Here we explain 20 common banking terms. You may already understand and know how to use some of them. But to be certain you know how to use them accurately, read through the definitions and example sentences below.
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a transaction
a business action such as putting money into an account or taking it out.
There have been several transactions on the account since last month.
a signature
your name, written by hand. "To sign" means to write your name.
His signature was required to open an account.
to authorize
to permit.
By signing his name, he authorized the bank to take money out of his account.
to deposit
to put money in a bank. Also, deposit is the noun form.
Mr Sims opened his account with a deposit of $2,000 and his wife deposited $500.
to withdraw
to take money out of an account. Also, withdrawal is the noun form.
He withdrew enough money to pay off his loan.
Ms. Lowell made a withdrawal of $175.
a teller
the person in the bank who takes deposits and withdrawals inside the bank.
Several tellers were busy helping bank customers in the lobby.
to endorse a cheque
to sign the cheque on the back.
She endorsed the back of the cheque in order to cash it.
to cash a cheque
to exchange a paper cheque for money.
Ms Jones cashed a cheque she had received from selling her investments.
a receipt
the act of receiving or a written record of a transaction.
The teller gave the customer a receipt for his deposit.
to credit an account
to record money added to an account.
The teller credited his account with his deposit of $50.
to debit an account
to record money subtracted from an account.
His account was debited a $4.00 service charge.
to transfer funds
to move money from one account to another.
He wanted to transfer funds from his savings account to his checking account.
insufficient funds
not enough money in an account.
The cheque was returned because of insufficient funds.
to make a payment
to pay.
The loan requires the customer to make a payment every month.
to apply for a loan
to give the bank information and to ask for a loan.
He applied for a car loan at his bank.
to verify
to check or to make sure something is correct, like a signature or an amount of money.
The teller verified his signature before giving him the money.
service charge or bank fees
money that a customer pays a bank for an account or other services.
There is no service charge if the account has a minimum balance of $1,500.
to issue a credit card
to give a credit card to a customer.
The bank issues three kinds of credit cards.
a statement
a record of transactions that a bank sends its customers, usually every month.
The bank statement always arrived on the third of the month.
interest
the money a bank pays you for their use of your money, or the money you pay the bank for a loan.
The interest rate on her savings account was higher than that on her checking account.