Glossary · Banking
Banking terms in the payments glossary
How banks hold and move money behind the scenes — correspondent banking, routing numbers, and how deposit insurance passes through to customers.
Correspondent banking
The arrangement where one bank holds accounts and executes payments for another, enabling cross-border transfers between banks with no direct relationship.
Pass-through deposit insurance
FDIC coverage that extends through a custodial account to the underlying owners of the funds, when the FDIC’s pass-through conditions are met.
Routing number
The nine-digit code that identifies a US financial institution on payment rails — it tells ACH, Fedwire, and check systems where an account lives.