Financial Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A unique 9-digit number, used in the United States, to identify a financial institution; the number is printed at the bottom of the financial institution’s checks and is most often requested by employer payroll offices to set up direct deposit or an electronic withdrawal

The routing number (ABA) at Extra Credit Union is 272477432

Account
A record of debit and credit entries to cover transactions involving a particular person

ACH (Automated Clearing House)
A computer-based interchange for clearing deposits and payments electronically

Adjustable-Rate
Rate on a loan which could change during the life of the loan

APR (Annual Percentage Rate)
Interest rate computed for an entire year

APY (Annual Percentage Yield)
The amount of interest earned on a deposit account, taking into account the effect of compounding interest

Assets
Everything of value that is owned by a person or company

ATM (Automated Teller Machine)
A computerized electronic machine that performs basic banking functions

Automatic Transfer
Instead of writing checks or making manual transfers between accounts each month, you can have funds transferred automatically

Back to Top

Agreement of totals in the debit and credit side of an account; an amount that is still remaining

Bankrupt
Debtor who is legally insolvent

Board of Directors
Democratically governs and supervises the Credit Union on a volunteer basis

Branch
A secondary location of the credit union where you are able to conduct your banking transactions

Budget
A plan for the coordination of income and expenditures

Back to Top

A time deposit with a maturity date that usually pays higher interest rates than other types of deposit accounts; a penalty is imposed if the funds are withdrawn before the maturity date

CO-OP
The largest credit union-only ATM network in the country; membership provides surcharge-free access at 28,000 ATMs, which includes 9,000 deposit-taking and 5,500 7-Eleven locations throughout the U.S. and Canada

Co-Signer
The person who signs a credit agreement and accepts responsibility for the repayment of a loan in addition to the primary applicant

Collateral
Anything a financial institution accepts as security for repayment of a loan

Consolidate
To join together all of your debt into one monthly payment, reducing the risk of missing a payment

Credit Limit
The maximum amount that can be spent on a line of credit

Credit Report
A credit file disclosure that provides you with all of the information in your credit file maintained by a consumer reporting company

Credit Score
Used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service

Credit Union
Not-for-profit financial institutions that conduct business for the mutual benefit and general welfare of their member-owners

Back to Top

Money withdrawn from the holder's bank account without the payment of interest

Debt
The state of owing monies or items to another individual or company

Deposit
Money placed in your account(s), creating a new balance

Direct Deposit
Money automatically deposited in your account from an employer or other source

Distribution
A sum of money withdrawn from a fund (as a retirement fund) and given to the beneficiary or holder of the fund

Dividend
Interest paid on deposit accounts

Back to Top

Account statements delivered to you via e-mail; paperless account statements

Escrow
A deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition

Back to Top

The largest government insurer of mortgages in the world, insuring over 35 million properties since its inception in 1934 and providing mortgage insurance on single-family, multifamily, manufactured homes and hospital loans made by FHA-approved lenders

Financing
To raise or provide funds or capital for a tangible item

Fixed-Rate
A mortgage loan where the interest rate on the note remains the same through the term of the loan

FlexLine
An open-end loan from Extra Credit Union linked to your checking account; this revolving line of credit can be used for purchases and as overdraft protection

Foreclosure
To take legal possession of a mortgage property

Back to Top

Covers the difference between your insurance carrier's settlement and the loan balance

Back to Top

Having access to the available equity on a home through an established line of credit

Homeroom Service
Homeroom Service is a unique program catered to school employees who are Extra Credit Union members. This convenient service provides access to a dedicated financial service team that comes directly to your school to personally help you with many of your most common banking needs from applying for a loan to opening a basic checking or savings account.

Back to Top

A means of guaranteeing protection on a person or item

Interest Rate
The rate a financial institution charges for a member to borrow money

Back to Top

Area where you would access online account information that requires a username and password

Back to Top

The date on which a certificate comes due

Member
An individual belonging to a credit union; part owner of a credit union

Mission
A brief statement of the purpose of an organization

Money Market
A savings account that earns more interest and is accessible unlike a CD

Mortgage
A loan taken out through a financial institution to finance a home

MSHDA (Michigan State Housing Development Authority)
Provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing

MSRP (Manufacturer’s Suggested Retail Price)
The sticker price on a vehicle

Back to Top

The federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund

NCUSIF (Nation Credit Union Share Insurance Fund)
A federal insurance fund backed by the full faith and credit of the United States government

NSF
Nonsufficient or insufficient funds-when a member’s account does not contain enough money to cover a check or payment

Back to Top

Allows you to view and manage your account through the Internet

Overdraft
Amount a bank account is overdrawn

Overdraft Privilege
Overdraft privilege covers overdrafts up to a total of $500, including non-sufficient funds fees; helps you avoid additional bounced-check or late payment fees on returned items from the merchant or payee

Back to Top

Account information available to you by phone

Principal
Original amount of money, interested or borrowed

Back to Top

To revise a loan agreement to make the terms of payment more suitable to a borrower’s present income and ability to pay; usually provides a lower interest rate, lower monthly payments and/or additional dollars

Repossession
To take possession (of something bought) from a buyer in default of the payment

ROTH IRA
Roth IRA is a type of IRA that has the potential for tax-free earning and withdrawals but does not have the potential for tax-deductible contributions

Back to Top

A grant-in-aid to a student (as by a college or foundation)

Secured
Term used to denote that a loan is backed by some type of collateral to help minimize risk to the financial institution and ensure repayment

Signature Loan
A loan not backed by collateral; sometimes called an unsecured personal loan

Back to Top

A Traditional IRA is a type of IRA that has the potential for tax-deductible contributions but does not have the potential for tax-free earnings

Transfer
Move funds from one account to another

Back to Top

Term used to denote that a loan is not backed by some type of collateral; usually referred to as a signature or personal loan

Back to Top

Transferring money from one entity to another

Withdrawal
Money removed from a place of deposit or investment

Back to Top