accrue
/əˈkru/To increase little by little over time, the way interest is added to an account.
Example: Interest accrues daily, so the debt grows while you wait.
C120 words · Advanced
Money & Payments vocabulary — C1
Money & Payments vocabulary for finance beyond everyday banking, including accrue, collateral, insolvent and compound interest — words for outgoings measured against what is owed.
20 questions
Words in this set
20overdrawn
/ˈoʊvərˈdrɔn/Having spent more money than your account held and now owing the bank.
Example:
I went overdrawn by twenty pounds and got charged for it.
collateral
/kəˈlætərəl/Property or another valuable thing that you promise to give up if you fail to repay a loan.
Example:
The bank asked him to put up his house as collateral.
insolvent
/ˌɪnˈsɑlvənt/Unable to pay your debts because you do not have enough money.
Example:
The company was declared insolvent after months of losses.
liquidity
/lɪˈkwɪdəti/How easily a person's or company's assets can be turned into cash.
Example:
The firm improved its liquidity by selling unused property.
asset
/ˈæˌsɛt/Something valuable that a person or company owns.
Example:
Property is often a person's biggest asset.
liability
/ˌlaɪəˈbɪlɪti/Something a person or company owes, such as a debt.
Example:
The unpaid loan is listed as a liability on the balance sheet.
compound interest
Interest calculated on both the original money saved and the interest it has already earned.
Example:
Over ten years, compound interest made her savings grow fast.
top up
To add more money to a card, phone or account so that you can keep using it.
Example:
I need to top up my travel card before Monday.
standing order
A fixed amount your bank pays out automatically on the same date each month.
Example:
I set up a standing order to pay my rent.
levy
/ˈlɛvi/A sum of money that must be paid, especially as a tax.
Example:
The government introduced a new levy on plastic bags.
premium
/ˈprimiəm/An extra amount paid for something better, or the regular payment for insurance.
Example:
Her car insurance premium went up this year.
gratuity
/ɡrəˈtuɪti/A formal word for a tip given for good service.
Example:
A 15% gratuity is added to large tables.
retainer
/rɪˈteɪnər/A fee paid in advance to keep someone's services available when needed.
Example:
The company pays the lawyer a monthly retainer.
prepayment
/priˈpeɪmənt/Money given before goods or services are received.
Example:
The venue requires a prepayment to confirm the booking.
outstanding balance
The amount of money still owed after previous payments.
Example:
Please clear your outstanding balance by Friday.
chargeback
/ˈtʃɑrdʒˌbæk/When a bank cancels a card transaction and returns the money to the customer, usually after a dispute.
Example:
She requested a chargeback after the item never arrived.
escrow
/ɛˈskroʊ/Money held by a neutral third party until an agreement is completed.
Example:
The deposit is held in escrow until the sale is finished.
outgoings
The regular amounts of money you have to pay out each month.
Example:
Once I listed my outgoings, I saw where the money went.
dip into
To take out part of the money you had been keeping for later.
Example:
We had to dip into our savings to fix the roof.
