Glossary

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J

Joint Account


A savings or checking account established in the names of more than one person (e.g., parent/child, wife/husband).

L

Ledger Balance 


The balance in an account at the beginning of each day, also known as the current balance; includes all deposits and withdrawals that were posted from the previous night, whether or not funds have been collected. See also, collected balance.


Line of Credit 


A fixed amount of money that can be drawn against from a lender. A line of credit can be applied for, similar to a loan, but unlike a loan, the borrower only pays interest on the amount actually used. A line of credit is usually for an unlimited period of time. Periodic payments are made against what has been borrowed, generally at least equal to the interest on the loan.

M

Maturity Date


The date on which a share certificate, bond or other instrument comes due.


Minimum Daily Balance 


The minimum amount that may be required to be kept in an account each day to earn interest, avoid a service charge or qualify for special services. See also, average balance.


Mobile Banking


A service that allows an account holder to obtain account information and manage certain banking transactions through a mobile phone.


Money Market Account


A higher-yielding savings account, insured by the NCUA. Withdrawals are limited to six monthly.

N

NCUA - National Credit Union Administration 


Independent federal agency that charters and supervises federal credit unions and insuring the savings of 80 million account holders in all federal credit unions and many state-chartered credit unions up to $250,000 for savings and separately up to $250,000 for IRA accounts.


NSF - Nonsufficient or Insufficient Funds 


A situation in which a check (or other type of withdrawal) may not be paid because the balance in the account is less than the amount of the check. See also, overdraft.