Banking.
The accounts, payments, and fees that move your money day to day. These are the words on your statements, your checks, and your banking app, decoded without the jargon.
Featured in Banking
Most read
0% APR Financing
0% APR financing is a promotional car loan that charges no interest, so every payment goes straight to the price you owe.
Featured
APR (Annual Percentage Rate)
The yearly cost of borrowing money, expressed as a percentage. Higher APR = more expensive debt.
Featured
Auto Refinance
Auto refinance replaces your current car loan with a new one, usually to get a lower rate or a smaller monthly payment.
Featured
Average daily balance method
The average daily balance method averages your balance across the billing cycle, then applies the rate; it is how most card issuers calculate interest.
Featured
Bank account bonus
A bank account bonus is cash a bank pays for opening a checking or savings account and meeting conditions like direct deposits or a minimum balance.
Featured
Buy Here Pay Here
Buy here pay here is a dealership that both sells you the car and is the lender, so you make payments directly to the dealer.
Featured
Capitalized Cost
Capitalized cost is the agreed price of a leased car, the number your whole monthly lease payment is built on.
Featured
Captive Financing
Captive financing is a car loan or lease offered by the lender a carmaker owns, like Ford Credit or Toyota Financial Services.
Most read in Banking
APR (Annual Percentage Rate) ★
The yearly cost of borrowing money, expressed as a percentage.
Overdraft
Spending more than your checking account holds, and what the bank charges or does when it…
Checking account
A bank or credit union account for everyday money: deposits, debit-card spending, bills,…
Counterparty risk
The risk that the other side of a contract fails to pay or deliver, leaving you with a…
Data breach
An incident where someone gains access to stored personal or account records they were…
All banking terms, A to Z
# 2 terms
0% APR Financing★
0% APR financing is a promotional car loan that charges no interest, so every payment goes straight to the price you owe.
5/24 rule
The 5/24 rule is one major issuer's policy of denying most new cards to applicants who have opened five or more cards in the past 24 months.
A 16 terms
Account aggregation
Account aggregation pulls balances and transactions from several of your financial accounts into one app so you can see everything in one place.
Account number
An account number is the unique string that identifies your specific account at a bank, so deposits and withdrawals land in the right place.
Account reconciliation
Account reconciliation is checking your own record of an account against the bank's statement to make sure every transaction and the final balance match.
Account takeover
Account takeover is when a criminal gains control of your bank, email, or shopping account, locks you out, and uses it as if they were you.
ACH (Automated Clearing House)
The network that moves money electronically between U.S. bank accounts in batches. It is what runs direct deposit, most bill pay, and bank transfers.
ACH transfer
Moves money electronically between bank accounts through the Automated Clearing House network, used for direct deposit and bill pay.
Adjustable-rate mortgage (ARM)
A home loan with a low initial fixed rate that later resets periodically based on market rates.
Advance-fee scam
A scam that promises a loan, prize, grant, or windfall but first requires an upfront payment that only enriches the scammer.
Amortization
The schedule that splits each fixed loan payment between interest and principal. Early payments are mostly interest; the mix flips over time.
Anti-money laundering (AML)
The rules and controls banks use to spot and report money that comes from crime before it moves through the financial system.
APR (Annual Percentage Rate)★
The yearly cost of borrowing money, expressed as a percentage. Higher APR = more expensive debt.
APY
Annual Percentage Yield. The effective yearly return on a savings account, including compounding.
Auto lease
An auto lease is a long-term rental where you pay to use a car for a set term and mileage, then return it instead of owning it.
Auto Refinance★
Auto refinance replaces your current car loan with a new one, usually to get a lower rate or a smaller monthly payment.
Autopay
Autopay automatically pays a bill from your account on a set date, which helps avoid late fees but requires enough balance to cover it.
Average daily balance method★
The average daily balance method averages your balance across the billing cycle, then applies the rate; it is how most card issuers calculate interest.
B 8 terms
Bank account bonus★
A bank account bonus is cash a bank pays for opening a checking or savings account and meeting conditions like direct deposits or a minimum balance.
Bank holding company
A parent company that owns one or more banks, supervised by the Federal Reserve rather than by the bank's own regulator.
