- Electronic Banking:It is a service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution’s website on the internet.
- Electronic Funds Transfer (EFT):It is the transfer of money between accounts by consumer electronic system, such as Automated Teller Machines (ATMs) and electronic payment of bills, rather than by check or cash.
- Encoding:It is the process used to imprint or inscribe Magnetic Ink Character Recognition (MICR) characters on checks, deposits and other financial instruments.
- Guarantor:A party who agrees to be responsible for the payment of another party’s debts should that party default.
- Inactive Account:It is an account that has little or no activity; neither deposits nor withdrawals having been posted to the account for a significant period of time.
- Individual Account:It is an account in the name of one individual.
- Interest:The term interest is used to describe the cost of using money, a right share or title in property.
- Interest Rate:The amount paid by a borrower to a lender in exchange for the use of the lender’s money for a certain period of time. Interest is paid on loans or on debt instruments such as notes or bonds either at regular intervals or as part of lump sum payment when the issue matures.
- Joint Account:An account owned by two or more person. Either party can conduct transactions separately or together as set forth in the deposit account contract.
- Lease:It is a contract transferring the use of property or occupancy of land, space, structure or equipment in consideration of a payment.
- Lender:It is an individual or financial institution that lends money with the expectation that the money will be returned with interest.
- Loan Contract:It is the written agreement between a borrower and a lender in which the terms and conditions of the loan are set.
- Loan Fee:It’s a free charged by a lender to make a loan.
- Maturity:It’s the date on which the principal balance of a loan, bond or other financial instrument becomes due and payable.
- Money Market Fund:It’s an open-ended mutual fund that invests in short-term debts and monetary instruments such as Treasury Bills and pays money market rates of interests. Money market funds usually offer check writing privileges.
- Mortgage:It is a debt instrument used in a real estate transaction where the property is the collateral for the loan. A mortgage gives the lender a right to take possession of the property if the borrower fails to pay off the loan.
- Mutual Fund:A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities. These funds offer investors the advantages of diversification and professional management.