Basic Banking Concepts

​ The amount of money in an account at the start of the business day, including all deposits and withdrawals posted the previous night, whether or not the funds have been collected.​ (a)  

• Account Balance
• Active Account

A check that is returned to the depositor because there are not sufficient funds to pay the amount of the check.​ (a)  

• Bounced Check
• Canceled Check

A plastic card issued to an individual that allows that person to use credit to purchase goods and services. A credit limit is established for each cardholder.​ ​ (a)  

• Credit card
• Debit card

A decrease in a deposit account's balance, such as occurs when a check is posted to the account.​ ​ (a)  

• Debit
• Deposit

A bank account in which there have not been any transactions for an extended period of time.​ (a)  

• Inactive account
• Interest rate

Any account linked to another account at the same financial institution so that funds can be transferred electronically between accounts.​ ​ ​ (a)  

• Linked account
• Joint Account

An overdraft happens when you don't have enough money in your checking account to cover a payment or purchase, but we allow the payment or purchase to be made.​ (a)  

• Overdraft
• Online Banking

A deposit account that generally earns higher interest than a checking account and limits you to no more than a total of 6 automatic or preauthorized transfers​ ​ (a)  

• Savings account
• Simple interest

The movement of funds from one account to another.​ (a)  

• Transfer
• Transactions

The removal of funds from an account.​ (a)  

• Withdrawal
• Wire transfer