit union's field of membership to join a credit union. All individuals must share a common bond with
one another either in a single group, a multiple group or a community credit union. There are three types of common bonds. 1) Work-related: If your employer belongs to a credit union, you should be eligible
to join. 2) Mutual interest. Your house of worship or local community group may have started or may belong to a credit union you can join. 3) Where you live: Your neighborhood or county may have established
a community credit union for all people living within your geographic area. Credit unions operate under federal or state laws. Many offer a variety of services such as share (savings) accounts,
share draft (checking) accounts and ATM cards. Accounts in credit unions are insured. Most credit unions have their accounts insured by the federal government. Some state chartered credit unions have private
insurance. Currency: Paper money, such as 1-, 5-, 10- or 20-dollar bills. Debit Card: A plastic card sometimes called a "Check
Card" that looks like a credit card and is embedded with a magnetic strip. With a debit card you can make deposits to, or withdrawals from, your checking account at ATMs, or pay for goods and services
at stores and other businesses. Some debit card transactions require a Personal Identification Number (PIN), and the money comes out of your account immediately. Denomination: The
face value of paper money, such as $1, $5 and $10. Deposit: Cash or checks you add to your checking or savings account. Also, the act of adding money to your checking or savings
account. Deposit Account: An account (checking, share draft or savings) at a financial institution to which you can add money. Deposit Slips: Forms,
provided by your financial institution, that you fill out to add money to your account. They include information about you (your name, address and account number), and the checks, currency and coins you wish
to add to your savings or checking account. Direct Deposit: The electronic transfer of your salary, government benefit or other payment into your checking, share draft or savings
account. Dividends: A term credit unions use for interest earned on accounts. Electronic Funds Transfer (EFT): Money transactions to or
from checking and savings accounts that do not require paper (checks or cash) but use computer technology. Examples include Direct Deposit, Automated Teller Machine (ATM) and debit card transactions. Electronic Payments: Deposits to your checking or savings account through Direct Deposit or automatic withdrawals from your account to pay bills. Endorse:
To sign the back of a check made out to you so that it can be cashed. Endorsement: Information added to the back of a check so that it may be cashed by the person or business to
whom the check is written. Federal Deposit Insurance: insurance for money deposited in financial institutions displaying the logo of the Federal Deposit Insurance
Corporation or National Credit Union Administration. Funds are protected from loss up to $100,000 per depositor. Federal Deposit Insurance Corporation (FDIC): Federal government
agency that provides federal deposit insurance for member banks and thrift institutions, Member institutions must display the FDIC logo. In general, accounts are insured for up to $100,000 per depositor. if
you have questions about FDIC insurance or problems with a FDIC-supervised institution, call 1-800-934-3342. Fees: Money charged by financial institutions for various services. Financial Institutions: Businesses, including banks, savings and loans, and credit unions, that provide services such as checking accounts, savings accounts, loans and more. Hold: Checks you deposit in your account may be held until the funds clear and may not be available for one, two or five business days from the day of deposit. See
fact sheets Frequently Asked Questions or Using Deposit Accounts for more detailed information about holds. Increments: ATMs may tell you that your withdrawal must
be in increments of 20 dollars. That means the machine has only 20-dollar bills, so you must request $20, $40, $60, etc. Interest: Money you earn for funds in a savings account and
certain checking accounts. Interest Rate: Financial institutions pay you for funds you deposit in savings accounts and certain checking accounts. The money they pay you is called
interest, or dividends for credit unions. The interest rate is the percentage, usually stated as an Annual Percentage Yield (APY), they will pay. For example, a $100 deposit in a savings account earning 5%
APY would earn $5 after one year. Minimum Balance Requirements: Some checking, share draft or savings accounts require that you keep a certain amount of money (a
minimum balance) in your account to avoid paying an account fee. Money Orders: Similar to checks, they're used for paying bills or making purchases in cases where cash is not
acceptable. Many businesses sell money orders for a fee. Mortgage: A special type of long-term loan used to borrow money for a house.
National Credit Union Administration (NCUA): The federal agency that regulates and provides deposit insurance for federal credit unions. Accounts are insured at federally insured credit unions for
up to $100,000 per depositor. No Frills Checking Account: A basic checking account that usually allows a limited number of deposits and withdrawals for a minimum fee. Outstanding Transaction: A check or withdrawal that has not yet been taken from (or a deposit that has not yet been added to) your account, or has not yet shown up on your account
statement. Penalty: A fee you pay for taking money out of a CD or Share Certificate before the agreed upon time.
Personal Identification Number (PIN): Your own special password or set of numbers for using ATM or debit cards. Point of Sale (POS) Terminals: Machines located at grocery
stores and other businesses which accept ATM or debit cards for purchases. |
