Banking terms

Loans

A loan from a bank is when you borrow money from a bank so you can pay for tax morgages and other stuff and then pay the bank back when you get paid at work.

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OverDraft

A overdraft is when money is taken out from the bank and the balance goes below zero (so the person has no money in their account)

Direct Debit

A direct debit is when someone is in a agreement with a company so the company can take money out of their account for example if you have a contract phone and it is £15 a month every month the company will take £15 out of you bank account in exchancge for you using that phone.
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