Banking and Finance Terms
Trust Account
allows banks to manage and protect an account on behalf of a beneficiary
Pay-by-phone System
allows customers to pay bills or transfer money between accounts over the phone
Direct Deposit
allows individuals to have their paycheck or other payments deposited directly into their account
Premium
an amount to be paid for an insurance policy.
Financial Institutions
companies engaged in the business of dealing with the monetary transactions of individual and commercial clients.
Business Continuity
continued actions of a business
Online Bank
electronic banking systems allowing customers to conduct finical transactions via the internet
Automated Teller Machine (ATM)
electronic banking terminal which allows customers to complete basic transactions, such as deposits or withdraws
savings and loan association
handle personal loans, deposit accounts, and mortgage lending
Commercial Banks
receive, transfer, and lend money to individuals, businesses, and government
Multifactor Authentication
requiring more than one method of credential authentication to verify a user's identity
Checking Account
secure means of storing money in which individuals or business can deposit or withdraw money as needed
Savings Account
secure means of storing money while earning interest
Home Equity Loan
Allows an individual to borrow against their home's value to finance major expenses; to be repaid within a certain time plus added interest
non-depository financial institutions
Do not offer federally insured deposit accounts
Credit Unions
Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.
Brokerage Firm
assist individuals who want to purchase new or existing securities issues or who want to sell previously purchased securities
Securites
financial instruments with ownership rights, debt rights, or rights to buy sell or trade, such as stocks or bonds
Electronic Checks
form of online payment where money is electronically withdrawn from the customers account
Credit Card
form of payment in which costumers borrow money from a finical institution up to a certain limit; with added interest
Debit Card
form of payment in which customers draw money directly from their checking account
beneficiary
individual who holds legal control of the assets in a trust account
Assests
individual's belongings which have value
Liabilities
individual's expenses and outstanding debt
Budget
itemized summary of the expected income and expenses for a defined period of time
Overdraft Protection
line of credit issued to customers to cover checks or debits exceeding the amount in their account
Business Loan
money borrowed for business reasons; to be repaid within a certain time frame plus added interest
Personal Loan
money borrowed for personal reasons; to be paid within a certain time limit and with interest added
Auto Loan
money borrowed for the purchase of a vehicle; to be repaid within a time frame plus added interest
Mortgage Loan
money borrowed for the purchase of real estate; to be repaid within a time frame plus added interest
Depository Financial Institutions
organizations which accept deposits and provide loans
Investment Banks and Companies
private organizations which hold and manage securities for investment purposes
insurance companies
provide financial terms coverage to protect individuals or organizations against possible adverse events in exchange for premium payments
Mortgage Company
provides loans specifically for buying a home or business
Retail Banks
provides services such as checking and savings accounts, loans, credit cards, and investment assistance to the public (families and small business)
Phishing
sending forged e-mails impersonating an online bank
Electronic Funds Transfer
the electronic transfer of money from one bank account to another
Fraud
wrongful or criminal deception used for financial gain