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16 Cards in this Set
- Front
- Back
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Savings Account |
demand deposit account designed for the accumulation of money in a safe place for the future use |
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Principal |
sum of money set aside on which interest is paid |
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Simple interest |
interest computed on principal once during a certain time period |
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Compound interest |
interest earned on both principal and previously earned interest |
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Annuity |
fixed amount set aside on a regular basis over time |
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Rule of 72 |
quick formula for computing how long it will take to double money invested at a given interest rate |
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Money market account |
type of savings account that earns the market rate of interest on the money deposited |
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Certificate of deposit (CD) |
time deposits that pays a fixed rate of interest for a specified length of time |
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US savings bond |
discount bond issued by the federal government that pays a guaranteed minimum rate of interest |
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Maturity value |
bonds future value as stated on its face |
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Growing in your savings |
You can do this by earning interest, when you earn interest, you are getting pain |
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Purpose of savings |
Saving money is providing for future needs. Funds are not easily accessed with a checking account. You can withdraw money at any time with funds |
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Online only banks |
Often pay higher rates of interest than traditinal banks |
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Brokerage firms |
Pay highter interest rates on saving accounts but may not be insured by FDIC or any other insurer |
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Internatinal Banks |
New possibilities for consumers around the world, you can hold accounts in other contries |
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Computing interest |
Money deposited in a savings account will usually earn a set rate of interest. Interest earnings are taxable when they are earned |
