Top 20 Banking Terms You Should Know

The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.

  • EPS – The portion of a company’s profit allocated to each outstanding share of common stock.
  • It is required in order to work in Canada, receive government benefits, hold investments and pay taxes.
  • The gradual reduction in the principal amount owed on a debt.
  • Mutual funds are liquid because their shares can be redeemed for current value on any business day.
  • When you sign a consent for it, you allow an organization to collect money from your account automatically, so you don’t have to worry about forgetting to pay the bill, and you don’t risk any late fees.

The RIB is also made available to public services and the Social Security for the transfer of benefits. The RIB is a convenient way to pay for recurring and monthly expenses including rent, phone bills, and utility bills. A mutual fund is a type of investment fund that pools money from many investors.

Debt consolidation

A type of financial instrument that instructs the check writer’s bank to make a payment to the recipient indicated on the check. Some people write paper checks and other people use their bank’s online bill pay feature to issue electronically generated checks. The annual yield earned on a deposit account, such as a savings, money market or CD account.

A real interest rate is a percentage of the principal that shows how much you must pay in addition to the borrowed amount of money or earn from an investment once the inflation rate is considered. Inflation is influenced by money supply and demand as well as government policy. As a result, subtracting the real inflation rate from the nominal rate will give you the real interest rate. A payment service connects a merchant to the broader financial system. They make it possible for merchants to accept credit and debit card payments from customers.

Trust Account

Once the direct deposit is made, it usually takes a couple of days for the money to be available in your account. A debit card is a card issued by a bank that allows you to make payments, which are directly debited from your bank account. You can use it to make purchases in stores or online, and to withdraw cash from ATMs.

  • But it may be useful to translate words when you first learn them so that you make sure you got the meaning right.
  • Once a loan enters default, the lender typically reports it to the credit bureaus and sells the debt to a collection agency.
  • Often companies will publicize their numbers using either GAAP or non-GAAP measures.
  • By definition, accruals occur before an exchange of money resolves the transaction.
  • A trial balance is a report of the balances of all general ledger accounts at a point in time.
  • Inflation – A rise in the prices of goods and services, often equated with loss of purchasing power.

Depending on the service you choose, the benefit is the certainty of an all-cash offer and more control over when you move. For some markets across the nation, recording the deed with the county clerk’s office is the ultimate and final step of closing. Once all of these items are completed, then a buyer’s access to the property is then provided, and the buyer is considered the new homeowner. It may also include monthly and/or annual fees or special assessments. Or in the alternative, the seller should release the buyer from their obligation to purchase and refund the monies spent by the buyer, such as earnest money. An appraisal is required to gather the estimated value of a piece of real estate. During the home sale, the mortgage lender sends out an appraiser to get a professional opinion of the value of the property.

Credit Reporting Agency

However, despite the 17% EPS gain, Hemlock Incorporated fell well below the analyst earnings estimate of 71 cents. Coupled with Hemlock’s increasing total debt, some analysts are left questioning the company’s ability to service its debt moving forward. Earnings guidance from Hemlock Incorporated fell within range, with EBITDA, net income from continuing operations, and free cash flow beyond the high end of their respective guidance ranges. Anyone who starts to read financial news will need a quick primer on the terms that are commonly used. Richard Richtmyer is an editor for Insider’s personal finance team.

In a digital marketing world where privacy matters more than ever before, personalization must be a top priority. Banks and credit unions should review their digital channels to see whether they provide support content for all the ways consumers seek information. Content around general search terms should be robust enough address the many reasons consumers interact with digital channels. Most search terms require 10 or more custom answers to address the three areas of intent. For a bank or credit union working to provide strong support content, this behavior makes it harder to understand a searcher’s intent.

First, you log into your bank account from the web app or a non-paired device with your username Top 20 Banking Terms You Should Know and password. You’ll be asked to confirm a push notification on your paired device.

  • A consumer would use this option if they believe they were a victim of identity theft.
  • When a company’s net income increases, it’s normally a result of either increased revenue or slashed expenses.
  • Part of your financial picture is making sure to earn an adequate income.

The sort code is split into three pairs, which together identify the bank and branch where the account was opened. This six-digit number helps determine where a payment comes from and verifies that it is sent to a valid financial institution that can process the payment method.