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401(K): A company-sponsored retirement savings plan offered by many employers that offers tax advantages for the saver. The employee agrees to a percentage of each paycheck being paid directly into the investment account. The employer may match part of all of that contribution. (See also: Roth Retirement Account and Traditional Retirement Account.
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ACH: Refers to an electronic fund transfer between banks and credit unions through the Automated Clearing House network.
Account Agreement: A formal contract defining the terms and conditions of a deposit and/or loan account. The contract is made between the credit union and the member. CLICK HERE for Texas Bay's Membership Agreement.
Account Balance: The amount of money in an account after all debits and credits have been applied.
Account History: A running record of all the financial transactions logged in a credit union, credit card, or investment statement, including records of all credits and debits.
AccountMatch: A guide offered on TexasBayCU.org to assist consumers with identifying the best account(s) for their situation after answering a few simple questions. TRY IT HERE
Accrued Interest: The amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation, but has not yet been paid out.
Active Account: Texas Bay accounts that have had at least one transaction (withdrawal or deposit) every 6 months.
Adjustable Rate: Relating to a mortgage or other loan with an interest rate that may be changed in response to economic conditions. Often tied to the Prime Rate.
Adverse Action: A notice sent from a credit union to a loan applicant who's been declined which includes the reasoning of the denial. It may also contain a counteroffer, such as a lesser amount, or a request for an approved cosigner.
Aggregate: The total amount paid or collected over a period of time. An aggregate limit is the maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year.
Alteration: Referring to altered checks, including changes to the payee's name, the amount of money to be paid, the date, or any other important information on the check. Altering a check is illegal and considered check fraud.
APR (Annual Percentage Rate): The yearly interest generated by a sum that is charged to borrowers or paid to investors, IE the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes fees or other costs, but does not take compounding into account.
APY (Annual Percentage Yield): The real rate of return earned on an investment, taking into account the effect of compounding interest rate. Calculated periodically and added to the balance, which then earns interest.
Annual Return: The profit or loss on an investment over a one-year period.
Annuity: An insurance contract issued and distributed by financial institutions with the intention of paying out investment funds in a fixed income stream in the future. Often used for retirement purposes to help individual address the risk of outliving their savings.
Appraisal: an assessment of the fair market value of a property, business, antique, or collectible.
Articles of Incorporation: The documents filed with a government body (usually the state) that signifies the creation of a corporation.
Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Automatic or Direct Debit: Also known as ACH debit or bank debit is the simplest, safest, and most convenient way to make regular or recurring payments.
Automatic (Bill) Payment: A money transfer scheduled on a predetermined date to pay a recurring bill. Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to pay a bill.
Automatic Funds Transfer: A banking arrangement where transfers occur between an individual's two (or more) accounts on a regular, periodic basis without further instruction or action, such as an automatic transfer from a checking account to a savings account every pay period.
Automatic Renewal: 1) Certificates of Deposit - Unless the funds are withdrawn at the end of the term, CDs automatically renew for the same term and with the interest rate current at the time of renewal. 2) Subscriptions - A service that automatically renews your subscription so it does not expire.
Automatic Teller Machine (ATM): An electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. (See also ITM).
Availability Policy: The credit union's policy as to when funds deposited into an account will be available for withdrawal. Texas Bay's availability policy can be found on Page 9 of the Membership Agreement.
Available Balance: This is the amount your bank authorizes you to use or withdraw. It excludes pending transactions and check holds. Your Texas Bay Share Savings (membership) account requires a $1 balance at all times, therefore your available balance will always be at least $1 short of the actual balance.
Available Credit: Related to the account balance of a credit card or other form of debt, it refers to how much credit you have left to spend.
Average Daily Balance: The balance at the end of each day divided by the number of days in the billing cycle (credit cards) or month (deposit accounts).
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Balance Transfer: A type of credit card transaction in which debt is moved from one account to another. Texas Bay offers an introductory special of 0% for 6 months on balance transfers when you open your new Texas Bay Platinum Rewards Mastercard®1. CLICK HERE for more information.
Bank: A for-profit financial institution acting as an intermediary between depositors (who lend money to the bank) and borrowers (to whom the bank lends money). The focus of a bank is to make a profit for the shareholders.
Bank Run: When a large number of customers/members of a financial institution withdraw their deposits at the same time over fears about the institution's solvency. See also Silent Bank Run.
Basis Point: A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. EX: 50 basis points = 0.50%.
