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Guide to Banks and Banking
From The Student RoomTSR Wiki > University > Student Life > Finance and Money Management > Guide to Banks and Banking
Taking control of your finances can be daunting. Your bank can give you advice on how to manage your budget wisely. However, if you aren’t used to dealing with banks, the following jargon-buster should help you make sense of banking terminology.
BalanceThe current amount of money in your account. Bank statementA record of your account over a given period of time, usually a month. It lists all money deposited, withdrawn or taken out by standing order as well as any charges or fines the bank has given you. Carefully read all of your statement and keep them all together in a safe place. If there are any mistakes on your statement contact your branch immediately. Cash cardA plastic card that allows you to take money from your account using a cash point. When you receive your card from your bank you will also be given a personal identification number (PIN) to use it. Your cash card, cheque guarantee card, and debit card are usually all combined in to a single card for convenience. Cheque guarantee cardA plastic card that allows you to write cheques up to the limit printed on it. See cash card. Credit cardA plastic card that acts like a bank account. You can pay for goods on it or withdraw cash from a cash point with it. You can transfer money to it and be in credit but most people use it as a type of loan or overdraft. Interest rates can be very high, especially after an initial trial period, and hidden fees can add up. Try not to get a credit card at all but if you do always pay off what you have spent and the charges on it every month. Do not spend anything with it if you will not be able to do this. Current accountA common bank account that does not pay interest on savings but allows immediate withdrawl of your money and lets you write cheques. Debit cardA plastic card that allows you to spend money directly from your account without withdrawing money or writing a cheque. See cash card. To depositTo put money into an account. Deposit accountA savings account that earns you interest on your money but often requires you to give notice if you want to withdraw any money (often a month). You cannot write cheques with this account. Direct debit and standing orderAn automatic regular payment to a particular person or company. This is a good way to ensure your rent and bills are paid on time but make sure there is enough money in your account to do so or you will be fined. InterestEither money paid to you by the bank for the amount of money you have deposited or the fee charged to you by the bank for loans or an overdraft. Overdraft/to overdrawAn overdraft is an agreed limit that you may spend of the bank’s money when yours is gone. It is best not to rely on this too much and only use it for emergencies as you have to pay interest on what you spend. To overdraw is to spend more money in your account than you have and without permission. You will be fined for this, sometimes for each £10 you spend over the limit. PINYour PIN or personal identification number is a four-digit number that allows you to use your cash card and your debit card. Memorise it, do not write it down and do not tell anyone else what it is, even if someone contacts you claiming to be from the bank. Student accountAn account only for students that provides an interest-free overdraft. Banks will offer a lot of free gifts for you to open a student account with them. Choose one that is quite local and has the best services and interest rates. This will save you time and money in the long term. Why not read our guide to Student Bank Accounts? To withdrawTo take money from your account with a cheque or cash card. | 
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