Various Banking Terms with Letter D

This is the list of terms with letter D. I am posting this because it is easy to remember alphabetically.

 

Dealer Bank:                                                                                      

A commercial bank authorized to buy and sell government debt securities including federal and municipal bonds. This debt is usually issued to fund large government projects such as road and bridge construction.

 

Debit:

  A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account.

Debit Card:

  A debit card allows the account owner to access their funds electronically. Debit cards may be used to obtain cash from automated teller machines or purchase goods or services using point-of-sale systems.Its main function is for debiting and crediting money in an account.

Debt Collector:

  Any person who regularly collects debts owed to others.

Debt Elimination Scheme:

  A debt elimination scheme is a plan that is advertised as a way for an individual to eliminate various types of debt simply by paying someone a small fee compared to the amount of debt to be eliminated. These schemes are fraudulent. By this individual can lose their money and property.

Debtor:

  Someone who owes money to another party.

Debt-to-Income Ratio (DTI):

  The percentage of a consumer's monthly gross income that goes toward paying debts. Generally, the higher the ratio, the higher the perceived risk. Loans with higher risk are generally priced at a higher interest rate.

Decedent:

  A deceased person, ordinarily used with respect to one who has died recently.

Deferred Payment/ Availability: A payment postponed until a future date.

Delayed Disbursement:

A cash management technique that involves a company paying vendors and/or other creditors by cheques drawn on banks located in remote areas. Commercial banks will typically delay the availability of funds to the depositor of such cheques for up to five days as they await payment from the paying bank.

Delinquency:

  A debt that was not paid when due.

Demand Deposit:

  A deposit of funds that can be withdrawn without any advance notice.

Deposit Slip:

  An itemized memorandum of the cash and other funds that a customer presents to the bank for credit to his or her account.

Depository Transfer Cheque   

A cheque used by a designated collection bank for depositing the daily receipts of a corporation from multiple locations.

Derogatory Information:

  Data received by a creditor indicating that a credit applicant has not paid his or her accounts with other creditors according to the required terms.

Direct Deposit:

  A payment that is electronically deposited into an individual's account at a depository institution.

Direct Dispute:

  A dispute submitted directly to the furnisher about the accuracy of information in your consumer report that relates to an account or other relationship you have with the furnisher.

Disclosures:

  Certain information that Federal and State laws require creditors to give to borrowers relative to the terms of the credit extended.

Dishonour of Cheque: 
Non-payment of a cheque by the paying banker with a return memo giving reasons for the non-payment.

Diversification:  
The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.

Draft:

  A signed, written order by which one party (the drawer) instructs another party (the drawee) to pay a specified sum to a third party (the payee), at sight or at a specific date. Typical bank drafts are negotiable instruments and are similar in many ways to cheques.

Drawee:

  The person (or bank) who is expected to pay a cheque or draft when it is presented for payment.

Drawee bank:

  The bank upon which a cheque is drawn.

Drawer:

  The person who writes a cheque or draft instructing the drawee to pay someone else.

Duration: 
A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.