Glossary Terms:

Banking is INTEREST-ing!

Glossary terms from:


A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.


The industry involved with conducting financial transactions. Also, conducting business with a bank, e.g., maintaining a checking or savings account or obtaining a loan.


To receive and use something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.


Money put into a financial account. Also, to place money in a financial account.


Money paid regularly, at a particular rate, for the use of borrowed money.


To grant someone the use of something, on condition that the object borrowed or its equivalent will be returned (often with interest, in the case of money).


Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.


In a credit arrangement, the total amount spent during the billing cycle.


To keep money for future use; to divert money from current spending to a savings account or another form of investment.


Disposable income (income after taxes) minus consumption spending.


Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).

Savings Account

An interest-bearing account (passbook or statement) at a financial institution.


Use money now to buy goods and services.


Compulsory payments to governments by households and businesses.


The removal of money by a depositor from a financial account.