Have you even been confused by financial jargon? This glossary of banking terms can help you become an active participant in your financial future by explaining the simple meaning behind seemingly complex banking terms.
Nationwide Bank Financial Glossary
Annual percentage rate (APR)
The interest rate for a whole year for a loan or credit card. Check Nationwide Bank’s loan rates.
Annual percentage yield (APY)
The interest rate paid for one year on a savings, checking, CD or money market account. Check Nationwide Bank’s deposit rates.
Personal possessions of value, including cash, real estate and investments.
An ATM card allows you to access your account through an automated teller machine (ATM). You can use it to make deposits, withdrawals and transfers. An ATM card will not work at stores or online. A debit card can be used at stores, online and at ATMs. Find an ATM near you.
A charge you may receive for exceeding the number of ATM transactions for your account or for using an out-of-network ATM. Learn about Nationwide Bank ATM fees.
Automated clearing house (ACH)
The electronic network used to transfer money electronically between accounts at different institutions, usually in one day.
The amount of funds in your account that is available for immediate withdrawal.
The payment on a credit card by a specific date. This amount may include a past-due balance or fees.
The rate that commercial banks charge their best customers. Nationwide Bank uses the base rate from The Wall Street Journal to determine interest rates for loans.
Certificate of deposit (CD)
A way to lock in an interest rate on a deposit for a set period. CDs are FDIC insured to $250,000 per person with a fixed maturity date, typically from 3 months to 5 years. It usually pays higher interest than a savings account, and a penalty is charged for withdrawing funds before the maturity date. Find out more about Nationwide Bank CDs.
An increase in a savings or checking account, such as a deposit made to the account.
A way to evaluate credit-worthiness based on financial resources and credit history. A credit rating includes debt to income ratio, timeliness in paying bills, number of credit cards and other factors. Credit bureaus use credit scoring to quantify to potential creditors how likely you are to pay back a loan.
A number that indicates an individual's creditworthiness. Credit bureaus assign points to such things as your credit card debt, number of credit cards, total debt level, and whether you rent or own your home. A good credit score can result in a lower interest rate for loans. A poor credit score can result in a higher interest rate or loan denial. Consumers can obtain a copy of their credit reports from TransUnion, Experian or Equifax.
The amount of funds in your account, including pending activity.
A decrease in a savings or checking account, such as a withdrawal or a check written against the account.
A card that allows you to pay for goods at stores, online and at ATMs. A debit card takes the money from your checking account. Learn more about bank debit cards.
Adding funds to your account.
A regular deposit into an account. Direct deposit is done electronically through an automated clearing house. Find out how to set up direct deposit for your account.
Early withdrawal penalty
A fee charged for withdrawing funds from or closing an account before its maturity date. This applies to certificates of deposit and individual retirement accounts.
A way to send and receive bill and payment information electronically using convenient and secure technology.
Electronic check presentment (ECP)
An electronic image of a check that can be processed by banks and clearing houses instead of the actual paper check.
Electronic deposit verification (EDV)
A way to verify an account at another bank that you want to link to. Nationwide Bank will electronically send two micro deposits to your linked account. Once you report the deposit amounts back to us, you can transfer funds to and from the linked account.
Electronic Funds Transfer (EFT)
The transfer of money between accounts through automated teller machines (ATMs) and electronic payment systems.
Equal Credit Opportunity Act
A federal law that prohibits discrimination in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, source of income or the exercise of any right under the Consumer Credit Protection Act.
Accounts owned at another financial institution.
Federal Deposit Insurance Corp. (FDIC)
An independent agency of the U.S. government that insures bank and thrift institution deposits of up to $250,000 per depositor. Find more about the FDIC.
A rate of interest that does not vary for the term of the loan or deposit.
Funds on Hold
Funds that are not available until they are processed.
A standard of conduct between Nationwide Bank and our customers that means we act honestly. A good faith effort means Nationwide Bank did not know about a violation or took reasonable steps to avoid it.
As a type of loan, a Home Equity Line of Credit (HELOC) provides you a line of credit based, in part, on the value of your home. You may be eligible for a large line of credit depending on your credit history and the estimated value of your home.
The rate that is charged in a home equity line of credit. Nationwide Bank uses the prime rate published in the Wall Street Journal, plus our margin. For example, if the index is 4% and the margin 1.75%, the indexed rate is 5.75%.
