Glossary of Financial Terms
Use this handy glossary to help decipher the language of the financial industry.
Accrued interest
The amount of interest that has collected (accrued) on a loan since the last payment has been made or on an interest-bearing account, such as savings, CDs, money market and some checking accounts, since the last interest payment was made.
Additional principal payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
Amortization
Payment of a debt in regular, periodic installments of principal and interest as opposed to interest-only payments.
Annual percentage rate (APR)
The cost of credit on a yearly basis expressed as a percentage. The APR of a loan is the total finance charge, including interest and fees.
Annual percentage yield (APY)
Annual Percentage Yield means a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365 day period.
Asset
Anything having commercial or exchange value that is owned by a business, institution, or individual.
Assumable mortgage
A mortgage that can be taken over (assumed) by the buyer when a home is sold.
Automated Teller Machine (ATM)
An electronic terminal through which numerous banking functions can be performed. Such usage may result in a fee.
Automatic payment
An arrangement that authorizes payments to be deducted automatically from a bank account (usually checking or savings) to pay bills (such as insurance payments, rent, mortgage or loan payments). Payments are usually scheduled to be made on a certain day of the month.
Automatic transfer
An arrangement that moves funds from one account to another automatically on a pre-arranged schedule; for example, every payday or once a month.
Automated Clearing House (ACH)
A computer-based interchange for clearing deposits and payments electronically.
Available credit
The amount of unused credit available on a line of credit.
Average daily balance
The average amount in a deposit account that equals the sum of the daily balances during an accounting period, usually a month, divided by the number of days in the period. The average balance can sometimes be used to avoid service charges or to qualify for special services. See minimum daily balance.
The amount of interest that has collected (accrued) on a loan since the last payment has been made or on an interest-bearing account, such as savings, CDs, money market and some checking accounts, since the last interest payment was made.
Additional principal payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
Amortization
Payment of a debt in regular, periodic installments of principal and interest as opposed to interest-only payments.
Annual percentage rate (APR)
The cost of credit on a yearly basis expressed as a percentage. The APR of a loan is the total finance charge, including interest and fees.
Annual percentage yield (APY)
Annual Percentage Yield means a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365 day period.
Asset
Anything having commercial or exchange value that is owned by a business, institution, or individual.
Assumable mortgage
A mortgage that can be taken over (assumed) by the buyer when a home is sold.
Automated Teller Machine (ATM)
An electronic terminal through which numerous banking functions can be performed. Such usage may result in a fee.
Automatic payment
An arrangement that authorizes payments to be deducted automatically from a bank account (usually checking or savings) to pay bills (such as insurance payments, rent, mortgage or loan payments). Payments are usually scheduled to be made on a certain day of the month.
Automatic transfer
An arrangement that moves funds from one account to another automatically on a pre-arranged schedule; for example, every payday or once a month.
Automated Clearing House (ACH)
A computer-based interchange for clearing deposits and payments electronically.
Available credit
The amount of unused credit available on a line of credit.
Average daily balance
The average amount in a deposit account that equals the sum of the daily balances during an accounting period, usually a month, divided by the number of days in the period. The average balance can sometimes be used to avoid service charges or to qualify for special services. See minimum daily balance.
Bank
A commercial bank or thrift institution that offers checkable deposits.
Balloon mortgage
A mortgage that has level monthly payments that will not fully amortize it over a stated term, and which provides for a lump-sum payment to be due at the end of an earlier specified term.
Balloon payment
At the maturity of a loan, a large lump-sum payment representing the entire loan principal and any accrued interest.
Basis point (BP)
One-hundredth of one percent (0.01%). Basis points are used to measure the changes or differences between yields (such as the interest paid by CDs or other deposit accounts) or the interest rates charged by credit accounts (such as personal loans or lines of credit).
Beneficiary
An individual or institution designated by contract to receive benefits upon the death of another person. For example, an In Trust For (ITF) accountholder names a beneficiary to whom the account will be paid in the event of the depositor’s death. See In Trust For (ITF) account.
Bill Pay
A service offered by GMAC Bank that allows you to pay most bills online rather than mailing a check. You can also pay multiple bills or schedule recurring payments. See Pay Bills.
Bonds
Securities issued by corporations and governments representing the promise to make periodic payments of interest and repay a debt of borrowed funds at a certain time.
Bookmark
Identifying pages on the Web for easy access. For example, bookmarking the GMAC Bank Home Page gives you a quick shortcut to that page. Your Web browser provides this feature which can be called either “bookmark” or “add to favorites”
Browser
A program that enables you to view Internet locations. Examples of browsers are Netscape Navigator and Microsoft Internet Explorer.
Business day
A day on which business is transacted between Monday and Friday, excluding holidays. Saturday, Sunday and legal holidays are considered part of the next business day.
A commercial bank or thrift institution that offers checkable deposits.
Balloon mortgage
A mortgage that has level monthly payments that will not fully amortize it over a stated term, and which provides for a lump-sum payment to be due at the end of an earlier specified term.
Balloon payment
At the maturity of a loan, a large lump-sum payment representing the entire loan principal and any accrued interest.
Basis point (BP)
One-hundredth of one percent (0.01%). Basis points are used to measure the changes or differences between yields (such as the interest paid by CDs or other deposit accounts) or the interest rates charged by credit accounts (such as personal loans or lines of credit).
Beneficiary
An individual or institution designated by contract to receive benefits upon the death of another person. For example, an In Trust For (ITF) accountholder names a beneficiary to whom the account will be paid in the event of the depositor’s death. See In Trust For (ITF) account.
Bill Pay
A service offered by GMAC Bank that allows you to pay most bills online rather than mailing a check. You can also pay multiple bills or schedule recurring payments. See Pay Bills.
Bonds
Securities issued by corporations and governments representing the promise to make periodic payments of interest and repay a debt of borrowed funds at a certain time.
Bookmark
Identifying pages on the Web for easy access. For example, bookmarking the GMAC Bank Home Page gives you a quick shortcut to that page. Your Web browser provides this feature which can be called either “bookmark” or “add to favorites”
Browser
A program that enables you to view Internet locations. Examples of browsers are Netscape Navigator and Microsoft Internet Explorer.
