Banking Vocabulary by Xavior Hook

budget

27hookx — 2024-09-26 14:27:13 UTC

Definition:a plan you write down to decide how you will spend your money each month

Sentence:you need to budget for all the costs

Discretionary Income

27hookx — 2024-09-26 14:38:16 UTC

Definition:money left over after a person pays their taxes and pays for essential goods and services like housing and food

Sentence:She has enough discretionary income to pay for a nice vacation each year.

Recurring Expenses

27hookx — 2024-09-26 14:47:06 UTC

Definition:a cost that occurs on a regular basis and is necessary for the ongoing operation of a business

Sentence:Recurring expenses are predictable costs that happen on a regular basis, such as every month, quarter, or year

Fixed Expenses

27hookx — 2024-09-26 14:51:51 UTC

Definition:car payments, mortgage or rent payments, insurance premiums and real estate taxes

Sentence:As she did her own washing, and walked to work, she had no other fixed expenses, except for shoes.

Variable Expenses

27hookx — 2024-09-26 14:58:11 UTC

Definition:expenses that change depending on how often you use a product or service.

Sentence:The cell phone manufacturer may determine it costs the company $20 in variable expenses to make one cell phone

Budget Surplus

27hookx — 2024-09-26 15:02:05 UTC

Definition:occurs when more money is collected than is spent

Sentence:Maryland ran a budget surplus in each of its last three fiscal years.

budget deficit

27hookx — 2024-09-26 15:06:05 UTC

Definition:occurs when a government spends more than it collects in revenue over a specific period of time

Sentence:If the Congress enacts the tax increase, we will reduce the budget deficit by some $12 billion.

Liquidity

27hookx — 2024-09-26 15:09:26 UTC

Definition: the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

sentence a firm may be unable to pay unless it has spare liquidity.

FDIC

27hookx — 2024-09-26 15:13:32 UTC

Definition:The Federal Deposit Insurance Corporation (FDIC) is an independent US government agency that protects bank deposits and maintains the stability of the financial system. The FDIC's responsibilities include.

Sentence:All reputable banks in the U.S. are insured by the FDIC (Federal Deposit Insurance Corporation), which both insures deposits and provides consumer information about banks.

Credit Union

27hookx — 2024-09-26 15:17:02 UTC

Definition: the ability of the consumer to acquire goods or services prior to payment with the faith that the payment will be made in the future

Sentence: they have lived on credit for some time.

Checking Account

27hookx — 2024-09-26 15:20:36 UTC

Definition:A checking account is a deposit account that allows you to deposit, withdraw, and transfer money. It's a type of transactional account that's designed for everyday financial transactions, such as paying bills, making purchases, and sending money to others.

Sentence:He has his checking account at the Commonwealth Bank

ATM

27hookx — 2024-09-26 15:23:22 UTC

Definition:automated teller machine

Sentence:Is there an ATM near here? I need to get some money out.

Debit Card

27hookx — 2024-09-26 15:26:17 UTC

Definition: a payment card that deducts money directly from your checking account.

Sentence: The debit card balance must be paid in full by the end of each month.

Savings Account

27hookx — 2024-09-27 14:14:37 UTC

Definition:A savings account is a financial product that allows people to save money and earn interest. They are typically held at banks or credit unions and are a good option for short-term and long-term financial goals.

Sentence:He opened a savings account with $50 after his second paycheck.

Money Market Deposit Account

27hookx — 2024-09-27 14:18:27 UTC

Definition:a type of bank or credit union savings account with some features not found in regular savings accounts

Sentence:Jamal puts another $37,000 in a money market account with a 0.5% interest rate".

APY

27hookx — 2024-09-27 14:21:55 UTC

Definition: For example, $1,000 put into an account with an annual interest rate of 5% would, in theory, earn $50 at the end of the year. However, if the rate is 5% with interest earned monthly, the APY would actually be 5.116%, earning you $1051.16 by the end of the first year.

Sentence:When shopping around for a new savings account or CD, finding a high APY should be a priority.

Nominal Interest Rate

27hookx — 2024-09-27 14:26:21 UTC

Definition:the interest rate on a loan or investment before adjusting for inflation, compounding, or other factors

Sentence:The nominal interest rate in the UK is higher than in the USA because the expected inflation rate is higher.

Real Interest Rate

27hookx — 2024-09-27 14:27:03 UTC

Deflation:real interest rates increase

Sentence:A consumer loan has a real interest rate of 6%, and the expected inflation rate is 2%.

Fee Schedule

27hookx — 2024-09-27 14:33:31 UTC

Definition:Reimburse providers: Medicare and other insurance companies use fee schedules to reimburse providers on a fee-for-service basis.

Sentence:The early libraries were generally small, offered a narrow range of services, and operated on a fee schedule.

Signature Card

27hookx — 2024-09-27 14:37:45 UTC

Definition:A signature card is a document that financial institutions keep on file to verify a customer's signature and other account information.

Sentence:There is a place for your signature at the bottom of the form.

Emergency Fund

27hookx — 2024-09-27 14:41:42 UTC

Definition:Medical bills

Car repairs

Home repairs

Job loss

Sentence:Get yourself an emergency fund of three months of expenses so you don't have to go back into consumer debt.

Bank Statement

27hookx — 2024-09-27 14:44:02 UTC

Definition:an official document that summarizes your account activity over a certain period of time—typically one month.

Sentence:He ran a casual eye down the first page of the bank statement, and reread it with quickening pulse, before turning over.

27hookx — 2024-09-27 14:47:34 UTC

Definition:personal identification number

Sentence:three-pin plugs are used in the UK

Overdraft/Overdrafting

27hookx — 2024-09-27 14:51:21 UTC

Definition:it shouldn't affect your credit scores

Sentence:now I've earned some money, I can pay off my overdraft

Nonsufficient funds fee

27hookx — 2024-09-27 14:54:14 UTC

Definition:A non-sufficient funds (NSF) fee is a charge that a bank or credit union may charge when a customer attempts to make a transaction that exceeds their account balance. NSF fees can occur when a check bounces or an electronic payment is denied.

Sentence:My bank has informed me that this check was returned unpaid due to non-sufficient funds (NSF) and that I am liable for the entire amount.

Fraud

27hookx — 2024-09-27 14:56:03 UTC

Definition:the act of deceiving someone or withholding important information to gain something of value.

Sentence:He was found guilty of bank fraud

FTC

27hookx — 2024-09-27 14:58:41 UTC

Definition:a law enforcement agency that protects consumers and promotes competition by enforcing antitrust and consumer protection laws.

Sentence:The company is being investigated by the FTC.

identity theft

27hookx — 2024-09-27 15:01:27 UTC

definition:Identity theft happens when someone takes your name and personal information (like your social security number) and uses it without your permission to do things like open new accounts, use your existing accounts, or obtain medical services.

Sentence:The extra step is far less trouble than cleaning up after an identity theft.