Financial Vocabulary

#21

Simple interest

Example sentences

1. The loan charges simple interest on the original amount.
2. She calculated simple interest for one year.
3. Simple interest does not earn interest on past interest.

#

#22

Compound interest

Example sentences

1. Compound interest helped his savings grow faster.
2. The account adds compound interest every month.
3. With compound interest, interest can earn more interest.

#

#23

Principal

Example sentences

1. She borrowed a principal of $10,000.
2. Each payment reduces part of the principal.
3. Interest is often calculated on the principal.

#

#24

Interest rate

Example sentences

1. The bank offered an interest rate of 5%.
2. A lower interest rate can reduce loan payments.
3. The central bank raised the interest rate.

#

#25

Annual percentage yield

Example sentences

1. The savings account has an annual percentage yield of 4%.
2. She compared the annual percentage yield at three banks.
3. A higher annual percentage yield can grow savings faster.

#

#26

Checking account

Example sentences

1. He uses a checking account to pay monthly bills.
2. Her salary goes directly into her checking account.
3. A checking account usually allows frequent withdrawals.

#

#27

Savings account

Example sentences

1. She opened a savings account for emergencies.
2. The savings account pays a small amount of interest.
3. He transfers money to his savings account each week.

#

#28

Deposit

Example sentences

1. She made a cash deposit at the bank.
2. The deposit appeared in his account the same day.
3. A large deposit may require extra bank checks.

#

#29

Withdrawal

Example sentences

1. He made a $50 withdrawal from the ATM.
2. The bank sent a message after the withdrawal.
3. Each withdrawal reduces the account balance.

#

#30

Account balance

Example sentences

1. She checked her account balance before shopping.
2. The account balance was $750 this morning.
3. A payment can lower your account balance.

#

#31

Overdraft

Example sentences

1. An overdraft happened when he spent more than he had.
2. The bank covered the small overdraft.
3. She set an alert to avoid an overdraft.

#

#32

Overdraft fee

Example sentences

1. The bank charged a $20 overdraft fee.
2. He asked the bank to remove the overdraft fee.
3. Checking the balance can help avoid an overdraft fee.

#

#33

Bank statement

Example sentences

1. She reviewed her bank statement for mistakes.
2. The bank statement lists all recent transactions.
3. He downloads his bank statement every month.

#

#34

Direct deposit

Example sentences

1. Her employer pays her through direct deposit.
2. Direct deposit sends salary straight to a bank account.
3. He chose direct deposit because it is fast.

#

#35

Automatic payment

Example sentences

1. She set an automatic payment for the electricity bill.
2. The automatic payment leaves her account on Monday.
3. An automatic payment can help prevent late bills.

#

#36

Electronic funds transfer

Example sentences

1. The company used an electronic funds transfer to pay the supplier.
2. An electronic funds transfer moved the money quickly.
3. The bank confirmed the electronic funds transfer by email.

#

#37

Wire transfer

Example sentences

1. He sent the house payment by wire transfer.
2. The wire transfer reached the foreign bank today.
3. A wire transfer may include a service fee.

#

#38

ACH transfer

Example sentences

1. She used an ACH transfer to pay her rent.
2. The ACH transfer took two business days.
3. Many companies use an ACH transfer for payroll.

#

#39

Debit card

Example sentences

1. He paid for lunch with his debit card.
2. A debit card takes money directly from an account.
3. She reported her lost debit card to the bank.

#

#40

Prepaid card

Example sentences

1. She loaded $100 onto a prepaid card.
2. The child used a prepaid card during the trip.
3. A prepaid card cannot spend more than its balance.

#