Account number
All bank accounts have an account number for tracking payments and purchases.
ACH
An Automated Clearing House (ACH) is part of network that electronically transfers funds from one account to another. So, every time you pay a bill or receive a direct deposit, an ACH was used. All ACH transfers and payments are encrypted for additional security.
Balance
A balance is how much money you have in your account. In budgeting, a “balanced” budget means deposits equal expenses.
CD
A certificate of deposit, or CD, is a type of savings account where deposited money earns interest for a set amount of time.
Checking account
A checking account is a traditional account for receiving deposits and making purchases. They include paper checks which serve as a substitute for cash. For a check payment, the purchaser provides the cost, date, purpose and a signature on the check to make the transaction official. Processing paper checks takes a little longer and debit cards and digital payments have mostly replaced them.
Credit
In banking, “credit” is a multipurpose term.
- A credit is money that was added to your account. As an example, if you return a purchase, the seller will “credit” your account in the return process.
- A credit card extends credit (money) from the issuer to the user. To use this credit, the issuer charges the user a fee called an interest rate. This rate is applied to the amount of borrowed credit.
- A credit score reflects someone’s ability to use credit responsibly and pay back debt. Scores are based on income, debt, payment history, length of credit history, credit mix and new credit. Each part of the score can have positive and negative factors. Credit scores can be improved over time. Everyone can see their score for free once per year at www.AnnualCreditReport.com.
Debit card
A “debit” is a term for money taken out of an account. Your debit card is a way to take money out of your account to pay for purchases.
Debt
Debt is an amount of money that is owed to a company or individual.
Deposit
Money that is placed into a bank account is a deposit.
Direct deposit
Direct deposit refers to a payment that is directly deposited into your bank account. Direct deposit is safer than checks, gives you access to funds immediately and reduces the need for special check cashing services. Once you have your SafeSpend account, ask your employer to pay you through direct deposit.
Down payment
The upfront cost to reduce the amount of a loan is the down payment. In any loan, a larger down payment will reduce the monthly payment.
Equal Housing Lender
A financial institution that is an equal housing lender commits to fair lending practices and follows the standards of federal fair lending laws established by the Federal Fair Housing Act and the Equal Credit Opportunity Act.
Interest rate
In banking, “interest” has a dual meaning.
- In a loan, an interest rate is the cost of borrowing money expressed as a percentage.
- In a savings account, an interest rate is how much your money can earn from being deposited into the account.
Mortgage
A mortgage is a special type of loan used for purchasing a home.
Net worth
The money you have after taxes, debts and expenses are paid is your net worth.
PIN
Your Personal Identification Number (PIN) is a four-digit number security number used when making a purchase with your debit card.
Savings account
A savings account is a traditional account used for saving money. Typically, a savings account earns interest on the money you deposit and is not used for daily transactions.
Transfer
Moving money from one account to another is a transfer.
Withdrawal
Taking money out of an account is a withdrawal.
Zero
Zero, or nothing, is the amount of overdraft fees with a SafeSpend account.
