Business of Banking 3.1

Business of banking financial terms3.1

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Asset

Something owned by an individual or other entity.

Interest

The fee charged for borrowing money.

maturity

The date on which the investor can receive the initial investment.

Liquidity

The ability to quickly turn an asset into cash.

gain

An increase in income.

insufficient funds fee

A fee charge by a bank when there is not enough money in an account to cover a transaction.

overdraft

A negative balance.

Overdraft program

Provides funds to cover a check written on an account with insufficient funds.

surcharge

A charge for using a bank service also known as a convenience fee.

safe deposit Boxes

Individually secured containers, usually within a bank vault, used to store valuables.

money order

Purchased in an exact amount payable to a specific party.

inactivity fee

A fee charged when a customer does not make a transaction within some specified period.