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Money Dictionary

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Savings Account   A deposit account that can earn interest and is intended to have limited transactions. Each institution has its own policy regarding account setup and fees. Make sure you understand all terms and conditions before opening a savings account.
     
Savings Bank   Also known as thrifts, savings banks are for-profit businesses that take deposits of money, invest that money, and pay interest to the depositor out of the money earned from investments. Savings banks can also make credit available to depositors/account holders.
     
Secured Loan   A loan that is backed by property, such as a house or car. In some instances, secured loans can also be backed by cash.
     
Series EE Bonds   United States Savings Bonds that cost one-half of the face value of the bond and are guaranteed to reach face value in 17 years. For example, Sara pays $100 for a $200 EE Bond. After 17 years, she can redeem the bond for $200.
     
Series I Bonds   United States Savings Bonds for which earnings rates are a combination of a fixed rate of return and a variable semi-annual inflation rate.
     
Simple Interest   Interest charged only on the principal amount borrowed. For example, if Ed borrowed $500 at a 20% annual interest rate for three years, every year he would pay a portion of the principal plus $100 in interest.
     
Social Security Number   A taxpayer identification number used by the Social Security Administration (SSA) to record earnings for future Social Security and Medicare benefits. NEVER give out your Social Security Number to a stranger.
     
Stock   A stock is a portion of a company. By investing in the stock of a public company you are a shareholder. In return for your investment, you receive a share of the company's profits.
     
Store Charge Card   A type of credit card that can only be used at the store that issued the card. Often stores charge a high interest rate so read the terms and conditions before signing up for a store charge card.
     
Stored Value Card   Also known as a pre-paid card, this is a card that has an embedded computer chip or magnetic strip that contains the value of the card. The card issuer keeps track of your balance until the money is used up, then the card can be discarded or refilled. There are two types of stored value cards: single-purpose (gift cards that can only be used to purchase goods at a particular retailer or for a particular purpose, such as a telephone card to make phone calls only); and multipurpose (cards that can be used to make payments at retail locations, receive direct deposits, and withdraw cash from ATMs). Multipurpose cards are generally issued by credit card companies and can be used at any retailer that accepts the card.
     
Tax   Required payments of money to the government that are used to provide goods and services for the benefit of the public.
     
Tax Year   The time period covered by a tax return. Usually it is January 1 to December 31 in a calendar year.
     
Tax-exempt   Not subject to tax. For example, clothes purchased in New York City are tax-exempt.
     
Transaction fees and other charges   Most creditors charge a fee if you don't make a payment on time. Other common credit card fees include cash advance fees and fees for spending beyond your credit limit. Some credit cards charge a flat fee every month, whether you use your card or not.

OFE's Reference List for Money Dictionary