Banking Basics Study Guide Rated A+

Transaction Fee {Ans: Charged for exceeding savings withdrawal limit}FDIC Insurance {Ans: Federal protection for deposits up to $250,000}Authorized User {Ans: Permitted to use another's credit card without liability}Debit Card {Ans: Linked to checking account for ATM and purchases}Minimum Balance {Ans: Required amount to maintain in an account}Annual Fee {Ans: Yearly charge for specific credit card ownership}Low Balance Alert {Ans: Notification for low checking account balance}Check {Ans: Written order to pay a sum to a payee}Maintenance Fee {Ans: Monthly charge for account access}Collateral {Ans: Valuable item for loan repayment security}50-20-30 Rule {Ans: Savings guideline: 50% necessities, 20% saving/debt, 30% flexible spending}Cash Advance {Ans: Credit card withdrawal with high interest or fee}Direct Deposit {Ans: Automatic electronic pay deposit to a bank account}Balance {Ans: Total money in a bank account}Credit Card {Ans: Allows cashless purchases by borrowing money}Deposit {Ans: Money added to an account}Cosigner {Ans: Agrees to repay another's debt if they default}Bank Statement {Ans: Monthly record of account transactions}Credit Union {Ans: Member-owned nonprofit financial institution}Impulse Buying {Ans: Spontaneous purchase without prior planning}