Episode 30 - Basic Banking Vocabulary for Intermediate Students

ESL in Ho Chi Minh City

This podcast will introduce you to common banking terms. If you would like a full transcript of this podcast or additional exercises, please write to us at [e-mail] Here are some of the most common words used in everyday banking: Money = well if you don't know what money is, I cannot help you, please pause this podcast and seek professional help. Welcome back. Okay now that everyone knows what money is let's move on. currency = specific form of money. Such as dollar, dong, or euro. funds = a sum of money denomination = set numerical series of values of a currency. Such as one dollar, two dollars, five dollars, ten dollars, twenty dollars, fifty dollars, and one hundred dollars. Cash = physical money to cash = to exchange a check for the specified cash amount bills = physical paper money change = coins, generally of lower denomination. Also the funds not used and returned in a transaction, commonly used as to give change or to make change to make change = to exchange cash denominations for the same amount in different lower denominations to break = in banking, to make change transaction = exchange of services or goods, typically currency for a product or service financial institution = general term for any business that collects or lends money bank = a business that collects and lends money credit union = a not-for-profit cooperative institution that collects and lends money. central bank = government controlled bank that controls the money supply and interest rates interest = a charge on borrowed money, usually a percentage of the amount borrowed principal = the amount borrowed that interest is calculated for fixed rate = unchangeable interest rate variable rate = changeable interest rate based on a predetermined conditions or calculations Account = a contractual relationship between a person and a financial institution, also bank account balance = amount of money collected and held in an account or amount of money owed on loans Account statement = detailed summary of an account which includes transactions, balances and interest deposit = the funds held in an account or a transaction adding to the funds held in an account to deposit = to add funds to an account withdrawal = a transaction subtracting from the funds held in an account to withdraw = to subtract funds from an account, usually done by the owner of the account teller = or bank teller is an employee that generally does basic account transactions for customers loan officer = an employee that helps customers borrow money from the financial institution interest bearing account = or interest earning account pays a percentage of the deposit held over a specific amount of time dividend = the interest earned from interest earning accounts checking account = type of account usually used for expenses and transactions that pay others check = a written order of repayment authorizing a FI to withdraw a specific amount of funds from a checking account to pay the specific person or business listed on the check cashier's check = a collected or pre-paid order of repayment, issued directly from a FI to pay the specific person or business listed on the check money order = similar to a cashier's check, generally used for small amounts checkbook = the binder or small notebook used to hold unused checks, as well as to record check information and balances savings account = type of account that usually earns interest and is generally not used often for expenses CD = short for Certificate of Deposit, type of account that earns a fixed amount of interest for a fixed amount of time. Generally the funds are held in the account and cannot be withdrawn without a penalty fee before the maturity date, or the end of the fixed amount of time time deposit = another term for CD transfer = a withdrawal from one account that is used as a deposit for another account, generally at the same FI wire transfer = a transfer between two different FI's ATM = short for Automated Teller Machine, sometimes called an ATM machine incorrectly. The computerized banking machine used for basic transactions. It commonly uses plastic cards to identify a customer and their accounts ATM card = general term for a plastic identifying bank card, in most cases used only for savings account transactions debit card = a plastic identifying bank card, most commonly used for checking account transactions check card = another term for debit card PIN = short for Personal Identification Number, sometimes called a PIN number incorrectly. A short numerical code generally used to identify the owner of an ATM or debit card loan = a contract between two entities (such as a person and a FI) where one agrees to lend the other a specific amount under specific terms of repayment and interest. lend = give a loan, extend credit or advance funds with an agreement of repayment invest = spend money or credit with the purpose of making a profit as well as repayment investment = the amount of money invested collateral = any property used to secure a loan; property that would be sold to repay a loan if the loan was not paid as agreed equity = the value of collateral that is free to use as repayment if the loan is not paid as agreed secured loan = any loan that uses collateral unsecured loan = any loan that does not use collateral line of credit = funds that can be borrowed and once repaid, can be borrowed again revolving credit = another term for line of credit credit card = a plastic identifying bank card, generally used for transactions on an unsecured revolving line of credit grace period = amount of time between a transaction and the first day interest is to be applied credit history = record of loan repayments and related data used to determine the risk of extending credit fee = a specified charge for a specific transaction annual fee = a type of fee charged once a year endorse = sign your name in agreement, generally on a check ready to be cashed Alright then. Let's try a few exercises to test your knowledge. I want to put twenty dollars into my account and cash a 100 dollar check my brother wrote me. I endorse the check and give it to the teller. She gives me a hundred dollar bill. I ask her to break it. She gives me three twenties and 4 more bills. I give her one of the twenties and ask her to please deposit it into my checking account. She gives me a receipt that shows the transaction. She shows me the balance on the receipt. It is less than it should be. I check my checkbook and tell her that the balance is $5 off and I don't remember making any withdrawals for $5. She tells me it is a $5 annual fee. I smile and say 'Oh yeah, I forgot banks commit robbery too” She does not smile back. Okay, time for questions: If I had no money in my wallet when I entered the bank, how much do I have when I leave it? What denominations do I have? What type of account did I deposit my brother's check into? What type of transaction does the receipt show? If the balance in my checkbook is $500, what is the balance on the receipt? If the checking account was opened 11 months ago, how many other annual fees would have been charged? This scene is describes more than one transaction. Can these transactions be done as a single transaction? If yes, how?