Banking

Bank Statement

A monthly summary providing the status of a depositor's financial accounts (checking and/or savings).

Money market account

A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

Online Banking

A service that allows an account holder to obtain account information and manage certain banking transactions via personal computer or mobile device.

Credit Card

A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit.

ATM

An electronic machine that bank customers and credit union members can use to withdraw cash and make financial transactions.

Electronic funds transfer (EFT)

Any transfer of funds initiated by electronic means from an electronic terminal, telephone, computer, ATM or magnetic tape.

Direct Deposit

The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account.

Debt

The entire amount of money owed to lenders.

Checking Account Reconciliation

The act of balancing the check register and bank statement

Endorsement

Signature on the back of a check

Debit Card

A bank card that automatically deducts the amount of a purchase from the checking account of the card holder

Certificate of Deposit (CD)

A certificate issued by a bank to a person depositing money in an account for a specified period of time (often six months, one year, or two years). A fee is charged for early withdrawal from this type of account.

Certified check

A check for which the bank guarantees payment.

Bounced Check

A check returned that is returned to the depositor because there are not sufficient funds to pay the amount of the check.

Canceled check

A check that has been paid.

Bank

A financial institution that accepts deposits and channels the money into lending activities

Money order

A financial instrument, issued by a bank or other institution, allowing the individual named on the order to receive a specified amount of cash on demand. Often used by people who do not have checking accounts.

Check Register

A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts.

Credit

Amount of money a creditor is willing to loan another to purchase goods and services, based on trust and the expectation that the money will be repaid as promised with interest.

Savings Account

An account you have at a financial institution that helps you accumulate and save money and earn interest at the same time.

Overdraft Protection

Links your checking account to another account-such as savings, credit card, second checking account, or line of credit-and automatically transfers available funds to cover purchases, prevent returned checks and declined items when you don't have enough money in your checking account.

Personal identification number (PIN)

The unique number you must use to access your account at an ATM or make a purchase with a debit card. Your ATM number should always be kept confidential.

Check

Written order directing a bank or credit union to pay a person or business a specific sum of money.