Financial Terms Glossary...

Financial terms and definitions you can use to introduce new staff members to the terminology used in the financial industry. If you would like to recommend a financial term not included in the glossary, simply click Add Link above and enter the term and definition in the message box. In most cases, your suggestion will be added within 48 hours.

 

A
 
Account

Device to conduct and record payments or savings transactions, such as in a checking or savings account.


Account History
Statement of past checking, savings or other account transactions.

Accrued Interest
Interest that has been earned but not yet credited to an account.

Adjustable Rate Mortgage (ARM)
Agreement between the financial insitution and a real estate buyer that includes predetermined adjustments of the mortgage interest rate at specified intervals.

Amortize
Provision for repayment of a loan in periodic payments over set period of time.

Annual Percentage Rate (APR)
The finance interest rate for a full year, expressed as a percentage of all costs of the loan as required by the Truth-in-Lending Act.

 

Annual Percentage Yield (APY)
Total amount of dividends or interest paid based on the dividend or interest rate and the compounding frequency for 365 days.

Annual Percentage Yield Earned (APYE)
Reflects the relationship between actual dividends or interest paid and credited during the full year to the average daily balance. It does not reflect any fees imposed on bonuses earned.

 

ACH / Automated Clearing House
Electronic debit or payment transaction to or from member accounts.

Automated Teller Machine (ATM)
Automated equipment used by a member to obtain financial services, activated by a plastic card, push buttons, and a personal identification number (PIN).

 

B

Balloon Payment
Final payment on a debt at the end of a specified term that is substantially larger than the preceding payments and generally the balance of the debt.

 

 
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