Bank Levy
A bank levy is a legal seizure of money straight from your bank account to pay a debt, usually after a court judgment or a tax order.
Bank Secrecy Act
The main US law requiring banks to help detect and report money laundering, including filing reports on large or suspicious transactions.
Bank statement
A bank statement is a periodic summary from your bank listing every deposit, withdrawal, fee, and your balance over a set time, usually a month.
Banking-as-a-service
Licensed banks renting out their charter and plumbing so non-bank companies can offer accounts, cards, and payments under their own brand.
Brokered CD
A brokered CD is a certificate of deposit you buy through a brokerage rather than directly from a bank, often with more choice but extra trade-offs.
Buy Here Pay Here★
Buy here pay here is a dealership that both sells you the car and is the lender, so you make payments directly to the dealer.
C 35 terms
Capitalized Cost★
Capitalized cost is the agreed price of a leased car, the number your whole monthly lease payment is built on.
Captive Financing★
Captive financing is a car loan or lease offered by the lender a carmaker owns, like Ford Credit or Toyota Financial Services.
Card skimming
Card skimming is when thieves attach a hidden device to a card reader or ATM to secretly copy your card number when you swipe.
Card-not-present transaction
A card payment made without the card being read by a terminal, such as online or by phone, carrying higher fraud risk and higher fees.
Cash management account
A cash management account is a brokerage cash account that acts like checking and savings, often sweeping money to partner banks for FDIC coverage.
Cash-back / rebate app★
A cash-back or rebate app pays you back a small percentage of what you spend at partner stores, usually a few percent, after you make a purchase.
Cashier's check
A cashier's check is a check drawn on the bank's own funds, signed by the bank, so the recipient is paid by the bank rather than by you personally.
CD (Certificate of Deposit)
A bank deposit that locks your money up for a set period in exchange for a guaranteed interest rate.
CD ladder
A CD ladder is a strategy where you split your cash across several CDs that mature at staggered dates, so some money frees up regularly.
Certified check
A certified check is your own personal check that the bank verifies and sets aside funds for, guaranteeing it will not bounce.
Certified pre-owned
A certified pre-owned car is a used vehicle inspected, refurbished, and backed by a manufacturer warranty, sold at a price above a regular used car.
Charity scam
Fake charities or fundraisers, often surging after disasters, that pressure you to donate to a cause that does not exist or keeps the money.
Check fraud
Scams using fake or stolen checks, often relying on the gap between a bank making funds available and the check actually clearing.
Checking account
A bank or credit union account for everyday money: deposits, debit-card spending, bills, and withdrawals anytime.
ChexSystems
ChexSystems is a reporting agency that tracks problems with your bank accounts, and banks check it before opening a new account for you.
Clearinghouse
An institution that stands between buyer and seller in a trade, guaranteeing settlement so neither side depends on the other's credit.
Closing costs★
Fees and charges paid at the closing of a real estate transaction, on top of the down payment. Typically 2% to 5% of the purchase price.
Co-buyer
A co-buyer signs the car loan with you as an equal owner and is fully responsible for repaying the debt alongside you.
Compliance
Compliance is the work a company does to follow the laws and regulations it operates under, a large and costly function at banks in particular.
Contactless / tap-to-pay
Paying by holding a card or phone near a reader, using short-range radio and a one-time code instead of a swipe or inserted chip.
Contactless payment
A contactless payment lets you tap your card or phone near a reader to pay, instead of swiping or inserting the chip.
Conventional Loan
A home loan that is not government insured, usually needing stronger credit, but letting you drop mortgage insurance once you have enough equity.
Counterparty risk
The risk that the other side of a contract fails to pay or deliver, leaving you with a paper gain you cannot collect.
Credit card churning
Churning is opening credit cards mainly to earn their sign-up bonuses, then often closing or downgrading them, to collect rewards repeatedly.
Credit card rewards★
Credit card rewards are points, miles, or cash back a card pays you for spending, funded mostly by the fees merchants pay to accept cards.
Credit card vs. debit card
A debit card spends money you already have; a credit card borrows to repay later. Different fraud protections and different risk if you overspend.
Credit monitoring
Credit monitoring is a service that watches your credit reports and alerts you to changes, like a new account or a hard inquiry.
