Automated teller machine, also known as a cash machine

A current account that allows people to store their money as an

electronic balance and make payments by direct debit, standing

order, prepaid cash card or by withdrawing cash. There is no debit

card, cheque book or overdraft facility on this type of account

A sum of money available once all the essential expenditure in a

given period, eg a month, has been made

A card used to withdraw cash from ATMs or branch counters

A written instruction to the provider (eg the bank or building society)

to pay a specified amount to a specified person or organisation. (The

law relating to cheques is quite complex so this is a simplified

explanation for the purpose of these study materials)

A bank or building society account where people can store their

money in the form of an electronic balance and withdraw it to make

payments.

A card that can be used to withdraw cash, to make face-to-face

transactions in, for example, shops, and to make payments online or

over the phone

An electronic payment into an account, for example a salary or

benefit payment.

An electronic payment out of an account. The amount and frequency

of a direct debit payment can vary.

Her Majesty’s Revenue and Customs – the organisation that collects

taxes on behalf of the government.

Money either paid to an account holder by the provider, or charged

to the account holder by the provider. Interest is paid on savings

accounts and some current accounts and charged on borrowing, eg

an overdraft. Each provider decides the rate of interest it will pay or

charge, depending on the type of account and, in some cases, the

credit history of the individual account holder

The process of making ‘dirty’ money (money gained from criminal

activities) ‘clean’ – in other words making it look as though it has

been acquired legitimately

The government department that monitored how businesses

compete with each other. It was abolished in April 2013 and its

responsibilities shared between the Financial Conduct Authority and

the Competition and Markets Authority

A facility that allows an account holder to withdraw more money

than they actually have in their account.

A current account that offers extra benefits such as travel insurance,

for which the account holder pays a monthly fee

A current account that offers additional benefits, such as a personal

banker, for wealthy customers with an income or savings above a

certain level

A card that has to have money credited to it before the card holder

can use it to pay for goods. Once the initial sum of money on the

card runs out, it can be topped up again. Some prepaid cards can be

loaded with foreign currency and used abroad

An electronic payment out of an account. Standing orders are used

to make regular payments of the same amount

A record of the transactions on an account, issued at regular

intervals such as monthly or quarterly. The statement indicates

whether a debit or credit to the account was made by cheque,

withdrawal from an ATM, direct debit, etc

A current account designed for students in higher education that

charges low interest or no interest on overdrafts, and offers other

benefits such as low-cost contents or travel insurance

A current account designed for people under 18; no overdraft facility

is provided as banks do not usually allow under-18s to borrow