Banking Glossary

Featured Banking Term: Fixed Rate - An interest rate that remains stable over a specified period of time. Fixed rates can be used with loans or deposit accounts to determine interest cost or interest earned, respectively. Fixed rates differ from variable rates, which typically fluctuate more than fixed rates.

More Banking Terms

4

• 401(k) - A retirement savings plan...

A

• ATM - Automated Teller Machines (ATMs)...
• ATM Card Fee - A bank may charge...
• Automated Clearing House - ACH. A nationwide electronic...
• Automatic Deposit - An arrangement made with...
• Automatic Transfer - A customer may elect...
• Automatic Withdrawal - With this service, also...
• Average Daily Balance - Refers to a computation...

B

• Bank Account - An account held by...
• Bank Secrecy Act - An act passed by...
• Bounced Check - A check that has...

C

• Cashier’s Check - A check for situations...
• Certificate of Deposit - A certificate of deposit,...
• Check Image - An image (electronic or...
• Checking Account - A type of bank...
• Compound Interest - Interest that is calculated...
• Credit Union - A nonprofit, cooperative financial...
• Custodial Account - A bank account, usually...

D

• Demand Deposit - A type of deposit...
• Digital Wallet - A software program that...
• Diversification - A plan for financial...

E

• Electronic Check - An electronically-duplicated check. For...
• Electronic Funds Transfer - EFT. An EFT can...
• Emergency Fund - Money kept "liquid," usually...

F

• Federal Deposit Insurance Corporation - The Federal Deposit Insurance...
• Fixed Rate - An interest rate that...
• Float - The time difference between...

H

• Health Savings Account - HSA. A bank account...

I

• Individual Retirement Account - IRA. A tax-advantaged investment...

J

• Joint Account - An account owned by...

M

• Maintenance Fees - A periodic charge to...
• Minimum Balance - The lowest amount that...
• Money Market Account - A money market account...
• Mutual Fund - A professionally-managed investment that...

N

• Non-Sufficient Funds - Also called Insufficient Funds...

O

• Online Banking - A system that allows...
• Online-Only Bank - An online-only bank refers...
• Overdraft - Also known as "overdraw."...
• Overdraft Protection - A service offered by...

P

• PIN - Personal Identification Number. A...
• Prime Rate - The interest rate that...

R

• Reconciliation - The process of comparing...
• Routing Number - A routing transit number...

S

• Savings Account - A type of deposit...
• Simple Interest - A method of computing...
• Stop Payment - An order typically requested...

T

• Tiered Interest Rates - The variable interest rates...
• Time Deposit - A deposit in a...

V

• Variable Rate - An interest rate that...