A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Savings AccountA bank account meant for storing money you don't need right away, usually paying a small amount of interest on the balance.
- High-Yield Savings AccountA savings account that pays a much higher interest rate than a standard one, often offered by online banks with lower overhead.
- APY (Annual Percentage Yield)The real yearly return on a deposit, including the effect of compounding, which makes it the fairest way to compare account rates.
- InterestThe money a bank pays you for keeping deposits, or the money you pay a lender for borrowing, calculated as a percentage of the balance.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Minimum BalanceThe lowest amount you must keep in an account to avoid fees, earn interest, or qualify for certain account benefits.
More in Banking
Account NumberAccount ReconciliationACH TransferAPR (Annual Percentage Rate)ATM (Automated Teller Machine)ATM Fee
Plain-English education — not personalized legal, tax, or investment advice.