Personal Finance Key Terms Flashcards
Cash
Notes and coins in a wide range of denominations.
Debit card
Issued by banks for goods and services being deducted directly from a current account.
Credit card
Issued by financial institutions allowing customers to delay payments for goods and services.
Cheque
A written order to a bank to make a specific payment for a specific amount of money from one person’s account to another account.
Electronic transfer
Payment transferred directly from one bank account to another.
Standing order
An agreement made with a bank to transfer a fixed sum of money to a third-party account on a set dat on a regular basis.
Direct debit
An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods and services received.
Pre-paid card
Money is uploaded onto a card with transactions then withdrawn to reduce the balance.
Contactless card
Cards with an embedded chip and antenna that enables consumers to wave their card over a reader at the point of said for an automatic transaction.
Charge card
Issued by financial institutions allowing customers to delay payments for goods and services for a short period of time with the balance being paid off in full at each statement date.
Store card
Issued by a retail outlet to allow customers to delay payments for goods and services - similar to a credit card but only for the stores specified.
Mobile banking
The ability to carry out financial transactions using mobile devices such as phones or tablets.
Bankers Automated Clearing Service (BACS)
A system that allows the transfer of payments directly from one bank account to another in 3 working days.
Clearing House Automated Payment Systems (CHAPS)
A system that allows the transfer of payments directly from one bank to another, usually on the same day.
Standard account
This type of account provides full day-to-day banking facilities e.g. cheque book, debit card, easy access to your money and an authorised overdraft facility.
Packaged, Premium account
This type of account usually has an annual fee or additional charge in return for offering extra incentives. These benefits can vary but may include offers such as discounted home insurance, no fee overdraft, and premium access to popular event tickets.
Basic account
This account offers limited features and would be typically held by a person with no credit history in the UK or a poor credit history.
Student account
These are designed to assist young people and students to become prudent with their personal finances. They may come with bonus features . such as interest free overdraft facilities.
Overdraft
Allows an individual to withdraw money that they do not actually have from a current account.
Personal loan
Allows an individual to borrow a set amount of money which is to be repaid in regular instalments, with interest.
Hire purchase
Allows an individual to have use of an item immediately but pay for it in regular instalments. The item is only owned by the individual when the final instalment has been paid.