Banking Products & Services Vocabulary
Direct deposits
allow individuals to have their paycheck or other payments deposited directly into their account
Home equity loan
allows an individual to borrow money against the value of their home to finance major expenses; to be repaid within a specific time frame and with added interest
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
Premium
amount 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
None-depository financial institutions
do not offer federally insured deposit accounts
Online banking
electronic banking systems allowing customers to conduct financial transactions via the internet
Automated teller machine
electronic banking terminal which allow customers to complete basic transactions, such as deposits or withdrawals
Electronic funds transfer
electronic movement of money from one account to another
Savings & loan associations
handle deposit accounts (savings) and personal loans and mortgage lending
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 businesses can deposit or withdraw money as needed
Savings account
secure means of storing money while earning interest
Brokerage firms
assist individuals in buying and selling securities among investors
Interest
fee paid regularly at a set rate
Securities
financial instruments with ownership rights, debt rights, or rights to buy, sell or trade, such as stocks and bonds
Electronic checks
form of online payment where money is electronically withdrawn from the customer's account
Debit card
form of payment I which customers draw money directly from their checking account
Credit card
form of payment in which customer borrow money from a financial institution up to a certain limit, with added interest
Beneficiary
individual who holds legal control of the assets in a trust account
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 specific time frame and with added interest
Personal loan
money borrowed for personal reasons; to be repaid within a specific time frame and with added interest
Auto loan
money borrowed for the purchase of a vehicle; to be repaid within a specific time frame and with added interest
Mortgage loan
money borrowed for the purchase of real estate; to be repaid within a specific time frame and with added interest
Credit unions
offer financial services much like banks but are owned by its members
Depository financial institutions
organizations which accept deposits and provide loans
Investment banks & companies
private organizations which hold and manage securities for investment purposes
Insurance companies
provide financial coverage to protect individuals or organizations against possible adverse events in exchange for premium payments
Retail banks
provide financial services such as checking and savings account, mortgages,credit cards and auto loans for individuals and families and small businesses
Mortgage company
provides loans for prospective home buyers
Commercial banks
receive and transfer and lend money to individuals or businesses or government
Phishing
sending forged emails impersonating an online bank
Fraud
wrongful or criminal deception used for financial gain
