"BANKING GLOSSARY"
Part - 1
- Account History: The Payment history of an account over a specific period of time, including the number of times the account was past due or over limit.
- Account Holder: Any and all person designated and authorised to transact business on behalf of an account. Each account holder’s signature needs to be on file with the bank. The signature authorises that person to conduct business on behalf of the account.
- Account Agreement: The contract governing your open-end credit account, it provides information on changes that may occur to the account.
- Acquiring Bank: In a merger, the bank that absorbs the bank acquired.
- Accrued Interest: Interest that has been earned but not yet paid.
- Adverse Action Notice: The notice required by the Equal Credit Opportunity Act advising a credit on the terms requested, termination of an existing account, or an unfavourable change in an existing account.
- Alternation: Any change involving an erasure or rewriting in the date, amount or payee of a check or other negotiable instrument.
- Annuity: A life insurance contract sold by insurance companies, broker and other financial institution. It is usually sold as a retirement investment. An annuity is a long-term investment and can have steep surrender charge and penalties for withdrawal before the annuity’s maturity date. (Annuities are not EDIC insured.)
- Authorization: The act of evaluating and setting the value of a specific piece of personal or real property.
- Annual Percentage Rate (APR): The cost of credit on a yearly basis, expressed as a percentage.
- Annual Percentage Yield (APY): A percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the frequency of compounding for a 365-day year.
- Automatic Bill Payment: A checkless system for paying recurring bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH).
- Automated Clearing House (ACH): A computerized facility used by member depository institutions to electronically combine, sort and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and providing customer services, such as direct deposit of customer’s salaries and government benefit payments (i.e., social security, welfare, and veterans’ entitlements) and preauthorized transfers.
- Available Balance: The balance of an account less any hold, uncollected funds and restrictions against the account.
- Available Credit: The difference between the credit limit assigned to a cardholder account and the present balance of the account.
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