Vocabulary blog - Banking

Hi there!
Hope you are making progress with your test preparations! Today, I’d like to introduce more useful vocabulary related to banking. Let’s check them out!

Banking

• bankrupt (adj./v.)

- being unable to pay debts (e.g. The company was declared bankrupt.)

- to reduce (a person or organisation) to bankruptcy (eg. The strike nearly bankrupted the union.)

• collateral (n.)

- property that you promise to give to somebody if you cannot pay back the money that you borrow (e.g. They put a piece of land up as collateral for bank loan.)

• credit (v./n.)

- to add an amount of money to somebody’s bank account (e.g. Your account has been credited with $4,500.)

- a sum of money paid into a bank account (e.g. You have been paid $4,500 by credit into your account.)

• deposit (v./n.)

- to put money into a bank account (e.g. I had my pay check deposited yesterday.)

- a sum of money paid into a bank account (e.g. You can make deposits at any branch.)

• interest (n.)

- the money that you pay for borrowing money or that you receive when investing money (e.g.  Interest rates have risen by 0.25% this year.)

• loan (v./n.)

- to borrow money from someone (e.g. The bank loaned the money to the company.) 

- the money that a bank lends to somebody (e.g. The company took out a loan for overseas investment.)

• lump sum  (n.)

- an amount of money that is paid at one time (e.g. I have decided to pay a lump sum to get a discount on interest.)

• repayment (n.)

- the act of paying back money such as bank loan (e.g. The loan is due for repayment at the end of the year.)

• withdrawal (n.)

- the act of taking money out of your bank account (e.g. ID card is required for making withdrawals at the bank.)

Hope you find these words helpful for your practice and don’t forget to always keep learning words. See you next time. Bye!