Banking Products & Services Vocabulary

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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form of online payment where money is electronically withdrawn from the customer's account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


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