Banking Terms

BankingTerms.biz defines many common banking terms used frequently in our everyday life. If you
ever wondered what do compound interest , CD or debt instrument mean, then Banking Terms will
answer your questions.

compound interest

• interest calculated on both the principal and the accrued interest

account

• an itemized statement of money owed for goods shipped or services rendered; "he paid his bill
and left"; "send me an account of what I owe"
• a formal contractual relationship established to provide for regular banking or brokerage or
business services; "he asked to see the executive who handled his account

account statement

a statement of recent transactions and the resulting balance; "they send me an accounting every
month.
acknowledge

report the receipt of; "The program committee acknowledged the submission of the authors of the
paper"
agent bank

• a bank that acts as an agent for a foreign bank

• a bank named by a multi-bank lending syndicate to protect their interests

ATM

an unattended machine (outside some banks) that dispenses money when a personal coded card is
used
balance

• equality between the totals of the credit and debit sides of an account
• the difference between the totals of the credit and debit sides of an account
• compute credits and debits of an account
bank

• a building in which commercial banking is transacted; "the bank is on the corner of Nassau
and Witherspoon"
• a financial institution that accepts deposits and channels the money into lending activities; "he
cashed a check at the bank"; "that bank holds the mortgage on my home"
• put into a bank account; "She deposites her paycheck every month"
• be in the banking business
• do business with a bank or keep an account at a bank; "Where do you bank in this town?"

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bank discount
o interest on an annual basis deducted in advance on a loan

bank draft

• a draft drawn by a bank against funds deposited in another bank

bank examiner

an official appointed to audit the accounts of banks in a given jurisdiction

bank holding company

a holding company owning or controlling one or more banks

bank holiday

any of several weekdays when banks are closed; a legal holiday in Britain
bank note

• a piece of paper money (especially one issued by a central bank); "he peeled off five one-
thousand-zloty notes"

banking

• transacting business with a bank; depositing or withdrawing funds or requesting a loan etc.
• engaging in the business of banking; maintaining savings and checking accounts and issuing
loans and credit etc.
blank check

a check that has been signed but with the amount payable left blank

blank endorsement

• an endorsement on commercial paper naming no payee and so payable to the bearer

cashier's check

CD

a debt instrument issued by a bank; usually pays interest

central bank

Government monetary authority that issues currency and regulates the supply of credit and holds the
reserves of other banks and sells new issues of securities for the government

Certificate of deposit

a debt instrument issued by a bank; usually pays interest

certified check

a check containing certification that the person who issued the check has sufficient funds on deposit to
cover payment
check

• a written order directing a bank to pay money; "he paid all his bills by check"
• write out a check on a bank account

checkbook

• a book issued to holders of checking accounts

checking account

a bank account against which the depositor can drawn checks payable on demand
clear

• settle, as of a debt; "clear a debt"; "solve an old debt"

• be debited and credited to the proper bank accounts; "The check will clear within 2 business
days"
• earn on some commercial or business transaction; earn as salary or wages; "How much do
you make a month in your new job?"; "She earns a lot in her new job"; "this merger brought
in lots of money"; "He clears $5,000 each month"
• make as a net profit; "The company cleared $1 million"
• yield as a net profit; "This sale netted me $1 million"

commercial bank

a financial institution that accepts demand deposits and makes loans and provides other services for
the public.
commission

• a fee for services rendered based on a percentage of an amount received or collected or

agreed to be paid (as distinguished from a salary); "he works on commission"

compensating balance

• a minimum credit balance that a bank may require a borrower to keep on deposit as a
condition for granting a loan; a common requirement for establishing a line of credit at a
bank; "the compensating balance increases the effective interest rate to the ban

compound interest

• interest calculated on both the principal and the accrued interest

credit card

• 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

credit union

a cooperative depository financial institution whose members can obtain loans from their combined
savings
custodial account

• a brokerage firm account that parents have created for a minor

debit card

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

debt instrument

• a written promise to repay a debt

demand deposit

a bank deposit from which withdrawals can be made without notice

deposit

• a payment given as a guarantee that an obligation will be met

• the phenomenon of sediment or gravel accumulating
• money given as security for an article acquired for temporary use; "his deposit was refunded
when he returned the car"
• a partial payment made at the time of purchase; the balance to be paid later
• money deposited in a bank
• put into a bank account; "She deposites her paycheck every month"

dishonor

• refuse to accept; "dishonor checks and drafts"

draft

a document ordering the payment of money; drawn by one person or bank on another
drawee

• the person (or bank) who is expected to pay a check or draft when it is presented for payment

drawer

• the person (or bank) who is expected to pay a check or draft when it is presented for payment
FDIC

a federally sponsored corporation that insures accounts in national banks and other qualified
institutions
Federal Deposit Insurance Corporation

a federally sponsored corporation that insures accounts in national banks and other qualified
institutions

financial institution

• an institution (public or private) that collects funds (from the public or other institutions) and
invests them in financial assets

float

• the number of shares outstanding and available for trading by the public
• the time interval between the deposit of a check in a bank and its payment
• allow (currencies) to fluctuate; "The government floated the ruble for a few months"

Interest-bearing

of financial obligations on which interest is paid

letter of credit

• a document issued by a bank that guarantees the payment of a customer''s draft; substitutes
the bank''s credit for the customer''s credit

member bank

a bank that is a member of the Federal Reserve System

money order

a written order for the payment of a sum to a named individual; obtainable and payable at a post
office
mutual savings bank

a state-chartered savings bank owned by its depositors and managed by a board of trustees

national bank

a commercial bank chartered by the federal government

negotiable instrument

an unconditional order or promise to pay an amount of money

overdraft

a draft in excess of the credit balance

passbook

a record of deposits and withdrawals and interest held by depositors at certain banks
penalty

• a payment required for not fulfilling a contract

personal identification number

a number you choose and use to gain access to various accounts

PIN

a number you choose and use to gain access to various accounts

postdate

• establish something as being later relative to something else

reconciliation

getting two things to correspond; "the reconciliation of his checkbook and the bank statement"

saving

• an act of economizing; reduction in cost; "it was a small economy to walk to work every day";
"there was a saving of 50 cents"

savings account

• a bank account that accumulates interest

savings and loan

a thrift institution that is required by law to make a certain percentage of its loans as home mortgages
savings bank

• a container (usually with a slot in the top) for keeping money at home; "the coin bank was
empty"
• a thrift institution in the northeastern United States; since deregulation in the 1980s they offer
services competitive with many commercial banks

sight draft

a draft payable on presentation

simple interest

interest paid on the principal alone

state bank

a bank chartered by a state rather than by the federal government

stop payment

a depositor''s order to a bank to refuse payment on a check

thrift

extreme care in spending money; reluctance to spend money unnecessarily

time deposit

a certificate of deposit from which withdrawals can be made only after advance notice or at a specified
future date

time draft

a draft payable at a specified future date

transfer

• cause to change ownership; "I transferred my stock holdings to my children"

traveler's check
window

• the time period that is considered best for starting or finishing something; "the expanded
window will give us time to catch the thieves"; "they had a window of less than an hour when
an attack would have succeeded"

withdraw

• lose interest; "he retired from life when his wife died"
• remove (a commodity) from (a supply source); "She drew $2,000 from the account"; "The
doctors drew medical supplies from the hospital''s emergency bank"

Payday Loan Canada

withdrawal

• the act of withdrawing

• the act of taking out money or other capital

Payday Loan Canada