Banking Terms

Banking Loans

"Loans" are things where you borrow money from a company and you pay it back after a while. the most common ways to use loans are home mortgages, lines of credit and personal loans used for things such as auto or boat financing.


An "Overdraft" is when a bank gives you credit up to a maximum amount. This is normally called an overdraft limit.

Direct Debit and Standing Order

"Direct Debit" is an instruction a customer gives to their bank society to collect amounts. This is to ensure reguler payments.

"Standing orders" are payments of a fixed amount on a fixed date. A standing order is pushed from a customers bank account.

Interest Rate

"Interest Rate" is a sum of money charged for the use of it.


"ATM (Automated Teller Machine)" is an electronic machine which allows customers to take money out of their bank account without needing a branch teller.


If you've got any savings, or investments, you should have an ISA, simple as that. The reason? It saves tax and therefore increases returns.

Bank Statements

One sort of financial record is a bank statement. Your bank will regularly send a statement containing information showing income (credits) and outgoings (debits) on your bank account.

Bank Deposits

Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at a banking institution, such as savings accounts, checking accounts and money market accounts. The account holder has the right to withdraw any deposited funds, as set forth in the terms and conditions of the account. The "deposit" itself is a liability owed by the bank to the depositor (the person or entity that made the deposit), and refers to this liability rather than to the actual funds that are deposited

Chip and PIN

Chip and PIN is the brand name gained by the banking industries in the UK and Ireland for the rollout of the EMV smart card payment system for credit, debit and ATM cards. The word "chip" refers to a computer chip in the smartcard. The word PIN refers to a Personal Identification Number that must be supplied by the customer. "Chip and PIN" is also used in a generic sense to mean any EMV smart card technology which relies on a chip and a PIN.