Banking Terminology Flashcards
ABM
Automated Banking Machine
Account level charge
Charges against any account transactions (deposit, transfer) vary depends on bank.
Annual fee
Fee charged each year on a credit card account (FIXED). There existe annual fee free
Amortization Period
Time which take to repay a mortgage loan full (years) maximum 30 years
Appraised Value
An estimated of the value of the property offered as security for a mortgage loan
Assets
Your possesions, including property, cash, investments
Bankrupt
Technically this means being insolvent or declared by law as unable to pay debts
Cheque hold
A ¨hold¨ on the deposit of the cheque is placed to ensure that the financial institution on which the cheque is drawn will not return the cheque.
Cheque certification
The cheque is certified as valid and ensures money is on the account
Checking account
Type of account where you can access your money on demand. You must make sure you always have enough money in your chequing account to over the cheques that you have written.
Savings account
This type of bank account usually pays interest on the funds deposited and provides easy access to your money although a cheque book is not provided
Check routing number
0002
Money order
Bank draft is an order for the payment of
Collateral (Assets)
Usually property or investments used to secure a loan
Consolidation
Combining more than one debt into a single loan.
Cosigner
Person who signs a loan with you and shares responsibillity for repayment of the loan
Credit Bureau
A clearinghouse for credit information credit grantors provide the credit bureau with information on how their credit customers pay their bills and the bureau complies linformation as a resource for credit grantors. Customers may review their own credit file at any credit bureau location. Be careful about having one credit study per year (certification)
Credit grantor
another term used to describe your credit card issuer or the company has granted some form of credit to you
Credit card
Such as VISA card allows the holder to charge purchases rather than pay cash
Credit file
(Credit bureau report) Recor information about payment such as stores banks and credit card companies, and includes information from ¨public record¨
Daily Interest
The interest calculated on a minimun or average daily account balances; usually credited to the account once a month
Debit card
another name for a Bank Card that allows you to access your accounts. You can use it at banking machines or to pay for purchases at retailers using the interac. Payment service
Deficit
The result of expenditures being greater than income (the opposite of surplus)
Direct debit
A means of paying for goods and services with a magnetic debit card via the interac. Direct payment network, directly from your account to merchant´s account.
Equity
Difference between property cost and debts
Fixed interest rate
An interest rate established at the time a loan is opened and which remains unchanged for the term of the loan
GIC
Guaranteed investmenet certificate (CDT)
Guaranter
Guaranties to repay a loan in the event that the borrower defaults
Interac Network
Aliados ABM (Extra fee)
Lien
A claim on a person property as a security for an unpaid debt
Maturity Date
Last day of the term of the mortgage agreement must then be renewed or the mortgage balance paid in full
Scotiabank institution code
002 (for cheques)
Coborrower
co-borrower shares ownership of the asset that’s tied to the loan and assumes the responsibility of payments from the start. A co-signer, on the other hand, doesn’t own the collateral that’s associated with the loan and is only liable for the loan if the primary borrower doesn’t make their payments.
