Understanding the terms and services that are used by banks can help you to navigate through the banking process.
We get it! Banking can be overwhelming. Banks offer so many products and services and the terms, if you are unfamiliar, can sound like a foreign language. Understanding the terms and services that are used by banks can help you to navigate through the banking process.
Terms to Know
What are some of the most used terms in banking and why are they applicable?
Financial Institution (FI) is an establishment that completes and facilitates financial dealings. There are many different types of Financial Institutions:
• Traditional Bank – A FI that accepts deposits from the public, makes loans and is involved in the capital market.
• Commercial Bank – A FI that is organized for serving the banking needs, deposits and loans of businesses.
• Credit Union – A FI that is made up of members that provides banking services such as savings and checking accounts and provides loans to it’s members.
Understanding Basic Banking Terms is key to opening and maintaining accounts and relationships at any financial institution.
• Checking Account – A demand deposit account that is housed in a government insured facility where money can accessed via checks, debit card, online banking and mobile banking.
• Savings Account – A demand deposit account that is housed in a government insured facility that draws interest on the funds in the account. Typically, there is a limit on the number of withdrawals within a month from a savings account.
• Account Statement – Provides a records of all transactions that have taken place within a given time period.
• Deposit – Money that is put into the checking or savings account.
• Withdrawal – Money that the account owner can take out of their checking or savings account.
• Debit Card – A plastic card that is an electronic version of a check, an immediate withdrawal of funds from the checking account happens when the card is used for a payment.
• Direct Deposit – Computerized paperless movement of money, it is a substitute of paper check.
• Mortgage - A type of loan that is used to finance property.
Knowledge is power. Knowing which financial institution is right for your life and needs is key to a great banking experience and relationship. M C Bank would love to walk with you and help guide you through this process, whatever your needs.