Business day
A day on which business is transacted between Monday and Friday, excluding holidays. Saturday, Sunday and legal holidays are considered part of the next business day.
Call date
The date on which a bond may be redeemed before maturity. For example, a bond may be scheduled to mature in 20 years but may have a provision that it can be called in 10 years if the issuer wants to refinance the bond.
Capital gain
The amount by which the price at which an asset was sold exceeds the asset’s purchase price.
Capital loss
The amount by which the proceeds from the sale of an asset are less than the cost of acquiring it.
Certificate of deposit (CD)
A time deposit with a maturity date that generally pays higher interest rates than other types of deposit accounts. A penalty may be assessed if funds are withdrawn before the maturity date.
Check clearing
The process of transferring deposits among banks as checks are paid.
Check safekeeping
A service that authorizes a bank to keep copies of canceled checks instead of returning them with a statement. Photocopies of the checks are available upon request.
Co-borrower
Additional borrower(s) whose income and credit history contributes to qualifying for an account and whose name(s) appears on documents with equal legal obligations.
Collected balance
The balance in a deposit account, not including deposited items that have not yet been paid, or collected. This balance may be used to calculate interest payments, avoid monthly maintenance fees, etc.
Checkable deposits
Money deposited in bank accounts that can be used to write checks, or that can easily be converted into currency.
Collateral
An asset a borrower pledges to a lender in case of default.
Combined cycle date balance
This balance is calculated by adding the principal amount in each deposit account of the customer who is listed first on the account on the last day of the statement cycle.
Consumer Price Index (CPI)
The price index most commonly used to measure the impact of changes in prices on households. The index is based on a standard market basket of goods and services purchased by a typical family.
Common stock
An equity security that represents ownership in a corporation.
Compound interest
Interest added to interest previously earned on a principal balance. If $100 is deposited in a bank account at a 10% interest rate compounded annually, the depositor will be credited with $110 at the end of the first year and $121 at the end of the second year. That extra $1, which was earned on the $10 interest from the first year, is the compound interest. Interest can also be compounded on a daily, quarterly, or other basis. The more frequently interest is compounded, the higher the effective yield.
Conforming loan
Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA or Fannie Mae) or the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive.
Conventional mortgage
A mortgage not obtained under a government-insured program such as the Federal Housing Authority (FHA) or Veteran’s Administration (VA).
Corporate bond
A debt instrument issued by a private corporation, as distinct from one issued by a government agency or a municipality.
Corporation
A business that is legally established under state laws that grant the business an identity separate from its owners.
Coupon rate
The interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the security’s face value. For example, a bond with a 10% coupon will pay $10 per $100 of the face amount per year, usually in installments paid every six months. Originally, such bonds had detachable coupons that were presented to collect payments.
Credit
A financial term that refers to an increase in a deposit account (such as a deposit made to the account). See debit.
Credit card
A card issued to an individual for the purpose of purchasing goods and services using credit. A credit limit is established for each card holder.
Credit Limit
The maximum amount that you can borrow or carry as the balance on your line of credit (LOC). See line of credit.
Credit period
The amount of time until full payment of a loan or other credit is required.
Credit rating
A formal evaluation of an individual’s or company’s credit history and capability of repaying obligations. Most large companies and lending institutions assign credit ratings to existing and potential customers.
Credit terms
Specific repayment terms required for credit customers.
Credit unions
Depository institutions whose depositors are called “members” and belong to a particular organization such as a business or government division. Credit unions make loans only to their members for financing homes or personal goods and services.
Custodian
An individual, bank or other organization which holds and safeguards assets (such as a deposit account) for a beneficiary. Frequently, custodians are named to oversee accounts designated for minor beneficiaries. Deposits in such accounts are held for the benefit of the minor according to the terms of the custodial agreement. See beneficiary, custodial account.
Custodial Account
A specific type of account offered by GMAC Bank and created on behalf of a minor. If you have established the account as a custodian for a minor beneficiary under our state version of the Uniform Gifts to Minors Act, your rights and duties are governed by the Act. Upon the death of the custodian, a successor custodian will be appointed in accordance with the donor’s instructions or state law, as applicable. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor. See custodian, beneficiary.
The date on which a bond may be redeemed before maturity. For example, a bond may be scheduled to mature in 20 years but may have a provision that it can be called in 10 years if the issuer wants to refinance the bond.
Capital gain
The amount by which the price at which an asset was sold exceeds the asset’s purchase price.
Capital loss
The amount by which the proceeds from the sale of an asset are less than the cost of acquiring it.
Certificate of deposit (CD)
A time deposit with a maturity date that generally pays higher interest rates than other types of deposit accounts. A penalty may be assessed if funds are withdrawn before the maturity date.
Check clearing
The process of transferring deposits among banks as checks are paid.
Check safekeeping
A service that authorizes a bank to keep copies of canceled checks instead of returning them with a statement. Photocopies of the checks are available upon request.
Co-borrower
Additional borrower(s) whose income and credit history contributes to qualifying for an account and whose name(s) appears on documents with equal legal obligations.
Collected balance
The balance in a deposit account, not including deposited items that have not yet been paid, or collected. This balance may be used to calculate interest payments, avoid monthly maintenance fees, etc.
Checkable deposits
Money deposited in bank accounts that can be used to write checks, or that can easily be converted into currency.
Collateral
An asset a borrower pledges to a lender in case of default.
Combined cycle date balance
This balance is calculated by adding the principal amount in each deposit account of the customer who is listed first on the account on the last day of the statement cycle.
Consumer Price Index (CPI)
The price index most commonly used to measure the impact of changes in prices on households. The index is based on a standard market basket of goods and services purchased by a typical family.
Common stock
An equity security that represents ownership in a corporation.
