One of the best places to work is a Bank, here are some common Banking terms starting with the letter "A"
A
Account(uh-kount) Agreement:
The contract governing
your open-end credit account, it provides information on changes that may occur
to the account.
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 persons
designated and authorized to transact business on behalf of an account. Each
account holder's signature needs to be on file with the bank. The signature
authorizes that person to conduct business on behalf of the account.
Accrued(uh-krood) Interest:
Interest that has been
earned but not yet paid.
Acquiring Bank:
In a merger, the bank
that absorbs the bank acquired.
Adjustable-Rate
Mortgages(mawr-gijs) (ARMS):
Also known as
variable-rate mortgages. The initial interest rate is usually below that of
conventional fixed-rate loans. The interest rate may change over the life of
the loan as market conditions change.
There is typically a
maximum (or ceiling) and a minimum (or floor) defined in the loan agreement. If
interest rates rise, so does the loan payment. If interest rates fall, the loan
payment may as well.
Adverse Action:
Under the Equal Credit
Opportunity Act, a creditor's refusal to grant credit on the terms requested,
termination of an existing account, or an unfavorable change in an existing
account.
Adverse Action Notice:
The notice required by
the Equal Credit Opportunity Act advising a credit applicant or existing debtor
of the denial of their request for credit or advising of a change in terms
considered unfavorable to the account holder. .
Affidavit(af-i-dey-vit):
A sworn statement in
writing before a proper official, such as a notary public.
Alteration(awl-tuh-rey-shuhn):
Any change involving an
erasure or rewriting in the date, amount, or payee of a check or other negotiable
instrument.
Amortization(am-er-tuh-zey-shuhn):
The process of reducing
debt through regular installment payments of principal and interest that will
result in the payoff of a loan at its maturity.
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.
Application:
Under the Equal Credit
Opportunity Act (ECOA), an oral or written request for an extension of credit
that is made in accordance with the procedures established by a creditor for
the type of credit requested.
Appraisal(uh-prey-zuhl):
The act of evaluating
and setting the value of a specific piece of personal or real property.
Authorization(aw-ther-uh-zey-shuhn):
The issuance of
approval, by a credit card issuer, merchant, or other affiliate, to complete a
credit card transaction.
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 provided customer services, such as direct deposit of
customers' salaries and government benefit payments (i.e., social security,
welfare, and veterans' entitlements), and preauthorized transfers.
Automated Teller Machine
(ATM):
A machine, activated by
a magnetically encoded card or other medium, that can process a variety of
banking transactions. These include accepting deposits and loan payments,
providing withdrawals, and transferring funds between accounts.
Automatically Protected:
As of May 1, 2011, up to
two months of Federal benefits such as Social Security benefits, Supplemental
Security Income benefits, Veteran’s benefits, Railroad Retirement benefits, and
benefits from the Office of Personnel Management that are direct deposited to
an account may be protected from garnishment. The amount automatically
protected will depend upon the balance of the account on the day of review.
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).
Availability Date:
Bank's policy as to when
funds deposited into an account will be available for withdrawal.
Availability Policy:
Bank's policy as to when
funds deposited into an account will be available for withdrawal.
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.
