A cheque is a pre-printed form instructing a bank to pay money from the writer's account to a named recipient.

There are various kinds of cheques:

A crossed cheque is where two parallel lines are drawn across the face of the cheque to indicate that it must be paid into a bank account and not cashed over the counter.

An open cheque is an uncrossed cheque that can be cashed at the bank of origin.

An order cheque is one made payable to a named recipient "or order", enabling the payee to either deposit it in an account or endorse it to a third party, i.e. transfer the rights to the cheque by signing it on the reverse.

In a blank cheque the amount is not stated; it is often used if the exact debt is not known and the payee is left to complete it.

A bearer's cheque is a cheque or bill of exchange marked "pay bearer". It does not require any endorsement, except the account holder's signature on the cheque, and the amount is paid to the person who presents for payment. It is considered a high-risk form of transfer.

Clear -- A cheque "clears" when its amount is debited (subtracted) from the payer's account and credited (added) to the payee's account.

Bounced cheque-- A cheque that a bank has refused to cash or pay because you have no funds to cover it in your account.

The DD is valid for six months from the date of issue.

Passbook is a booklet given by the bank to the depositor where a record of deposits, withdrawals, and interest earned on a savings account is maintained.
When you draw money from your account, money is shown as debited (or reduced) from you account. Likewise, when money is deposited in your account or the bank adds the interest amount, it is shown as credited in your account.

Payee -- An individual or company to whom a cheque is written; one who receives money as payment.

Payer -- An individual or company who writes a cheque; one who gives money as payment.

Service charge - Generally an annual fee a bank charges for handling a checking account.
Withdrawal - The amount of money taken out of an account.

Cash-- Money in the form of paper and coins (e.g., Rupees and Paise in India, it is country specific). In banking, this is the act of paying a cheque.

Certificate of deposit -- A savings account in which an individual promises to deposit the money for a set period of time, for which the bank pays higher interest than a regular savings account. It is also called Fixed Deposit.

Principal -- The original amount of money borrowed, deposited, or invested before interest is added to it.

Interest -- The fee paid for the use of money. Interest may be paid, for example, by an individual to a bank for credit card use, or by a bank to an individual for holding a savings account.
Usually banks have different ways of calculating interest.

Compound interest -- Interest calculated not only on the original principal, but also on the interest already accrued.

Deposit slip -- A slip giving the exact details of paper money, coins, and cheques being deposited to a particular account.

Depositor -- An individual or company that puts money in a bank account.

Credit - Credit, in context of banks means borrowing money on the promise to repay at a later date. In any credit arrangement there is a creditor (a person, bank, store, or company to whom money is owed) and a debtor (the person who owes money).

Charge card-- A plastic card that gives access to a line of credit. The line of credit is theoretically limitless, but users are expected to repay their balance in full every month.

Credit card -- A plastic card that gives access to a line of credit. Users are limited in how much they can charge, but they are not required to repay the full amount each month. Instead the balance (or "revolve") accrues interest with only a minimum payment due.

Credit rating -- A financial institution's evaluation of whether a person or company is suitable to receive credit. Credit ratings are based on an individual's character, capacity to repay, and capital.

Debit -- A bookkeeping term for a sum of money owed by an individual or institution; a charge deducted from an account.

Debit card -- A banking card that can be used at ATM's (automated teller machine) and has POS (point-of-sale) features, meaning that it can be used at shops or stores to purchase goods and services electronically. The card replaces cash or cheques. The transaction amount is deducted from the cardholder's account.

ATM (Automated Teller Machine) A fully automated machine from where you can make money transactions like drawing money, depositing money, checking your account etc. All you need is an ATM card to carry out the transaction.

Line of credit -- An authorized amount of credit given to an individual, business, or institution.

Mortgage -- A long-term loan obtained by individuals to buy a home that legally transfers ownership from the debtor to the creditor until the debt is paid.