Bank record contains error after vacation (7)
I believe the answer is:
terrace
'bank' is the definition.
(I've seen this before)
'record contains error after vacation' is the wordplay.
'record' becomes 'trace' (I can't justify this - if you can you should believe this answer much more).
'contains' is an insertion indicator.
'after vacation' says to hollow out the word (remove centre letters) (the inside letters must vacate).
'error' with its middle taken out is 'er'.
'trace' enclosing 'er' is 'TERRACE'.
Can you help me to learn more?
(Other definitions for terrace that I've seen before include "Flat area (on slope)" , "Stadium spectators' area" , "Abutting row of houses" , "Row of usually identical and connected houses" , "Row of attached houses" .)