Compound interest
Interest added to interest previously earned on a principal balance. If $100 is deposited in a bank account at a 10% interest rate compounded annually, the depositor will be credited with $110 at the end of the first year and $121 at the end of the second year. That extra $1, which was earned on the $10 interest from the first year, is the compound interest. Interest can also be compounded on a daily, quarterly, or other basis. The more frequently interest is compounded, the higher the effective yield.
Conforming loan
Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA or Fannie Mae) or the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive.
Conventional mortgage
A mortgage not obtained under a government-insured program such as the Federal Housing Authority (FHA) or Veteran’s Administration (VA).
Corporate bond
A debt instrument issued by a private corporation, as distinct from one issued by a government agency or a municipality.
Corporation
A business that is legally established under state laws that grant the business an identity separate from its owners.
Coupon rate
The interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the security’s face value. For example, a bond with a 10% coupon will pay $10 per $100 of the face amount per year, usually in installments paid every six months. Originally, such bonds had detachable coupons that were presented to collect payments.
Credit
A financial term that refers to an increase in a deposit account (such as a deposit made to the account). See debit.
Credit card
A card issued to an individual for the purpose of purchasing goods and services using credit. A credit limit is established for each card holder.
Credit Limit
The maximum amount that you can borrow or carry as the balance on your line of credit (LOC). See line of credit.
Credit period
The amount of time until full payment of a loan or other credit is required.
Credit rating
A formal evaluation of an individual’s or company’s credit history and capability of repaying obligations. Most large companies and lending institutions assign credit ratings to existing and potential customers.
Credit terms
Specific repayment terms required for credit customers.
Credit unions
Depository institutions whose depositors are called “members” and belong to a particular organization such as a business or government division. Credit unions make loans only to their members for financing homes or personal goods and services.
Custodian
An individual, bank or other organization which holds and safeguards assets (such as a deposit account) for a beneficiary. Frequently, custodians are named to oversee accounts designated for minor beneficiaries. Deposits in such accounts are held for the benefit of the minor according to the terms of the custodial agreement. See beneficiary, custodial account.
Custodial Account
A specific type of account offered by GMAC Bank and created on behalf of a minor. If you have established the account as a custodian for a minor beneficiary under our state version of the Uniform Gifts to Minors Act, your rights and duties are governed by the Act. Upon the death of the custodian, a successor custodian will be appointed in accordance with the donor’s instructions or state law, as applicable. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor. See custodian, beneficiary.
Debit
A financial term that refers to a decrease in a deposit account, such as writing a check against the account. See credit.
Debit card
Sometimes called a check card, debit cards are issued by banks. Customers can use a debit card at automated teller machines (ATMs), or to pay for purchases anywhere VISA® is accepted. The money is immediately deducted from a associated checking account or money market savings account.
Debt consolidation
Financial strategy in which you take out a low-rate loan in order to pay off one or more high-interest loans or credit cards.
Default
Failure to pay the principal and interest on a loan.
Delinquency
A loan payment that is overdue but within the period allowed before actual default is declared.
Depreciation
An estimate of the value of capital goods that wear out or become obsolete over a period of time.
Direct deposit
Electronic deposit of wages or benefits (such as pension or Social Security) into a personal bank account. These deposits are handled through the ACH. See automatic deposit.
Discount point
A point paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.
Discounted loan
A loan with a rate less than the market rate. The lender usually requires additional points to raise the yield on the loan to the market rate.
Diversification
The strategy of spreading investments among a number of different securities in order to reduce the risks inherent in investing.
Dow Jones Industrial Average (DJIA)
The DJIA is the oldest and most widely used indicator of the U.S. stock market, and is calculated by applying a formula to the stock prices of 30 major industrial companies.
Down payment
Money paid to make up the difference between the purchase price and the loan amount.
A financial term that refers to a decrease in a deposit account, such as writing a check against the account. See credit.
Debit card
Sometimes called a check card, debit cards are issued by banks. Customers can use a debit card at automated teller machines (ATMs), or to pay for purchases anywhere VISA® is accepted. The money is immediately deducted from a associated checking account or money market savings account.
Debt consolidation
Financial strategy in which you take out a low-rate loan in order to pay off one or more high-interest loans or credit cards.
Default
Failure to pay the principal and interest on a loan.
Delinquency
A loan payment that is overdue but within the period allowed before actual default is declared.
Depreciation
An estimate of the value of capital goods that wear out or become obsolete over a period of time.
Direct deposit
Electronic deposit of wages or benefits (such as pension or Social Security) into a personal bank account. These deposits are handled through the ACH. See automatic deposit.
Discount point
A point paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.
Discounted loan
A loan with a rate less than the market rate. The lender usually requires additional points to raise the yield on the loan to the market rate.
Diversification
The strategy of spreading investments among a number of different securities in order to reduce the risks inherent in investing.
Dow Jones Industrial Average (DJIA)
The DJIA is the oldest and most widely used indicator of the U.S. stock market, and is calculated by applying a formula to the stock prices of 30 major industrial companies.
Down payment
Money paid to make up the difference between the purchase price and the loan amount.
E–mail
Electronic mail messages that you send through your computer, usually over the Internet. These messages may not be secure or encrypted.
Encryption
A standard of technology that protects data by scrambling it before it is sent through the Internet. When you send or receive information from GMAC Bank, we protect the data with a code that only GMAC Bank’s computer or your computer can decipher. GMAC Bank provides you with the highest level of encryption presently available so that the data you send and receive is as secure as possible.
Equal Credit Opportunity Act (ECOA)
A Federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, sex, age, marital status, receipt of income from public assistance programs or past exercising of rights under the Consumer Credit Protection Act.
Equity
The portion of a property’s value over and above any liens against it. Also the ownership interest of common and preferred stock shareholders in a corporation.
Equity loan
A loan based on the borrower’s equity in his or her home or other property.
Escrow
An item of value, money or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
Electronic mail messages that you send through your computer, usually over the Internet. These messages may not be secure or encrypted.
Encryption
A standard of technology that protects data by scrambling it before it is sent through the Internet. When you send or receive information from GMAC Bank, we protect the data with a code that only GMAC Bank’s computer or your computer can decipher. GMAC Bank provides you with the highest level of encryption presently available so that the data you send and receive is as secure as possible.
