Basics of Checking Account
canceled checks
A check that has cleared the depositor's account and has been marked as "canceled" by the bank. A canceled check has been paid by the drawee bank and endorsed by the payee, the payee's bank, and the Federal Reserve Bank. Canceled checks can also be used as proof of payment.
check register
In accounting a check register is a document, usually part of the general ledger, used to record financial transactions in cash.
bank statement
a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.
endorsement
an act of giving one's public approval or support to someone or something
stop payment
an authorized withholding of payment on a check
overdrawn
draw money from (one's bank account) in excess of what the account holds.
check
examine (something) in order to determine its accuracy, quality, or condition, or to detect the presence of something.
direct deposit
the electronic transfer of a payment directly from the account of the payer to the recipient's account.
banks
the land alongside or sloping down to a river or lake
bank reconciliation
DEFINITION of 'Bank Reconciliation Statement' A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies.
signature card
DEFINITION of 'Chip-And-Signature Card' A credit card that contains data embedded in a microchip and that requires the consumer to sign for the transaction. A chip-and-signature card is considered more secure than a traditional magnetic stripe credit card because it uses superior technology.
outstanding checks
DEFINITION of 'Outstanding Check' A financial instrument that draws on the funds in an individual's or business' bank account but which has not yet been cashed or deposited by the payee.
overdraft protection
DEFINITION of 'Overdraft Protection' A line of credit that banks offer to their customers to cover their overdrafts. Overdraft protection kicks in when a customer writes a check for more than the amount in their account. Also referred to as "cash reserve checking."
interest-bearing account
In contrast the term non-interest bearing is used to describe accounts that do not accrue interest.
debit card
a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.