SBI PO 2015: Important Banking Terms

Hello Readers,

Keeping the upcoming Competitive Exams i.e. SBI PO 2015, IBPS CWE 2015 and Insurance Exams in mind, here we are posting some Important Banking Terms which we hope will be helpful in the exams. Hope you all like the post..!!

1.    ATM Meaning: Abbreviation of Automated Teller Machine: a machine, usually in a wall outside a bank, from which you can take money out of your bank account using a special card.

2.    Bank balance Meaning: The amount of money in a bank account.
Example: I’d like to check my bank balance, please.

3.    Bank statement Meaning: A printed record of the money put into and removed from a bank account

4.    Bounce
Meaning: when a check cannot be paid or accepted by a bank because of a lack of money in the account:
Example: I had to pay a penalty fee when my check bounced.

5.    Cash

Meaning: (noun) money in the form of notes and coins, rather than checks or credit cards:

Example: Do you have any cash on you?

6.    Cash a check/Cheque
Meaning: (verb) to exchange a check for cash:
Example: Would you cash a check for me?

7.    Checkbook (US) / Chequebook (UK)
Meaning: a book of checks / cheques with your name printed on them which is given to you by your bank to make payments with.

8.    Check (US) / Cheque (UK)
Meaning: a printed form, used instead of money, to make payments from your bank account:
Example: I wrote him a check for $100.

9.    Credit
1. Money in your bank account.
Example: I was relieved to see from my statement that my account was in credit
2. A method of paying for goods or services at a later time, usually paying interest as well as the original money.
Example: They decided to buy the car on credit.

10.  Credit card
Meaning: a small plastic card which can be used as a method of payment, the money being taken from you at a later time.

11.  Checking account (US) / Current account (UK)
Meaning: a bank account that you can take money from at any time and which usually earns little or no interest.

Meaning: (a record of) money taken out of a bank account.
The account was in debit at the end of the month (= more money had been spent than was in the account at that time).

13.  Debt
Meaning: money, which is owed to someone else, or the state of owing something:

Example: He managed to pay off his debts in two years.

Example: The firm ran up huge debts.

14.  Deposit (US) / pay in (UK)
Meaning: to put money into a bank account.
Example: If you go to the bank, will you deposit these checks for me?

15.  Direct debit
Meaning: an arrangement for making payments, usually to an organization, in which your bank moves money from your account into the organization’s account at regular times:
Example: I pay my electricity bill by direct debit.

16.  Expense
Meaning: when you spend or use money.

Buying a bigger car has proved to be well worth the expense.

We’ve just had a new garage built at great expense.

17.  Insurance
Meaning: an agreement in which you pay a company money and they pay your costs if you have an accident, injury, etc:
Example: life/health/car/travel insurance

18.  Interest
1. money which is charged by a bank or other financial organization for borrowing money.
Example: I got a loan with an interest rate of 10%.
2. money that you earn from keeping your money in an account in a bank or other financial organization.
Example: You should put the money in a savings account where it will earn interest.

19.  Loan
Meaning: a sum of money which is borrowed, often from a bank, and has to be paid back, usually together with an additional amount of money that you have to pay as a charge for borrowing.
Example: She’s trying to get a $100 000 loan to start her own business.

20.  Payee
Meaning: a person who money is paid to or should be paid to.

21.  Savings account (US) / deposit account (UK)
Meaning: a bank account in which you usually leave money for a long time and which pays you interest.

22.  Standing account (UK)
Meaning:an instruction to a bank to pay a particular amount of money at regular times from a person’s bank account to another bank account (compare direct debit)

23.  Tax
Meaning: (an amount of) money paid to the government, which is based on your income or of the cost of goods or services you have bought:
Example: They’re putting up the tax on cigarettes.

24.  Travelers cheque
Meaning: a piece of paper that you buy from a bank or a travel company and that you can use as money or exchange for the local money of the country you visit

25.  Withdraw
Meaning: to take money out of a bank account.