Banking Encyclopedia
Be In The Know
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Whether you're a seasoned banker, a budding financial enthusiast, or a curious individual looking to demystify financial jargon, our carefully curated glossary provides clear and concise definitions for a wide range of banking terms. Navigating the intricacies of financial language has never been easier, as we aim to empower our users with knowledge that fosters a deeper understanding of banking concepts and facilitates informed decision-making. Explore our glossary to enhance your financial literacy and unlock the language of banking with confidence.
Glossary of Banking Terms
There are currently 11 names in this directory beginning with the letter C.
Cashback Mortgages
This is when the mortgage provider lends the money for the mortgage and, in addition, a lump sum to pay for, for example, building work to be carried out.
Central Clearing Time
This is the time that it takes for the monies from a cheque to be taken out of the payee’s account and put into the payer’s account.
Certified Documents
These are photocopies of original documents that have been signed by a professional i.e. a solicitor, accountant, teacher, doctor or bank official. The professional also states, on the document, “original seen” since they must be able to verify that these are genuine copies and therefore have to have seen the original, they also date the document and put their full name, profession and their address.
Charges
This is the money paid to the bank for services rendered. Charges include overdraft fees, charges for bouncing cheques, interest on overdraft and any charges that a business account might normally incur.
Charge Cards – Cards which can be used like a credit card but the charge has to be paid off on the due date. They usually have a high limit or no limit.
Cheque Book
A small, bound booklet of cheques. A cheque is a piece of paper produced by your bank with your account number, sort-code and cheque number printed on it. The account number distinguishes your account from anyone else’s, the sort-code is your bank’s special code which distinguishes it from any other bank. In times gone by, anything with the correct details and a verifiable signature could act as a cheque. Even an elephant was once used!
Cheque Clearing
This is the process of getting the money from the cheque-writer’s account into the cheque receiver’s account.
CHIP and PIN
A Chip is a small electronic insert placed into a cheque or credit card. The PIN is a four digit personal identification number which is used with the card by the card-holder.
Clearing Bank
This is a bank that can clear funds between banks. For general purposes, this is any institution which we know of as a bank or as a provider of banking services.
Credit Rating
This is the rating which an individual (or company) gets from the credit industry. This is obtained by the individual’s credit history, the details of which are available from specialist organisations.
Credit Scoring
This is the process of assessing an individual’s credit-worthiness. The process involves taking information from an individual on an application form (for example when applying for a store card) and weighting the answers given. Certain responses will attract higher scores than others and the total score will determine whether or nor the organization wants to do business with the individual, or if they represent too high a credit risk.
Credit-Worthiness/Debt Service Ratio
This is the judgement of an organization which is assessing whether or not to take a particular individual on as a customer. An individual might be considered credit-worthy by one organisation but not by another. Much depends on whether an organization is involved with high risk customers or not.