Understanding all the things that are at a bank or what is used to do banking is a very important part of learning how to be smart with your hard earned money. We will fill this page with words and their definitions so you can learn all about the special things about banking. It's never too early to know that being smart about money and saving is an important part of life.
An ATM CARD is used to withdraw money from an Automated Teller Machine (ATM machine) from a deposit account.
A BANK is an institution that provides financial service, particularly taking deposits and extending credit.
A BANK DEPOSIT is a specific sum of money taken and held on account by a bank, as a service to its customer. Some banks charge a fee for this service, while others may pay the client interest on the funds deposited. A bank deposit is a type of asset.
ELECTRONIC FUNDS TRANSFER or EFT refers to the computer-based systems used to perform financial transactions electronically. The term is used for a number of different concepts such as cardholder-initiated transactions, using a payment card, electronic payments by businesses, including salary payments and electronic check clearing.
An OVERDRAFT occurs when withdrawals from a bank account exceed the available balance giving the account a negative balance.
A ROUTING TRANSIT NUMBER or ABA number is the nine digit code on the bottom of a check that identifies which financial institution it is drawn upon. National Penn's routing number is: 031308784. This code is to process direct deposits and other automated transfers.
A SAFE DEPOSIT BOX is a type of safe usually located in groups inside a bank vault or in the back of a bank or post office. It usually holds things such as valuable gemstones, precious metals, currency, or important documents such as wills or property deeds that a person might feel afraid to leave at home due to fear of theft, fire, flood, tampering or other reasons. In the typical arrangement, a renter pays the bank a fee for the use of the box, which can be opened only with production of the assigned key, the bank's master key, the proper signature, or perhaps a code of some sort.
These general banking terms are provided for informational purposes only and do not apply to actual products and services available through National Penn Bank or its divisions.
An ATM MACHINE (automated teller machine) or cash machine is an electronic device that allows a bank's customers to make cash withdrawals and check their account balances without the need to go into a community banking office. Many ATMs also allow people to deposit cash or checks and transfer money between their bank accounts.
A BANK VAULT is usually a large safe built into (or under) a bank building and in which valuables are stored. Modern bank vaults generally contain many safe deposit boxes, as well as places for teller cash drawers, and other valuable assets of the bank or its customers.