Equal Credit Opportunity Act (ECOA)
A Federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, sex, age, marital status, receipt of income from public assistance programs or past exercising of rights under the Consumer Credit Protection Act.
Equity
The portion of a property’s value over and above any liens against it. Also the ownership interest of common and preferred stock shareholders in a corporation.
Equity loan
A loan based on the borrower’s equity in his or her home or other property.
Escrow
An item of value, money or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
Face value
Value of a bond, note, mortgage, or other security as given on the certificate or instrument, and the amount on which interest payments are calculated.
Fair Credit Reporting Act (FCRA)
A law requiring consumer reporting agencies to exercise fairness, confidentiality and accuracy in preparing and disclosing credit information.
FAQ
Frequently asked questions. Many sites on the Internet have an area dedicated to answering commonly-asked questions to help new users.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits in member banks against loss.
Federal Open Market Committee (FOMC)
Part of the Federal Reserve System, the FOMC controls interest rates by instructing the Federal Reserve Bank to buy or sell government securities on the open market.
Firewall
Software or hardware that limits certain kinds of access to a computer from a network or other outside source.
Fixed rate
A rate of interest charged for a loan or paid to an interest-bearing deposit account that does not vary for the term of the loan or deposit. See variable rate.
Fixed-rate mortgage (FRM)
A mortgage in which the interest rate and payments remain the same for the life of the loan.
Foreign exchange rate
The price of one nation’s monetary unit in terms of the monetary unit of another nation.
Future value
The value of a present sum at a future date found by applying compound interest over a specific period of time.
Value of a bond, note, mortgage, or other security as given on the certificate or instrument, and the amount on which interest payments are calculated.
Fair Credit Reporting Act (FCRA)
A law requiring consumer reporting agencies to exercise fairness, confidentiality and accuracy in preparing and disclosing credit information.
FAQ
Frequently asked questions. Many sites on the Internet have an area dedicated to answering commonly-asked questions to help new users.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits in member banks against loss.
Federal Open Market Committee (FOMC)
Part of the Federal Reserve System, the FOMC controls interest rates by instructing the Federal Reserve Bank to buy or sell government securities on the open market.
Firewall
Software or hardware that limits certain kinds of access to a computer from a network or other outside source.
Fixed rate
A rate of interest charged for a loan or paid to an interest-bearing deposit account that does not vary for the term of the loan or deposit. See variable rate.
Fixed-rate mortgage (FRM)
A mortgage in which the interest rate and payments remain the same for the life of the loan.
Foreign exchange rate
The price of one nation’s monetary unit in terms of the monetary unit of another nation.
Future value
The value of a present sum at a future date found by applying compound interest over a specific period of time.
Grace period
If payment of the new balance is received in full by the payment due date, no additional charge will be imposed on the purchase portion of that new balance during the billing period.
Government securities
Interest-bearing debts of the federal government, including Treasury bills, Treasury notes, and Treasury bonds.
If payment of the new balance is received in full by the payment due date, no additional charge will be imposed on the purchase portion of that new balance during the billing period.
Government securities
Interest-bearing debts of the federal government, including Treasury bills, Treasury notes, and Treasury bonds.
Home equity loan
A loan secured by the equity in a home. These loans can be used for home improvements, debt consolidation and other major purchases or expenses. Interest paid on the loan may be tax deductible (please consult a tax advisor). See home equity line of credit.
Home equity line of credit (HELOC)
A line of credit secured by the equity in a home. Upon approval, the borrower can usually tap the credit line by writing line of credit checks or getting an advance. These loans can be used for home improvements, debt consolidation and other major purchases and expenses. Interest paid on the loan may be tax deductible (please consult a tax advisor). See home equity loan.
HTTP
Short for HyperText Transfer Protocol, the underlying protocol used by the World Wide Web. HTTP defines how messages are formatted and transmitted, and what actions Web servers and browsers should take in response to various commands.
HTTPS
Https is the protocol for the server software that provides “secure” transactions on the World Wide Web. If a web site is running on an HTTPS server, you will see HTTPS instead of HTTP in the address bar of your browser. This verifies that you are in “secure mode.”
Hyperlink/hypertext
A word, phrase or graphic on the Internet that is connected to additional text and graphics. When you click on the word or graphic, the additional information appears on your screen. Words that are hyperlinked may be underlined or in a different color than the rest of the text.
A loan secured by the equity in a home. These loans can be used for home improvements, debt consolidation and other major purchases or expenses. Interest paid on the loan may be tax deductible (please consult a tax advisor). See home equity line of credit.
Home equity line of credit (HELOC)
A line of credit secured by the equity in a home. Upon approval, the borrower can usually tap the credit line by writing line of credit checks or getting an advance. These loans can be used for home improvements, debt consolidation and other major purchases and expenses. Interest paid on the loan may be tax deductible (please consult a tax advisor). See home equity loan.
HTTP
Short for HyperText Transfer Protocol, the underlying protocol used by the World Wide Web. HTTP defines how messages are formatted and transmitted, and what actions Web servers and browsers should take in response to various commands.
HTTPS
Https is the protocol for the server software that provides “secure” transactions on the World Wide Web. If a web site is running on an HTTPS server, you will see HTTPS instead of HTTP in the address bar of your browser. This verifies that you are in “secure mode.”
Hyperlink/hypertext
A word, phrase or graphic on the Internet that is connected to additional text and graphics. When you click on the word or graphic, the additional information appears on your screen. Words that are hyperlinked may be underlined or in a different color than the rest of the text.
Icon
A symbol or picture on the computer screen used to represent a command or hyperlink. Select an icon by clicking on it using the mouse.
In Trust For (ITF) account
An account in which one depositor designates a beneficiary to whom the account will be paid in the event of the death of the depositor. Multiple beneficiaries of an ITF account are “joint tenants with right of survivorship” and are not “tenants in common” or tenants by the entirety.
