Banking and Checking Accounts Vocab
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Created by:
14hoffmananna on November 8, 2011
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20 terms
Terms | Definitions |
|---|---|
 Credit Union | A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of providing credit at competitive rates, and providing other financial services to its members. |
| Bank | An institution that deals with money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively. Primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college. |
| Signature card | A part of the application process for opening an account at a bank. The bank has you sign a signature card so that they can compare your signature with your signature on any checks or paperwork submitted to the bank. It helps to protect you and your account from fraud. |
| Minimum balance | This is the minimum amount that you must keep in your bank account at all times. Different types of checking accounts may require different minimum balance. Some student accounts do not require any minimum balance. |
| Overdraft fee | When you write a check, withdraw money from an ATM, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for more than the amount in your checking account, you overdraw your account. Your bank has the choice to pay and if it does and you don't have enough money in your account you may be charged an overdraft fee-$30, $30, $50.00. |
| Withdrawal | Money that is taken out of your account by going into the bank and asking for money or withdrawing amount from an ATM. |
| Deposit slip | A slip or form that is filled out with your name, account number, and a space for you to record the cash and/or checks that you are depositing. |
| Transfer | Is an action taken to transfer funds from one account to another. Usually a transfer takes place between a checking and a savings account. |
| Interest Rate | Is the rate at which a bank will pay you to have your money in their checking or saving accounts. Usually the rate is stated at APR-annual percentage rate. |
| Service Fees | The fees a bank will charge you for various services they provide... to use your visa card, to process checks, new checks, etc. |
| Debit Card | Also known as a check card or a bank card, it can be used just like an electronic check. The funds paid using a debit card are transferred immediately from the bank holder's account |
| Credit Card | A credit card can be issued by your bank and when used it charges the amount to your account which is taken out usually within 2 or 3 days after the transaction. Your debit card/credit card can be one card and you are given to the option to use it in either way. |
| Check Register | The check register or check stub is an area to record information about your transactions such as checks that you write, debit card or credit card transactions, atm withdrawals. This check register allows you to compare what you have recorded versus what the banks say occurred. |
| Bank Statement | A financial report that is prepare at the end of every month and tells you all the transactions which effected your account throughout the month. It should show you all your deposits, withdrawals, electronic payments, bills paid, etc. |
| Bank Reconciliation | Is the act of comparing what your bank says happened within your account to what you say happened within your account. When completing the bank reconciliation you are comparing the two and then making changes (reconciling) them until they are equal. |
| Payee | The person that you are paying or writing the check to. |
| Payor | The payor is you, the account holder, the person whose account is going to be affected by the check. |
| Account Number | Every bank account is assigned an account number. That account number is written on every check and deposit slip in order to identify your account within the bank. |
| ABA Routing Number | Is the number assigned to the bank institute and is written on every check and deposit slip so that the bank at which your account is located can be identified and the money can be retrieved from that particular bank. |
| Endorsement | The way that you sign the back of the check when you are going to cash or deposit the check. |
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