ACCOUNT BALANCE
The amount of money you have in your account.
ACCOUNT STATEMENT
A record summarising all the transactions on your account and any fees charged or interest paid over a given period. Depending on your bank and the type of account, you may be able to receive statements fortnightly, monthly, quarterly, bi-annually or annually. Statements may be sent to you in the mail or accessed via the Internet.
ASIC
The Australian Securities and Investments Commission (ASIC) is the independent Australian government body that enforces and regulates company and financial services laws in Australia to protect consumers, investors and creditors. ASIC reports to the Commonwealth Parliament, the Treasurer and the Minister for Financial Services, Superannuation and Corporate Law.
ATM
An abbreviation for Automatic Teller Machine. ATMs allow you to withdraw money from your account, providing you have ATM access, without having to go into a bank. Some ATMs allow you to deposit cash and cheques into your account, check your account balance, and transfer money between accounts. Many ATMs can be accessed 24-hours a day.
BALANCE
(see ‘account balance’)
BANK
In Australia, banks are financial institutions that are authorised under the Banking Act 1959. They offer a variety of banking and financial products and services to customers, and generally receive fees from customers in return for these products and services.
BANK ACCOUNT
A type of product offered by banks that provide a secure facility for depositing and withdrawing money and making other financial transactions.
BANK FEES
Fees that are charged by your bank, to be paid by you, in return for the products and services they provide.
BANK@POST
An agency banking service offered at many Australia Post outlets. If you bank with a participating bank, Bank@Post allows you to use your debit or credit cards at the post office to perform transactions such as deposits and withdrawals, account balance enquiries, and payments of credit card bills.
BPAY
BPAY is a service via which Australians can pay their bills with over 16,000 billers.
BRANCH
An outlet which banks operate to assist customers with banking and financial services. Branches are open for business during normal business hours. Some banks also open their branches for extended hours and on Saturdays.
CASH
Money in the form of notes and coins.
CHEQUE
A type of payment that is available to people with transaction accounts, also called ‘cheque accounts’. A cheque is a small paper form that the account holder can fill in and sign in order to pay for purchases and bills. When you write a cheque, the person who you’re paying (the ‘payee’) takes that cheque to their own bank. Their bank then withdraws the specified amount from your bank account, and pays the money into the bank account of the payee.
CREDIT/CREDIT CARD
Credit is a form of loan that allows you to obtain goods before you actually pay for them, but which must be repaid within an agreed time frame and includes an interest payment. People can pay for goods using credit cards, which are linked to accounts that provide you with a certain amount of credit.
DEBIT CARD
A plastic card with an encoded magnetic strip that allows you to access your accounts via ATMs and EFTPOS terminals. Many accounts automatically come with an debit card for convenient access.
DEPOSIT
To put money into your account, for example, when your pay goes into your account, or when you pay cash or cheques into your account.
DIRECT DEBIT
A regular payment that you authorise to be debited (withdrawn) directly from your bank account. Also called periodical payments.
EFTPOS
An abbreviation for Electronic Funds Transfer at Point Of Sale. EFTPOS allows you to purchase goods and services, and withdraw cash if the merchant agrees, using a debit card.
ELECTRONIC BANKING
Methods of banking that allow you to access your account electronically, such as ATMs, EFTPOS terminals, Internet and telephone banking. Depending on your account, you may be able to make withdrawals, deposits and transfers electronically, as well as receive information about your account, such as account balances, recent transactions, etc. Before an electronic transaction can be made you are normally required to provide your PIN or password in order to verify your identity as the owner of the account.
FINANCIAL ADVISER (ALSO CALLED A FINANCIAL PLANNER)
A financial adviser provides individuals with personal advice on investments. A licensed financial adviser is obliged under the law to act in the interests of their client when making recommendations to their client.
FINE PRINT
A common term for legal and technical information about your accounts, such as terms and conditions, often printed in a smaller-sized text than the rest of the information in the document.
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FOS
The Financial Ombudsman Service (FOS) is a free and independent dispute resolution service that considers complaints about financial services, including banking, credit, loans, general insurance, life insurance, financial planning, investments, stock broking, managed funds or superannuation. The Ombudsman is able to investigate disputes and make decisions that are binding on the financial services provider.
INCOME
Money you receive in the form of your salary or wages, interest from bank accounts, dividends from shares, and rent from an investment property.
INTEREST
Interest is the amount a borrower pays to a lender for the use of the lender’s money. For example, if you borrow money from a bank in the form of a loan, the bank will charge you interest for the use of that money. On the other hand, if you lend your money to a bank by opening a bank account or a term deposit, the bank pays you interest for depositing your money with them.
INTERNET BANKING
Making deposits, transfers and withdrawals, and checking account balances etc via the Internet. For security purposes, you may be required to register with your bank in order to use Internet banking.
MONEY LAUNDERING
Money laundering involves disguising the source or destination of money via financial transactions. Typically the proceeds of criminal activity are passed through ‘legitimate’ accounts or businesses so that the funds themselves appear to be legitimate.
OVERDRAWN
Your account is overdrawn if you’ve taken more money out of your account than was actually available as cleared funds. This can happen if you write a cheque without having enough money in your account to cover that cheque when it is cashed. Or if you have arranged a direct debit without having enough money in your account to cover the payment. Fees may apply to overdrawn accounts and dishonoured cheques.
OVER-THE-COUNTER
Any banking activity that is made in a branch, or at an agency of your bank, such as an Australia Post outlet, where you may be able to make financial transactions.
PIN
An abbreviation for Personal Identification Number, a number used as an access code for your account when using an ATM or EFTPOS terminal. Your PIN should never be shared with anyone else, as you’re the only person authorised to use your accounts.
SAVINGS
Money that you have set aside for a specific purpose.
STATEMENT
(see ‘account statement’)
TAX FILE NUMBER (TFN)
A unique nine digit number issued by the Australian Taxation Office to individuals and organisations to identify them for taxation purposes. Your Tax File Number (TFN) is specific to you.
TELEPHONE BANKING
Making deposits, withdrawals and transfers and checking account balances etc via the telephone. For security purposes, you may be required to register with your bank in order to use telephone banking.
TERM
The amount of time that a term deposit is to be held, or over which a loan must be repaid.
TERM DEPOSIT
An account that offers a higher rate of interest, but locks your money away for a specified period.
TERMS AND CONDITIONS
When you open an account you’re effectively entering into a contract with your bank, and in doing so you are agreeing to a series of terms and conditions. These outline how you’re able to use your account. Terms and conditions for your account are available from your bank.
TRANSACTIONS
The name given to activities such as making deposits and withdrawals, or transferring money from your account.
TRANSFER
To move money from one account to another account.
WITHDRAWAL
To take money out of your account, for example, when you take money out via an ATM, or when you make a payment via EFTPOS or cheque.
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