Belize Banking: Basic Financial Terms

Banking Terms in Belize

Types of Bank Accounts

• A savings account is a type of bank account designed for storing money while earning interest.
• Checking accounts allow individuals to deposit and withdraw money for everyday transactions and often come with a checkbook or debit card.

Banking Concepts

• Interest rate is the percentage of interest paid on deposited money in a savings account or charged on loans.
• Deposit refers to the action of putting money into a bank account, which can be done in person, through ATMs, or via electronic transfers.
• Withdrawal is the act of taking money out of a bank account, possible through ATM withdrawals, over-the-counter transactions, or online transfers.

Banking Services

• An ATM (Automated Teller Machine) allows customers to perform basic banking transactions, such as withdrawing cash, checking account balances, and making deposits.
• A debit card is a payment card linked to a checking account, allowing cardholders to make purchases or withdraw cash from ATMs, with transactions deducted directly from the account.

Credit and Loans

• A credit card is a payment card that allows users to make purchases on credit and pay the bill later, with banks issuing credit cards to qualified individuals.
• A loan is a sum of money borrowed from a bank or financial institution, with an agreement to repay it, typically with interest, over a specified period.
• Common loans in Belize include personal loans, car loans, and home mortgages.

Online Banking and Statements

• Online banking services enable customers to access and manage their accounts, check balances, transfer money, and pay bills online.
• A bank statement is a monthly or periodic document summarizing all account activity, including deposits, withdrawals, interest earned, and fees incurred.

Banking Risks

• An overdraft occurs when a bank account balance goes below zero, with the bank covering the deficit, often charging a fee or interest for the overdraft amount.