Many banks offer reduced fees to customers who have recurring direct deposits.Įlectronic funds transfer (EFT). A method of transferring funds between banks, businesses or individual people. A payment method where people can sign up to have paychecks automatically deposited into their account, without having to endorse and deposit a check. Debit cards work similarly to credit cards and can be accepted at the same points of sale, but the money that you spend gets deducted from your checking account balance.ĭirect deposit. This is a payment method that’s connected to your checking account. Having a higher credit score can help you qualify for a lower interest on loans, better credit terms, larger loan amounts and higher credit limits.ĭebit card. Your credit score is a measure of creditworthiness based, in part, on your credit history. If you have a strong credit history, that means you have a proven track record of paying bills on time and paying your debts. Credit generally refers to your ability to borrow-the willingness of banks and other lenders to extend a loan to you. Make sure you read and understand the implications of your financial accounts and obligations.Ĭredit/credit history/credit score. Also known as terms and conditions, this is the fine print of a bank account or loan agreement.
#Bank note definition plus#
With compound interest, your savings multiply over time by earning interest on top of the principal plus interest, year after year.Ĭonditions. The account can be interest-bearing, or non-interest-bearing, depending on the bank or credit union.Ĭompound interest. When you save money in an interest-earning account, such as a savings account or CD, compound interest is the powerful financial effect that helps your savings grow over time. Your checking account, sometimes referred to simply as a bank account, is your home base for making financial transactions.
Some people write paper checks and other people use their bank’s online bill pay feature to issue electronically generated checks.Ĭhecking account. The APY that you can earn on a CD depends on the bank, the term and other factors.Ĭheck. A type of financial instrument that instructs the check writer’s bank to make a payment to the recipient indicated on the check. There are many types of CDs, but most require that you lock up your money for a minimum term, such as six months or one year. Savings accounts, checking accounts and money market accounts insured by the FDIC (Federal Deposit Insurance Corporation) at banks and the NCUA (National Credit Union Administration) at credit unions are generally considered safe, liquid accounts to hold your cash.Ĭertificate of deposit (CD). A type of time deposit account, generally insured by the FDIC at banks and the NCUA at credit unions, where customers can put their savings to earn a yield. If you have recently deposited a check or made purchases, those transactions may still be marked as pending and may not be included in your available balance.Ĭash equivalents. Highly liquid accounts holding funds that can be accessed immediately without penalty or risk of loss. Many banks offer access to a network of fee-free ATMs.Īvailable balance. The amount of money you have in your bank account that is available to spend or withdraw. A convenient location for basic banking transactions, such as withdrawing cash, depositing checks or making balance inquiries.
Savers can use APY as one of several factors to help determine which savings options are the best.ĪTM (Automated Teller Machine).
#Bank note definition full#
When you borrow money, whether it’s via a credit card, car loan or another loan, the lender is required to disclose the APR, so you understand the full cost of borrowing the money.ĪPY (Annual Percentage Yield). The annual yield earned on a deposit account, such as a savings, money market or CD account. When you sign up for direct deposit of your paycheck at work, that money often moves into your bank account via ACH.ĪPR (Annual Percentage Rate).
Banks use ACH payments to move money between them. When you open a financial account-whether it’s a checking account, savings account, CD or money market account-you have certain rights and responsibilities as an account holder.ĪCH (Automated Clearing House). ACH is a type of electronic funds transfer system that operates between banks, businesses and individual consumers in a nationwide network. Account. A type of financial property or financial obligation that is held and owned under your name.
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