Banking
Accounts, fees, and how banks work.
Your bank accounts are where your financial life runs day to day. These terms explain the accounts, fees, and features so you can keep more of your money and put your cash to work while it waits.
All Banking terms(54)
- Account NumberThe unique string of digits that identifies your specific account at a bank, paired with the routing number to direct transactions.
- Account ReconciliationComparing your own record of transactions against your bank statement to catch errors, missed charges, or fraud.
- ACH TransferAn electronic money movement between banks through the Automated Clearing House network, used for payroll, bill pay, and account transfers.
- APR (Annual Percentage Rate)The yearly cost of borrowing money on a loan or credit card, stated as a percentage that includes interest and certain fees.
- APY (Annual Percentage Yield)The real yearly return on a deposit, including the effect of compounding, which makes it the fairest way to compare account rates.
- ATM (Automated Teller Machine)A machine that lets you withdraw cash, deposit money, or check your balance without visiting a teller, using your debit card and PIN.
- ATM FeeA charge for using a cash machine outside your bank's network, sometimes billed by both the machine's owner and your own bank.
- Authorized UserA person you allow to use an account or card without being the primary owner, giving them access while you keep responsibility.
- Available BalanceThe money in your account you can actually spend right now, after subtracting holds and pending transactions from the total balance.
- Bank TellerA bank employee at a branch who handles in-person transactions such as deposits, withdrawals, and check cashing.
- Bill PayA banking feature that sends payments to your billers automatically or on demand, either electronically or by mailed check.
- Cash WithdrawalTaking physical money out of your account through an ATM, a bank teller, or cash back at a store checkout.
- CD LadderA strategy of splitting money across certificates of deposit with staggered maturity dates so some cash frees up at regular intervals.
- Certificate of Deposit (CD)A savings product where you lock money away for a fixed term in exchange for a set interest rate, paying a penalty if you withdraw early.
- CheckA written, dated order instructing your bank to pay a specific amount from your account to the person or business named on it.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Credit UnionA member-owned, not-for-profit financial cooperative that offers banking services, often with lower fees and better rates than banks.
- Current BalanceThe full amount recorded in your account, which may include pending charges and held deposits not yet available to spend.
- Debit CardA card tied to your checking account that pulls money directly from your balance when you pay for something or withdraw cash.
- Deposit Hold PeriodThe time a bank keeps part of a deposited check unavailable while it confirms the funds will clear from the paying account.
- Deposit Insurance LimitThe maximum amount of your money that government insurance will cover per depositor, per bank, in each account ownership category.
- Direct DepositAn electronic payment, such as a paycheck or benefit, sent straight into your bank account instead of arriving as a paper check.
- Dormant AccountAn account with no customer activity for an extended period, which a bank may flag, charge fees on, or eventually turn over to the state.
- E-StatementA digital version of your monthly account statement delivered through online or mobile banking instead of on paper by mail.
- Early Withdrawal PenaltyA fee a bank charges when you take money out of a certificate of deposit before its agreed-upon maturity date.
- FDIC InsuranceGovernment-backed protection that covers your deposits up to a set limit per bank if the insured bank fails, keeping your money safe.
- High-Yield Savings AccountA savings account that pays a much higher interest rate than a standard one, often offered by online banks with lower overhead.
- IBAN (International Bank Account Number)A standardized account number format used in many countries to identify a specific account for international payments and transfers.
- InterestThe money a bank pays you for keeping deposits, or the money you pay a lender for borrowing, calculated as a percentage of the balance.
- Joint AccountA bank account shared by two or more people, where each owner can deposit, withdraw, and manage the money independently.
- Linked AccountA separate account you connect to another so you can transfer money between them or cover overdrafts automatically.
- Maturity DateThe date a certificate of deposit or other fixed-term product ends, when you can withdraw your money and earned interest without penalty.
- Minimum BalanceThe lowest amount you must keep in an account to avoid fees, earn interest, or qualify for certain account benefits.
- Minimum Opening DepositThe smallest amount of money a bank requires you to put in when you first open a new account.
- Mobile BankingUsing a bank's smartphone app to check balances, transfer funds, deposit checks, and manage accounts on the go.
- Mobile Check DepositDepositing a paper check by photographing its front and back with your bank's app instead of visiting a branch or ATM.
- Money Market AccountA deposit account that blends savings and checking features, often paying higher interest while allowing a limited number of checks or transfers.
- Monthly Maintenance FeeA recurring charge some banks apply to keep an account open, often waived if you meet a balance or direct deposit requirement.
- NCUA InsuranceThe credit union equivalent of FDIC coverage, protecting deposits up to a set limit if an insured credit union fails.
- NSF Fee (Non-Sufficient Funds Fee)A charge the bank applies when it rejects a payment because your account lacks the money to cover it, unlike an overdraft that is paid.
- Online BankA bank that operates entirely over the internet without physical branches, often passing lower costs on as higher rates and fewer fees.
- Online BankingManaging your accounts through a bank's website, letting you check balances, move money, pay bills, and view statements from a browser.
- OverdraftWhat happens when you spend more than your account holds, leaving a negative balance that the bank may cover for a fee.
- Overdraft ProtectionA bank service that covers transactions when your balance runs short, usually by pulling from a linked account or a small line of credit.
- Pending TransactionA payment or deposit that has been authorized but not yet fully processed, temporarily affecting your available balance.
- PIN (Personal Identification Number)A private numeric code you enter to authorize debit card purchases and ATM withdrawals, protecting your account from unauthorized use.
- Returned Item FeeA fee charged when a check or automatic payment bounces because there wasn't enough money in the account to cover it.
- Routing NumberA nine-digit code that identifies your bank so payments and transfers reach the right institution within the United States.
- Savings AccountA bank account meant for storing money you don't need right away, usually paying a small amount of interest on the balance.
- Sweep AccountAn arrangement that automatically moves excess cash from your checking account into a higher-interest account or investment overnight.
- SWIFT CodeAn international bank identifier code used to route money correctly during wire transfers across borders and between countries.
- Two-Factor AuthenticationA security step that requires a second proof of identity, like a texted code, on top of your password to access your account.
- Wire TransferA fast, direct electronic transfer of funds between banks, often used for large or urgent payments and usually carrying a fee.