Banking Vocab

ATM:  Automated Tell Machine.  A convenient, unattended computer terminal where you use a plastic card and personal identification number (PIN) to withdraw, deposit, or transfer money from your account.  (The ATM Card is also known as a Debit Card.)

Balance: The amount of money you have in your account.

Balance a checkbook:  To make sure your bank statement and your records agree.

Bank card: (or debit card):  A plastic card that enables you to do ATM transactions.

Bounced check:  A check that comes back to your bank for collection because you didn't have enough money in your account.

Cancelled checks:  Checks the bank has paid; they will be subtracted from your checking account.

Cashier's check:  A check, issued by a bank, that's sold to you for personal payments to people or businesses that won't accept a personal check.

Certified check:  Personal check that includes the bank's certification that you have the necessary funds available.

Check:  A written order to the bank that tells it to take a stated amount of money from your checking account and pay it to another person or company.

Checkbook:  A handy portfolio that holds your check register, checks, deposit slips and receipts, and ATM transaction receipts.

Check register:  A record that allows you to keep track of checks you have written, as well as deposits and withdrawals.  Balance it against your bank statement every month.

Check stub:  The part of a check that you keep as a record of the transaction.  (May be used instead of a check register, or in addition to one.)

Clearinghouse:  A place where account information on deposits (credits) and withdrawals (debits) is exchanged, often electronically. 

Credit:  A sum of money deposited into an account.  Also, the ability to charge merchandise or borrow money.

Currency:  Paper money in circulation.

Debit:  A sum of money deducted from your account.

Deposit:  Money you put into your account.

Deposit slip:  A form you fill out to credit money to your account.

Direct-Deposit of Payroll:  Your employer automatically deposits your paycheck into your account, which gives you faster access to your money.

Duplicate checks:  Checks with carbon copies the account holder keeps as a record.

EFT:  Electronic Funds Transfer.  A paperless, electronic way of crediting or debiting accounts, such as ATM's, direct deposit, pay-by-phone.

Endorse:  Sign the back of a check made out to you so it can be cashed or deposited.

Endorsement:  The signature of the person to whom a check is made out written on the back of a check that enables it to be cashed or deposited.

Float:  A period of time between a transaction and debit.

Free checking:  An account that is provided free-of-charge and usually doesn't pay interest.

Imaging:  A system in which banks send mini-photocopies of checks to the account holder.

Interest:  A fee paid to you for keeping your money in the account.

Interest-bearing checking account:  A checking account that pays interest on the money kept in it.

Joint account:  An account more than one person has the right to use.

Minimum balance:  The balance you must keep in a checking account in order to avoid being charged a service fee.

Money order:  A form of check payment on which the financial institution prints the exact amount covered.  Anyone can cash it if it isn't completely filled out.

NOW:  A checking account that pays interest or a savings account which allows you to write checks.  Not all banks use this term; they may have their own name for such an account.

Overdraw:  To write a check when there isn't enough money in the account to pay for it.

Pay-by-phone:  A way to use your phone as a "computer terminal" to pay your pre-authorized (pre-arranged) bills.

Personal identification number (PIN):  A secret number that allows only you to use your ATM card.

Pre-authorized Bill Payment:  Your bank automatically pays for your bills, so you don't have to write checks.

Reconcile:  "Balance" your checking account with your monthly statement.  

Regular checking:  An account that enables you to write many checks and bases charges on your balance.

Statement:  The monthly record of your account transactions sent to you by your bank.

Stop payment:  An order issued to halt payment on a check that usually results in  a bank fee to the check writer.  

Transaction:  An activity you conduct on your account (deposit, withdrawal, transfer).  

Truncation:  System in which the bank keeps cancelled checks o file and sends only a list of them in each monthly statement to the account holder.

Voided check:  A check with "VOID" written across it that makes in non-negotiable.  You must keep a record of voided checks on your check stub or register.

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