ESL Podcast 537 - Types of Bank Accounts

savings account - a bank account designed to hold the money that one has saved and pay the owner a small percentage, so that the money can be used for special, important purchases in the future

If we buy that expensive new car, we'll have to use most of the money in our savings account.

checking account - a bank account designed to hold a smaller amount of money that can be accessed many times each day to make small purchases with a debit card or with a check

Do we have enough money in our checking account to pay the phone bill this month?

CD - certificate of deposit; a bank account designed to hold a large amount of money for a certain period of time during which it will not be touched, and designed to pay the owner a percentage of that money

They have a lot of extra cash, but they're too scared to invest in the stock market, so they're going to open a CD instead.

interest-earning - describing an account that pays the owner a percentage of the amount of money in the account

I have an interest-earning account, but it pays less than one percent.

free checking - a checking account that the owner can have and use without paying the bank for it; a checking account with no monthly fees or check-printing fees

Free checking accounts are great, but you still have to pay fines if you write checks when you don't have enough money in the bank.

service charge - an amount of money charged by a bank for a service, such as using an ATM or speaking with a bank employee

We couldn't believe it when the bank started charging a $3 service fee each time we went in to do our transactions.

minimum balance - the minimum amount of money that one must keep in a bank account in order to keep it open and/or avoid a monthly charge

We offer a free savings account as long as you maintain a minimum balance of $600.

to dip below - to fall below a certain number or amount; to be less than a certain number or amount

We'll get a loan as soon as the interest rate dips below 5.35%.

to link - to connect; to tie two or more things together in some way

A company's financial success is closely linked to the quality of its employees.

overdraft protection - a service through which a bank honors (pays money for) one's checks even when one has written a check without having enough money in one's bank account to cover it

If you keep enough money in your bank account, you shouldn't ever need to use overdraft protection

in case - in the event that; in a particular situation; a phrase used to talk about something that one is doing to protect oneself if something else should happen

You better take an umbrella just in case it rains.

to bounce (a check) - to write a check when one doesn't have enough money in one's bank account to cover the amount; to write a bad check

The landlord was really angry when we bounced our rent check.

joint account - an account with two or more equal owners

Even though they've been married for 13 years, they still don't have a joint account at the bank. They prefer to manage their money separately.

to pool - to combine things; to put everything in one group or account

Hitoshi is a great cook, and Yuki is a great baker, so they're pooling their talents to open a new restaurant.

to lock in - to agree on an interest rate or another number that will not change over time

They're offering to lock in the price over three years, as long as we buy at least 7,500 units.

interest rate - the percentage of money that one must pay when borrowing money, or that one receives when putting one's money in a bank

This is a great time to buy a house because interest rates are really low.

to mature - for a financial arrangement to reach the end of a specified period of time so that it is ready to be paid

Let's buy some bonds that will mature on Craig's 18th birthday, so that he can use the money for college.

to interfere - to become involved in someone else's business or personal affairs, especially when that person doesn't want one's help or involvement

I know you were trying to help, but I really wish you hadn't interfered. I could have done it alone.