- The periodical balancing of an account made for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.
periodical breaks, scheduled balances
Related Terms and Acronyms
- Balance (bal.) — Abbreviation,
- The amount of money in your account.
- Chequing Account — Definition,
- A bank account that allows quick access to the money in the account.
- Compound Interest — Definition,
- Interest that is calculated by adding the interest earned in the current period to the principal and figuring the next period's interest on this "compounded" total amount.
- Principal — Definition,
- The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
- Savings Account — Definition,
- A financial account that pays interest with low risk.