27 terms

Banking Vocabulary

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Federal Depositor's Insurance Corporation (FDIC)
A federal agency that protects depositor's money in case of failure of a bank or financial institution that regulates
Interest
an amount paid for the use of money
Investments
savings that are put to work to earn more money
Safe-deposit boxes
a secured area in a bank vault for storing valuables
Signature Card
a card, kept by the bank, that shows the signatures of all individuals authorized to draw checks against the account
Joint Account
a bank account that is used by two or more people
Deposit Slip
a form that accompanies a deposit and lists the items you deposited-- currency, coins, or checks
Endorsement
written evidence that your received payment or that you transferred your right of receiving payment to someone else
Blank Endorsement
an endorsement consisting of only the endorser's name
Restrictive Endorsement
an endorsement that limits the use of a check to the purpose given in the endorsement
Check Stub
a form attached to a check on which a depositor keeps a record of the checks written and any current deposit
Check Register
a separate form on which the depositor keeps a record of deposits and checks
Drawer
the owner of the account and the person who signs the check
Drawee
the bank or other financial institution in which the checking account is held
Payee
the person to whom the check is written
Forgery
the crime of writting another person's signature on the check without his or her authority
Stopping Payment
the form instructing a bank not to pay a certain check
Overdrawing
writing a check for more money than is in one account
Certified Check
a personal check for which a bank has guaranteed payment
Cashier's Check
a check that a bank draws on its own in house funds
Money Order
a form of payment that orders the issuing agency to pay the amount printed on the form to another party
Electronic Funds Transfer (EFT)
a system through which funds are moved electronically form one account to another and from one bank to another
Clearing
returning a check to the drawer's bank to be paid and charged to his or her checking account
Bank Statement
a report sent by the bank to a depositor showing the status of his or her account
Canceled Check
checks that have been paid by the bank
Outstanding Check
checks that have not been deducted form the bank statement balance
Bank Reconciliation
a statement showing how the checkbook balance and the bank statement were brought into agreement