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 [...]