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Banking
JC Business
Term | Definition |
---|---|
Commercial Bank | Provides financial services to members of the public and businesses |
Deposit Interest | The reward received for saving |
Standing Order | An instruction given by the account holder to the bank to transfer a Fixed amount of money on a Fixed date (at regular intervals) to another account |
Credit Transfer | Once off transfer of money from one account to another |
Current account | Use this for everyday banking transactions |
Direct debit | Permission to a creditor from the account holder to take a varying amount of money from the account on a date that varies |
DIRT | Tax on interest earned from investments and savings. Paid to the government |
Pay Path | Payment of wages directly into one's bank account by an employer |
Bank Overdraft | A person withdraws more money than is held in the account |
Deposit Account | An account used for saving that yields a higher rate of interest |
Drawer | Person who writes the cheque |
Drawee | Bank where the drawer holds the account |
Payee | Person whom the cheque is made payable to |
Crossing a Cheque | ensures that the cheque can be paid only into the account of the payee |
Endorsing a Cheque | Payee signs the back of the cheque so that it can be passed on to a third party. A crossed cheque cannot be endorsed |
Stale Cheque | A cheque that has been drawn over six months ago |
Post Dated Cheque | A cheque written with a date in future. Cannot be cashed until that date has passed |
Blank Cheque | No amount has been filled in on the cheque |
Dishonoured Cheque | Cheques which the banks refuse to pay . Will be returned to drawer marked “R/D” |
Stopped Cheque | A cheque where the drawer informs his/her bank not to cash the cheque |
C.A.R | Compound Annual Rate |
Night Safe | Allows money to be lodged in the bank after the bank has closed |
Strongroom Facility | For storage of valuables |
ECB | the European Central Bank is the governing body of all European Union central banks and is responsible for making financial decisions for the European Union |
Money | anything of value that is widely accepted as payment for goods and services |
Bartering | means swapping goods or services that one person has for goods or services another person has |
Antedated Cheque | A cheque that contains a date that is sometime in the past. |
EFTPOS | The use of laser cards and smart cards to pay for goods and services. |
Investing | Using our money to earn a greater return than is possible from an ordinary savings account |
Savings | The part of our income that we dont spend |
Postal money order | An order from one post office to another to pay a certain amount of money to the person named on the order |
Building society | A financial institution that provides a wide range of banking services to their customers |
Credit union | A co-operative organisation where people save regularly and lend to each other at low rates of interest |
Compound interest | Where the interest is calculated as a percentage of the total amount in the account at the end of each year |