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• Account Insurance: Savings that are federally insured as follows:
  • Bank savings federally insured by the FDIC (Federal Deposit Insurance Corporation) for coverage up to $100,000 per depositor
  • Credit Union savings federally insured by the NCUA (National Credit Union Association) for at least $100,000 per depositor


• Annual Percentage Rate (APR): The cost of credit expressed as a yearly rate that includes costs and fees associated with the loan. The Truth in Lending Act requires lenders to disclose the APR when advertising a rate.



• Annual Percentage Yield (APY): A percentage rate that reflects the total amount of interest paid on the account for a one-year period, based on the interest rate and how often interest is compounded.



• ATM: Automated Teller Machine



• Checking Accounts: These types of accounts use cheques (or “checks,” as most banks and consumers spell them today), as negotiable instruments (that is, they can be exchanged for money).



• Credit Cards: A credit card is really just a modern way of taking out a loan. When you use a credit card, the issuer of your card (that is, the bank or financial institution), lends you money so that you can pay the merchant.



• Check/Debit Card: Method of payment that instantly withdraws funds from your checking account.



• Direct Deposit: Direct Deposit allows your employer to electronically transfer your paycheck directly into the bank the same day you normally get paid. There's no having to "run to the bank" to deposit your check, because it's already there, ready for your immediate use. Plus, you still get a paper statement so you can easily keep track of every direct deposit.



• Finance Charges (Interest): The dollar amount the credit will cost you; the extra amount you pay for borrowing an amount of money



• Money Order: A money order is a payment order for an amount of money that you specify ahead of time. Merchants like it because it is a more trusted method of payment than a personal check and must have the funds prepaid before issuing it.



• Principal: original or remaining amount of a debt or investment on which interest is calculated



• Savings Accounts: Accounts generally used to prepare for events, both expected (i.e., retirement, vacation) and unexpected (i.e., emergencies).



• Truth in Lending Act (TILA): Requires creditors to give you written disclosures of important terms of the credit agreement, such as:
  • APR
  • Total finance charge
  • Monthly payment amount
  • Payment due dates
  • Total amount being financed
  • Length of the credit agreement
  • Any charges for late payment


• Truth in Savings Act (TISA): Federal law that requires creditors to give you written disclosures of important terms (such as interest and fees) of the agreement when you open a deposit account.



• Wire Transfer: A wire transfer is a way of electronically moving or transferring money from one bank or financial institution to another. Like a money order, the funds must be on hands ahead of time, but unlike a money order, the funds are immediately available on the receiving end of the transfer.

Other Resources

If you would like to research additional banking options and information, you may find the following websites helpful:

• MyMoney.gov: http://www.mymoney.gov/
• FDIC (Federal Deposit Insurance Corporation): http://www.fdic.gov
• Money Smart: An Adult Education Program: http://www.fdic.gov/consumers/consumer/
  moneysmart/index.html
• NCUA (National Credit Union Administration): http://www.ncua.gov