Lesson
Banking and personal finance vocabulary
Text
This lesson introduces key vocabulary used in everyday personal finance and banking situations. You will learn essential terms, common collocations, and how to use these words in business and practical contexts.
Table
| Term | Definition | Example |
|---|---|---|
| loan | Money lent that must be repaid, often with interest | She applied for a loan to expand her business. |
| deposit | Money placed into a bank account | Please confirm the deposit of $5,000 into the company account. |
| interest rate | The percentage charged on borrowed money or earned on savings | The bank offered a 3.5% interest rate for the mortgage. |
| savings account | A bank account to hold money and earn interest | He transferred his emergency fund to a high-yield savings account. |
| overdraft | When withdrawals exceed the available balance, sometimes with fees | The account went into overdraft after the payroll error. |
| statement | A document summarizing transactions and balance for an account | Review your monthly statement for any unauthorized charges. |
| credit score | A numerical measure of creditworthiness used by lenders | A good credit score can lower your interest rate. |
| withdraw | To take money out of an account or ATM | She withdrew cash to pay the contractor on site. |
Tip
When using finance vocabulary, focus on natural collocations and appropriate register:
Good collocations improve clarity and sound more professional in emails and meetings.
Example
I opened a new savings account to separate business funds.
The company applied for a short-term loan to cover cash flow gaps.
Please review your monthly statement and report any discrepancies.
She set up an automatic deposit for her salary to be transferred every month.
Tip
Watch out for these universal errors when using banking vocabulary:
Always check whether a word is a noun, verb, or adjective and which prepositions naturally follow it.
Quiz
Which item best describes a numerical measure that lenders use to decide loan terms?
Hint: This term is a single metric that influences loan approvals and interest rates.
Correct!
A credit score is a numerical evaluation of a borrower's creditworthiness used by lenders to set interest rates and terms.
Incorrect
The correct answer was: Credit score
A credit score is a numerical evaluation of a borrower's creditworthiness used by lenders to set interest rates and terms.
Quiz
Complete: He applied for a _____ to buy a car.
Hint: Think of a funded purchase that must be repaid over time
Correct!
'Loan' is the noun for money borrowed that must be repaid; it fits this context of financing a purchase.
Incorrect
The correct answer was: loan
'Loan' is the noun for money borrowed that must be repaid; it fits this context of financing a purchase.
Quiz
Choose the correct sentence:
Hint: Check verb form and article use; aim for natural word order
Correct!
The sentence uses the correct verb 'deposited' and natural word order. 'A account' is incorrect (needs 'an') and other options are ungrammatical or awkward.
Incorrect
The correct answer was: I deposited salary into the account yesterday.
The sentence uses the correct verb 'deposited' and natural word order. 'A account' is incorrect (needs 'an') and other options are ungrammatical or awkward.
Vocabulary
Money that is borrowed and must be repaid, usually with interest.
The bank approved a loan for the new store.
Vocabulary
As a noun, money placed into an account; as a verb, to put money into an account.
She made a large deposit to secure the lease.
Vocabulary
The percentage a lender charges or a bank pays for borrowed or saved money.
A lower interest rate reduces monthly mortgage payments.
Vocabulary
A bank account used to store money and earn interest over time.
They moved their emergency fund into a savings account with higher interest.
Vocabulary
A negative account balance when withdrawals exceed the available funds, often with fees.
The unexpected invoice caused an overdraft on the company account.
Vocabulary
A document showing account transactions and the current balance for a period.
Please check the bank statement and send any questions to finance.
Vocabulary
A numerical representation of an individual's creditworthiness used by lenders.
Improving your credit score can help you qualify for better loan rates.