Banking Flashcards
Commercial bank
Financial institutions owned by shareholders and operated by their profit
Mutual savings bank
State-charted financial institutions operated by trustees for the benefit of the depositors
Savings and loan
Financial institutions that originally specialised in providing funds to home buyers but now provide a variety of financial services
Credit union
A non-profit financial institution owned by its members
Internet bank
A financial institution that operates exclusively over the Internet using online banking
FDIC
Federal deposit insurance Corporation is a federal agency that insurers deposit accounts in most things and savings associations
EFT
Electronic funds transfer is the movement of funds by electronic means
ATM
Automated teller machine. It’s a computer terminal that gives bank customers electronic access to their accounts at any time through the use of a specially coded card
PIN
Personal identification number. It’s a secret code that protects the security of bank accounts
Debit card
A card that allows the user to subtract money from a bank account in order to obtain cash or make purchases
Payee
The one to whom a check is made to
Overdraft
The lack of sufficient funds to cover the full amount of a check
Endorsement
A signature on the back of a check that entitles the payee to either receive payment or transfer it to someone else
Reconcile
To bring a bank statement and your own record of transaction into agreement
Certified check
A check from a personal checking account that’s been stamped by the bank to guarantee funds in an account
Cashier’s check
A check issued and guaranteed by the bank
Money order
A purchased certificate used to pay a specific amount to a particular person
Travelers checks
Documents that function as cash but can be replaced if lost or stolen
Prepaid card
Cards sold in specified dollar amounts that can be used to purchase products or services
Outstanding
Refers to a transaction received by the bank after the closing date of bank statement
Cancelled check
Check that is stamp and perforated by a financial institution to show it’s been paid
Money transfer service
Transferring money from one place to another
Wire transfer
A financial transaction that electronically move funds from one bank to another
Interest
A fee paid for the opportunity to use someone else’s money over a period of time
