Banking & Personal Finance Vocabulary

Part 1: Banking & Personal Finance Collocations

Collocations are words that naturally go together. These phrases are common when talking about banking & personal finance.

Collocation	Example	Meaning
take out a loan	"He took out a loan to buy a car."	Borrow money from a bank
direct debit	"My rent is paid by direct debit."	An automatic payment from a bank account
interest rate	"The interest rate on savings accounts is very low."	The percentage charged or earned on money
open an account	"I opened an account at my local bank."	Start a bank account
credit score	"A good credit score helps you get loans."	A rating of how trustworthy a borrower is
monthly instalment	"She pays a monthly instalment on her sofa."	A regular partial payment

Collocation	Example
overdraft fee	"I was charged an overdraft fee last month."
fixed-rate mortgage	"They chose a fixed-rate mortgage for stability."
savings account	"Put some money into a savings account each month."
outstanding balance	"Pay off your outstanding balance to avoid interest."
financial advisor	"A financial advisor helped them plan for retirement."

1. He __________ out a loan to buy a car.

2. My rent is paid by __________ debit.

3. The interest __________ on savings accounts is very low.

4. I __________ an account at my local bank.

5. A good credit __________ helps you get loans.

Idioms add colour and natural expression to your English when talking about banking & personal finance.

in the red – in debt or spending more than you have "The company has been in the red for two years."
in the black – financially healthy or making a profit "After the new deal, we're finally in the black."
tighten your belt – spend less money "We need to tighten our belts this month."
nest egg – money saved for the future "They've built up a nice nest egg for retirement."
break the bank – cost a huge amount of money "That holiday won't break the bank."
money doesn't grow on trees – money is limited and must be earned "Turn off the lights - money doesn't grow on trees!"

1. The company has been in the __________ for two years.

2. After the new deal, we're finally in the __________.

3. We need to __________ our belts this month.

4. They've built up a nice nest __________ for retirement.

5. That holiday won't __________ the bank.

These phrasal verbs are commonly used when talking about banking & personal finance.

Phrasal Verb	Meaning	Example
save up	accumulate money over time	"I'm saving up for a new laptop."
pay off	fully repay a debt	"It took years to pay off the mortgage."
draw out	withdraw money	"I need to draw out some cash."
set aside	reserve money for a purpose	"We set aside money each month for emergencies."
run out	have no money left	"We ran out of money before payday."

Pay off refers to completely clearing a debt, not just making a payment.

Draw out is more British/formal for withdrawing cash; "take out" is also common.

Set aside implies planning ahead, unlike simply "spending".

1. I'm __________ up for a new laptop.

2. It took years to __________ off the mortgage.

3. I need to __________ out some cash.

4. We __________ aside money each month for emergencies.

5. We __________ out of money before payday.

Practice banking & personal finance vocabulary with a native English speaker!

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