This document defines and describes several common types of bank accounts and financial instruments. It explains that savings accounts allow customers to earn interest on set aside funds while providing liquidity for banks to issue loans. Checking accounts allow withdrawals and deposits to access very liquid funds via various payment methods. Mortgages are loans secured by real estate collateral that buyers use to finance large property purchases without paying the full amount upfront. Certificates of deposit are low-risk, interest-bearing investments that offer higher returns than comparable options in exchange for keeping funds in the account for a set maturity period.

1. BANK FINANCIAL INSTITUTIONBy: JenevieLlagasACT-I

2. are accounts maintained by retail financial institutionthatpay interest but cannot be used directly as money (for example, by writing a check. These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and therefore often does not incur a reserve requirement freeing up cash from the bank's vault to be lent out with interest.The other major types of deposit account aretransactional (checking) account,money market accounttime deposit.SAVING ACCOUNTS

3. A transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a checking account is very liquid, and can be withdrawn using checks, automated cash machines and electronic debits, among other methods. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include business accounts, student accounts and joint accounts along with many other types of accounts which offer similar features.CHECKING ACCOUNTS

4. A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front.Mortgages are also known as "liens against property" or "claims on property". MORTGAGES

5. Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans. offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate's maturity.Money removed before maturity is subject to a penalty. CDs- are low risk, low return investments, and are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six year.CERTIFICATES OF DEPOSITES