6.2 Vocab - Savings Plans

A measure of how quickly you can get your cash without loss of value.

• direct deposit

• certificate of deposit

• liquidity

• maturity date

A time deposit that earns a fixed rate of interest for a specified length of time.

• certificate of deposit

• maturity date

• money market account

• savings plan

The date on which an investment becomes due for payment.

• early penalty withdrawal

• liquidity

• money market account

• maturity date

An amount you must pay if you take out any part of your money in a certificate of deposit before the maturity date.

• savings plan

• early withdrawal penalty

• certificate of deposit

• liquidity

How much you will receive (principal plus accrued interest from date of deposit) if you choose to redeem your certificate of deposit.

• maturity amount

• maturity date

• liquidity

• money market account

A type of savings account that offers a more competitive interest rate than a regular savings account.

• direct deposit

• money market account

• automatic deduciton

• liquidity

A guarantee that you will not lose your savings deposit, even if the bank or other financial institution fails and goes out of business.

• deduction amount

• savings plan

• money market account

• safety of principal

Your net pay is deposited electronically into your bank account.

• maturity amount

• maturity date

• direct deposit

• pay stub

Money you have authorized your bank or other organization to move from one account to another at regular intervals.

• automatic deduction

• direct deposit

• safety of principal

• liquidity

A plan in which you authorize your employer to make automatic deductions from your paycheck each pay period.

• direct deposit

• payroll savings plan

• automatic deduction

• certificate of deposit