Index
A published interest rate, such as the prime rate, LIBOR, T-Bill rate, or the 11th District COFI. Lenders use indexes to establish interest rates charged on mortgages or to compare investment returns. Also a statistic to measure market performance. A popular index is the Standard & Poor’s 500, which incorporates a broad base of 500 stocks.
Internet Service Provider (ISP)
A company that provides access to the Internet in addition to its own proprietary content and services.
Inflation
The rise in the prices of goods and services, caused when goods and services are more scarce than money. Moderate inflation is the normal result of economic growth.
Inflation rate
The rate of change in prices. Two primary U.S. indicators of the inflation rate are the Consumer Price Index (CPI) and the Producer Price Index (PPI), which track changes in prices paid by consumers and by producers.
Interactive Voice Response (IVR)
The system used to acquire information about your account via the telephone.
Interest rate
The rate paid by an interest-bearing account, such as savings, CDs and some checking accounts, or the rate charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest.
Interest transfer
A process that allows interest earned in one account to be transferred to another account. For example, interest earned on a CD can be automatically transferred at maturity to a designated checking account.
Internal Revenue Service (IRS)
The U.S. agency charged with collecting nearly all federal taxes, including personal and corporate income taxes, Social Security taxes, and excise and gift taxes.
A symbol or picture on the computer screen used to represent a command or hyperlink. Select an icon by clicking on it using the mouse.
In Trust For (ITF) account
An account in which one depositor designates a beneficiary to whom the account will be paid in the event of the death of the depositor. Multiple beneficiaries of an ITF account are “joint tenants with right of survivorship” and are not “tenants in common” or tenants by the entirety.
Index
A published interest rate, such as the prime rate, LIBOR, T-Bill rate, or the 11th District COFI. Lenders use indexes to establish interest rates charged on mortgages or to compare investment returns. Also a statistic to measure market performance. A popular index is the Standard & Poor’s 500, which incorporates a broad base of 500 stocks.
Internet Service Provider (ISP)
A company that provides access to the Internet in addition to its own proprietary content and services.
Inflation
The rise in the prices of goods and services, caused when goods and services are more scarce than money. Moderate inflation is the normal result of economic growth.
Inflation rate
The rate of change in prices. Two primary U.S. indicators of the inflation rate are the Consumer Price Index (CPI) and the Producer Price Index (PPI), which track changes in prices paid by consumers and by producers.
Interactive Voice Response (IVR)
The system used to acquire information about your account via the telephone.
Interest rate
The rate paid by an interest-bearing account, such as savings, CDs and some checking accounts, or the rate charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest.
Interest transfer
A process that allows interest earned in one account to be transferred to another account. For example, interest earned on a CD can be automatically transferred at maturity to a designated checking account.
Internal Revenue Service (IRS)
The U.S. agency charged with collecting nearly all federal taxes, including personal and corporate income taxes, Social Security taxes, and excise and gift taxes.
Joint account with right of survivorship
An account owned by two or more individuals as joint tenants with right of survivorship. Each joint owner on a joint account may withdraw, by any means we make available, any or all of the funds on deposit, or close the account.
An account owned by two or more individuals as joint tenants with right of survivorship. Each joint owner on a joint account may withdraw, by any means we make available, any or all of the funds on deposit, or close the account.
Late charge
The penalty a borrower must pay when a payment is made after the due date.
Ledger balance
The balance in an account at the beginning of each day, also known as the current balance. This balance includes all deposits and withdrawals that were posted from the previous night, whether or not funds have been collected. See collected balance.
Liability
A claim on the assets of a company or individual.
Line of credit (LOC)
An agreement between a bank and a business or individual specifying the maximum amount of unsecured credit the bank will make available to that customer over a given period of time.
Loan amortization
The determination of equal loan payments necessary to provide a lender with a specific rate of interest return and repay the loan principal over a specified period.
Loan amortization schedule
A schedule of equal payments to repay a loan, showing the allocation of each loan payment to interest and principal.
The penalty a borrower must pay when a payment is made after the due date.
Ledger balance
The balance in an account at the beginning of each day, also known as the current balance. This balance includes all deposits and withdrawals that were posted from the previous night, whether or not funds have been collected. See collected balance.
Liability
A claim on the assets of a company or individual.
Line of credit (LOC)
An agreement between a bank and a business or individual specifying the maximum amount of unsecured credit the bank will make available to that customer over a given period of time.
Loan amortization
The determination of equal loan payments necessary to provide a lender with a specific rate of interest return and repay the loan principal over a specified period.
Loan amortization schedule
A schedule of equal payments to repay a loan, showing the allocation of each loan payment to interest and principal.
Margin
The difference between the current market value of collateral backing a loan and the face value of the loan. For example, if a $100,000 loan is backed by $50,000 in collateral, the margin is $50,000.
Market value
The price at which buyers and sellers trade similar items in an open marketplace.
Maturity
The ending date of a time deposit (such as a certificate of deposit), at which all principal and accrued interest is due to the accountholder. Maturities for GMAC Bank CDs can range from three months to two years. Also, the date at which a loan is due and payable. A bond due to mature on January 1, 2010, will return the bondholder’s principal and final interest payment when it reaches maturity on that date. See certificate of deposit.
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 average daily balance.
Minimum monthly payment
A minimum payment based on the percentage of your outstanding balance or a minimum fixed amount.
Money Market Account (MMA)
An account that may be interest-bearing and is subject to limited negotiable order of withdrawal or by other means authorized by the bank. An example of an MMA offered by GMAC Bank is the GMAC Insured Savings account.
Money market fund
A mutual fund that invests in commercial paper, banker’s acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. Interest is credited to shareholders monthly. The fund’s net asset value (NAV) remains a constant $1 per share - only the interest rate goes up or down. Money market funds usually offer checkwriting privileges. Most funds are not federally insured, but some are covered by private insurance.
Monthly finance charge
Calculated on the statement closing date by multiplying the average daily balance on the account by the monthly finance charge rate. The monthly finance charge rate is calculated by dividing the annual percentage rate (APR) by 12. See annual percentage rate.
Monthly payment
Usually, the amount of principal and interest paid each month on a loan.
