Learn Banking Terms in English | Learn Basic English Vocabulary | Definitions| Direct Debit | Credit

Hello, you are very welcome to this English vocabulary lesson on banking terms. This is Learning English Pro, and my name is Ger, I'll be narrating your lesson today. I have already posted some basic vocabulary lessons on banking and money. The links for these videos are on screen now, so click them if you want to catch up before moving on to this more advanced lesson on banking terms. Now it's time to sit back, relax and learn some English with Learning English Pro. Our first banking term is credit transfer, and this is a direct payment of money from one bank account to another. Let's take a look at an example conversation. Can you send me the money by credit transfer? And the reply could be, I will transfer the money to your account straight away. Our next banking term also involves money leaving your account, direct debit. And the definition is an arrangement made with the bank that allows a third party to transfer money from a person's account on agreed dates, typically in order to pay bills. Let's take a look at an example sentence. I pay my phone bill by direct debit every month. One more time, I pay my phone bill by direct debit every month. Our next banking term is standing order, and this is an instruction to a bank by an account holder to make regular fixed payments to a particular person or organisation. You could say, I organised a standing order with my bank to pay my rent every month. Next up, I have a question for you. What are bank charges? Not sure? Well, to make a profit and pay operating expenses, banks typically charge for the services they provide. Let's take a closer look at this word charge, which is a noun, and the definition is a price asked for goods or services. A sentence example is, I get a lot of bank charges on my account. Something you may receive a bank charge on is an overdraft. This is a shortfall in a bank account caused by drawing more money than the account holds. When you are low on money in your account, some banks will allow you to spend more money than you have. When you have a balance of less than zero, we call this a minus amount. A sentence example could be, I have an overdraft on my account at the moment. Or we could use the adjective overdrawn. I am overdrawn on my bank account at the moment. Something else you can say is, I paid off my overdraft last week. Here we are using the phrasal verb paid off, and in relation to banking, paid off means the act of giving a bank or a person all the money that you owe them. Something else you could pay off is a loan. A loan is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest. A sentence example is, I got a loan from the bank so I could go on a dream vacation. We can also use the verb to borrow. I borrowed some money from the bank so I could go on vacation. With bank accounts, there are generally two different types, a savings account or a checking account. A checking account is what they call it in America, and in British English it is called a current account. Let's take a closer look at a savings account. The definition is, a bank account where you save your money. You could also say that savings accounts are designed for earning interest on your money. Now I've just mentioned three important words, savings, save and interest. So let's take a closer look at save first and we'll come back to the other two. Save is a verb and it means to keep and store up something, especially money for future use. In a sentence example, we could say, I save my money in my savings account every month. Let's move on to our next word, which is saving. This is the gerund or present participle tense of the verb save. As an example, we could say, I am saving my money. We also have a very similar word which is a noun, savings, and this plural noun means the money one has saved, especially through a bank or official scheme. You could say, I keep my savings in my bank account. The next word we're going to look at is interest. So what is interest? Let's take a look at the definition. Interest is money paid regularly at a particular rate for the use of money given as a loan or credit. There are two ways to think about interest. It is money the bank will charge you on a loan or on an overdraft, but it is also what we call the money the bank will pay you on savings and investments. So one person may say, my bank charged me a lot of interest on my overdraft, while another may say, I earned some money from the interest on my savings. Can you believe that brings us to the end of another vocabulary lesson? Thank you so much for watching. I really appreciate your support. If you're looking for some more advanced English, check out my video on business English idioms. The link is on screen now. And coming up on screen are even more video suggestions. While you're here, why not subscribe? And if you're interested in following me on social media, links are in the description below. Have a great day and remember, keep learning English like a pro.