In the banking industry, there are a lot of confusing terms, but it is important to understand them so you can manage your finances. Here are the top 10 banking words we use at UMB.
The Federal Deposit Insurance Corporation (FDIC) maintains stability and public confidence in the nation’s financial system. The FDIC insures your deposits with the bank with the full faith and credit of the United States government.
A savings account is a specific account that allows you to deposit money and earn interest on your funds. This account will have limited monthly transfers or withdrawals available to access your funds. There is usually not a debit card linked to this account.
A checking account is a specific bank account designed for you to pay bills and purchase items you need. Your checking account will come with a debit card that you can use to access your money.
At UMB, we believe everyone should have a holistic financial plan that consists of your budget, savings and investments strategies. Our team of bankers specializes in creating a personalized plan for you.
A deposit is money you add to your checking or savings account. You can set up regular deposits, such as your paycheck, as a direct deposit. This means the money appears automatically in your account and you won’t receive a physical check.
A transfer means you are moving money between different accounts.
A withdrawal is when you take money out of your account either by using your debit card, making a transfer or paying a bill.
An overdraft fee is charged to your account when you spend more money then you have in your account.
A home equity line of credit (HELOC) is a loan you can apply for that borrows against the equity of your house. You can use this loan to do home repairs or renovation projects.
An automated teller machine (ATM) is an electronic banking outlet where customers can complete transactions like deposits, withdrawals or check their account balance.
There are several more banking words and acronyms out there. If you ever have a question about what a term means, you can always call a banker to discuss your questions.
UMB personal banking solutions offer convenience and simplicity to meet all your financial needs. From home loans to auto financing and everything in between, see how UMB personal banking can work with you to find the right products for your life and lifestyle.
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