Banking Basics: Key Terms You Need

Automated Teller Machines (ATMs)

ATMs allow cash withdrawals and account balance inquiries via encoded plastic cards.

Account Balance

The net amount available in a bank account after considering all credits and debits.

Accrued Interest

Interest earned on investments but not yet paid out, either as expense for borrowers or revenue for lenders.


Investment plans providing guaranteed income or returns, funded by periodic payments or lump sums.

Automated Clearing House (ACH)

A nationwide electronic clearinghouse facilitating fund and check clearance between banks.

Bank Rate

Rate charged by central banks on loans to commercial banks, often known as the discount rate.

Bounced Cheque

A check not accepted by the bank due to reasons like insufficient funds or signature mismatch.


A negotiable instrument ordering a bank to transfer funds from one account to another.


Process managed by Clearing House where the cheque amount is credited to the beneficiary's account and debited from the issuer's.

Bank Account

Bank accounts provide a safe place to store money, make check payments, earn interest, and deposit funds.