Amanda Stanhaus

Tag: deposit

Automatic Deposit

Right on cue, $$ is placed in an account. Can be used to automatically increase my savings.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Electronic Banking

Everything done at a bank’s teller window (transfers, withdrawalsdeposits), but without the human interaction. What is the world coming to??

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Federal Deposit Insurance Corporation

FDIC. The sticker (hopefully) on your American bank’s door. If shit hits the fan,  deposits are covered up to $250,000.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Money Market Mutual Fund

image

I went toe to toe with Babe’s boy and won! I love when women win sword fights.

Money market deposit account vs. Money market mutual fund, which is FDICinsured?

(click on the bold-faced vocab word:))

Babe’s boy WRONGLY believed both were FDIC insured.

My magical memorization skills helped me with my win.

Money market deposit accounts are higher-than-usual interest earning, limited withdrawal accounts. Offered by a bank. FDIC insured.

Money market mutual funds similarly are higher-than-usual interest earning, limited withdrawal accounts. Offered by a mutual fund. Not insured by FDIC.

These mutual funds invest in liquid, short-term investments. Think treasuries. As with all mutual funds, your investment is at the mercy of the markets, and is not FDIC insured.

Both are ideal investments for those who withdrawal infrequently and are looking for higher-than-usual interest payments. Handy for say an emergency fund. But fully understand the risks and rewards of deposit accounts vs. mutual funds.

Good luck in your sword fights! Go girls!

image

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Certificate of Deposit

image

Bobbi’s husband is being relocated to europe. I know boo-hoo, Bobbi has to visit Europe regularly at the company’s expense.

But it’s going to be sad for these inseparable newlyweds to be separated for weeks at a time.

I tried to cheer her up with a new investment vehicle I recently learned about.

Bobbi could deposit a sum of money as a certificate of deposit (CD) and when it matures after a year she will get her $$ back, plus an extra cushy interest payment.

(click on the bold-faced vocab words:))

The withdrawal penalties, if she gets too tempted to use the $$, will keep Bobbi in check. Plus, if she buys it at a FDIC-insured bank, the CD itself is insured.

My unconventional cheering up worked! They are already planning their second honeymoon for when his year in Europe is over, fully-funded by their CD.

See, separation can be a good thing! It grows $$. And makes the heart grow fonder.

image

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Security Deposit

“I’m serious.” Gave one of these to my lender to prove I meant it.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)