Credit repair scam
A company charges up front to erase accurate negative items from your credit report, something no one can legally promise or do.
Credit union
A not-for-profit, member-owned alternative to a bank that takes deposits and makes loans, often with lower fees and better rates.
Cross-border payment
A payment where payer and payee sit in different countries, usually involving a currency conversion and a chain of intermediary banks.
Crypto debit card★
A crypto debit card lets you spend cryptocurrency at regular stores by converting it to dollars at the moment of purchase, usually for a fee.
Currency Exchange Spread
The currency exchange spread is the gap between the rate you get swapping currencies and the true mid-market rate, and it is how the seller profits.
Custodial Account
A financial account an adult opens and manages for a minor, where the money legally belongs to the child from the start.
Custodian bank
A bank that holds securities and cash for clients for safekeeping, handling settlement, dividends, and record keeping rather than lending.
CVV / card security code
The short code printed on a card, checked during online payments to show the buyer is holding it. Merchants are not allowed to store it.
D 18 terms
Dark web
Websites that load only through special anonymizing software, where stolen account data and login credentials are bought and sold.
Data breach
An incident where someone gains access to stored personal or account records they were never authorized to see, copy, or use.
Dealer Add-Ons
Dealer add-ons are extra products and services, like paint protection or VIN etching, that a dealer adds to a car's price for profit.
Dealer Markup
A dealer markup is an extra amount a dealer adds above the MSRP, often called an addendum or market adjustment, when demand is high.
Debt-to-income ratio
All your monthly debt payments divided by your gross monthly income. Lenders use it to judge how much more you can safely borrow.
Deposit hold
A deposit hold is the short delay before money you deposited becomes available to spend, while the bank confirms the funds are real.
Destination Charge
A destination charge is the fixed fee the manufacturer charges to ship a new car from the factory to the dealership.
Digital wallet
A digital wallet is an app on your phone or computer that stores your payment cards so you can pay or send money without the physical card.
Digital-only bank
A bank serving customers entirely through apps and websites with no branches, either under its own charter or through a partner bank.
Direct deposit
Your paycheck (or refund, or benefit) sent electronically straight into your bank account instead of as a paper check.
Disposition Fee
A disposition fee is a flat charge in your lease for returning the car at the end, covering the cost of cleaning and reselling it.
Disputed transaction
A disputed transaction is a charge you formally tell your bank or card issuer is wrong, unauthorized, or never delivered, so it can be investigated.
Distributed ledger technology
A shared record kept in sync across many independent computers, where new entries are added by agreed rules rather than by one central bookkeeper.
Doc Fee
A doc fee is a dealership charge for preparing the paperwork on your car purchase, and it varies widely by dealer and state.
Dormancy fee★
A dormancy or inactivity fee is a charge some accounts and gift cards apply after a long stretch with no activity.
Dormant Account / Escheatment
A dormant account has no activity for years; escheatment is when the bank then turns that money over to the state for safekeeping.
Down payment
The upfront cash you pay toward a purchase like a home or car, with a loan covering the rest.
Dynamic Currency Conversion
Dynamic currency conversion is when a foreign merchant offers to charge your card in your home currency instead of the local one, usually at a worse rate.
E 7 terms
Early direct deposit
Early direct deposit is a feature at some banks that makes your paycheck available up to two days sooner than the official payday.
Early Lease Termination
Early lease termination is ending a car lease before its scheduled end, which usually triggers steep fees and remaining-payment charges.
Embedded finance
Financial products built into a non-financial company's app or checkout, so payments, lending, or insurance happen without leaving that experience.
EMV chip
An EMV chip is the small metal chip on your credit or debit card that creates a unique code for each purchase, making the card much harder to counterfeit.
Escrow
An account a third party holds money in until conditions are met, most commonly for property taxes and insurance on a mortgage.
EV charging costs★
EV charging costs are what you pay to refill an electric vehicle's battery, depending on your electricity rate and whether you charge at home or in public.
Extended Warranty★
An extended warranty (often a vehicle service contract) is a paid plan that covers certain repairs after the manufacturer's warranty ends.
F 10 terms
FDIC insurance
Federal insurance that protects your bank deposits up to $250,000 per depositor per bank if the bank fails.
