Module 2- Banking Terms Flashcards
Overdraft
When You spend more money then you have in your account
Payer
The person writing the check or using the debit account
Checking account
Can be accessed by using checks or ATM as often as needed
Payee
A person or business whom money is paid or is to be paid
Account Balance
The amount of money in a financial depository, such as a checking account, at any given moment
Outstanding check
A check that has been written by a company (and deducted from the appropriate general ledger cash amount) but it has not yet cleared the bank account on which it is drawn.
Postdated check
A check written for a date in the future
Stale check
A check that is presented to be cashed or deposited at a bank six months or more after the date it was written
Minimum balance checking account
Designed to encourage bank customers to keep a set amount of money in their checking account to avoid fees and charges
Bank fee
A nominal amount charge to customers for various reasons; not having enough money in an account
Interest
The amount it cost to borrow money OR the amount the bank pay’s you for storing your money there
Direct Deposit
A direct transfer of money into ones checking or savings account from another account
Checking Account Reconciliation
The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement
Special Endorsement
Consists of a signature and a statement for further instructions
Restrictive Endorsement
Consist of a signature and a statement for further instructions. restricts further negotiation.
