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.
Adjustable-rate mortgage (ARM)
Home loan in which the interest rate is changed periodically based on a standard financial index. Most ARMs have caps on how much an interest rate may increase.
A bank charge for use of a credit card levied each year, which can range from $15 to $300, billed directly to the customer''s monthly statement. Many credit cards come without an annual fee.
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.
Money you can't collect. Businesses are allowed to deduct bad debts under certain circumstances. If a bad debt is personal, it may be deducted in some cases as a short-term capital loss. Loans between family members generally are classified as nonbusiness.
An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers. A bank must be chartered and meet certain criteria. Chartering is done by the Comptroller of the Currency for national banks, by the Federal Reserve System for state member banks, by the Federal Deposit Insurance Corporation (FDIC) for insured banks, and by state regulatory agencies. Also referred to as a commercial bank.
Bank holding company
A company that owns or controls one or more banks or companies associated with banking such as leasing companies, credit companies, etc.
It is usually identified by the word Bancorp or Bancshares in the name. The Federal Reserve Board of Governors regulates all bank holding companies.
An electronic payment system for the transfer of money between banks. The payments are conducted on the Federal Reserve System's federal wire (Fed Wire) network. Also known as a wire transfer.
The informal name for Title 11 of the United States Code (11 U.S.C. § 101 - 1330), the federal bankruptcy law.
A private individual or corporation appointed in all Chapter 7, Chapter 12, and Chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's creditors.
The cost of a car without options. This price includes standard equipment and the manufacturer's warranty and is printed on the Monroney sticker.