What is a Checking Account?
A checking account is an account where funds are easily available through different channels (checks, ATM, online bill pay). Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts.
What is a Savings Account?
Savings accounts are variable APY accounts that pay interest and are often used in conjunction with a checking account to manage and grow your money. These accounts let customers set aside a portion of their money to grow safely over time.
What is a Money Market Account?
A money market account is a variable APY account similar to a savings account which typically earns a higher interest rate compared to savings for customers who do not need frequent access to their funds. Typically checks can be written; however check and ATM access varies by account.
What is a Certificate of Deposit?
CDs are similar to savings accounts but they are set to a fixed term (usually ranging from three months to five years), and a fixed interest rate. It is expected that a CD be held to the end of the term, at which time the money may be withdrawn with the accrued interest. Early withdrawals may result in a fee, so ensure you will not need access to these funds for the term of the account before opening your CD.
What is a debit card?
A debit card (also known as a bank card or check card) is an alternative payment method to cash when making purchases. Similar to using cash, funds are immediately withdrawn from your account.
What is APY?
Annual Percentage Yield (APY) expresses an annual rate of return taking into account the effect of compounding.
What is compound interest?
Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest from that moment on.
What is interest rate?
Interest rate is the rate at which a financial institution agrees to pay you back for holding your money.