# Glossary

### Glossary of Common Banking Terms

| Term                | Description                                                                                                                        |
| ------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| **Account**         | A record of financial transactions between a bank and a customer.                                                                  |
| **ATM**             | Automated Teller Machine, an electronic device that allows customers to perform banking transactions independently.                |
| **Balance**         | The amount of money available in an account at a specific time.                                                                    |
| **Branch**          | A physical location of a bank where customers can conduct transactions.                                                            |
| **Cheque**          | A written order instructing a bank to pay a specific amount of money to a designated recipient.                                    |
| **Credit**          | An entry in an account that increases the customer's balance.                                                                      |
| **Debit**           | An entry in an account that decreases the customer's balance.                                                                      |
| **Deposit**         | The act of placing money into a bank account.                                                                                      |
| **NDIC**            | Nigera Deposit Insurance Corporation, a government corporation that insures deposits in banks.                                     |
| **Interest**        | A fee charged by a lender or paid by a borrower for the use of money.                                                              |
| **Loan**            | A sum of money borrowed, typically with interest, to be repaid over a specified period.                                            |
| **Overdraft**       | A service offered by banks that allows customers to withdraw more money than is available in their account, up to a certain limit. |
| **Passbook**        | A small book issued by a bank to its customers, used to record deposits, withdrawals, and interest.                                |
| **Savings Account** | A type of bank account that earns interest on the money deposited.                                                                 |
| **Transaction**     | Any financial activity, such as a deposit, withdrawal, or transfer.                                                                |
| **Withdrawal**      | The act of taking money out of a bank account.                                                                                     |

## **Additional Banking Terms:**

| Term              | Description                                                                                                 |
| ----------------- | ----------------------------------------------------------------------------------------------------------- |
| **ACH**           | Automated Clearing House, a system that processes electronic payments and transfers.                        |
| **CD**            | Certificate of Deposit, a time deposit offered by banks that pays a fixed interest rate.                    |
| **Credit Card**   | A plastic card issued by a bank that allows the holder to borrow money up to a certain limit.               |
| **Debit Card**    | A plastic card linked to a bank account that allows the holder to make purchases directly from the account. |
| **ETF**           | Exchange-Traded Fund, a type of investment fund that tracks an index, commodity, bond, or basket of assets. |
| **Mutual Fund**   | A professionally managed investment fund that pools money from multiple investors.                          |
| **Overdraft Fee** | A fee charged by a bank for overdrawing an account.                                                         |
| **Prime Rate**    | The interest rate that banks charge their best customers.                                                   |
| **Wire Transfer** | An electronic transfer of funds between banks.                                                              |

**Note:** This is not an exhaustive list of banking terms. The specific terminology used may vary depending on the country and financial institution.