Banking Terms Vocabulary Terms

Banking Terms

Automatic Withdrawal

a bill-paying arrangement in which your bank removes money from your account at a specified time and sends it to a company to pay your bill

bank

A for-profit institution that offers personal loans, mortgages, and other services.

bank statement

a statement received monthly from the bank that shows the depositor's bank transactions and balances - it might be electronic.

blank endorsement

an endorsement consisting only of the endorser's signature - creates a check that anyone may cash.

check

a legal document that functions like cash

1.) Mr. Tien found a check written out to Mrs. Hammers with a _____ ___________ on it so he was able to cash the check at his bank

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2.) Mrs. Hammers made Mr. Tien write her a _____ for the money he took from her.

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3.) Mr. Tien set up an _______ ________ with his bank so he would never miss his house payment.

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4.) The ____ _________ showed that Mr. Tien spends a lot of money at restaurants.

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5.) The ____ where Mr. Tien has his money is Wells Fargo.

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check register

The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.

checking account

an account at a bank against which checks can be drawn by the account owner.

credit union

A nonprofit financial institution that is owned by its members and organized for their benefit.

direct deposit

the electronic transfer of a payment directly from the account of the payer to the recipient's account - typically from an employer to an employee.

FDIC

Federal Deposit Insurance Corporation: A federal guarantee of savings bank deposits up to $250,000.

6.) Mr. Tien has ______ _______ so that his LPS paycheck goes straight into the bank

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7.) Mr. Tien sometimes forgets to write down checks in his _____ ________ so sometimes he has problems

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8.) The ____ protected Mr. Tien's bank account when Union Bank was robbed, so he didn't lose any of his money.

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9.) Instead of using a bank, Mr. Tien keeps all of his money in the teacher's ______ _____

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10.) Mr. Tien has a ________ _______ with Union Bank so he can write checks at various resturants around town.

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fixed interest rate

interest rate that does not change from month to month

interest

the price paid for the use of borrowed money - how banks make MOST of their money.

loan

An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus interest. Payments are normally made over a series of months.

memo line

a line on the check to tell why you wrote the check - optional

minimum balance

A specific amount of money that a bank or credit union requires in order to maintain a particular account.

11.) Mr. Tien took out a ____ from the bank in order to buy a new car.

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12.) The ____ ____ on Mr. Tien's check showed that he wrote it to buy a new computer.

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13.) The ________ on Mr. Tien's loan was 19.5%.

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14.) The _______ _______ for Union Bank's checking accounts is $100.00.

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15.) Mr. Tien's house loan has a _____ ________ ____ of 8.5%.

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minimum deposit

The least amount of money a bank requires when opening an account.

NCUA

National Credit Union Association = protects credit unions the same way that the FDIC protects bank accounts.

nonsufficient funds fee (insufficient funds fee)

charge for writing a check when there is not enough money in your account to cover it.

online banking

Using the Internet and a bank's website to keep track of bank accounts, moving money from one account to another, and paying bills.

Overdraft Protection

an automatic loan made to an account if the balance will not cover checks written

16.) Mr. Tien wanted to open an checking account at the bank, but he didn't have the _______ _______ needed to open the account.

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17.) Mr. Tien's bank has ______ _______ so he can do is banking from home on his computer.

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18.) Because of his banking problems, the bank suggested that Mr. Tien set up _________ __________ so that he will never have to worry about bouncing a check.

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19.) When Mr. Tien bounced a check, he had to pay a $45.00 _____________ _____ ___

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20.) Like the FDIC, the Teacher's Credit Union is protected by the ____

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Overdraw (or Overdraft)

to take more money out of an account than is available in the account. You write a check for $25.00, but your account contains only $20. You will have to pay the bank a penalty charge for going over the limit. - also knows as "Bouncing a check."

reconciliation

The process of matching your checkbook register with the bank statement

restrictive endorsement

An endorsement found on the back of a check restricting further transfer of a check's ownership - the most restrictive form of endorsement.

savings account

An account at a bank or credit union that is designed to hold money and earn interest instead of spending it.

savings and loan

a type of "bank" that has traditionally obtained most of its funds by accepting savings deposits, which have been used primarily to make mortgage loans

21.) Because his house payment is through there, Mr. Tien opened an account at the _______ ___ ____.

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22.) In addition to his checking account, Mr. Tien has a _______ _______ where he keeps money for emergencies.

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23.) Mr. Tien made an ________ at his bank when he wrote a check for $300 more than he had in the bank. He bounced a check.

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24.) Because he wanted the check to only be deposited into his checking account, Mr. Tien used a ___________ ___________ on the check.

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25.) When Mr. Tien did the ______________ of his bank statement he discovered he had not written down 3 checks.

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service fees

Account-related fees for customers, such as late fees and overdraft fees.

smart card

a card that contains an EMV computer chip that stores electronic money

variable interest rate

rate that changes based on the status of the

When do you have to sign your deposit slip?

When getting cash back from your deposit.

withdrawal

To take money out of your bank account

26.) Mr. Tien made a __________ from his bank so he could have some spending money.

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27.) Mr. Tien took out a ________ ____ ____ from his bank so his payment changes depending on the interest rate.

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28.) When Mr. Tien's bank balance goes the below the minimum amount, he has to pay a _______ ___

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29.) Mr. Tien has a _____ ____ from his bank that stores all of his banking information on the EMV chip.

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30.) Mr. Tien had to ____ ___ _______ ____ because he wanted cash back from his deposit.

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