Debit
A bookkeeping term for a sum of money owed by an individual or institution; a charge deducted from an account.

Debit card
A banking card enhanced with ATM (automated teller machine) and POS (point-of-sale) features that can be used to purchase goods and services electronically. The card replaces cash or checks. Transactions are deducted from the cardholder's checking account either immediately or within one to three days. Depending upon the type of card, a debit card may require the user to sign his or her name or enter a PIN (personal identification number) into special equipment.

ATM
Acronym for automated teller machine.

Overdraft
A check written for more money than is currently in the account. If the bank refuses to cash the check, it is said to have "bounced."

Collateral
Anything that a bank accepts as security against the debtor's not repaying a loan. If the debtor fails to repay the loan, the bank is allowed to keep the collateral. Collateral is most commonly in the form of real estate (e.g., a home).

Mortgage
A long-term loan obtained by individuals to buy a home that legally transfers ownership from the debtor to the creditor until the debt is paid.

Savings account
A bank account that accrues interest in exchange for use of the money on deposit.

Depositor
An individual or company that puts money in a bank account.

Current account
A checking account or a savings account.

Joint account
A savings or checking account established in the names of more than one person (e.g., parent/child, wife/husband).

Pass book
A booklet given by the bank to the depositor to record deposits, withdrawals, and interest earned on a savings account.

Withdrawal
An amount of money taken out of an account.

Certificate of deposit
A savings account in which an individual promises to deposit the money for a set period of time, for which the bank pays higher interest than a regular savings account.

Checking account
An account for which the holder can write checks. Checking accounts pay less interest than savings accounts, or none at all.

Cashier's check
A check issued by a bank, drawn on its own funds rather than on one of its depositor's funds.

Bounced cheque
A check that a bank has refused to cash or pay because you have no funds to cover it in your account.

Payee
An individual or company to whom a check is written; one who receives money as payment.

Payer
An individual or company who writes a check; one who gives money as payment.

Service charge
A fee charged by a bank or financial institution for providing a service.

Terms
The period of time and the interest rate arranged between creditor and debtor to repay a loan.