Terms with Category Financial Banking

  • ATM Surcharge Bank,
    • A fee charged to someone using a bank-owned ATM because he or she does not hold an account with that bank. It is a good idea to review what your bank charges you to use another bank's ATM system to avoid paying additional surcharges to your bank.
  • Audit Bank,
    • An examination of a taxpayer's income tax return or other transactions bearing tax consequences. Audits range from a simple letter from the agency to a detailed review of individual or business tax filings and records.
  • Authorized User Bank,
    • Any person to whom you give permission to use a credit card account.
  • Automated Teller Machine (ATM) Bank, Canada,
    • A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
    See also Automated Banking Machine (ABM).
  • Automatic Payment Bank,
    • An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
  • Average Annual Yield (AAY) Bank,
    • The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
  • Average Daily Balance (ADB) Bank, Important,
    • This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12.
  • Average Tax Rate Bank,
    • The real rate of taxes you pay after taking into account the various federal tax brackets. There are different tax rates for different levels of income; you pay lower rates on the first part of your income, more on the later earnings. As you pass each income level, the money above that level is taxed at the next higher rate. Therefore, your average tax rate is less than the top rate you pay on a portion of income.
  • Backflip Takeover Bank,
    • A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
  • Bad Credit Bank,
    • Someone who carries a higher credit risk.
  • Bad Credit Loan Bank,
    • A loan taken out by someone with bad credit.
  • Bad Debt Bank,
    • Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
  • Balance (bal.) Bank,
    • The amount of money in your account.
  • Balance Sheet (BS, B/S) Bank,
    • A listing of a business' assets, liabilities and ownership equity as of a specific date.
  • Balance Transfer (BT) Bank,
    • The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers coming in and balance transfer fees to discourage them from going out.
  • Balance Transfer Fee Bank,
    • Fee charged customers for transferring an outstanding balance from one card to another.
  • Balloon Loan Bank,
    • A loan in which the payments aren't set up to repay the loan in full by the end of the term. At the end comes the balloon payment -- one that is larger than the other, periodic payments and pays off the remaining principal.
  • Balloon Payment Bank,
    • A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
  • Bank Bank,
    • An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
  • Bank Holding Company (BHC) Bank,
    • 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.
  • Bank of Canada (BOC, BC) Bank Est. 1935, Ottawa, Ontario, Canada, Important,
    • Canada's central bank.
    Canada's central bank.
  • Bank Rate Bank,
    • Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
  • Bank Reserves Bank,
    • Banks' holdings of deposits.
  • Bank Spread Bank,
    • The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.
  • Bank Wire Bank,
    • An electronic payment system for the transfer of money between banks.
  • Bankruptcy (BK) Bank, Important,
    • A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
  • Bankruptcy Trustee Bank,
    • A private individual or corporation appointed to undertake bankruptcy proceedings for a individual or corporation.
  • Basis Bank,
    • That on which a thing rests or is founded.
    • Relating to cost basis, this is the amount assigned to an asset from which a taxpayer determines capital gain or loss. For assets purchased, the basis is the price paid. Special rules apply to assets acquired through gift or inheritance, as well as to the value of stock funds held for a period during which earnings are reinvested.
  • Basis Point (BPS) Bank, Very Important,
    • A unit of measure: 1/100th of one percent. For example, the difference between a 9.0% loan and a 9.5% loan is 50 basis points.
    Used by mortgage brokers and lenders when discussing mortgage rates and determining commissions.
  • Bear Market Bank,
    • When stock prices are decreasing, it's a bear market.
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