FDIC ownership categories★
FDIC ownership categories are the account types, like single, joint, and trust, that each get their own 250,000 dollar insurance limit at a bank.
FedNow / instant payments
FedNow is the Federal Reserve's instant-payment system that moves money between banks in seconds, any time, including nights, weekends, and holidays.
FHA Loan
A government-insured home loan that lets you buy with as little as 3.5 percent down and a lower credit score than most conventional loans require.
Fixed-rate mortgage
A home loan where the interest rate stays the same for the entire term, usually 15 or 30 years.
Float
Float is the gap in time when money appears in two places at once, because a payment has left one account but not yet cleared into another.
Foreign transaction fee
A foreign transaction fee is a charge some cards add when you buy something in another currency or from a foreign merchant, on top of the purchase price.
Fraud scoring
An automated risk score assigned to a transaction in real time, used to approve it, decline it, or send it for extra verification.
Fuel cost math★
Fuel cost math is the simple calculation that turns miles driven, fuel efficiency, and fuel price into what you actually spend to drive.
Funds availability
Funds availability is the rule for how soon a deposit becomes spendable, since posting to your account and being usable are not always the same moment.
G 2 terms
Gift card scam
Any scam that demands payment in gift cards, a near-universal sign of fraud because the cards are fast, anonymous, and irreversible.
Government imposter scam
A scam where someone claims to be from the IRS, Social Security, or another agency, threatening penalties unless you pay immediately.
H 4 terms
HELOC (Home Equity Line of Credit)
A revolving credit line secured by the equity in your home. You borrow against it, pay it down, and borrow again, usually at a variable rate.
High-yield reward checking★
High-yield reward checking pays an unusually high rate on a checking account if you meet monthly conditions like debit transactions and direct deposit.
Home equity
The portion of your home you actually own: what it's worth minus what you still owe on it.
HYSA (High-Yield Savings Account)
A savings account that pays meaningfully more interest than a regular bank savings account.
I 3 terms
I-Bond
A U.S. savings bond whose interest rate adjusts with inflation. Bought directly from TreasuryDirect; annual purchase limits apply.
Imposter scam
A scammer pretends to be someone you trust, a bank, an agency, a company, or a family member, to get you to send money or share information.
Invoice Price
Invoice price is roughly what a dealer pays the manufacturer for a car, usually lower than the MSRP on the window sticker.
L 9 terms
Layaway★
Layaway lets you reserve an item and pay for it in installments, taking it home only once it is fully paid, with no interest but sometimes a fee.
Lease Buyout
A lease buyout is choosing to purchase your leased car instead of returning it, by paying its set residual value plus any fees.
Lease Mileage Allowance
A lease mileage allowance is the yearly mileage cap in your lease; drive over it and you pay a set fee for every extra mile.
Lien
A lien is a lender's legal claim on your car until the loan is paid off, giving them the right to repossess it if you default.
Lien release
A lien release is the document your lender issues once you pay off a car loan, confirming they no longer have a claim on the vehicle's title.
Linked accounts
Linked accounts are two or more of your accounts connected at the same bank so money can move between them automatically, for overdraft or transfers.
Loan Estimate
A standardized three-page form a lender must give you within three business days of applying, showing your loan's rate, payments, and total costs.
Loan-to-Value (LTV)
The share of a home's value you are borrowing, written as a percentage. Lower LTV means more equity and less risk to the lender.
Long-Term Auto Loans★
Long-term auto loans are car loans stretched over 72 months or more, lowering the monthly payment but raising total interest paid.
M 12 terms
Merchant acquirer
The bank or processor that holds a merchant's account, sends its transactions to the card networks, and settles the sales proceeds.
Minimum balance requirement
A minimum balance requirement is a set dollar amount you must keep in an account to avoid a fee or to keep a perk like waived charges or higher interest.
Minimum finance charge★
A minimum finance charge is the smallest interest a card charges when you carry any balance, applied even if the calculated interest would be less.
Money factor
The money factor is the interest charge on a car lease, written as a tiny decimal that you multiply by 2,400 to get the rough APR.
Money market account
A savings account variant offered by banks and credit unions, FDIC-insured, often with check-writing or debit access.
