Vocabulary
Study the following vocabulary.
Banking 2 – bank charges
interest – a percentage fee added to the debt you have with the bank if you borrow money (or, a payment made to your account as a percentage of the amount you have deposited in the bank, although this is not a charge)
annual fee – yearly charge for having some bank accounts and payment cards
withdrawal fee – charge for using an ATM to take money from your account
setting-up fee – a fixed charge when an overdraft agreement is made
handling charge – a fee charged by the bank in relation to a particular payment or transfer
unauthorized overdraft fee – a single penalty fee charged to an account if it is overdrawn above an agreed maximum
commission – a percentage of a credit or debit that may be deducted by the bank
base rate – rate used to fix the level of interest on loans from the bank (the actual interest rate is usually set at several points above the base rate)
margin – the percentage above the base rate that a borrower must pay
fixed rate loan – a loan with an interest rate that stays constant for the life of the loan