Category Archives: Banking

Cash Management Account vs. Brokerage Account

Cash management accounts are for saving and earning interest; brokerage accounts let you invest What [...]

The Power of Compound Interest: Calculations and Examples

Discover the magic of compounding and why it’s important to increasing wealth What Is Compound [...]

What Is a Bank Statement: Definition, Benefits, and Requirements

What Is a Bank Statement? A bank statement summarizes all the account’s monthly transactions and [...]

What Is a Bank Draft? Definition, How It Works, and Example

What Is a Bank Draft? A bank draft is a payment that is like a [...]

What Is an ATM and How Does It Work?

What Is an Automated Teller Machine (ATM)? An automated teller machine (ATM) is an electronic [...]

Annual Percentage Rate (APR): What It Means and How It Works

What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest [...]

What Is a Bank Account Number?

What Is a Bank Account Number? A bank account number is a unique string of [...]

Hard Money vs. Soft Money: What’s the Difference?

Hard Money vs. Soft Money: An Overview There are several ways to define the terms [...]

Retail Banking vs. Corporate Banking: What’s the Difference?

Retail Banking vs. Corporate Banking: An Overview Retail banking is a bank’s services that deal directly [...]

Letter of Credit: What It Is, Examples, and How One Is Used

What Is a Letter of Credit? A letter of credit, or a credit letter, is [...]

What is a Financial Institution?

What Is a Financial Institution (FI)? A financial institution (FI) is a company engaged in the [...]

Federal Deposit Insurance Corp. (FDIC): Definition & Limits

What Is the Federal Deposit Insurance Corp. (FDIC)? The Federal Deposit Insurance Corp. (FDIC) is [...]

Depository: Definition, Meaning, Types, and Examples

What Is a Depository? The term depository can refer to a facility in which something [...]

Demand Deposit Definition, Account Types, and Requirements

What Is a Demand Deposit? A demand deposit account (DDA) is a bank account from [...]

How Do Commercial Banks Work, and Why Do They Matter?

What Is a Commercial Bank? The term commercial bank refers to a financial institution that [...]