Banking

A checking account is a type of bank account held at a financial institution that permits withdrawals and deposits on a daily transactional basis. Checking accounts are also known as demand deposit accounts because they are highly liquid and can be accessed by writing checks, withdrawing or depositing funds with automated teller machines, and by debit card transactions.

A personal loan is the process of borrowing a sum of money for personal use and is generally unsecured by collateral. Personal loans are typically used to pay off credit card debt, purchase big ticket items or fund large expenses like vacations or weddings. Personal loans can be offered by banks, credit unions, or online lenders and involve a set repayment term and either fixed or variable interest along with possible loan fees.

The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts to protect customers from bank failures. The FDIC was created during the great depression to maintain public confidence and provide stability to the financial system through the promotion of sound banking practices. The FDIC insures deposits up to $250,000 per depositor for customers of member banks.

A bank statement is a document sent from a financial institution to an account holder, either by mail or delivered electronically, that details monthly account activity, showing the account number and all the transactions in sequential order processed during the previous account cycle.

Underbanked refers to people or segments of society who may have an account with a financial institution but choose to rely on very expensive non-bank sources of financial services such as wire-transfer or check-cashing services, title loans and payday loans instead of more traditional sources of retail banking services like debit and credit cards, demand deposit accounts and personal loans to meet their daily financial needs. This may be due to lack of access due to lower credit scores, not having banks near their residences, limited financial literacy or distrust of traditional financial services.