a demand deposit account at a bank on which checks are drawn
checking account
a written order to a bank to pay a stated amount to a person or business
check
a tool used to track checking account transactions
check register
money added to a checking or savings account
deposit
a check written with a date that will occur in the future
postdated check
a bank card used to withdraw or deduct money from your checking account
debit card
a signature, with or without instructions, written on the back of a check
endorsement
the use of a computer-based system to move money from the drawer’s account to the payee’s account
electronic funds transfer
the process of adjusting the check register and bank statement balances so that they agree
bank reconciliation
a demand deposit account designed for the accumulation of money in a safe place for future use
savings account
the capability to withdraw money at any time without penalty
liquid
sum of money set aside on which interest is paid
principal
interest computed on principal once in a certain period of time
simple interest
interest earned on both principal and previously earned interest
compound interest
a fixed amount set aside on a regular basis over time
annuity
a quick formula for computing how long it will take to double money invested at a given interest rate
Rule of 72
a type of savings account that earns the market rate of interest on the money deposited
money market account
a time deposit that pays a fixed rate of interest for a specified length of time
certificate of deposit (CD)
a bond issued by the federal government that pays a guaranteed minimum rate of interest
U.S. savings bond
a check issued against the bank’s funds
cashier’s check
a personal check that the bank guarantees
certified check
an instruction to the bank not to honor a check that has been issued or lost
stop payment
a card that contains a computer chip that stores electronic money
Smart card
a bank service that covers a shortage in your account
overdraft protection