Money market fund
An investment fund holding very short-term, very safe debt. Not FDIC-insured but generally considered very stable.
Money mule
Someone who moves scam or stolen money for others, often unknowingly through a fake job or romance, which can carry real legal risk.
Money order
A money order is a prepaid paper payment you buy with cash up front, used to pay someone when a personal check or cash is not an option.
Monthly maintenance fee★
A monthly maintenance fee is a recurring charge some banks take each month just for keeping your account open, often waivable if you meet conditions.
Mortgage Insurance (PMI and MIP)
A premium you pay that protects your lender, not you, if you stop making your mortgage payments. It is the price of buying with less than 20 percent down.
MSRP
MSRP is the manufacturer's suggested retail price, the sticker price a carmaker recommends a dealer charge for a new vehicle.
Multi-factor authentication (MFA)
A login protection that requires a second step beyond your password, so a stolen password alone cannot open your account.
N 7 terms
NCUA insurance
NCUA insurance protects money in federally insured credit unions up to $250,000 per depositor, so your savings are safe even if the credit union fails.
Negative Equity★
Negative equity, or being underwater, is when you owe more on your car loan than the car is currently worth.
Neobank
A neobank is a banking service you use entirely through an app or website, with no branches, that usually partners with a real bank to hold your money.
Net interest margin
Net interest margin is a bank's core profit measure: the interest it earns on loans minus the interest it pays on deposits, as a percentage of its assets.
NFC payment
A payment made over near-field communication, the very short-range radio standard behind tapping a card or phone at a terminal.
No-penalty CD
A no-penalty CD is a certificate of deposit you can cash out early without losing any interest, trading a slightly lower rate for flexibility.
NSF fee
An NSF fee is what a bank charges when a payment is returned unpaid because your account did not have enough money to cover it.
O 5 terms
Open banking
Open banking is a system that lets you securely share your bank data with other apps and services you approve, using standardized connections.
Open-End vs Closed-End Lease
An open-end vs closed-end lease differ in who eats the depreciation risk: you in an open-end lease, the lessor in a closed-end one.
Overdraft
Spending more than your checking account holds, and what the bank charges or does when it happens.
Overdraft line of credit
An overdraft line of credit is a small loan tied to your checking account that covers a payment when your balance is short, instead of a declined payment.
Overpayment scam
A scam where someone pays you too much with a fake check or payment, then asks you to refund the difference before it bounces.
P 17 terms
P2P payment scams
P2P payment scams trick you into sending money through apps like Zelle or Venmo, where transfers are fast and very hard to claw back.
Pass-through deposit insurance
Pass-through insurance extends FDIC coverage to each individual behind a pooled account, like funds a fintech holds for its customers at a partner bank.
Password manager
A tool that creates and stores a strong, unique password for every account, so you only have to remember one master password.
Payable-on-death designation
A payable-on-death designation names who gets your bank account money when you die, so it passes to that person directly without probate.
Payment gateway
The service that captures card details at checkout and passes the authorization request securely on to the card networks and banks.
PCI DSS compliance
A card industry security standard every business handling card data must follow, covering encryption, access control, testing, and monitoring.
Peer-to-peer lending★
Peer-to-peer lending is borrowing from, or investing in loans funded by, individuals through an online platform rather than a bank.
Peer-to-peer payments
Peer-to-peer payments are app-based transfers that send money straight from your account to another person's, like splitting a bill with a friend.
Phishing
Phishing is a scam where a fake email, text, or call pretends to be a trusted company to trick you into handing over passwords or account details.
Pig butchering scam
A long-con investment scam where a stranger builds trust or romance over weeks, then lures you into a fake, often crypto, investment.
PMI (Private Mortgage Insurance)
Extra monthly insurance you pay when you put less than 20% down on a conventional mortgage.
Point of sale (POS) system
The hardware and software a business uses to ring up a sale, take payment, and record the transaction in inventory and accounting.
Points transfer partners
Transfer partners are the airlines and hotels a card's points can be moved to, often unlocking more value than cashing them out.
Postdated check
A postdated check is a check you write with a future date on it, intending it not to be cashed until that date arrives.