Beneficiary: The person (or entity) designated to receive the benefits upon the death of the property holder. It is important to designate beneficiaries for your financial assets so they can be distributed according to your wishes when you pass away.
Benefit: 1) Financial assistance in time of sickness, old age, or unemployment - EX: Unemployment benefits. 2) A payment or service provided for under an annuity, pension plan, or insurance policy - EX: Retirement benefits. 3) A service or right provided by an employer in addition to wages pay - EX: Health insurance or vacation time.
Bill-Payment Service: An online or mobile service offered by financial institutions that works by deducting a payment from your account balance and transferring it to a service provider.
Billing Statement: A monthly report credit card companies issue to customers showing recent transactions, minimum payment due, and other relevant information.
Billing Date: The date a billing statement is generated for the following month.
Bi-Monthly: Twice a month or every two months.
Bitcoin: Launched in 2009, Bitcoin is the world's largest cryptocurrency by market capitalization.
Bi-Weekly: Twice a week or every two weeks.
Blockchain: A type of shared database that differs from a typical database in the way it stores information. Blockchains store data in blocks linked together via cryptography (coding).
Bond: A financial product issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you.
Bonus Money Fund: Texas Bay's money market fund that earns higher dividends than a standard savings account, with unlimited transactions and only a minimum $500 deposit and balance.
Borrow: Take and use money with the intention of paying it back.
Borrow: Take and use money with the intention of paying it back.
Borrower: The person or entity that borrows money.
Bounced Check: A check that cannot be processed because the account has insufficient funds available for use. See also Available Balance.
Budget: A written plan to determine how much money you spend each month, based on your income. Check out Texas Bay's Home Budget Calculator!
Business Account: An account opened in a company's name and used exclusively to handle business-related transactions. Texas Bay offers a variety of business accounts.
Business Day: Refers to a weekday; Monday-Friday, 9:00 am-5:00 pm.
Bylaws: The regulations of a corporation containing the basic rules for the conduct of the corporation's business and affairs.
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Callable Certificate of Deposit (CD): A CD that can be redeemed at any time. Generally, this account offers a higher dividend rate as compensation for the callable risk.
Canceled Check: A check that has cleared the depositor's account and is marked "canceled" by the depositor's financial institution.
Capital: Money in a business that is available to pay for its day-to-day operations and to fund its future growth.
Capital Gain: The increase in a capital asset's value realized when the asset is sold.
Capital Loss: The decrease in a capital asset's value realized when the asset is sold.
Card Replacement Fee: The fee payable by the cardholder for the replacement of a card.
Card Verification Value (CVV): The number printed on the back of a credit or debit card that minimizes the risk of theft and fraud. Also known as card verification code (CVC) or card security code (CSC).
Cash: This refers to the balance sheet line item that reports the value of a company's assets that are cash (bank account balances).
Cash Equivalents: This refers to the balance sheet line item that reports the value of a company's assets that can be converted into cash immediately (generally, within three months).
Cash Out Refinance: Allows you to convert your home equity into a lump sum of cash by borrowing more than you currently owe on your mortgage. The additional amount you can borrow is contingent upon the value of the home vs. what you owe on the mortgage.
Cashless Payment: A type of payment that is made without using cash such as bank transfers, credit card payments, mobile payments, and digital wallets.
Cashier's Check: Written by a financial institution against its own funds offering a secure way to make large payments. A cashier's check cannot bounce.
Certificate of Deposit (CD): A savings product that earns interest/dividends on a lump sum for a fixed period of time. The money must remain untouched for the entirety of the term or risk penalty fees or loss of interest/dividends.
Certified Check: A check for which the issuing bank guarantees the availability of cash in a holder's account. Typically, a hold is put on these funds until the check clears.
Charge Off: This is when a company writes off debt as a loss because it does not believe it will receive the money it's owed.
Check: A written, dated, and signed draft that directs a financial institution to pay a specific sum of money to the bearer.
Checking Account: A deposit account that allows you to easily make withdrawals, deposits, and fund transfers. Also called demand accounts or transactional accounts, these can be accessed using checks, automated teller machines (ATMs), and electronic debits, among other methods.
Christmas Club Account: Also called a holiday club account, it is a type of savings account in which you make routine deposits throughout the year. The accumulated savings are automatically transferred to your share savings account in November to provide funds for holiday shopping and other expenses.
Claim (insurance): A formal request to your insurance provider for reimbursement against losses covered under your insurance policy.
Closed-End Loan/Credit: A type of loan or credit where the funds are dispersed in full when the loan closes and must be paid back by a specific date. EX: Auto loans and mortgages.
