Banking Vocabulary: Checking & Savings

Flashcards covering essential banking vocabulary related to checking and savings accounts, as well as broader financial and economic terms.

ATM (Automatic Teller Machine)

Allows a person to manage a bank account holder's funds through actions such as withdrawing or depositing money, viewing account balances, etc.

Balance

The amount of money you have in your bank account

Bank Statement

A monthly document prepared by your financial institution which shows all of the transactions related to your account

Canceled Check

A check that has been paid or cleared by the bank. It will appear on your bank statement

Check

A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee

Checkbook

A handy portfolio that holds your check register, checks, deposit slips, receipts, and other records of ATM/debit card transactions

Check Cashing Store

A business that cashes checks and gives the customer cash in exchange for a fee for the service

Check Register

A record that allows you to keep track of checks you have written, ATM/debit card transactions, as well as deposits and withdrawals

Credit

A sum of money deposited INTO an account

Credit Card

A card that allows the holder to make purchases without cash by borrowing money

Debit

A sum of money deducted FROM your account

Debit Card

A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check

Deposit

Money you put into your account

Deposit Slip

A form you fill out to credit money to your account when you make a deposit

Digital Wallet

An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards.

Direct Deposit

An automatic electronic deposit of net pay to an employee's designated bank account

Endorse

To sign the back of a check made out to you so it can be cashed or deposited

Interest

A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card

Low Balance Alert

A notification that lets you know if the balance in your checking account goes below a set amount

Maintenance Fee

A monthly fee that some banks charge to provide access to checking or savings accounts

Minimum Balance

A certain amount of money that must be kept in an account as required by that particular financial institution

Mobile Deposit

A mobile banking tool that allows you to deposit checks to your bank account using your mobile device

Money Order

A certificate that allows the stated payee to receive cash on-demand, usually issued by governments and banking institutions

Online Bill Pay

A consumer banking technology that allows you to schedule and make payments over the internet

Outstanding Check

A check that has been written but has not yet been cashed or deposited by the payee

Outstanding Deposit

A deposit that has been made but not yet added to the person's bank account

Overdraft Fee

A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway

Overdraft Protection

A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest

Payee

The person to whom the check is made payable

Person-to-Person Payment

A digital payment method that allows you to transfer funds from your bank account to that of another person

PIN

Personal Identification Number needed to use an ATM card

Postdate

To write a future date on a check

Prepaid Card

A card that is loaded with a specific cash amount before you use it

Reconcile

To compare your bank's monthly account statement with your own records of activity for the same account

Signature Card

A document that financial institutions use to authenticate a customer's signature when opening new accounts. It includes information such as name, birth date, etc.

Traveler's Check

A check used to buy goods or services or be exchanged for cash when traveling for greater security

Unbanked

A term used to describe a person who does not use or does not have access to traditional financial services

Underbanked

A term used to describe a person who has a bank account, but often relies on alternative financial services such as check cashing

Unusual Activity Alert

A notification that lets you know when there is suspicious activity with your account

Voided check

A check with "VOID" written across it so that it can no longer be used

Wire Transfer

An electronic communication that moves funds from an account in one bank to an account in a different bank instantly. It is a useful option to send money securely when the two parties are not in the same geographic location.

50-30-20 Rule

A popular savings rule of thumb in which 50% of your income goes towards necessities, 30% goes towards flexible spending, and 20% goes towards saving and debt repayment.

Certificate Of Deposit (CD)

A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time

Compound Interest

Reinvesting earned interest back into the principal to allow money to grow exponentially over time

Cost-Push Inflation

Inflation caused by an increase in production costs, but demand is the same

Demand-Pull Inflation

Inflation caused by an increase in demand, but supply is the same

Emergency Fund

Money set aside for unanticipated expenses or loss of income

Federal Deposit Insurance Corporation (FDIC)

The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor

FOMO (fear of missing out)

The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

Health Savings Account (HSA)

An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses

Inflation

The rate at which the price of goods increases and consumer purchasing power decreases over time

Impulse Buying

The buying of goods without planning to do so in advance, as a result of a sudden whim or urge

Living Paycheck to Paycheck

Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing

Monetary Inflation

Inflation caused by growth in the economy's money supply

Money Market Savings Account

A type of savings account that may allow debit card and check writing privileges

National Credit Union Administration (NCUA)

The U.S. administration insuring deposits in U.S.credit unions against credit union failure up to $250,000 per individual depositor

Online Savings Account

A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch

Pay Yourself First

A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases

Principal

Original amount of money saved or invested, separate from interest or earnings

Roth IRA

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year

Rule Of 72

A popular trick to find out how many years it will take your money to double depending on what interest rate you are receiving

Simple Interest

Interest paid on the principal alone

Transaction Fee

A fee that is charged if the number of withdrawals from your savings account exceeds the federal limit, which is six free withdrawals and transfers per month

Unit Price

The cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal

Wealth

A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth