Personal Checking & Savings Flashcards

Personal Checking & Savings Flashcards
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Basic Checking Account
Checking accounts of this type usually offer no interest and may charge a small fee unless you maintain a minimum balance in your account.
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Free Checking Account
This kind of checking account doesn't require individuals to keep a minimum balance of funds in the account. It also doesn't include fees or service charges.
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Overdraft
We use this term to refer to what happens when an individual spends more money than available in his or her checking account. This can result in a negative account balance.
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The Check Clearing Act (Check 21)
An act that granted banks permission to transmit digital images of checks, allowing checks to clear quickly
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Regulation CC
This regulation states that banks must provide disclosures to customers regarding their policies on fund availability.
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Transit Check / Not-on-Us Check
This kind of check is un-cleared and is drawn from a bank other than the depositor's.
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12 cards in set

Flashcard Content Overview

Prepare to review information about personal savings and checking with the flashcards included within this easy-to-use set. You can use these flashcards as tools to focus on the advantages and disadvantages that accompany savings accounts, along with changes in savings account interest rates over time. You'll also find cards that deal with different kinds of checking accounts, including basic, free and money-market or interest-bearing accounts. Some of the regulations that govern checking will also be covered by these cards, such as the Check Clearing Act and Regulation CC.

Front
Back
Transit Check / Not-on-Us Check
This kind of check is un-cleared and is drawn from a bank other than the depositor's.
Regulation CC
This regulation states that banks must provide disclosures to customers regarding their policies on fund availability.
The Check Clearing Act (Check 21)
An act that granted banks permission to transmit digital images of checks, allowing checks to clear quickly
Overdraft
We use this term to refer to what happens when an individual spends more money than available in his or her checking account. This can result in a negative account balance.
Free Checking Account
This kind of checking account doesn't require individuals to keep a minimum balance of funds in the account. It also doesn't include fees or service charges.
Basic Checking Account
Checking accounts of this type usually offer no interest and may charge a small fee unless you maintain a minimum balance in your account.
Money Market / Interest-Bearing Checking Account
Setting up these kinds of checking accounts will allow you to take advantage of higher interest rates, but you generally have to keep a higher balance of money in the account.
Checking Account
A banking account that allows you to deposit and withdraw money. These accounts allow you to use ATMs and debit cards.
Savings Account
This kind of banking account mainly appeals because it poses no financial risks. You can deposit money and earn very small amounts of interest on it.
Shifts to interest rates on savings accounts over time
During the last 15 years, the interest rates earned by these accounts have steadily decreased.
Disadvantage of Money Market Accounts
These accounts can be disadvantageous as the Federal Depository Insurance Corporation doesn't insure them.
Disadvantage of Savings Accounts
The downside to this kind of account is that it offers very low interest rates, often below the rate of inflation.

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