Savings
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Bank Drafts: Understanding Guaranteed Payment Instruments
What Is a Bank Draft? The term bank draft refers to a negotiable instrument that can be used as payment just like a check. Unlike a check, though, a bank draft is guaranteed by the issuing bank
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ATM: Your Guide to Automated Teller Machines - Features & Benefits
What Is an Automated Teller Machine (ATM)? An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch rep
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Understanding Annual Percentage Rate (APR): A Comprehensive Guide
What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum thats charged to borrowers or paid to investors. APR is expressed as a percen
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Understanding Account Numbers: What They Are and Why They Matter
What Is an Account Number? An account number is a unique string of numbers and, sometimes, letters and other characters that identifies the owner of an account and grants access to it. In the U
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Hard Money vs. Soft Money: Understanding the Key Differences
Hard Money vs. Soft Money: An Overview There are several ways to define the terms "hard money" and "soft money." How you define them depends on what context you take. In thei
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Retail vs. Corporate Banking: Understanding the Key Differences
Retail Banking vs. Corporate Banking: An Overview Retail banking refers to the division of a bank that deals directly with retail customers while corporate banking is the part of the banki
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Letter of Credit (LC): A Comprehensive Guide
What Is a Letter of Credit? A letter of credit, or credit letter, is a letter from a bank guaranteeing that a buyers payment to a seller will be received on time and for the correct amount. In
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Glass-Steagall Act: History, Impact & Significance | Investopedia
What Was the Glass-Steagall Act? The Glass-Steagall Act was passed by the U.S. Congress as part of the Banking Act of 1933. Sponsored by Senator Carter Glass, a former Treasury secretary, and R
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Financial Institutions (FIs): Definition & Types - [Your Brand Name]
What Is a Financial Institution (FI)? A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investm
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FDIC: Understanding Deposit Insurance for U.S. Banks
What Is the Federal Deposit Insurance Corporation (FDIC)? The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the ev
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Understanding Depositories: Secure Storage & Securities Trading
What Is a Depository? The term depository refers to a facility in which something is deposited for storage or safeguarding or an institution that accepts currency deposits from customers such a
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Demand Deposits: Understanding Checking & Savings Accounts
What Is a Demand Deposit? A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice. DDA accounts can pay interest on the
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Commercial Banks: Services, Loans & How They Work
What Is a Commercial Bank? The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial pr
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Understanding Bank Runs: Causes, Risks, and Prevention
What Is a Bank Run? A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the banks solvency. As
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Using Prepaid Cards to Pay Bills: A Comprehensive Guide
There are two types of prepaid payment cards that can potentially be used to pay bills: prepaid debit cards and network-branded gift cards (like those that carry the Visa or Mastercard logo). Prepai
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Simple vs. Compound Interest: Understand the Key Differences
Simple Interest vs. Compound Interest: An Overview Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. The interest, typically expressed as a perc
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Prepaid Cards: Benefits, Uses & Are They Right for You?
What Is a Prepaid Card? A prepaid card is a type of debit card, similar to a reloadable gift card or stored-value card. You can load it with a cash balance and use it anywhere a particular card
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APR vs. APY: Understanding the Key Differences
It's easy to understand why people may confuse the terms APR and APY. Both are used to calculate interest for investment and credit products. And they significantly affect how much you earn or m
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Checking vs. Savings Accounts: Which is Right for You?
When it comes to managing money, you may be wondering whether a checking account or a savings account is better equipped to meet your needs. Surprisingly, 25% of American households are either under
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Community Banks: What They Are & How They Differ from Big Banks
What Is a Community Bank? A community bank is a depository or lending institution that primarily serves businesses and individuals in a small geographic area. Community banks tend to emphasize
Savings
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Unlock Financial Success: 5 Proven Strategies for a Wealthy MindsetWhen it comes to improving your personal finances your money mindset is a critical foundational piece. Your goals may revolve around becoming debt-free, sa...
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Navigating Healthcare Enrollment: A 2024 Guidediv.cust...
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Farmers Auto Insurance Review: Coverage, Claims & Customer ExperiencePros Cons Numerous coverage options Below average ratings for insurance shopping experience and about average ratings for claims satisfaction Fewer customer complaints than...
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Understanding Immediate Annuities: Calculation & TypesAn annuity is a fixed amount of money invested to generate an income or payment stream. Annuities come in two types: immediate annuities and annuities due. Both types require an immediate investment, ...