Bank Account

1. Checking

2. Definition: a deposit account held at a financial institution that allows withdrawals and deposits.

3. Advantages: save fees charged by storefronts that provide check cashing services, and the ability to access funds by writing checks, instead of carrying cash with you.

4. Disadvantages: ATM withdrawal limitations, potential overdraft fees and debit card usage fees.

5. Savings

6. Definition: a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange.

7. Advantages: the potential to earn interest, it's easy to open and access, and FDIC insurance and security.

8. Disadvantages: minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.

9. Money Market

10. Definition: a component of the economy which provides short-term funds.

11. Advantages: Higher APY than traditional savings accounts. Check-writing privileges. Debit or ATM card

12. Disadvantages: Inflation Risk, Capital Risks, Minimums and fees

13. Certificate of Deposit

14. Definition: a time deposit, a financial product commonly sold by banks, thrift institutions, and credit unions.

15. Advantages: Safety, Predictability, Flexibility of terms

16. Disadvantages: Limited liquidity, Risk of Inflation