Principal residence vs. investment property
Lenders and the IRS treat the home you live in very differently from a property you rent out, in rates, down payments, and taxes.
Principal vs. interest
Principal is the money you borrowed. Interest is what the lender charges you for borrowing it. Every payment is some mix of both.
Provisional credit
Provisional credit is a temporary refund a bank gives you while it investigates a disputed charge, so you are not left short during the review.
R 16 terms
Rebate vs Low-APR Choice★
The rebate vs low-APR choice is the carmaker forcing you to pick either cash off the price or a special low interest rate, not both.
Recurring billing★
Recurring billing is an arrangement where a company automatically charges your card or account on a set schedule until you cancel.
Refinance
Replacing your current loan with a new one, usually to get a lower rate, a different term, or cash out of your equity.
Registration fees
Registration fees are the charges your state collects to legally license a vehicle for road use, paid first at purchase and then renewed each year or two.
Regulation Best Interest (Reg BI)
An SEC rule requiring broker-dealers to act in a retail customer's best interest when making a recommendation, and to disclose their conflicts.
Regulation E
The federal rule protecting consumers on electronic transfers. It caps your liability for unauthorized debit-card charges if you report them promptly.
Relationship banking tiers
Relationship banking tiers are status levels a bank grants based on your total balances, unlocking perks like fee waivers and better rates.
Remittance
A remittance is money you send to someone in another country, usually through a bank or transfer service, often to support family.
Reserve
A bank's reserves are the cash it keeps on hand or on deposit at the central bank, rather than lending out, so it can meet withdrawals.
Residual value
Residual value is the predicted worth of a leased car at the end of the lease, set up front and used to calculate your payments.
Retention offer★
A retention offer is a perk, like a statement credit or bonus points, a card issuer gives to talk you out of canceling a card.
Returned payment fee★
A returned payment fee is charged by a biller when your payment to them fails, usually because your account lacked funds or was closed.
Reward redemption
Reward redemption is how you cash in points or miles, and the method chosen can change their value by a lot.
Robocall / Do Not Call list
Automated calls that play a recorded message, and the federal registry that tells lawful telemarketers to stop calling your number.
Romance scam
A scammer builds a fake romantic relationship online to win trust, then invents emergencies or opportunities to ask for money.
Routing number
A routing number is the 9-digit code that identifies your bank, telling the payment system which institution holds the account.
S 25 terms
Salvage title
A salvage title is a legal brand on a vehicle's title meaning an insurer declared it a total loss because repairs would cost too much.
Same-day ACH
Same-day ACH is a faster version of the standard bank transfer network that can settle a payment within the same business day.
Savings account
A savings account is a deposit account at a bank or credit union that pays interest and is meant for storing cash you are not spending right away.
Savings Account Withdrawal Limits
Savings account withdrawal limits are caps some banks place on how many transfers or withdrawals you can make per month from a savings account.
Second-chance banking
Second-chance banking offers checking accounts to people denied a standard account over past overdrafts or mistakes flagged in a screening report.
Share account
A share account is the credit union name for your savings account, where your deposit also represents your small ownership share in the credit union.
Sign-up bonus★
A sign-up bonus is a large one-time reward a card or bank pays for opening an account and meeting a spending or deposit requirement.
SIM swap fraud
When a scammer takes over your phone number by moving it to their device, intercepting the codes that protect your accounts.
SIPC insurance
SIPC insurance protects the cash and securities in a brokerage account if the brokerage fails, up to 500,000 dollars, but not against market losses.
SIPC protection
Coverage that returns missing cash and securities to customers when a U.S. brokerage fails, up to a per-customer limit.
Smishing (text scam)
Phishing by text message, where a fake alert about a delivery, bank, or account tries to get you to tap a link or share information.
Social engineering
Manipulating people into giving up information or money by exploiting trust, urgency, fear, or authority rather than hacking systems.
Spoofing
Faking the sender details on a call, text, or email so it appears to come from a trusted person, company, or agency.
Spot Delivery
Spot delivery is when a dealer lets you drive a car home before your loan is fully approved, sometimes calling you back to redo the deal.
Spread
A spread is the gap between two prices or rates, such as what a bank pays on deposits versus what it charges on loans.
