Unit 3 Banking Vocabulary

A sum of money deposited INTO an account

• credit

• debit

Reinvesting earned interest back into the principal to allow money to grow exponentially over time

• compound interest

• simple interest

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

• principal

• balance

A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway

• overdraft fee

• low balance fee

A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch

• online savings account

• money market account

A type of savings account that may allow debit card and check writing privileges

• Money Market Savings Account

• Certificate of Deposit (CD)

A written, dated, and signed order to the bank to pay a definite sum of money to a payee

• deposit slip

• a check

An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards

• deposit slip

• digital wallet

A mobile banking tool that allows you to deposit checks to your bank account using your mobile device

• Person to Person payment

• mobile deposit

A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time

• Certificate of Deposit (CD)

• Money Market Account