Banking Vocabulary Word Scramble
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Term | Definition |
Check | A written order from the check writer to the bank to transfer money from the check writer’s account to someone else’s account. |
Cashier's check | A check drawn on the funds of the bank, not against the funds in a depositor’s account. However, the depositor paid for the cashier’s check with funds from their account. The primary benefit of a cashier’s check is that the recipient of the check is assu |
Certified check | A personal check drawn by an individual that is certified to be good. |
Cancelled check | A check that a bank has paid, charged to the account holder’s account, and then endorsed. |
Outstanding check | A check written by a depositor that has not yet been presented for payment to or paid by the depositor’s bank. |
Floating a check (float) | 1) The amount of uncollected funds represented by checks in the possession of one bank but drawn on other banks. 2) The time that elapses between the day a check is deposited and the day it is presented for payment to the financial institution on which it |
Checkbook register | A document, usually part of the general ledger, used to record financial transactions in cash. |
Check endorsement | The signature included on the front or back of a check acknowledging that both parties have agreed to exchange the specified amount on the document. |
Overdraft | When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn. |
Overdraft protection | A line of credit that banks offer to their customers to cover their overdrafts. (like when they write a check that is more than they have in their account) |
Stop payment order | An order not to pay a check that has been issued but not yet cashed. If requested soon enough, the check will not be debited from the payer’s account. Most banks charge a fee for this service. |
Demand deposit | A deposit of funds that can be withdrawn without any advance notice. |
Deposit in transit (outstanding deposit) | Money that has been received by a company and sent to the bank, but which has not yet been processed and posted to the account by the bank. |
Reconciliation | The process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement. |
Money market account | An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability. |
Liquidity | The availability of liquid assets to a market or company. |
Interest | Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. |
Share account | An account at a credit union that pay dividends. They are liquid accounts for payments and everyday spending. |
Principal | The outstanding balance on a loan, excluding interest and fees. |
Compound interest | Interest calculated on the initial principal. |
Certificate of deposit (CD) | A certificate issued by a bank to a person depositing money for a specified length of time. |
Maturity date | The final payment date of a loan or other financial instrument, at which point the principal is due to be paid. |
Created by:
s.taylor.buffington
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