Glossary

Click letters in the alphabetical listing below to view financial terms that begin with the corresponding letter.

Accrued Date
Day that interest charges begin on a loan.

Accrued Interest
Interest that is earned, but not credited or paid.

Amortization
The gradual reduction of debt through repayment of a loan by equal periodic installments of principal and interest.

Annual Percentage Rate
Total financing cost of credit expressed as a yearly rate.

Annual Percentage Yield
The amount of interest earned on a deposit account (checking, savings, CDs, IRAs, etc.), including the effect of interest compounding, assuming funds remain in the account for a full 365 days.

Application
A form used to record necessary information concerning a prospective customer. Used in determining the approval of such items but not limited to new accounts, loans and insurance.

Auto Debit
An agreement that authorizes the payment of bills (loans, insurance, rent, or mortgages) to be deducted automatically from a bank account. Payments are usually scheduled to be made on a certain day of the month.

Automated Clearing House (ACH)
A computer-based interchange for clearing deposits and payments electronically.

Automatic Payment
An agreement that authorizes the payment of bills such as loans, insurance, rent, or mortgages to be deducted automatically from a bank account. Payments are usually scheduled to be made on a certain day of the month.

Automatic Transfer
An arrangement that automatically moves funds from one account to another on a pre-arranged schedule.

Average Balance
The average dollar amount in a deposit account during an accounting period, equal to daily ledger balances less uncollected funds divided by the number of days in the reporting period.