Understanding Banking and Financial Products

Front

What is a Certificate of Deposit (CD)?

Back

A savings instrument that requires a deposit for a specific period of time, during which there is a penalty for early withdrawals.

Front

What does direct deposit refer to?

Back

The electronic transfer of funds from an employer to an employee's bank account, typically for payroll.

Front

What type of documents should be stored in a safe-deposit box?

Back

Important documents such as mortgage loan papers, wills, and property deeds.

Front

What is the purpose of using a checkbook stub or register?

Back

To keep a record of the date, amount, and payee of checks written, helping to track spending and account balance.

Front

What must a bank do if a person makes a deposit of $10,000 or more?

Back

The bank must notify the US Treasury Department.

Front

What is the primary function of a savings account?

Back

To allow individuals to save money while earning interest on their deposits.

Front

What is the difference between a checking account and a savings account?

Back

A checking account is used for daily transactions and typically has no withdrawal limits, while a savings account is intended for saving money and may have limited withdrawals.

Front

What is the role of the Federal Deposit Insurance Corporation (FDIC)?

Back

To insure deposits in member banks, protecting depositors in case of bank failure.

Front

What is a bank statement?

Back

A monthly summary of all transactions in a bank account, including deposits, withdrawals, and fees.

Front

What is an ATM?

Back

An Automated Teller Machine that allows customers to perform banking transactions, such as withdrawals and deposits, without a bank teller.