For those who are aiming to become proficient in Icelandic, especially if you are considering living, working, or doing business in Iceland, it is essential to understand the language in the context of banking and finance. Not only does this specialized vocabulary allow you to navigate financial transactions, but it also gives you insight into the economic landscape of the country. Let’s explore some fundamental banking and financial terms in Icelandic and their meanings.

Banki – Bank
A financial institution licensed to receive deposits and make loans.
Ég þarf að fara í bankann til að leggja inn peninga. (I need to go to the bank to deposit money.)

Reikningur – Account
A record of financial transactions; typically checking, savings, or other types of financial accounts.
Ég opnaði nýjan reikning í bankanum í gær. (I opened a new account at the bank yesterday.)

Spurningarorð
A type of Icelandic word typically used to ask questions including various “wh-” words like “what,” “why,” “who,” “where,” etc.

Vextir – Interest
The cost of borrowing money typically expressed as an annual percentage rate.
Vextirnir á lánið mitt eru mjög háir. (The interest on my loan is very high.)

Lán – Loan
Money that is borrowed, usually from a bank, which has to be paid back with interest.
Ég þarf að taka lán til að kaupa hús. (I need to take out a loan to buy a house.)

Gjaldeyri – Currency
Money in any form when in actual use as a medium of exchange, especially circulating paper money.
Hvernig er gjaldeyrisskipti hérna? (What is the currency exchange rate here?)

Verðbréf – Securities
Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.
Ég kaupi verðbréf til að fjárfesta peningana mína. (I buy securities to invest my money.)

Fjárfesting – Investment
The act of allocating resources, usually money, with the expectation of generating an income or profit.
Fjárfesting í fasteignum er oft talin örugg. (Real estate investment is often considered safe.)

Skuld – Debt
Something, typically money, that is owed or due.
Ég er að reyna að borga niður skuldirnar mínar. (I’m trying to pay off my debts.)

Yfirdráttur – Overdraft
A deficit in a bank account caused by drawing more money than the account holds.
Bankinn gaf mér viðvörun um að ég var kominn með yfirdrátt. (The bank gave me a warning that I had an overdraft.)

Hagkerfi – Economy
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
Hagkerfi Íslands er tiltölulega lítið en stöndugt. (The economy of Iceland is relatively small but stable.)

Gengi – Exchange Rate
The value of one currency for the purpose of conversion to another.
Gengi krónunnar gagnvart evrunni hefur sveiflast nýlega. (The exchange rate of the krona against the euro has fluctuated recently.)

Tekjur – Income
Money received, especially on a regular basis, for work or through investments.
Tekjur mínar eru hærri en útgjöldin þessa mánaðarmót. (My income is higher than my expenses this month.)

Understanding these terms not only aids in conducting day-to-day financial transactions but also empowers you to participate in Icelandic economic discussions. Whether you’re planning for long-term investments or managing everyday finances, becoming familiar with these financial Icelandic terms is an invaluable skill. Keep practicing, and soon you’ll navigate the world of Icelandic banking and finance with confidence.