Banking Encyclopedia
Be In The Know
-
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 2 names in this directory beginning with the letter O.
Offsetting
This is when the credit balances in a current and savings account are netted off against the account holders’ borrowings (typically a mortgage) so that the rate paid on the borrowing is reduced as a result of the credit held in other accounts, which reduces the amount that is being borrowed.
Overdraft
This is when a person has a minus figure in their account. It can be authorized (agreed to in advance or retrospect) or unauthorized (where the bank has not agreed to the overdraft either because the account holder represents too great a risk to lend to in this way or because the account holder has not asked for an overdraft facility).