Term
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Definition
| Interest calculated only on money deposited, not on prior interest earned. |
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Term
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Definition
| Interest calculated on both depositsmade and prior interest earned. |
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Term
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Definition
| A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double. |
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Term
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Definition
| a security that is not subject to taxation. |
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Term
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Definition
| An investment in which some or all taxes are paid at a future date, rather than in the year the investment produces income. |
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Term
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Definition
| The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. |
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Term
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Definition
| The effective annual rate of return taking into account the effect of compounding interest |
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Term
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Definition
| A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years. |
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Term
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Definition
| A U.S. government savings bond that offers a fixed rate of interest over a fixed period of time. Many people find these bonds attractive because they are not subject to state or local income taxes. These bonds cannot be easily transferred and are non-negotiable. |
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