With the increase in online banks and other financial institutions, Americans have more choices than ever when it comes to where they keep their money. To navigate the system with ease, we’ve put together the essential banking terms you need to know. Effective time management and organization skills are essential for managing the demands of a banking career.
Some banks and credit unions also allow you to roll it into a new CD or enable the CD to renew automatically. Also known as terms and conditions, this is the fine print of a bank account or loan agreement. Make sure you read and understand the implications of your financial accounts and obligations. Usually, there is a relatively low minimum payment that allows you to keep the account in good standing. The unpaid balance “revolves” into the next statement period. You can keep spending on the credit line while you make payments.
Savings account
Your credit score is a number rating derived from the information in your credit report. It summarizes the probability that you will default on a loan. The lower the score, the more likely you are to default. You will usually pay a fixed sum every month until the loan is paid off.
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Automated invoicing The ability of accounting software to automatically generate and send invoices to customers. Discover the Banker’s Knowledge Series — 25+ practical courses for professionals in asset management, compliance, HR, IT, mortgage, and more. From financial math to business etiquette, gain the skills to grow your career. To improve your time management and organization skills, use tools like calendars, to-do lists, and project management software. The banking industry is constantly evolving due to new technologies, regulations, and market trends.
Financial close The process of finalizing a company’s financial statements and preparing for the next reporting period. Expense tracking The process of recording and categorizing a company’s expenses for tracking and analysis. Bank feeds A feature of cloud accounting software that automatically imports bank transactions into the system.
essential accounting and finance terms you need to know
Learning to read and essential banking terms you need to know interpret balance sheets, income statements, and cash flow reports is critical for making sound lending decisions. This is the date of expiration for the contractual obligation of a financial instrument. For example, certificates of deposit have a maturity date that depends on the length of the CD term. When the CD matures, you have the option to withdraw the money.
Credit Report
- The impact of a single hard inquiry is small, but a series of inquiries looks as if you’re desperate for credit, a sign of financial distress.
- Building and maintaining these strong relationships with clients is vital for long-term success, and it requires excellent interpersonal and communication skills.
- Subledger A detailed record of transactions for a specific account, such as accounts payable or accounts receivable.
- Useful French phases and questions to help with banking in France.
- A “hard pull” or “hard inquiry” happens when you apply for credit.
Credit utilization is the percentage of your available credit that you actually use. The Consumer Financial Protection Bureau has a complete list of credit reporting agencies (PDF). There are other credit reporting bureaus, but most of them serve niche industries. Experian, Equifax, and TransUnion are the ones you need to be aware of. Bank FindThis bank is insured by the Federal Deposit Insurance Corporation.
- Ben has over 10 years of experience as a freelance content writer for regional banks, tech startups, and financial services companies like LendingTree and Prudential.
- And if we don’t have the answers, we can connect you with our trusted financial advisors.
- These activities help bankers expand their portfolio, improve profitability, and stay competitive in the financial industry.
- The FDIC is a federal government agency that helps ensure the stability of the U.S. financial system and protects bank customers.
Consider joining a public speaking club or taking a course in effective communication. Clear and effective communication is a must for any banker. The ability to explain complex financial concepts in simple terms is highly valued by clients and colleagues alike.
To help you past this hurdle we’ve put together this list of common credit terms that you should be familiar with. Software as a Service (SaaS) A cloud-based software delivery model in which a vendor hosts and maintains the software and customers access it over the internet. Payment gateway A service that processes electronic payments from customers on behalf of a merchant. Multi-currency The ability of accounting software to handle transactions in different currencies. Invoice financing A financing option in which a company sells its accounts receivable to a lender at a discount in exchange for immediate cash. General ledger A master record of all the financial transactions of a business.
Checking account
The key people, contracts, and legal jargon that you need to know when opening and managing your French bank account. Online banks, also called digital or internet banks, operate primarily via the internet. You can manage your accounts at an online bank from a computer or mobile device from anywhere at any time.
We offer expert-driven advice and resources to help you earn, save and grow your money. If your dispute is verified the item will be removed or corrected. If the credit bureau finds that the information is accurate, it will not be changed. Your credit report is often the first place you’ll see signs of identity theft.
You can dispute any item on your credit report at any time. Credit monitoring will alert you to any changes in either your credit report or to your score. This gives you the ability to stay on top of any type of identity theft that could happen. A “soft pull” or “soft inquiry” is a less aggressive request for credit information. When you ask for your own credit report, that’s a soft inquiry. Companies that are seeking to prequalify you for credit or insurance can make soft inquiries.