Glossary

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O

Online Banking


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


Overdraft 


When the amount of a paid check or other withdrawal exceeds the available balance in a checking account. See also, NSF and overdraft protection.


Overdraft Protection 


A service that allows a checking or money market savings account to be linked to another account that provides protection against returned items or overdrafts. Choices can include using a savings account or a line of credit account to provide protection.

P

Pre-Approved


A term used to denote a credit offer that is extended after the creditor has performed a credit pre-screening process.


Principal


The original amount of money borrowed, deposited, or invested before interest accrues.


POS


Point of Sale. An electronic payment system that uses credit cards or debit cards to directly access and deduct funds from a consumer’s checking account at the point of sale (grocery store, gas station, etc).

R

Revolving Charge Account 


A credit account for which the user has the option to pay the bill in full or to spread repayment over several months.

S

Service Charge


A monthly fee a financial institution charges for handling a checking account.


Share Account


A credit union term for savings account. A member that opens a share savings account at the credit union owns a share of the credit union and is a member-owner.


Share Certificate (Certificate of Deposit) 


A credit union term for a Certificate of Deposit (CD). A time deposit with a maturity date that generally pays higher interest rates than other types of deposit accounts. Maturities can range from seven days to 10 years. Insured by the NCUA up to the maximum allowed by law. A penalty may be assessed if funds are withdrawn before the maturity date.


Share Draft


A credit union term for checking account.


Stop Payment


A request made to a financial institution to not pay a specific check. If requested soon enough, the check will not be debited from the payer’s account.