Bank Accounts & Deposits

A deposit account offered by banks and credit unions that is designed for frequent transactions. It gives you easy access to your money through a debit card, online banking, checks, ATM withdrawals, direct deposit, and electronic transfers. Because the money is meant to stay readily available, checking accounts usually pay little or no interest compared with savings accounts. 

A type of savings account that offers a much higher interest rate than a traditional savings account. The higher Annual Percentage Yield (APY) allows your money to grow faster over time, and like traditional savings accounts, HYSAs are FDIC-insured up to $250,000 per depositor, per bank. They are typically offered by online banks, credit unions, and traditional banks.

A type of bank deposit account that blends features of both savings and checking accounts. Like a savings account it earns interest, and like a checking account it often comes with check-writing privileges, debit card access, or electronic transfers. Money market accounts are offered by banks insured by the FDIC and credit unions insured by the NCUA, with deposits protected up to $250,000 per depositor, per institution.

A CD is a bank account that pays a fixed interest rate for a set term in exchange for leaving your money untouched until the maturity date. CDs are FDIC insured up to $250,000 per depositor and offer predictable returns, with an early withdrawal penalty as the main trade-off.

APY (Annual Percentage Yield) is the actual annual return on your savings or investment, and unlike the plain interest rate it factors in compound interest. That is why APY is usually a little higher than the stated rate and gives a more accurate picture of what you will really earn in a year.

The nine digit number that identifies your bank and belongs to a bank account rather than to a card. It works within the ACH and banking system used for direct deposit, bill pay, account transfers, and other bank-to-bank movements. On a paper check it is the first nine digit number on the left of the bottom line.

The amount you need to pay to avoid interest charges on new purchases while still keeping certain installment-plan balances active, such as a My Chase Plan balance. It acts as a middle ground between paying only the minimum payment and paying the full statement balance.