Banking

Front

Interest

Back

The incentive to part with money, either earned in a bank account or paid for a loan.

Front

Interest

Back

The incentive to part with money, either earned in a bank account or paid for a loan.

Front

Simple interest

Back

Interest earned solely on the principal deposited.

Front

Compound interest

Back

Interest earned on the principal deposited and the interest previously earned.

Front

Rule of 72

Back

How long it takes for your money to double at a given interest rate.

Front

A basic savings account. May require a minimum balance. Pays the lowest interest of the three types of savings accounts.

Back

(Passbook) savings

Front

Pays higher interest than a basic savings account. Usually requires a higher minimum balance. Has higher interest rates. Usually a limit on the # of withdrawals.

Back

Money Market Account

Front

Money put in the bank for a specific time (term). Interest is fixed (usually higher than other accounts). Longer the term, the higher the interest rate.

Back

Certificate of deposit (CD)

Front

A bank account where money is kept to be used to cover expenses

Back

Checking

Front

Not enough money in the bank to cover a check.

Back

Insufficient funds