Statement closing date vs due date
The closing date ends your billing cycle and sets the balance reported; the due date is the later day by which you must pay to avoid interest.
Statement credit★
A statement credit is a reduction applied to your credit card balance, often how rewards or refunds are paid, rather than cash to your bank account.
Stop payment
A stop payment is a request that tells your bank not to honor a specific check or payment you already authorized, before it clears.
Subscription audit★
A subscription audit is the simple habit of reviewing your recurring charges and canceling the ones you no longer use or forgot about.
Suspicious Activity Report
A confidential filing, or SAR, a bank sends the government when it spots transactions that may signal money laundering or fraud.
Sweep account
A sweep account automatically moves your idle cash into a higher-earning or insured place at the end of each day, then back when you need it.
Sweep program (brokerage cash)★
A brokerage feature that moves uninvested cash into a bank deposit or money fund each day, at a rate the broker chooses.
SWIFT network
A global messaging network banks use to send secure payment instructions across borders. It carries the message, not the money itself.
Synthetic identity fraud
Fraud that builds a fake person from real and invented details, often a stolen Social Security number paired with a different name.
Systemic risk
The risk that one failure spreads through the financial system, so trouble at a single firm becomes trouble for everyone.
T 12 terms
T-bill (Treasury Bill)
Short-term U.S. government debt, maturing in one year or less. Considered the safest dollar investment in the world.
Tech support scam
A scam where a fake warning or caller claims your computer is infected, then charges you or gains remote access to steal money.
Teen checking account
A teen checking account is a checking account for minors, usually opened jointly with a parent or guardian who shares ownership and can monitor activity.
TIPS
Treasury Inflation-Protected Securities. Government bonds whose principal adjusts with inflation.
Tokenization (payments)
Replacing a card number with a stand-in value that is useless if stolen, so the real number never sits inside the merchant's systems.
Total cost of ownership★
Total cost of ownership is everything a car costs over time: depreciation, fuel, insurance, maintenance, and financing, not just the sticker.
Trade-In Value
Trade-in value is the amount a dealer credits you for your old car when you put it toward buying another vehicle.
Treasury bond
A long-term U.S. government bond, typically with 20 or 30 years to maturity. Pays semi-annual interest.
Treasury money market fund★
A Treasury money market fund is a money market fund that holds only short-term U.S. Treasury securities, prized for safety and often state-tax advantages.
Treasury note
A medium-term U.S. government bond, typically with 2 to 10 years to maturity. Pays semi-annual interest.
TreasuryDirect
TreasuryDirect is the U.S. Treasury's official website where individuals can buy government savings bonds and Treasury securities directly, with no fees.
Two-factor authentication
Two-factor authentication adds a second step, like a one-time code, on top of your password so a stolen password alone cannot get into your account.
U 2 terms
Unauthorized transaction (Reg E)
A charge or transfer you did not authorize; federal Regulation E gives you rights to dispute it and limits your liability if you report promptly.
UTMA / UGMA Account
A custodial account an adult opens and manages for a child, holding money or investments that legally belong to the child and pass to them at a set age.
V 7 terms
Vehicle depreciation★
Vehicle depreciation is the loss in a car's value over time, fastest in the first few years, and it is usually the biggest cost of owning a car.
Vehicle history report
A vehicle history report is a record of a used car's past, including accidents, title brands, ownership, and odometer readings, tied to its VIN.
Vehicle service contract★
A paid plan that covers certain car repairs after the manufacturer warranty ends, often sold as an 'extended warranty' even though it is not one.
Vehicle Title
A vehicle title is the legal document, issued by your state, that proves who owns a car.
Virtual card number
A virtual card number is a temporary stand-in card number your bank gives you to use online, so your real card number stays hidden.
Vishing (voice scam)
A phone-call scam where someone poses as your bank, a company, or an agency to pressure you into sharing information or moving money.
VPN (consumer use)
A service that encrypts your internet traffic and routes it through another server, hiding your address from the network you are on.
W 2 terms
Wire fraud red flags
Wire fraud red flags are warning signs someone is tricking you into wiring money to a scammer, like last-minute changes to payment instructions.
Wire transfer
A wire transfer moves money directly between banks, usually same day, and is fast, final, and very hard to reverse once sent.