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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
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
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?"
•
bank discount
o interest on an annual basis deducted in advance on a loan
bank draft
bank examiner
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
cashier's check
CD
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
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
checking account
a bank account against which the depositor can drawn checks payable on demand
clear
commercial bank
a financial institution that accepts demand deposits and makes loans and provides other services for
the public.
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
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
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
demand deposit
dishonor
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
• 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
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
passbook
a record of deposits and withdrawals and interest held by depositors at certain banks
penalty
postdate
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 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
simple interest
state bank
thrift
time deposit
a certificate of deposit from which withdrawals can be made only after advance notice or at a specified
future date
time draft
transfer
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"