What Is a Bank Draft? A bank draft is a payment that is like a check, but its amount is guaranteed by the issuing bank. The funds are drawn from the requesting payer's account and are then placed in the ...
What Is a Bank Statement? A bank statement summarizes all the account’s monthly transactions and is typically sent by the bank to the account holder every month in paper or digital form. Bank statements contain checking and savings account information, ...
Choosing a financial institution to look after your money is one of the most important financial decisions you can make. Different banks offer widely different levels of service, charge different levels of fees, and will pay you significantly different amounts ...
What Is Compound Interest? Compound interest is interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods. In other words, compound interest involves earning, or owing, ...
What Is an Automated Teller Machine (ATM)? An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit ...
What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of ...
What Is a Bank Account Number? A bank account number is a unique string of numbers and, sometimes, letters and other characters that identify a particular bank account and grant access to it. This often is one of the most ...
Hard Money vs. Soft Money: An Overview There are several ways to define the terms "hard money" and "soft money." How you define them depends on what context you take. In their simplest form, hard money and soft money are ...
Retail Banking vs. Corporate Banking: An Overview Retail banking?is a bank's services that deal directly with consumers, while corporate banking is the part of the banking industry that serves business or corporate customers. Retail banking is the face of banking ...
What Is a Financial Institution (FI)? A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions include a broad range of business operations ...