Unless you have worked at a bank before, the chances of you knowing banking terms aren’t very high. That’s where we come in! We want you to have all the information before your visit.
Here are some common phrases or words used by lenders and bank staff alike:
Mortgage
Home Loan
Consumer Loan
almost any loan that isn’t for a home, land or business
RLOC
Revolving Line of Credit (like a credit card)
LOC
Line of Credit (like a construction loan)
HELOC
Home Equity Line of Credit (borrowing on the value of your home)
Amortization
how many payments your loan is for (the length of the loan)
Collateral
Personal or business property held by the bank to ensure repayment of a loan
Downpayment
Money you have to contribute to purchase an item
ACH
electronic transactions like direct deposit or automatic payments
POS Transaction
Point of Sale - this is the location where the card has been swiped and an amount charged
APY
Annual Percentage Yield - this is the interest you would earn over a 1 year period of time
CD
Certificate of Deposit
DDA
Direct Deposit Account - a checking account
IRA
Individual Retirement Account
HSA
Health Savings Account
Account Holder
a person or entity that owns a bank account
Account Signer
a person that can access the funds within the bank account
Checking Account
a transaction account used for everyday spending
Savings Account
an account that earns interest and is meant for savings, not daily use
Routing Number
a 9 digit identifying code assigned to the place where you bank
Account Number
a unique number assigned your specific bank account
Overdraft
when you spend more than the balance in your account
NSF Fee (Non-Sufficient Funds)
charged when a transaction exceeds available
Debit Card
a card that withdraws money directly from your checking account
Credit Card
card that allows borrowing up to a limit and requires repayment (RLOC)
Wire Transfer
fast, secure electronic transfer, typically has a higher fee
PIN (Personal Identification Number)
Code used for security in many different ways such as an online banking PIN or a debit card PIN
Principal
the amount of money borrowed (not including interest)
Interest Rate
the cost of borrowing money, expressed as a percentage
APR (Annual Percentage Rate)
the total cost of borrowing, including fees
Delinquency
when payments are late past the due date
Deposit Interest
Money earned for keeping funds in a savings product
Maturity Date
when a CD or loan term ends
Minimum Balance
the lowest amount required to avoid fees and earn interest
Maintenance Fee
a fee for keeping an account open
Hold
a delay before deposited money becomes fully available
Two-Factor or Multi-Factor Authentication (2FA or MFA)
extra security requiring a second verification step
Fraud Alert
a notification of suspicious account activity
Encryption
technology that protects information shared online
Statement Cycle
the period covered by a bank statement
Reconciliation
Matching personal records to bank statements
Pending Transaction
transaction authorized but not fully processed yet
FDIC
Federal Deposit Insurance Corporation - insures deposits up to $250,000 per depositor, per bank
Regulation D (Reg D)
federal rule governing certain types of withdrawals and transfers
Treasury Management
Business Banking services like cash concentration and payment processing