Banking & Depository Institutions Financial Terms & Definitions

22 terms in this topic

This category encompasses banks, credit unions, savings and loan associations, and other institutions that are licensed to receive deposits and offer checking and savings accounts. These institutions play a crucial role in the economy by facilitating the flow of funds between savers and borrowers, and they are typically regulated to ensure stability and protect depositors.

A

ACH transfer

An ACH transfer is an electronic transfer of money between bank accounts through the Automated Clearing House (ACH) network. This…

Full Definition
A

APR

APR stands for Annual Percentage Rate. It is the total yearly cost of borrowing money, expressed as a percentage. Unlike…

Full Definition
A

APY

APY, which stands for Annual Percentage Yield, is a financial term that shows the real rate of return you earn…

Full Definition
C

Commercial bank

A commercial bank is a financial institution that provides a wide range of services to individuals, businesses, and governments. Its…

Full Definition
C

Credit union

A credit union is a member-owned, not-for-profit financial cooperative that provides traditional banking services to its members. Unlike commercial banks…

Full Definition
F

FDIC insurance

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors against the…

Full Definition
ACH transfer An ACH transfer is an electronic transfer of money between bank accounts through the Automated Clearing House (ACH)… APR APR stands for Annual Percentage Rate. It is the total yearly cost of borrowing money, expressed as a… APY APY, which stands for Annual Percentage Yield, is a financial term that shows the real rate of return… Bank statement A bank statement is a document issued by a bank or credit union that summarizes all financial transactions… Certificate of deposit (CD) A Certificate of Deposit (CD) is a time deposit offered by banks, credit unions, and other depository institutions… Check 21 / Electronic check Check 21 (short for the Check Clearing for the 21st Century Act) and electronic checks revolutionized how paper… Checking account A checking account is a type of deposit account held at a financial institution, such as a commercial… Commercial bank A commercial bank is a financial institution that provides a wide range of services to individuals, businesses, and… Credit union A credit union is a member-owned, not-for-profit financial cooperative that provides traditional banking services to its members. Unlike… Debit card A debit card is a payment card issued by a bank or credit union that allows you to… FDIC insurance The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors… Minimum balance A minimum balance is the lowest amount of money a bank or credit union requires you to keep…