Mortgage
The conveyance of an interest in real property given as security for the payment of a loan.
Mutual fund
A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, futures, currencies, or money market securities. These funds offer investors the advantages of diversification and professional management. A management fee is charged for these services. Funds also levy other fees such as 12b-1 fees, exchange fees and other administrative charges. Mutual fund shares are redeemable on demand at net asset value by shareholders, who all share equally in the gains and losses generated by the fund.
The difference between the current market value of collateral backing a loan and the face value of the loan. For example, if a $100,000 loan is backed by $50,000 in collateral, the margin is $50,000.
Market value
The price at which buyers and sellers trade similar items in an open marketplace.
Maturity
The ending date of a time deposit (such as a certificate of deposit), at which all principal and accrued interest is due to the accountholder. Maturities for GMAC Bank CDs can range from three months to two years. Also, the date at which a loan is due and payable. A bond due to mature on January 1, 2010, will return the bondholder’s principal and final interest payment when it reaches maturity on that date. See certificate of deposit.
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 average daily balance.
Minimum monthly payment
A minimum payment based on the percentage of your outstanding balance or a minimum fixed amount.
Money Market Account (MMA)
An account that may be interest-bearing and is subject to limited negotiable order of withdrawal or by other means authorized by the bank. An example of an MMA offered by GMAC Bank is the GMAC Insured Savings account.
Money market fund
A mutual fund that invests in commercial paper, banker’s acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. Interest is credited to shareholders monthly. The fund’s net asset value (NAV) remains a constant $1 per share - only the interest rate goes up or down. Money market funds usually offer checkwriting privileges. Most funds are not federally insured, but some are covered by private insurance.
Monthly finance charge
Calculated on the statement closing date by multiplying the average daily balance on the account by the monthly finance charge rate. The monthly finance charge rate is calculated by dividing the annual percentage rate (APR) by 12. See annual percentage rate.
Monthly payment
Usually, the amount of principal and interest paid each month on a loan.
Mortgage
The conveyance of an interest in real property given as security for the payment of a loan.
Mutual fund
A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, futures, currencies, or money market securities. These funds offer investors the advantages of diversification and professional management. A management fee is charged for these services. Funds also levy other fees such as 12b-1 fees, exchange fees and other administrative charges. Mutual fund shares are redeemable on demand at net asset value by shareholders, who all share equally in the gains and losses generated by the fund.
NASDAQ Composite Index
This index measures all stocks traded through the National Association of Securities Dealers Automated Quotation (NASDAQ) System. These stocks tend to be smaller, younger companies.
Net asset value (NAV)
The market value of a mutual fund share. NAV is calculated by most funds after the close of the exchanges each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding. The number of shares outstanding can vary each day depending on the number of purchases and redemptions.
Note
A written promise to pay a specified amount to a certain entity on demand or on a specified date.
Negotiable Order of Withdrawal (NOW) account
An account that may be interest-bearing and is subject to negotiable order of withdrawal or by other means authorized by the bank. NOW accounts at GMAC Bank include the GMAC Relationship Account and the GMAC Basic Checking Account.
NSF (non-sufficient 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 overdraft.
This index measures all stocks traded through the National Association of Securities Dealers Automated Quotation (NASDAQ) System. These stocks tend to be smaller, younger companies.
Net asset value (NAV)
The market value of a mutual fund share. NAV is calculated by most funds after the close of the exchanges each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding. The number of shares outstanding can vary each day depending on the number of purchases and redemptions.
Note
A written promise to pay a specified amount to a certain entity on demand or on a specified date.
Negotiable Order of Withdrawal (NOW) account
An account that may be interest-bearing and is subject to negotiable order of withdrawal or by other means authorized by the bank. NOW accounts at GMAC Bank include the GMAC Relationship Account and the GMAC Basic Checking Account.
NSF (non-sufficient 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 overdraft.
Online Banking
A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer.
Outstanding balance
The amount owed on a loan or line of credit. This is the balance used to calculate payments and on which interest is charged.
Overdraft
When the amount of a paid check or other withdrawal exceeds the available balance in a checking account. See 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 an overdraft line of credit to provide protection.
A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer.
Outstanding balance
The amount owed on a loan or line of credit. This is the balance used to calculate payments and on which interest is charged.
Overdraft
When the amount of a paid check or other withdrawal exceeds the available balance in a checking account. See 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 an overdraft line of credit to provide protection.
Par
The nominal or face value of a security. A bond selling at par, for instance, is worth the same dollar amount it was issued for or at which it will be redeemed at maturity.
Patch
A patch is a quick fix for a part of software that contains a bug or a weakness. Patches can often be downloaded from a Web site.
Pay Bills
A service offered by GMAC Bank that allows you to pay most bills online rather than mailing a check. You can also pay multiple bills or schedule recurring payments. See Bill Pay.
Percentage point
One percent of the loan or a measure of the interest rate.
Periodic finance charge
For applicable accounts, the rate used to determine how much a cardholder pays each month to borrow money.
Personal Identification Number (PIN)
A code selected by you or assigned by the bank which allows you to use your GMAC Check Card at ATMs or with certain vendors. You may also be issued a PIN for access to the IVR. These numbers will be different unless synchronized by you. These numbers should be safeguarded by you at all times. See IVR.
Portfolio
Holding more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset by an individual or institutional investor. The purpose of a portfolio is to reduce risk by diversification.
Power of attorney
A legal document authorizing one person to act on behalf of another.
Prepayment
Paying a loan before maturity. Some loans have a prepayment clause that allows prepayment at any time without penalty, while others charge a fee if a loan is paid off before it’s due.
Present value
The current dollar value of a future sum. In other words, the amount that would have to be invested today at a given interest rate over a specified period in order to equal the future sum.
Prime rate
The interest rate a bank charges its most creditworthy customers for short-term loans of less than one year
Principal
The amount of money borrowed, on which interest is paid.
Promissory note
A document which contains a written commitment to pay a certain amount of money in a fixed period of time.
Prospectus
A formal written offer to sell securities that sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses are also issued by mutual funds, describing the history, background of managers, fund objectives, a financial statement, and other essential data.
