What is a Wire Transfer? A wire transfer is an electronic transfer of money from one bank or credit union to another, domestically or internationally, using a network like SWIFT or Fedwire. It is also known as a bank transfer or a bank wire, and sending or receiving money through a wire transfer is …
I was trying to set up a direct deposit, and it required a routing number. But what is a routing number? Routing number is a nine-digit number that is used to identify a bank or credit union in the United States. It makes transactions faster, and reduces the chances of error especially if two …
In the past, we have talked about banks and credit unions. But they sound very similar. Can you please help me understand them better? Both banks and credit unions are financial institutions that help people with their basic financial needs – they accept deposits, provide loans, offer checking and savings accounts, credit cards, etc. …
We’ve talked about banks. But I recently read about an investment bank. But what is an investment bank anyway? An investment bank is a specialized type of bank that performs large and complex financial transactions, usually for other companies or governments. What does an investment bank do? An investment bank helps companies raise money …
I’ve heard in some bank commercials that the account is FDIC insured. What does it mean? FDIC stands for Federal Deposit Insurance Corporation. It is a federal agency that insures deposits in participating US banks, which protects the depositors if the bank goes bankrupt. It was formed as a result of the great depression, …
What is Direct Deposit? How is it different from a regular deposit or a check? Direct deposit is the deposit of money, directly from the bank account of the payer into the bank account of the recipient. It is done electronically, instead of through a physical check. Some instances where direct deposit is commonly …
What Is an Overdraft? An overdraft occurs when you try to withdraw more money than what you have in your account, making your account balance negative. What happens in this case? Am I allowed to withdraw the money? Normally, the bank or credit union would refuse the withdrawal or return the check because of …
Introduction to FICO Score / Credit Score for Kids and Teens This video explains the concept of credit score in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about FICO score, or used as a money & personal finance resource by parents and teachers as …
What is a credit report? Credit bureaus like Equifax, Experian, and TransUnion collect information about your financial activity, employment history, etc. from banks, financial institutions and other sources, and create a report which is called a credit report. It is essentially a report card on how you manage your finances. What does a credit …
What Is LIBOR? LIBOR stands for London Interbank Offered Rate. It’s the interest rate at which major banks lend to one another for the short-term in the international market. Why is LIBOR important? LIBOR serves as a well-accepted benchmark interest rate, based on which the interest rates for many other loans are decided. This …
