Banking Services Vocabulary

A method of calculating interest so that it is compounded an infinite number of times each year rather than being compounded every minute, or every microsecond.

• Quarterly Compounding

• Annual Compounding

• Daily Compounding

• Continuous Compounding

A numerical password that allows access to an ATM.

• personal identification number (PIN)

• electronic funds transfer (EFT)

• hold

• debit

Interest that is calculated on the principal in an account, using the formula I = prt.

• Interest Rate

• Simple Interest

• Compound Interest

• Maturity

A record of all transactions in a checking account, including checks written, deposits made, fees paid, ATM withdrawals, and so on.

• Bank Statement

• Statement Period

• Check Register

• Starting Balance

The account owner of a check; the person who writes the check.

• Payee

• Principal

• Credit

• Drawer

The process that happens when a bank pays for a check out of a checking account; when the bank has transferred the funds from the checking account.

• Direct Deposit

• Hold

• Check Clearing

• Deposit Slip

The receiver of the transferred funds or the person to whom the check is written.

• Payee

• Drawer

• Principal

• Check Register

The interest rate paid per year or charged per year.

• Annual Percentage Rate (APR)

• Simple Interest

• Compound Interest

• Interest Rate

This protection pays a check even though there are not enough funds in the account; there is a fee for this service and the money must be repaid.

• Overdraft Protection

• Maintenance Fee

• Debit

• Credit

A certain amount of money that must be kept in an account as required by that particular bank.

• Principal

• Credit

• Debit

• Minimum Balance