Today for Banqer we have been learning the definitions of even more financial terms. We had 14 cards, seven of them were the words and the other seven were the definitions, here are the words with their definitions,
- Interest rate, the rate at which you are charged every week. This is a percentage of the overdraft balance each week.
- Weekly service fee, A fee that you regularly pay to the bank for having an overdraft.
- Bankruptcy, when you have no money left and cannot pay your debts.
- Max overdraft limit, the maximum amount of money you are allowed to borrow.
- Setup fee, a one off charge that is sometimes called an establishment fee.
- Arranged overdraft, when you apply to the bank to borrow more money than is in your bank account.
- Unarranged overdraft, When you spend more money than you have is in your bank account.
Last week we also had to work out the meanings of other words, here they are,
- Debit cards, a card that takes money from your bank account.
- Credit card, a card that borrows money from the bank, you also have to pay back the money you borrowed.
- After pay and Hire purchase, When you get something and pay later, the difference between them is that with a hire purchase you have to pay interest and with after pay you don’t.
- Personal loan, money you borrow from the bank to buy a car, etc.
- Overdraft, when you put more money into something than you already have.