Managing Your Money 101

Share Savings – When you deposit money into a credit union, you are purchasing “shares” of the organization. Your Share Savings account is your primary credit union account and is required to become a member. At JHFCU, we require a minimum of $25 to open a Share Savings.

Share Draft Checking – Checking accounts are “transactional accounts” used for everyday spending needs. At credit unions, when you write a check (or “draft”) you spend your “shares.”

Check Hold – Period of one or more business days that a financial institution “holds” or freezes a portion of a deposited check, to ensure it is valid and that it will be collectable, before making it available for withdrawal.

ATM Surcharge – Fee charged by an ATM owner to non-customers for using its ATM. (For example, if you have an account at Bank A but use Bank B’s ATM, Bank B may charge you a surcharge.)

Dividends – Money paid to your account for letting your financial institution have use of your funds. Accounts usually pay dividends in the form of a percentage of your overall balance (see “APY”).

APY – “Annual Percentage Yield”. The amount paid in dividends on an account over the period of one year, expressed as a percentage of your overall account balance. (For example, an account containing $1000 and paying 2% APY will earn $20 after one year.)

Compounding – How often a financial institution credit dividends to an account (monthly, quarterly, yearly, etc.). Once credited, dividends become part of the overall account balance and the new, higher balance is used to calculate dividends at the next compounding. The more frequent the compounding, the quicker your account can grow.

POS (Point of Sale) – Place where you can use your Check card or credit card to make purchases (online, at the gas pump, cashier’s stand at the grocery store, etc.).

“Bounced” Check – When there are not enough funds in your account to cover a check you have written, the check is returned to your financial institution and said to have “bounced”. Institutions may charge you a fee for bounced checks.

Check “Clearing” – When a check amount is finally debited from your account, the check is said to have “cleared.”

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Contents		“Managing Your Money 101” STUDY GUIDE Share Savings – When you deposit money into a credit union, you are purchasing “shares” of the organization. Your Share Savings account is your primary credit union account and is required to become a member. At JHFCU, we require a minimum of $25 to open a Share Savings. Share Draft Checking – Checking accounts are “transactional accounts” used for everyday spending needs. At credit unions, when you write a check (or “draft”) you spend your “shares.” Check Hold – Period of one or more business days that a financial institution “holds” or freezes a portion of a deposited check, to ensure it is valid and that it will be collectable, before making it available for withdrawal. ATM Surcharge – Fee charged by an ATM owner to non-customers for using its ATM. (For example, if you have an account at Bank A but use Bank B’s ATM, Bank B may charge you a surcharge.) Dividends – Money paid to your account for letting your financial institution have use of your funds. Accounts usually pay dividends in the form of a percentage of your overall balance (see “APY”). APY – “Annual Percentage Yield”. The amount paid in dividends on an account over the period of one year, expressed as a percentage of your overall account balance. (For example, an account containing $1000 and paying 2% APY will earn $20 after one year.) Compounding – How often a financial institution credit dividends to an account (monthly, quarterly, yearly, etc.). Once credited, dividends become part of the overall account balance and the new, higher balance is used to calculate dividends at the next compounding. The more frequent the compounding, the quicker your account can grow. POS (Point of Sale) – Place where you can use your Check card or credit card to make purchases (online, at the gas pump, cashier’s stand at the grocery store, etc.). “Bounced” Check – When there are not enough funds in your account to cover a check you have written, the check is returned to your financial institution and said to have “bounced”. Institutions may charge you a fee for bounced checks. Check “Clearing” – When a check amount is finally debited from your account, the check is said to have “cleared.” next page >> Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 16
	Membership Savings Accounts Checking Accounts and Cards ATMs Electronic Services Loans Helpful Tips Products and Services Study Guide Branch Offices