Some banking words that an account holder should be familiar
with to be able to understand how Banks operate.
Customer: A person(s),
society, firm or company can become a customer when he makes an offer, which
the bank accepts.
Standing order: A writing instruction that you give a bank to
take a particular amount of money out of your account in a stated date of a
month, to pay a person or organization for you.
Stress test: A test used to find out if a bank or other
financial institution is likely to fail or have serious liquidity problems in a
difficult economic situation.
Strong room: A room in a
bank, for safe keeping of money and other valuable items from being stolen or
burn in fire.
Telebanking: A way of doing
business with a bank by using your telephone or computer.
Unsecured Loan: Loan that is collected without the use of
property as collateral. It is also called personal loan.
Vault: A strongly
protected room in a bank where money, gold and other valuable things are kept.
Withdrawal: The process of
taking an amount of money from your bank account or the amount of money you
take out.
In Credit: This is when
money in your account is more than what you have taken out.
In red: When you have
debit balance in your bank account.
Annual percentage rate:
The percentage that a bank make you pay in interest when you borrow money from
it, calculated over a period of a year.
Balance: The amount of
money you have in your bank account.
Bank Statement: A document
that shows all the money that went into or out of your bank account during a
particular period of time.
Bank rate: This is the
interest rate at which central bank lend money to commercial banks, often in form
of short-term loans.
Bank draft: This is also
called Banker’s cheque. It is an instrument provided to a customer of a bank
for remittance purposes that is drawn by the bank, and payable through or at a
bank.
Bank internet payment system:
An electronic system for making payment by moving money directly into a bank
account over the internet.
Borrower: Someone who
borrow money from a bank.
Cardholder: Someone who
owns a credit card or debit card for buying things.
Cash back: Money from your
bank account that you can get from a shop when you pay for goods with a debit
card.
Collateral: Property that
you agree to give to a bank if you fail to pay back the money that you have
borrowed.
Commission: An extra
amount of money that you have to pay to a bank or other organization when they
provide a service for you.
Credit: An arrangement to
receive good from a shop or money from a bank and pay later. It can also mean
the amount of money you add to an account.
Credit limit: The maximum
amount of money that a customer can borrow using a current account or credit
card.
Credit line: An amount of
money that a person or a company can borrow from a bank or other financial
institution.
Credit rating: Financial
information about someone that a bank or shop uses for deciding whether to lend
them money or to give them credit.
Credit transfer: A payment
made directly from one bank account to another.
Debit: An amount of money
take out from a bank account.
Deposit: An amount of money you pay into a bank
account.
Depositor: Someone who
pays cash into a bank.
Direct debit: An order to
a bank to regularly pay money from your account to a person or an organization.
Discount rate: The rate of
interest that a Central bank charges another bank that borrows from it.
Interest rate: The
percentage that a bank charges or pays you in interest when you borrow money
from it or keep money in an account.
Internet banking: A system
that allows you to use the internet to communicate with your bank, check your
account and pay bills and do other transactions.
Lending rate: A percentage
that a bank charges a customer who borrows money.
Mortgage: A legal
agreement in which you borrow money from a bank in order to buy a house. You
pay back your mortgage by making monthly payments.
Online banking: A system
that allows you to communicate with your bank on the internet.
Overdraft: An agreement
with your bank that allows you to spend money when you have no money left in
your account. It can also be amount you owns your bank because you are into an
agreement.
Overdrawn: This is when
you take more that amount of money you have in your bank account.
Safe deposit box: A small
box that is usually kept in a bank and use for storing valuable possessions.
Saver: Someone who
regularly put money in a bank or cooperative society so that they can use it
later.
Savings: money that you
have save in a bank or invested so that you can used it later
SORT CODE: A number that
is use on cheques to recognize the particular branch of a bank where customers
keep their account.
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