Banking Terms Flashcards
Interest
Payment from a borrower or financial institution
Commercial Bank
Bank that offers services to the public
Mutual Savings Bank
Financial institution chartered by a central or regional government
Savings and Loan
Institution that accepts savings at interest and lends money to savers
Credit union
Nonprofit financial institution owned by its members
Internet Bank
Financial institution that operates over the internet
FDIC (Federal Deposit Insurance Corporation)
Federal agency that insures savings, checking and other deposit accounts
EFT(Electronic Funds Transfer)
Movement of funds by electronic means
ATM(Automated Teller Machine)
Computer terminal that gives bank customers electronic access to their accounts
PIN
Secret code that protects the security of your accounts
Debit Card
A card that allows the user to subtract money from a bank account
Payee
Who the check is made out to
Overdraft
Lack of funds to cover the amount of a check
Endorsement
A signature on the back of a check that lets the person receive payment
Reconcile
To bring the bank statement and your own record to an agreement
Certified Check
Check from a personal checking account that’s been stamped by the bank
Cashiers Check
Check issued and guaranteed by a bank
Money Order
Purchased certificate used to pay a specified amount
Travelers Check
Documents that function as cash but can be replaced if stolen or lost
Prepaid Card
Sold in specific dollar amounts that can be used to purchase products (gift card)
Outstanding
Transactions in your check register you didn’t mark off
Cancelled Check
A stamped check showing it’s been paid
Wire Transfer
Financial transaction that electronically moves funds from one to another bank
Money Transfer Service
Banking service that allows users to transfer funds between personal accounts and online accounts
