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Commercial bank: A for-profit organization owned by private individuals or the government to exchange and safeguard money and guarantee loans.
Creditor: A person or company to whom money is owed.
Credit union: A non-profit organization, usually created by people with a common interest, who pool their money and then use it to make loans to other people in their group at low interest rates.
Debit Card: This card looks like a credit card and may seem to work like a credit card, but it is not a credit card! When you use a debit card, the amount of the expenditure comes directly out of your financial account. Some institutions call this a check card.
Direct deposit: Your paycheck or other form of compensation such as a Social Security or unemployment check is put directly into your financial account instead of being paid to you as a check that you must deposit. This can allow your money to be available faster and is convenient and safe.
Encryption: A cypher or code that is used to conceal and protect personal information when it is being sent over the internet.
Federal Deposit Insurance Corporation (FDIC): An independent agency of the federal government created in the early 1930s that underwrites most private bank deposits, insuring consumer money in case the bank collapses.
Fraud: Deception intended for financial or personal gain.
Grace period: A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.
Lending cooperative: These forerunners of the credit union were started in the 1800s by workers in England and Germany. These cooperatives kept interest rates low and offered investment and loan
Glossary