20 terms

Banking

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Terms in this set (...)

current account
an account in personal banking allowing to withdraw money with no restrictions
savings account
a deposit account with higher interest and some withdrawal restrictions
statement
an overview of monthly transactions which have happened in an account
standing order
used to pay regular fixed sums of money without having to arrange this every month
direct debit
similar to a standing order, but the amount and payment dates vary
cash machine/cash dispenser/ATM (automated teller machine)
allows a customer to withdraw money, credit a mobile phone, check an account balance etc. in the street
overdraft
allows a customer to overdraw an account (have a debt) up to an agreed limit
mortgage
a type of a loan (long-term) to buy a house/flat
collateral
a loan guarantee for the bank
maturity
the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid
PLS (profit and loss sharing in Islamic banks)
in Islamic banks interest is not paid nor charged to customers. They share profit and risk with depositors/borrowers
hire purchase
a hire purchase is a method of buying goods through making installment payments over time. The term "hire purchase" originated in the United Kingdom and is similar to rent-to-own arrangements in the United States. Under a hire purchase contract, the buyer is leasing the goods and does not obtain ownership until the full amount of the contract is paid (source: Investopedia)
IPO (initial public offering)
in other words flotation, offering stock for sale for the first time
subsidiary
a company with voting stock that is more than 50% controlled by another company, usually referred to as the parent company or the holding company (source: Investopedia)
teller
a cashier, an employee of a bank who deals directly with customers
loan
borrowed money
liquidity
having cash available
equity
the value of an asset less the value of all liabilities on that asset (more here: http://www.investopedia.com/terms/e/equity.asp)
yield
the income return on an investment, such as the interest or dividends received from holding a particular security. The yield is usually expressed as an annual percentage rate based on the investment's cost, current market value or face value (source: Investopedia)
offshore bank
a bank that is located outside the depositor's country of residence

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