Banking vocabulary

Types of banks

Retail bank: a bank that provides banking services to individual customers, rather than to companies.Bank is an organization where you can invest or borrow money, or operate financial activities. There are different types of banks. They can include:

• Commercial bank: a bank that accepts deposits in order to lend or invest.
• Investment bank: a bank that raises capital for individuals, companies, and governments by underwriting.
• Central bank (also reserve bank): main bank of a country that controls currency, money supply, credit system, and carries out the government’s financial policy.

Banking products and services

• Account: an arrangement with a bank to keep your money there
• Loan: an amount of money that are lent for a fixed period (e.g. three years)
• Mortgage: a loan to buy real estate
• Credit Card: a plastic card that is used to buy things and pay for them later.
• Debit Card: a plastic card that is used to make payments electronically from a cardholder’s bank account
• Cheque book: a written order that is used to make payments from a cardholder’s bank account.
• Automated Teller Machine (ATM): a device that is used to take money out of your bank account using an ATM card.
• Mobile banking: a banking service which allows customer to conduct transactions over the mobile phone.
• Branch: a local office of the bank

Verbs related to banking

• To borrow: take money on loan, intending to give it back after a period of time.
• To deposit: to place money in a bank account
• To lend: to pay back money
• To take out a loan: to borrow money
• To repay a loan: to lend money
• To withdraw: to take money out of the bank
• To underwrite: to agree to give financial support and to be responsible for paying any costs if the bank fails

Sentence examples

I’m trying to take out $50,000 loan to start a new business.

You are not eligible to open a bank account.

I use a Spreadsheet Program to calculate mortgage payments.

Can I borrow $500 off you until next month?

You have to deposit $300 to open a bank account

The bank refused to lend him $50,000

I’ll withdraw £200 from ATM