When you visit your local branch to deposit all that well-earned money you have been saving into your account, do you feel overwhelmed with the lingo the staff throw at you? If it all sounds Latin to you, below is a glossary of terms that will help you make a little more sense of what those words mean. Don't hesitate to use this glossary when you're reading the financial section of the Wall Street Journal, it will help.

Account = money deposited with a financial institution.

Assets = items of monetary value (ex. house, land, car)

Amortization = the gradual payment of debt over a period of time by installments.

ATM or ABM = Automated Teller Machine or Automated Banking Machine

Barter = to trade goods or services without the exchange of money.

Bounced Cheque = a cheque an institution has refused to cash because there are no funds to cover it (NSF).

Budget = a prediction of an individuals income and expenses.

Cheque = any written document instructing a bank to pay money from writers account.

Cleared Cheque = when the cheque written is debited from the writers (drawers) account and debited to the payees account.

Collateral = an item pledged to guarantee the repayment of a loan, such as property, bonds, terms, stocks…

Compounding = earning income on your income: interest calculated on the principal and on interest accumulated.

Co-operative = a democratic institution owned and controlled by its members that provides a unified voice and structure to a group of individuals who have pooled their resources to achieve common goals.

Co-operative Philosophy = the six principles of co-operation:

• Open & voluntary membership
• Democratic control (1 mem = 1 vote)
• Limited interest on shares
• Return of surplus to members
• Co-operative education
• Co-operation among co-operatives

Credit = an arrangement to receive/access cash now and pay later.

Credit History = a record of a borrower's debt commitments and debt payments.

Credit Union = a financial institution. A co-operative credit association organized by a group of people who have a community bond. I t operates primarily by accepting deposits from members, making loans to members and providing a variety of other financial services.

Debit = an arrangement to withdrawal funds from an account.

Deposit = money placed in an active account. Can be done through a Teller, ATM (hold), Speed Deposit, Envelope Depository. Commercial has their own deposit service.

Deposit Insurance = a depositors funds are insured to a maximum of $100,000 (Credit Union) and $60,000 (Federal Bank) per depositor, per institution in the event of the failure of the institution.

Endorse = to sign the back of a cheque made out to yourself the payee. The first endorsement must be made by the payee to authorize the transaction.

GIC (Guaranteed Investment Certificate) = an investment, like a term deposit.

Insurance = the act of assuring against loss or damage.

Interest = an amount of money paid or earned for the use of money.

Investment = anything acquired for the purpose of producing income or profit.

Line of Credit = a pre-approved amount that a lender is prepared to make too a borrower in order for them to draw from.

Loan = money lent on a temporary basis with interest charged for its use.

Maturity = the date when an investment product is due.

Mortgage = a personal loan used to purchase property where that property is pledged as security for that loan.

Mutual Fund = An investment product in which ones money is pooled with other investors. A portfolio manager uses the pooled money to by a portfolio of investments that are managed on an ongoing basis. Mutual Funds fluctuate and do not provide a guaranteed return.

NSF Cheque = Not Sufficient Funds/Insufficient Funds: a returned cheque due to lack of funds in account. A service charge is levied.

Overdrawn = money accessed from an account when there a not enough funds available.

Principal = the original amount of money borrowed for a loan before interest.

RRSP = a registered savings plan approved by the Federal Government. Investment is tax deductible and income earned is tax sheltered until drawn.

Service Fees = the monthly fees charged for handling an account.

Stop Payment = a request made to a bank to not pay a specific cheque.

Teller = the Person with whom you carry out transactions in the Branch.

Term Deposit = money deposited for a fixed period of time.

Transfers = within your own account or to another person within own institution. Can be done through a teller, ATM (within own account), phone or internet.

Withdrawals = money taken from an active account. Can be done through a teller, ATM (be conscious of service fees, use your own institutions ATM).

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