19 terms

Banking Vocabulary


Terms in this set (...)

direct deposit
An automatic deposit of net pay to an employee's designated bank account.
A computer terminal that allows a withdrawal of cash from an account. Automated Teller Machine.
debit card
A cash card that allows you to withdraw money or pay for purchases from your checking or savings account.
commercial bank
A for-profit institution that offers full range of financial services, including checking, savings, and lending.
savings and loan association
A financial institution that traditionally specialized in savings accounts and mortgage loans but now offers many of the same services as commercial banks.
credit union
A nonprofit financial institution that is owned by its members and organized for their benefit.
A savings alternative, or option, in which money is left on deposit for a stated period of time to earn a specific rate of return. Certificate of Deposit.
money market account
A savings account that limits the number of withdrawals and often has a minimum balance requirement.
rate of return
The percentage of increase in the value of your savings from earned interest.
The process in which interest is earned on both the principal - the original amount you deposited - and on any previously earned interest.
The amount of interest that a $100 deposit would earn, after compounding, for one year. The higher it is, the better.
overdraft protection
An automatic loan made to an account if the balance will not cover checks written.
stop-payment order
A request that a bank or other financial institution not cash a particular check.
The signature of the payee, the party to whom the check has been written.
bank reconcilation
A report that accounts for the differences between the bank statement and a checkbook balance.
Every three months

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