Banking Chapter 5: Deposits in Banks

The price paid for the use of money

• principal

• interest

• APR

• APY

Effective rate of interest when compounding is factored in.

• annual percentage rate

• annual percentage yield

• annual percentage return

Savings account earning a competitive interest rate from invested deposits with check writing privileges.

• certificate of deposit

• passbook savings account

• statement savings account

• Money Market Deposit Account

Deposit held for or maturing at a specified time

• time deposit

• transaction account

• demand deposit account

Account that allows transactions to occur at any time in any number

• money market deposit account

• time deposit

• transaction account

Deposit payable on demand whenever the depositor chooses

• demand deposit

• certificate of deposit

• time deposit

Savings instrument with fixed interest rate and fixed maturity date

• Asset management account

• Express checking

• passbook savings account

• certificate of deposit

Return calculated by adding interest to principal for next interval.

• simple interest

• compound interest

• APR

• APY

Nominal rate on which interest is calculated per year.

• APR

• APY

• compound interest

A transaction made between banks

• transaction account

• governing documents

• interbank transaction

• statement savings account