Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
An acronym for Automated Teller Machine. It's a terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct certain transactions such as deposits and withdrawals. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world, usually subject to a surcharge fee.
ATM access fee
Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee.
An alliance of banks and/or credit unions designed to avoid or minimize surcharges for non-bank customers at ATM machines. A customer at one bank in the alliance can use surcharge-free ATMs at all the banks in the alliance.
ATM card fee
Fee charged in addition to individual account fees to obtain an ATM card – not a debit card fee. This may be an annual fee or a monthly fee. Also the fee may be per card or per account. For instance, if an account is held jointly, does the bank charge for the second person to hold a card or does it charge one fee for all the cards on an account.
Fee charged for a non-account holder to use bank-owned ATM. Example: You have an account at Bank A but use Bank B’s ATM. Bank B will charge you a surcharge. Make sure to review what your bank charges you to use another bank’s ATM system. You may have to pay a surcharge to Bank B plus a non-bank owned ATM charge to Bank A.
Automated Teller Machine (ATM)
Commonly called an ATM, it's a terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct certain transactions such as deposits and withdrawals. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world, usually subject to a surcharge fee.
An arrangement that authorizes periodic withdrawals to be made from a checking or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
An arrangement that moves money at certain specified times, often monthly, from an interest-bearing or savings account into a non-interest, usually checking, account for the payment of checks or other drafts.
Average annual yield
The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
Tax withheld from investment income, such as interest and dividends, to ensure that tax is collected on the income. Banks and other organizations are required to report to the IRS all interest and dividend payments you received, along with your Social Security number or other taxpayer identification number. If you don't give them correct reporting information, they are required to withhold 31 percent of your investment income. The IRS may also require the bank or other organization to withhold tax if it determines you have underreported your investment income. If backup withholding is taken out of your earnings, it will show up as "Federal income tax withheld" on the Form 1099-INT or Form 1099-DIV that the bank sends you each January.