NGPF Banking Flashcard

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Your money is safe in the bank even if the bank fails if...

Back

the bank account is FDIC insured

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EPF.MCM.2.1

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inflation

Back

The rate at which the prices for goods increases and consumers' purchasing power decreases.

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EPF.MCM.2.1

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savings

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income not spent on consumption, for more short-term goals

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EPF.MCM.2.1

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compound interest

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interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan

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EPF.MCM.2.1

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minimum deposit

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The least amount of money a bank requires when opening an account.

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EPF.MCM.2.1

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online savings account

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A type of savings account that is managed online - there is no physical branch at which you can manage your savings. These accounts typically offer higher interest rates and lower or minimal fees

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EPF.MCM.2.1

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money market savings account

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An account similar to a traditional savings account but that typically pays higher interest. It requires a higher minimum balance, and may allow check writing from the account.

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EPF.MCM.2.1

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direct deposit

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An automatic deposit of net pay to an employee's designated bank account

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EPF.MCM.2.1

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simple interest

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interest paid on the principal alone

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EPF.MCM.2.1

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principal

Back

original amount of money saved or invested, separate from interest or earnings

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EPF.MCM.2.1