Banking Basics

ATM

Automated Teller Machine - An electronic banking machine that dispenses cash, accepts deposits, and performs other customer services.

Debit Card

A plastic card that resembles a credit card but functions like a check.

Check

A written order on a standard printed form directing a bank to pay money.

Direct Deposit

A plan in which salaries and other payments are transferred by the paying agency directly to the recipients account.

Individual Account

A bank account in the name of one person.

Interest

A sum paid or charged for the use of money or for borrowing of money.

Joint Account

A bank account in the names of two or more persons or parties and subject to withdrawals by each.

Overdraft

A withdrawal of money in excess of the credit balance.

Savings Account

A bank account on which interest is paid.

Teller

A bank employee who receives and pay out money.

Transaction

The process of paying for an item or service.

Withdraw

To remove from the banking account.

Check Register

A bankbook used to record deposits, withdrawals, and interest payments.

Checking Account

A bank account that allows a customer to deposit and withdraw money and write checks. Using a checking account can be safer and more convenient than handling cash.

Bank

A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging, investing, and supplying it for loans.

Credit Union

A non-profit financial institution that is owned and operated entirely by its members. It works like a bank with membership.

NSF

Non-Sufficient Funds(Bad Check, Bounced Check) - The lack of enough money in an account to pay a particular check or payment. The check often bounces being returned without payment.

Available Balance

The amount of money in your account that you can use or withdraw.

Bank Statement

A monthly accounting document sent to you by your bank that lists your deposits, withdrawals, checks and fees processed during the month.

Deposit

To put money into your account.

Deposit Slip

A printed form supplied by a financial institution. Customers list the amounts and types of funds (such as checks and bills) they are depositing and include the slip with their deposit.

Withdrawal Slip

A printed form supplied by a financial institution onto which the customer writes the amount of money to be taken out.

Credit Card

A card that may be used repeatedly to borrow money or buy products and services on credit. Customer will receive a bill at the end of each month.

PIN

Personal identification number - A secret combination of letters or numbers you use to gain access to your account through an electronic device such as an ATM.

Online Banking

A service that allows you to handle banking activities by computer, using the Internet.

Service Fees

Charges for services by a financial institution or lender.

FDIC

Federal Deposit Insurance Corporation - An agency of the federal government that insures all bank deposits up to $250,000 per person.

NCUA

National Credit Union Administration - An agency of the federal government that insures all credit union deposits up to $250,000 per person.

Credit

Loan of money from a financial institution that must be repaid by a certain date, with interest, by the borrower.

Line of Credit

Amount of money a borrower is able to use, as in the limit on a credit card.

Interest Rate

Percentage rate used to calculate interest.

Credit History

A record of your past borrowing and repayments.

Credit Score

A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower. Higher scores for those making payments on time.