Financial Terminology - Most Important Financial Terms to Know

Have you ever wondered why words and terms in the finance space have to be this complex? We understand. It can be pretty confusing. 

What better way to simplify the route to understanding than to tabulate some of the most common yet least understood terms, names and abbreviations from finance speak? We hope that our table helps you to navigate all of it much more easily. Remember to use it as a point of reference next time you find yourself in a financial understanding-related fix!

Find definitions and a comparison table below.

Key Definitions

Mobile/Instant Payments

Electronic payment systems that allow immediate transfer of funds between accounts using mobile phones or other devices. These transactions happen in real time and typically use specialised apps or banking platforms.

Domestic Electronic Transfers

Methods of moving money between bank accounts within the same country through electronic networks rather than paper methods. These systems process transactions in batches and typically take 1-3 business days to complete.

Cheque Processing

The procedures and systems banks use to handle paper cheques, including verification, clearing, and settlement. Modern cheque processing often involves converting paper cheques to electronic images for faster processing.

Real-time/Same-day Transfers 

Fund transfer services that either process transactions instantaneously or guarantee completion within the same business day. These typically involve higher fees but offer the benefit of immediate availability of funds.

Fixed Deposit (FD) 

A savings account where money is deposited for a specific period at a fixed interest rate. The funds cannot be withdrawn before maturity without penalties, but they typically offer higher interest rates than regular savings accounts.

Recurring Deposit (RD) 

A type of term deposit where the depositor makes regular fixed payments over a specified period, accumulating interest. It's designed to encourage systematic savings with regular contributions.

Current Account 

A bank account designed for high transaction volumes, typically used by businesses and organizations. Unlike savings accounts, they usually don't earn interest but offer conveniences like overdraft facilities and unlimited transactions.

Demand Draft (DD)

A prepaid negotiable instrument where one bank instructs another bank to pay a specified sum to the stated recipient. Unlike cheques, they're guaranteed by the issuing bank and cannot bounce due to insufficient funds.

Comparison Table

​The following table lists the terminology most frequently used across the UAE, the US and India.

Even broken down like this, it looks like a lot, we know. We hope that all of the abbreviations you need are included, and if not, write to us with suggestions/additions at support@getbelong.com!