A bank failure occurs when a regulator closes an insolvent bank.An insolvent bank can't meet its obligations to depositors (e.g., it doesn't have the money to meet withdrawal demands) or to creditors (i.e., it can't pay its debts).
A for-profit service run by the Promontory Interfinancial Network, the Certificate of Deposit Account Registry Service (CDARS) allows investors to purchase certificates of deposit (CDs) across a network of multiple banks in order to access FDIC insurance beyond the $250,000 single-institution limit. When investors are looking to make a CD purchase that exceeds the limit, the bank they are using will employ the CDARS system in order to locate multiple CDs that can accommodate the customer’s needs.
The financial world often refers to compound interest as magic.Compound interest can be thought of as “interest building on interest” which adds to your principal.
An electronic funds transfer (EFT) allows payment between two parties by using electronic signals to transfer money.The current systems of electronic funds transfer began in the 1960s but became widespread in the 1970s with the introduction of the automatic teller machine (ATM).
A merchant bank is a financial institution that engages in underwriting and business loans, catering primarily to the needs of large enterprises and high net worth individuals.In the British market, the term merchant bank refers to an investment bank.
Broadly speaking, mobile banking refers to any banking activities conducted on a cell phone.This includes receiving text alerts for fraudulent activities, accessing your account via the bank’s app, and using the bank’s website on your mobile device.
A money market fund is a type of mutual fund that invests in high quality, short-term debt securities.Money market funds are characterized by high liquidity, meaning they can be readily converted into cash.