Chapter 2: Checking accounts Vocabulary

debit card

A card that allows the user to withdraw money from a bank account in order to obtain cash or make a purchase.

Deposit/credit

Money you put into your account.

Overdraft penalty

a fee to cover the cost of processing your bad check

Automated Teller Machine (ATM)

a machine that allows you to perform basic banking functions without the help of a teller

Online and smartphone banking

allows account holders to access their account information, view transaction history and perform banking transactions via the internet or their mobile phone

interest-bearing account

an account that earns interest

overdraft protection

arrangement with the bank to cover checks so they will not bounce

Balance/reconcile

compare the amount of money in an account, equal to the net of credits and debits at that point in time for that account

Personal Identification Number (PIN)

four-digit code connected to the debit card; verifies your identity

check

handwritten or computer-generated order specifying the amount of money to be paid and the name of the person or company who should receive the fund

overdrawn

having a negative balance in your account

Statement balance

how much money you have in your checking account as of the statement date

identity theft

stealing someone's personal, identifying information and using it to make purchases or to get other benefits

Minimum account balance

the amount of money you must keep in the account to avoid service charges, qualify for special service or earn interest on the checking account

Electronic Funds Transfer (EFT)

the movement of funds using computer systems,telephones, electronic terminals, and smartphones

debit

withdrawal from your account