Chapter 3 - Banking
routing number
1st range of numbers @ bottom of check. Identifies what bank and which Federal Reserve District the bank belongs to
overdrawn
A depositor draws a check for more than the amount he has in the bank
endorsement
A signature on the back of a check authorizing a bank to cash or deposit the check
deposit slip
A slip or form that is filled out with your name, account number and a space for you to record the cash and/or checks that you are depositing.
Transaction
When money goes into, or out of, your account. Can include deposits, withdrawals, payments, fees, ATM transactions or transfers.
debit
a charge deducted from an account.
bounced check
a check written for an amount more than in your account; Non-sufficient funds (NSF)
service charge
a fee a bank charges for handling a checking account
Interest
a fixed charge for borrowing money; I=PRT
check stub
a form attached to a check on which a depositor keeps a record of the checks written and any current deposit
credit
entry of money paid into an account
compound interest
interest calculated on both the principal and the accrued interest
balance
the difference between the totals of the credit and debit sides of an account; amount of money in an account
payee
the person a check is written to; the person being paid
signature
your name written in your own handwriting
post date
To write a future date on a check.
overdraft protection
An automatic loan made to checking account customers to cover the amount of checks written in excess of the available balance in the checking account
numerical digits
Symbols used to make numbers (Ex. {0,1,2,3,4,5,6,7,8,9}); used to fill in the dollar amounts on a check.
check register
The book in which you keep records of checks, deposits, debit card transactions, and atm withdrawals.
Principal
The money originally invested or loaned, on which basis interest and returns are calculated
payor
The payor is you, the account holder, the person whose account is going to be affected by the check
compound amount
The total in a savings account at the end of an interest period after compound interest is added
minimum balance
This is the lowest amount of money that you must keep in your bank account at all times.