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W!SE - Banking Vocabulary Terms (Mrs. Carroll)
Terms in this set (55)
ABA number/check routing number
A unique number assigned by the American Bankers Association (ABA) that identifies a specific federal or state chartered bank or savings institution.
a card that allows basic financial services from an automated teller machine
Automatic bill payment services
requires a bank customer to authorize preset accounts of montly expenses
The amount in an account
A financial institution that handles a multitude of monetary transactions
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
When you write a check and do not have sufficient funds in your checking account to cover the check. Fees will be charged for every individual bounced check.
a personal loan to purchase an automobile
A loan given to you in cash.
A check bought from a bank with payment guaranteed by the bank
Certificate of Deposit
a debt instrument issued by a bank
A check for which the bank assures that the drawer has sufficient funds to make payment.
check cashing centers
a company that will cash a check for a fee
check cashing fee
a fee that the bank will charge you when you deposit a check issued by a customer of another bank into your bank account.
A check or another negotiable instrument that has been materially and maliciously altered to effect a fraud. Usually either the name of the payee or the amount of the check is changed. (altered check)
Found in the top right of a check. Used for record keeping purposes.
The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.
A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written.
a bank account against which the depositor can drawn checks payable on demand
checking account number
primary identifier for ownership of account
collateralized item backs up loan (if you dont pay it back you lose the item)
A financial institution that accepts demand deposits and makes loans and provides other services for the public
An arrangement to receive cash, goods, or services now and pay for them in the future.
a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
a person or business that has cash on deposit in a bank
An automatic deposit of a paycheck without having to take a physical check to the bank.
A signature or stamp on the back of a check transferring ownership
Federal Deposit Insurance Corporation: A federal guarantee of savings bank deposits initially of up to $2500, raised to $5000 in 1934, and frequently thereafter; continues today with a limit of $100,000
businesses that offer short-term loans at substantially higher rates of interest than banks
Financial institutions through which savers can indirectly provide funds to borrowers
no service fee accounts
an inability to convert assets into cash quickly
A term used to indicate that the depositor's account is inadequate to cover the check
line of credit
A financial arrangement between a firm and a bank in which the bank pre-approves credit up to a specified limit, provided that the firm maintains an acceptable credit rating
Availability of resources to meet short-term cash requirements.
minimum balance required
the minimum dollar amount that a customer must have in an account in order to receive some sort of service, such as keeping the account open or receive interest. There can be more than one minimum balance for the same account. For example, a lower balance may be required to keep the account open, while a higher balance can get fees waived or increase the rate of interest paid into the account
money market account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
a written order for the payment of a sum to a named individual
enables you to transfer funds, send checks, and check your balance via the Internet
an automatic loan made to you if you write a check for more money than you have in your account
charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items).
(N) punishment; correction
a number you choose and use to gain access to various accounts
Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers.
A written contract with a promise to pay a supplier a specific sum of money at a definite time
(v.) to restore to friendship; to settle; to resign (oneself)
reconciliation of check register
Process of considering values from check registers
A discriminatory real estate practice in North America in which members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods. The practice derived its name from the red lines depicted on cadastral maps used by real estate agents and developers. Today, redlining is officially illegal.
safe deposit box
a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less
a bank account that accumulates interest
depository institution originally set up to serve small savers overlooked by commercial banks
securities investor protection corp
Similar to $ in piggy ban
U.S saving bond
An investment with the U.S government that pays interest over a specified period of time.