The nominal or face value of a security. A bond selling at par, for instance, is worth the same dollar amount it was issued for or at which it will be redeemed at maturity.
Patch
A patch is a quick fix for a part of software that contains a bug or a weakness. Patches can often be downloaded from a Web site.
Pay Bills
A service offered by GMAC Bank that allows you to pay most bills online rather than mailing a check. You can also pay multiple bills or schedule recurring payments. See Bill Pay.
Percentage point
One percent of the loan or a measure of the interest rate.
Periodic finance charge
For applicable accounts, the rate used to determine how much a cardholder pays each month to borrow money.
Personal Identification Number (PIN)
A code selected by you or assigned by the bank which allows you to use your GMAC Check Card at ATMs or with certain vendors. You may also be issued a PIN for access to the IVR. These numbers will be different unless synchronized by you. These numbers should be safeguarded by you at all times. See IVR.
Portfolio
Holding more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset by an individual or institutional investor. The purpose of a portfolio is to reduce risk by diversification.
Power of attorney
A legal document authorizing one person to act on behalf of another.
Prepayment
Paying a loan before maturity. Some loans have a prepayment clause that allows prepayment at any time without penalty, while others charge a fee if a loan is paid off before it’s due.
Present value
The current dollar value of a future sum. In other words, the amount that would have to be invested today at a given interest rate over a specified period in order to equal the future sum.
Prime rate
The interest rate a bank charges its most creditworthy customers for short-term loans of less than one year
Principal
The amount of money borrowed, on which interest is paid.
Promissory note
A document which contains a written commitment to pay a certain amount of money in a fixed period of time.
Prospectus
A formal written offer to sell securities that sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses are also issued by mutual funds, describing the history, background of managers, fund objectives, a financial statement, and other essential data.
Real rate of return
The return on an investment adjusted for inflation. For example, if an investment pays 6% annually, but inflation is 2%, the real rate of return is 4% (6% - 2% = 4%).
Redemption
Repayment of a debt security or preferred stock issue, at or before maturity. Mutual fund shares are redeemed at the net asset value (NAV) when a shareholder’s holdings are liquidated.
Refinancing
The repayment of a debt from the proceeds of a new loan using the same property as security.
Return
The change in value of an asset plus any cash distribution, expressed as a percentage of the beginning investment value. For example, an investment of $100 that is worth $112 at the end of one year has a return of 12% ($112 - $100) ÷ $100 = 0.12 or 12%.
Returned check charge
A charge imposed for a check that is not honored.
Risk
The possibility of losing or not gaining value. Common types of risk include:
Rollover
A term often used by banks when they allow a borrower to delay making a principal payment on a loan. Also, term used to describe the movement of assets within a qualified retirement plan (such as a 401k or IRA) to another qualified retirement plan.
The return on an investment adjusted for inflation. For example, if an investment pays 6% annually, but inflation is 2%, the real rate of return is 4% (6% - 2% = 4%).
Redemption
Repayment of a debt security or preferred stock issue, at or before maturity. Mutual fund shares are redeemed at the net asset value (NAV) when a shareholder’s holdings are liquidated.
Refinancing
The repayment of a debt from the proceeds of a new loan using the same property as security.
Return
The change in value of an asset plus any cash distribution, expressed as a percentage of the beginning investment value. For example, an investment of $100 that is worth $112 at the end of one year has a return of 12% ($112 - $100) ÷ $100 = 0.12 or 12%.
Returned check charge
A charge imposed for a check that is not honored.
Risk
The possibility of losing or not gaining value. Common types of risk include:
- Inflation risk: The chance that the value of assets or of income will be eroded as inflation shrinks the value of a country’s currency.
- Interest rate risk: The possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates.
- Liquidity risk: possibility that an investor will not be able to buy or sell a commodity or security quickly enough or in sufficient quantities because buying or selling opportunities are limited.
- Credit risk: chance that a borrower or trade debtor will not repay an obligation as promised.
- Investment risk: The risk that the assets you own will decrease in value.
Rollover
A term often used by banks when they allow a borrower to delay making a principal payment on a loan. Also, term used to describe the movement of assets within a qualified retirement plan (such as a 401k or IRA) to another qualified retirement plan.
Second mortgage
A mortgage that is subordinate to the rights of the first mortgage holder.
Security
The collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate being purchased with the proceeds of the loan. If the debt is not repaid, the lender may seize the security and resell it.
Standard & Poor’s 500 Composite Stock Price Index (S&P 500)
This index incorporates the prices of 500 stocks from major industrial, utility, financial and transportation companies, and is used by the Federal Reserve Board, Department of Commerce and other government agencies to measure the domestic stock market.
Stock
The ownership of a corporation, represented by shares that are a claim on the corporation’s earnings and assets. Common stock usually entitles the shareholder to vote in the election of directors and other matters taken up at shareholder meetings or by proxy.
Substitue check
A paper reproduction of an original check.
A mortgage that is subordinate to the rights of the first mortgage holder.
Security
The collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate being purchased with the proceeds of the loan. If the debt is not repaid, the lender may seize the security and resell it.
Standard & Poor’s 500 Composite Stock Price Index (S&P 500)
This index incorporates the prices of 500 stocks from major industrial, utility, financial and transportation companies, and is used by the Federal Reserve Board, Department of Commerce and other government agencies to measure the domestic stock market.
Stock
The ownership of a corporation, represented by shares that are a claim on the corporation’s earnings and assets. Common stock usually entitles the shareholder to vote in the election of directors and other matters taken up at shareholder meetings or by proxy.
Substitue check
A paper reproduction of an original check.
T-Bill
A U.S. Treasury bill or T-bill. A Treasury bill is a short-term government security sold through competitive bidding at weekly and monthly auctions in denominations from $10,000 to $1 million. T-bills mature in less than one year, are the most widely used of all government debt securities and are a primary instrument of Federal Reserve monetary policy.
