Banks use certain vocabulary that you should be familiar with so that you understand all you can about where your money is held. Here are several key banking terms to know:

account statement—a paper or electronic record of account activity, service charges, and fees, issued on a regular basis

bounced or bad check—slang for a check that is rejected due to insufficient funds in the account

check—a paper form that authorizes a bank to release funds from the payer’s account to the payee

cleared or canceled checks—paper checks that have been processed and paid by a bank

deposit slip or ticket—a printed form you complete that lists cash and checks to be deposited into an account

direct deposit—an electronic payment method typically used by an employer or government agency

electronic payment or transaction—a deposit or charge to an account that happens without the use of a paper form

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endorsement—the payee’s signature on the back of a paper check that is required to deposit or to take cash out of an account

payee—the person or company to whom a check is made payable

payer—the person or company who writes a check or pays another party

reconciliation—the process of comparing a bank account statement to your records and resolving any differences until you determine an identical account balance

service charge (or maintenance charge)—a fee charged by a bank to maintain your account