An account balance that will not cover a check that has been presented for payment. Sometimes abbreviated as NSF for "non-sufficient funds."
The cost of borrowing money or the amount earned on a deposit account. To calculate simple interest, multiply the amount (of your savings or of your loan) by the interest rate. For example, if you save $1,000 for a year at 5% interest, you would receive $50. For compound interest, the interest is added to the original amount. For example, if you save $1,000 in an account at 5% interest, you would receive $50 the first year. The next year, the 5% would apply to the new amount, $1,050.
The earnings on savings accounts, certificates of deposit and money markets. Banks or other organizations or individuals who pay interest usually report it on Form 1099-INT.
The annual percentage paid on an interest-bearing account, such as a savings and CDs, or the interest charged on loans. The interest paid on a deposit account is the "annual percentage yield." The rate charged on a loan is the "annual percentage rate."
A process that allows interest earned in one account to be transferred to another account. For example, the interest earned on a CD can be transferred to a money market account.
A bank account held in more than one name. Each person on the account has equal ownership. The primary account holder receives the statements and bank correspondence.
For loans, maturity is the date that the balance is due. For CDs, maturity is the date the CD is available for withdrawal or renewal with interest paid.
You can link your Nationwide Bank account to another bank account. To verify the other account, you need to follow a few steps. Nationwide Bank will place two small deposits into the external account. These are called micro-deposits.
The amount your average balance must stay above to avoid fees.
Three ways to bank with Nationwide Bank – by app, by mobile web and by SMS/text message. Find out more about mobile banking.
Money market account
A high-yield savings account that is FDIC-insured up to $250,000. With a money market account, you can still have regular access to your funds. Find out more about money market accounts.
A consumer loan secured by residential real estate, usually the borrower's primary residence. May be used to purchase or refinance a home or property, with payments usually spread over 10 to 30 years. Find out more about mortgage loans.
An account balance that will not cover a check that has been presented for payment. Sometimes abbreviated as NSF.
A service that allows account holders to manage their bank accounts using the Internet. Find out about online banking with Nationwide Bank.
Online bill payment
A way to send money pay bills through a bank account. Learn more about online bill pay from Nationwide Bank.
An arrangement made between you and your bank that allows you to withdraw more than the amount of money in your account. Find out about overdraft protection.
The payee is the person or business the check has been made out to.
The interest rate over a specific period of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.
A scam that uses spoofed e-mails from well-known companies to direct consumers to fraudulent websites, where victims unknowingly submit sensitive information directly to scammers. The message usually sounds urgent and falsely claims that the recipient needs to update or verify his or her account to remedy a problem.
A personal identification number. A PIN is issued with your debit or credit card so you can withdraw money from ATMs. To help prevent fraud, keep your PIN secret. A PIN should be memorized, never written down and never disclosed to anyone else.
The first nine numbers that appear at the bottom of a check to identify the financial institution. Nationwide Bank's routing number is 044072324. Learn more about bank routing numbers.
An amount of money that is moved from one account to another on a regular basis, often monthly.
Secure Socket Layer (SSL)
A type of technology that protects your credit card and personal details when you shop or bank online.
A charge for a service or a penalty for not meeting certain requirements, such as insufficient funds in a checking account to cover a check. Learn more about bank fees.
Interest computed only on the principal balance, without compounding.
A detailed record of transactions in a bank account for a certain period. A bank statement may include debits, credits, transfers, payroll deposits, account balance, check fees, service charges and ATM activity. You can sign up for paperless statements when you log in to your account.
An amount charged by the owner of an ATM. This generally applies to out-of-network ATMs. Use our ATM locator to find surcharge-free ATMs in your area.
The time to the maturity of a loan or deposit. For example, a CD can have a term from 3 to 60 months.
The current worth of an account, including funds on hold or pending approval.
An interest rate that may fluctuate during the term of a loan, line of credit or deposit account. The new rate is usually determined by The Wall Street Journal base rate.
An electronic payment service for transferring funds by wire. These transfers may be conducted through the Federal Reserve Wire Network or the Clearing House Inter-bank Payments System, among others. Wire transfers are guaranteed funds for the recipient, meaning that the payment cannot be revoked by the sender after the transfer.