Saving and Investing Vocabulary

An account at a depository institution that is used for a fixed period of time and allows restricted access to the funds deposited.

• Savings tools

• Certificate of deposit

• Savings account

• Checking account

An account that allows quick access to funds for transactions.

• Checking account

• Depository institution

• Tiered interest rate

• Money market deposit account

Businesses that provide financial services.

• Savings tools

• Principal

• Depository institution

• Compound interest

A account at a depository institution that usually has minimum balance requirements and tiered interest rates.

• Trade-off

• Checking account

• Savings account

• Money market deposit account

An account at a depository institution that is designed to hold money not spent on current consumption.

• Do it yourself

• Savings account

• Pay yourself first

• Checking account

Accounts offered by depository institutions whose main purpose is to help people manage their money.

• Savings tools

• Certificate of deposit

• Savings account

• Tiered interest rate

The amount of interest earned depends on the account balance.

• Saving

• Liquidity

• Tiered interest rate

• Consumption

Earning interest on interest.

• Emergency savings

• Compound interest

• Checking account

• Certificate of deposit

The purchase of goods and services.

• Time value of money

• Savings

• Saving

• Consumption

When you complete a task yourself rather than paying someone else.

• Do it yourself

• Interest rate

• Pay yourself first

• Principal