Navigating the world of banking can feel overwhelming if you’re unfamiliar with the terms and products offered by financial institutions. At FinancialEdge Credit Union, we believe financial literacy is key to making informed decisions and reaching your financial goals. This guide will break down essential banking terms, products, and services to help you feel confident and empowered.

Common Banking Terms Explained

Interest Rate

How much the Credit Union pays you for keeping your money in an account or how much you pay when you borrow money.

Overdraft

When you spend more money than you have in your checking account. Some Credit Unions will cover it for you, but they might charge a fee. Talk with us about adding Overdraft Protection, which will automatically take the amount you owe from another deposit account for no fee.

Credit Score

A number that shows how good you are at borrowing money and paying it back. This number typically ranges from 300 to 850. A higher score makes it easier to get loans and credit cards.

Cashier’s Check

A special check that a Credit Union guarantees, making it safer for big payments like buying a car.

Personal Checks

These are smaller slips of paper that you fill out to pay someone. The money comes directly from your checking account.

Night Drop

A secure box outside the Credit Union where you can deposit money or checks after business hours. These transactions are typically processed the morning of the next business day.

Popular Banking Products

Financial institutions like FinancialEdge Credit Union offer a variety of products to meet different needs.

Checking Account

This is where you keep the money you use for everyday spending. You can pay for things with a debit card, write checks, or use online banking.

Savings Account

A place to save money and earn a little extra from interest. It’s great for setting money aside for future goals.

Loans

• Personal Loans: Borrow money for things like car repairs, education, medical bills, debt consolidation, or unexpected expenses with a promise to pay it back over time, plus interest.
• Auto Loans: Borrow money to buy either a new or used car with a promise to pay it back over time, plus interest.
• Mortgage Loans: Borrow money to buy a house or refinance your current home with a promise to pay it back over time, plus interest.
• Home Equity Line of Credit (HELOC): A type of loan where you borrow money using the value of your home as collateral. You can borrow as needed, like using a credit card.

Certificates of Deposit (CDs)

A savings account where you agree to keep your money in the Credit Union for a set time. In return, you get a higher interest rate. The longer the term, the higher the interest rate.

Credit Cards

A way to borrow money to make purchases and pay off the balance over time. Responsible credit card use can help build your credit score.

Money Market Accounts

A type of savings account that earns more interest compared to a regular savings account, but it also allows you write a few checks each month.

Essential Banking Services

Beyond accounts and loans, credit unions provide helpful services to make managing your money easier.

Online and Mobile Banking

Access your accounts anytime, anywhere. Features include:

• Account balance: See how much money your have in your accounts at any time.
• Mobile check deposits: Deposit a check into your account by just snapping a photo of it.
• Bill pay: Schedule your bills to be paid automatically from your account.
• Account transfers: Transfer money from one account to another.
• Card controls: Turn your card on and off for usage, set up notifications for when you use your card, set spending limits, and more.
• Apply for Loans: Apply for just about any kind of loan online through Online Banking.

Direct Deposit

Automatically put your paycheck into your account. It’s faster and more convenient than depositing it yourself.

Notary Services

A service where a Credit Union employee verifies that important documents are signed correctly and legally.

Financial Counseling

At FinancialEdge CU, we can help you budget, build credit, and make a plan for your money.

Live Services

Contact the Credit Union to complete simple transactions, through a multitude of ways: Texting, Live Chat, Video Banking, or by simply giving us a call.

Wire Transfers and ACH Payments

• Wire Transfers: Fast, secure way to send a large amount of money.
• ACH Payments: Automatic payments for things like recurring monthly bills.

Tips for Choosing the Right Banking Products

When deciding on financial products, think about:

• What are my financial goals?
• Do I need easy access to my money or am I okay with setting it aside?
• What fees or interest rates apply?

Choosing the right products can help you save money and reach your goals faster. Talk with a FinancialEdge Credit Union staff member to get more information and to get started with any products or services you might be interested in.

Let’s build a brighter financial future together!

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