Here’s our handy little guide to banking terminology. We’ll add to it as we get questions about new terms and alter definitions as we see fit. Hopefully this is helpful…
ATM: ATM is the term used to refer to an automated teller machine. These machines typically offer consumers convenient access to fund withdrawals, deposits, transfers and balance inquiries.
BALANCE: The amount of money you have in your bank account. It can also refer to the amount owed in a credit account or loan.
BANK: A regulated financial institution that offers you a place to keep your money and uses it to make more money. Banks make loans, cash and pay checks, accept deposits and provide other financial services.
BRANCH MANAGER: The person who supervises the bank operation and helps fix problems that cannot be solved by other bank workers.
BUDGET: A budget is an itemized list of all of one’s expenses.CUSTOMER SERVICE REPRESENTATIVE: The person who can help you open your account. The representative explains services, answers general questions, and helps you resolve issues.
DEBIT CARD: A plastic card, sometimes called a “check card.” The debit card has a VISA logo and a magnetic strip on the back that allows you to pay for goods and services at stores and other businesses that accept these cards. When you use a debit card, the money comes out of your bank account immediately.
DEPOSIT: Money you add to your bank account.
JOINT ACCOUNTS: Joint accounts are credit accounts which are held or owned by two or more persons.
MOBILE BANKING: A bank service that allows you to make payments, check account balances, transfer money between accounts, obtain account history, such as deposits and withdrawals and obtain general bank information at any time from your personal cell phone.
MONEY ORDER: Similar to a check, a money order is used to pay bills or make purchases where cash is not accepted. Many businesses sell money orders for a fee.
ONLINE BANKING: A bank service that allows you to make payments, check account balances, transfer money between accounts, obtain account history, such as deposits and withdrawals, stop payments on a check, and obtain general bank information at any time from any computer with Internet access.
PIN: For security purposes, credit cards and bank cards require the rightful owner to select and memorize a Personal Identification Number or PIN. This number or code is required in order to utilize the card in an automated teller machine.
SAVINGS: Savings is the term used for money which is set aside into an interest bearing or investment account.
TELEPHONE BANKING: A bank service that allows you to check account balances, transfer money between accounts, obtain account history, such as deposits and withdrawals, stop payment on a check, obtain information on branch hours, and report a lost, stolen or damaged debit or ATM card.
TELLER: The person behind the bank counter who takes money, answers questions, cashes checks or refers you to the person who can help you.
WIRE TRANSFER: A method of electronically transferring money from one bank to another.
WITHDRAWAL: The process of taking money from your bank account. You do this by writing a check, using an ATM or debit card, or giving a teller a withdrawal slip.