Vocabulary: Accounts Name: ______

Word Definition

Deposit Putting INTO your . A increases your balance.

Withdrawal Taking money OUT of your bank account. A withdrawal decreases your balance.

This type of account allows you to quickly and easily move money in/out of your Transaction account without penalty. The most common type of transaction account is a checking Account account. Little or no is paid because the bank cannot depend on this money to use for .

Time deposits are intended for maintaining a minimum account balance for a certain period of time. Excessive or early withdrawals often lead to bank fees or penalties. The most common type of time deposit is a or .

Certificate of Also known as a CD. This is a time deposit with a longer period of time and therefore a Deposit higher interest rate is earned. When a large number of account holders all attempt to withdraw their money at once and the amount of withdrawals exceed the normal reserves. When this Run on the Bank happens, it often leads to FDIC intervention or in the worst case a panic.

The difference between the amount of interest and fees collected by a bank and the The Spread amount of interest the bank pays out. This is also the measure of profitability for the bank.

A card that maintains a copy of the signatures of all authorized account users. This is Signature Card kept on file at the bank and scanned for comparison on checks.

Deposit Slip A form used to deposit money into your account.

A legal contract used to pay for goods/services without the use of actual cash. It Check permits the payee to withdraw funds from your account.

A record of all transactions (deposits, withdrawals, interest earned, fees charged) on Check Register your bank account. This is maintained by the account holder.

A report of all transactions cleared by the bank within a certain period of time. Account Statement (deposits, withdrawals, interest earned, fees charged) on your bank account. This is maintained by the bank.

The process of comparing your records (the check register) with the bank records Reconciliation (account statement) and verifying that all transactions are correct. It provides you with an accurate balance of your funds.

Charges by the bank for various services or penalties for not following account rules. Bank Fee Some fees include ATM usage, insufficient funds (NSF), excessive withdrawals, etc.

Automated Teller Machine – card. Also known as a . It withdraws money ATM Card from your bank account

Personal Identification Number – used to protect your ATM card from unauthorized PIN Number .