Accrue - To recognize income or expense over time.

Annual Percentage Rate (APR) - The cost of credit on a yearly basis. Expressed as a percentage, the APR results from an equation that considers three specifically defined factors: the amount financed, the finance charge, and the term of the loan. The APR is usually expressed in terms of the effective annual simple interest rate.

Annual Percentage Yield (A.P.Y.) - Percentage rate which reflects the total amount of interest paid on an account based on the interest rate and frequency of compounding for a 365 day period.

ATM - Automated Teller Machine

Capital - Money used to create income.

Cashier’s check - A bank’s own check drawn on itself and signed by an authorized official. It is a direct obligation of the bank.

Certificate of Deposit (C.D.) - A specific sum of money deposited into a financial institution for a specified time period, and bearing a higher rate of interest than a traditional savings account if left to maturity. Does not have withdrawal privileges, as does a traditional savings account. Also may be called a time certificate of deposit (TCD).

Compound Interest - Interest paid on accumulated interest as well as on the principal.

Daily Periodic Rate - Annual Percentage Rate divided by 365.

Dormant Account - An account is considered dormant if there has been no activity in a twelve-month period.

Face Value - The value of notes, mortgages, etc. as stated on the face of the instrument, and not considering any discounting.

Fee - A charge or payment for services.

Interest - (1) The amount paid by a borrower to a lender in exchange for the use of the lender’s money for a certain period. (2) The amount paid by a bank on savings deposits or interest bearing accounts.

NSF - Non-sufficient funds - A banking term indicating that the maker’s account balance does not contain sufficient funds to cover a check or checks.

Note - A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on demand. Usually provides for interest, and concerning real property, is secured by a mortgage or trust deed.

Prime Rate - A benchmark that a bank establishes from time to time and uses in computing an appropriate rate of interest for a particular loan contract.

Principal - The sum of money on which interest is earned. Also, the face value of a note, mortgage, etc.

Real Estate - Land and anything permanently affixed to the land.

Real Property - Land, building, and other kinds of property that legally are classified as real property, as opposed to personal property.

Third Party - General term which includes anyone not a party to a contract, instrument, agreement, etc.

Transaction - The performance of business.

Yield - Ratio of income from an investment to the total cost of the investment over a given period of time.