Personal Finance (Unit 5 Vocabulary)

Checking account

allows you to write checks or transfer money electronically to make payments

Check

is a written order to a bank to pay the amount stated to the person or business named on the check

Outstanding check

a check that has not been cashed by the bank and does not appear on the bank statement

Canceled check

is a check that has cleared your account. It has been paid. I can be used as proof of payment

Depositor or Drawer

known as the maker, the one who has the checking account

Payee

the person whom a check is made payable

Drawee

the bank in which the money is deducted

ATM

automated teller machine

Checkbook register

a record of checking account transactions, including checks, online payments, and deposits, kept by the depositor

Deposit slip

a form used each time you want to deposit money into your account

Deposit in transit

a deposit that has not reached or been recorded by the bank before the bank statement is prepared

Endorsement

signature on the back of the check necessary to cash or deposit the check

Blank endorsement

the signature of the payee written exactly as it appears on the front of the check

Restrictive endorsement

restricts or limits the use of the check by writing “for deposit only” to the account of…..and sign your name below

bank statement

provided by the bank, listing online payments, checks, ATM withdrawals and deposits processed by the bank, as well as charges, ex, Service charge

Service charge

a fee that the bank charges for processing transactions with your account

Debit card

provides immediate deductions from your checking account when you make a purchase or a withdrawal

Bank reconciliation

the process of matching your checkbook balance with the bank statement balance

EFT

electronic funds transfer - uses a computer-based system that enables you to move money from one account to another without writing a check. This can be done by phone, computer, or in person

NSF check

not sufficient funds - when you spend more than you have in your account