· 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?