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Common Banking Terms

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Home | Save | Savings Accounts | Independence Account | Common Banking Terms
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Personal finance is a subject that will impact your entire life, which is why it's so important to learn and understand. Below you will find some common banking terms that will help you with your financial future.

  • Average Percentage Yield (APY): The annual rate of return on an investment or savings account.
  • Average Percentage Rate (APR): The total cost of borrowing money over the entire term of a loan. 
  • Debit card: A card issued by a financial institution, such as a credit union, allowing the holder to transfer money electronically when making a purchase or paying bills.
  • Debt: Borrowed money that has to be repaid.
  • Deposit: A sum of money placed or kept in a bank account, usually to gain interest.
  • Checking: Deposit account held at a financial institution that allows withdrawals and deposits.
  • Credit: Obtaining goods or services before payment is due with the understanding the money will need to be repaid.
  • Credit Score: This score determines your credit risk or the likelihood of paying your bills on time. Scores are calculated by credit reporting agencies and typically range from 300-800.
  • Loan: A borrowed sum of money that will need to be repaid, such as a car or house loan.
  • Overdraft: A fee incurred when your checking account doesn't have enough funds to cover a requested payment.
  • Saving(s): A deposit account held at a financial institution that allows you to deposit your money and earn interest.
  • Withdrawal: Removing funds from a bank account.

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