Tax–exempt
Free from tax liability. This status is granted to most municipal bonds, which pay interest that is totally free from federal taxes. Municipal bond interest is also usually tax–exempt to bondholders who are residents of the issuing state. However, other states may impose taxes on interest earned from out–of–state bonds (please consult your tax advisor).
Term
A period of time, such as for a policy or contract. For example, the term of a loan is the time limit within which a loan must be repaid. The term of a certificate of deposit (CD) is the length of time before the CD matures. See maturity.
Title
The legal evidence of ownership rights to real property.
Transaction limitations
A Federal Reserve regulation that limits certain types of withdrawals from savings and money market savings accounts. There can be no more than six automatic, wire or telephone transfers out of the account each month. If applicable, no more than three can be by check, draft, debit card or similar payment order to a third party. Withdrawals at ATMs and teller windows from these accounts are unlimited.
Treasuries
Negotiable debt obligations of the U.S. government, secured by its full faith and credit and issued at various schedules and maturities. The income from Treasury securities is exempt from state and local, but not federal, taxes. Types of Treasuries include:
Truth–in–Lending Act
A Federal law requiring full disclosure of credit terms using a standard format, intended to facilitate comparisons between the lending terms and financial institutions.
A U.S. Treasury bill or T-bill. A Treasury bill is a short-term government security sold through competitive bidding at weekly and monthly auctions in denominations from $10,000 to $1 million. T-bills mature in less than one year, are the most widely used of all government debt securities and are a primary instrument of Federal Reserve monetary policy.
Tax–exempt
Free from tax liability. This status is granted to most municipal bonds, which pay interest that is totally free from federal taxes. Municipal bond interest is also usually tax–exempt to bondholders who are residents of the issuing state. However, other states may impose taxes on interest earned from out–of–state bonds (please consult your tax advisor).
Term
A period of time, such as for a policy or contract. For example, the term of a loan is the time limit within which a loan must be repaid. The term of a certificate of deposit (CD) is the length of time before the CD matures. See maturity.
Title
The legal evidence of ownership rights to real property.
Transaction limitations
A Federal Reserve regulation that limits certain types of withdrawals from savings and money market savings accounts. There can be no more than six automatic, wire or telephone transfers out of the account each month. If applicable, no more than three can be by check, draft, debit card or similar payment order to a third party. Withdrawals at ATMs and teller windows from these accounts are unlimited.
Treasuries
Negotiable debt obligations of the U.S. government, secured by its full faith and credit and issued at various schedules and maturities. The income from Treasury securities is exempt from state and local, but not federal, taxes. Types of Treasuries include:
- Treasury bills (T-bills) - Short-term securities with maturities of one year or less.
- Treasury notes - Intermediate securities with maturities of 1 to 10 years. Denominations range from $1000 to $1 million or more.
- Treasury bonds - Long-term debt instruments with maturities of 10 years or longer issued in minimum denominations of $1000.
Truth–in–Lending Act
A Federal law requiring full disclosure of credit terms using a standard format, intended to facilitate comparisons between the lending terms and financial institutions.
Uncollected funds
Refers to items deposited in an account that have not yet been collected, or paid, by the bank on which they were drawn.
Unsecured credit
Credit that is not secured with collateral. A customer can qualify for unsecured credit based on their credit history and financial strength.
URL
Uniform Resource Locator – The address of a file or Web page accessible on the Internet (for example, http://www.gmacbank.com).
U.S. Treasury bill
Commonly called a bill or T-bill. A Treasury bill is a short-term government security sold through competitive bidding at weekly and monthly auctions in denominations from $10,000 to $1 million. T-bills mature in less than one year, are the most widely used of all government debt securities and are a primary instrument of Federal Reserve monetary policy.
Refers to items deposited in an account that have not yet been collected, or paid, by the bank on which they were drawn.
Unsecured credit
Credit that is not secured with collateral. A customer can qualify for unsecured credit based on their credit history and financial strength.
URL
Uniform Resource Locator – The address of a file or Web page accessible on the Internet (for example, http://www.gmacbank.com).
U.S. Treasury bill
Commonly called a bill or T-bill. A Treasury bill is a short-term government security sold through competitive bidding at weekly and monthly auctions in denominations from $10,000 to $1 million. T-bills mature in less than one year, are the most widely used of all government debt securities and are a primary instrument of Federal Reserve monetary policy.
Variable rate
An interest rate that may fluctuate during the term of a loan, line of credit or deposit account according to changes in an index rate, such as the prime rate or other prescribed criteria. See fixed rate.
Volatility
The rise and fall in price of a security, commodity, or market within a short-term period.
An interest rate that may fluctuate during the term of a loan, line of credit or deposit account according to changes in an index rate, such as the prime rate or other prescribed criteria. See fixed rate.
Volatility
The rise and fall in price of a security, commodity, or market within a short-term period.
Wire transfer
An electronic payment service for transferring funds by wire (for example, through the Federal Reserve Wire Network or the Clearing House Interbank Payments System).
An electronic payment service for transferring funds by wire (for example, through the Federal Reserve Wire Network or the Clearing House Interbank Payments System).
Yield
The annual rate of return provided on a deposit account, such as savings accounts or certificates of deposit (CDs).
The annual rate of return provided on a deposit account, such as savings accounts or certificates of deposit (CDs).
Zero point option
An option which allows the borrower to opt to pay a slightly higher loan interest rate in lieu of paying the loan origination points generally charged for the particular loan product.
An option which allows the borrower to opt to pay a slightly higher loan interest rate in lieu of paying the loan origination points generally charged for the particular loan product.
The accuracy or completeness of this information is not guaranteed nor are any warranties given with regard to the results obtained from its use. The giving of the information shall not be deemed an offer or solicitation on the part of GMAC Bank with respect to the sale or purchase of any securities, nor shall it be considered investment or other advice. Please consult your financial or tax advisor with regard to your individual situation.
Mutual funds and other securities are NOT insured by the FDIC and are not deposits or other obligations of, or guaranteed by, GMAC Bank or any of its affiliates. An investment in mutual funds and other securities is subject to investment risks, including the possible loss of the principal amount invested.