Active Vocabulary

· base rate: the interest rate that banks use as a basis for lending money

· blue chip: safe to invest into and profitable (securities and companies)

· cash card: a plastic card issued to bank customers for use in ATM

· cash dispenser: a computerized machine that allows bank customers

ATM (US) to withdraw money, check their balance, and so on

· credit card: a card which allows the holder to buy goods or services on credit and pay back the bank at a later date

· home banking: doing banking transactions by telephone or from one's

own personal computer

· current account: one that pays little or no interest, but allows

checking account (US) to withdraw cash without any restrictions

· collateral: money or property used as a guarantee for a loan

· deposit account: one that pays interest, but can’t be used for paying

time account (US) cheques and requires notice for withdrawal of cash

· foreign currency: money used in countries other than one’s own

· loan: money that you borrow at interest for a fixed period

· margin: difference between prices for borrowing and lending; profit

· mortgage: a loan to buy property which the lender (bank) may take in possession if the borrower fails to repay the money

· maturity: the date when a loan or a bond becomes repayable

· overdraft: withdrawal of more money than an account holds, up to an

agreed limit; interest on the debt is calculated daily

· security: safety; a guarantee of the repayment of a loan

· securities: valuable certificates that you buy to earn regular interest

from them or to sell them later for a profit

· standing order: an instruction to a bank to pay fixed sums of money (direct debit) to particular people or organizations at regular times

· statement: a document prepared by a bank for its clients, showing all

credits, debits and the balance at the end of some period

· solvency: ability to pay debts when they become due (mature)

· traveller’s cheques: a cheque for a fixed amount that may be cashed or

used in payment abroad

· yield: how much money a loan pays; interest from an investment

Speak on the following.

1 Which banking facilities do you use?

2 What services do commercial banks offer in your country?

3 What changes have there been in personal banking recently?

4 What further changes do you foresee in the future?