Checking Account Terms – Flashcards
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Balance
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The amount of money you have in your account.
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Cancelled Check
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Checks the bank has paid. They will appear on your bank statement.
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Cashier's Check
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A check issued by a bank and sold to you for personal payments to people who won't accept a personal check. It certifies that you have the money available.
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Check
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A written order to the bank that tells it to take a stated amount of money from your account and pay to another.
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Checkbook
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A handy portfolio that holds your check register, checks, deposit slips, receipts, and other ATM/debit card transactions.
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Check register
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A record that allows you to keep track of checks you have written, ATM/debit card transactions, as well as deposits and withdrawals.
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Check stub
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The part of a check that you keep as record of the transaction if you do not use a check register.
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credit
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A sum of money deposited into an account. Also the ability to charge merchandise or borrow money.
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currency
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Paper money in circulation.
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Debit
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A sum of money deducted from your account.
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Debit card
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A plastic card that enables you to do ATM transactions and to make purchases instead of using cash or writing a check.
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Deposit
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Money you put into your account.
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Deposit slip
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A form you fill out to credit money to your account when you make a deposit.
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Direct Deposit
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Your employer automatically deposits your paycheck into your account.
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Endorse
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To sign the back of a check made out to you so it can be cashed or deposited.
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Blank Endorsement
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The signature of the person to whom the check is written is made on the back of the check.
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Restrictive Endorsement
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A type of endorsement that states that the check is only to be deposited.
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Special Endorsement
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Making the check payable to a third party and preventing anyone else from cashing it.
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Clearinghouse
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A place where account information on deposits and withdrawals is exchanged, often electronically.
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Interest
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A fee paid to you for keeping your money in the account or a fee charged to you for a loan or credit card.
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Joint
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An account where more than one person has the right to use it.
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Individual
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An account where only one person has the right to use it.
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money order
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A form of check payment on which the financial institution prints the exact amount covered. Often used by people who do not have a checking account.
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Overdraw
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To write a check or make a withdrawal when there isn't enough money in the account to pay for it.
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Post-date
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To write a future date on a check.
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Reconcile
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To "balance" your checking account with your monthly statement from the bank.
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ATM
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Automatic Teller Machine
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Transaction
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An activity you conduct on your account such as a deposit, withdrawal, transfer, etc.
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void check
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A check with "VOID" written across it that make it non-negotiable.
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statement
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The monthly record of your account transactions sent to you by your bank.
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worksheet
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The section of your bank statement that you use to balance your checkbook.
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PIN
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Personal Identification Number needed to use an ATM card.
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Money manager
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Someone who keeps up with their checkbook and correct balance.
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Why have a checking account?
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Safety, Proof of payment, convenience, establishes credit, & budgeting
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signature card
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A card used when opening a new account that includes name, address, birthdate, etc.
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forged check
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A check on which the drawer's signature has been forged.
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Drawer
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The person who issues the check.
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payee
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The person to whom the check is made payable.
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outstanding check
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A check that has been written but not yet deducted from the person's bank account.
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outstanding deposit
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A deposit that has been made but not yet added to the person's bank account.
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principal
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The amount of money you borrow in a loan.
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mortgage
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A loan for a home.
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compound interest
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Earning interest on the previous amount of interest earned.
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secured loan
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A type of loan on a house, car, furniture, etc.
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unsecured loan
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Credit card or student loan
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identification
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What you need before you canhave a check OK'd by most retail stores.
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ink
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What you should always write with on every check.
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signature
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Something you must write on every check.