Closing: The final phase of mortgage loan processing in which the property title passes from the seller to the buyer
Closing Costs (mortgage): The fees and charges in excess of the purchase price of the property due at the closing of a real estate transaction.
Coinsurance: In health insurance and some property insurance policies, an insurance plan where you pay toward a covered expense or service after the policy deductible is satisfied. EX: 80/20 split, meaning the insurer pays 80% and the insured pays 20%.
Collateral: A valuable asset a borrower pledges as security for a loan. EX: Auto or home.
Compound Interest: The interest on savings calculated on both the initial principal amount and the accumulated interest from previous periods. Compounding multiplies money at an accelerated rate.
Consumer: A person who purchases goods and services for personal use.
Consumer Credit Counseling Service: Helps consumers with credit, money management, debt management, and budgeting. CHECK THIS OUT!
Consumer Price Index (CPI): This measures the change in prices paid by US consumers over time. It is the most widely used measure of inflation.
Contactless Payment: A secure payment method using a debit card, credit card, smartcard, or other payment device by using RFID technology and near-field communication. This is tap pay!
Conventional Mortgage: A mortgage not offered or secured by a governmental entity that is available through private lenders, such as Texas Bay.
Copayment (or Copay): A fixed, out-of-pocket amount paid by an insured for covered services standard in most health insurance plans.
Cosigner: A person, such as a parent, family member, or friend, who adds their information, including income and credit record, to a loan application and pledges to pay it back if you're unable to do so.
Cost-Effective: Something that saves or makes a lot of money in comparison to the costs involved. Generally, it means it is a good value.
Cost of Attendance (student financial aid): The total amount it will cost a student to go school including tuition, books, materials, supplies, equipment, housing, food, transportation, loan fees, etc.
Coupon or Coupon Payment (bond): The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from the issue date until maturity.
Courtesy Pay: This banking service offers additional overdraft protection for a fee when you don't have sufficient funds in your account to cover a transaction.
Coverdell Education Savings Account (ESA): A trust account created by the US government to assist families in funding educational expenses for children under 18 years of age.
Credit Application: A borrower's formal request for an extension of credit.
Credit Card: A thin rectangular piece of plastic or metal issued by a financial institution or financial services company that allows cardholders to borrow funds with which to pay for goods and services offered by merchants that accept cards for payment.
Credit Card Account Agreement: An agreement between the card issuer and the cardholder that details the terms and conditions of your credit card account and includes information such as the rate, fees, and other cost information associated with the account.
Credit Card Account Agreement: An agreement between the card issuer and the cardholder that details the terms and conditions of your credit card account and includes information such as the rate, fees, and other cost information associated with the account.
Credit Card Issuer: The lender (bank, credit union, financial services company) that offers credit cards.
Credit Card Statement: A summary of the transaction on your credit card account, including payments, credits, purchases, balance transfers, cash advances, fees, interest charges, and amounts past due.
Credit Disability Insurance: Pays your eligibility loan/credit card payments should you become disabled due to a covered illness or injury.
Credit Inquiry: When a creditor checks your credit report. There are two types of inquiries: 1) "Hard", when you've applied for a credit card or loan and 2) "Soft", when credit companies look for qualified applicants to send offers. Today, more lenders (like auto finance companies) offer a "soft" inquiry before finalizing a deal.
Credit Life Insurance: Pays your loan/credit card payments should you die before they are fully repaid.
Credit Limit: The maximum amount of money a lender will allow you to spend on a credit card or line of credit.
Credit Privacy Number (CPN): A credit privacy number (CPN) is a nine-digit number that's formatted just like a Social Security number (SSN). Scammers mislead consumers into thinking a CPN can replace your SSN, but it cannot and it's illegal to create a false identity with a CPN.
Credit Rating: See Credit Score below.
Credit Report: A statement that offers information about your credit activity and current credit situation, such as loan payment history, bankruptcy, and the status of your credit accounts.
Credit Reporting Agency: Also known as credit bureaus or consumer reporting agencies, they are companies that compile and sell credit reports. There are three main credit bureaus in the US: Equifax, Experian, and Transunion. By federal law, you have the right to one free credit report from each agency every 12 months.
Credit Score: A prediction, depicted as a number (300-850), of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports. The higher the score, the more likely you are to get approved for loans and better rates.
Credit Union: A type of financial cooperative that provides traditional banking services as a not-for-profit entity. They are created, owned, and operated by their members with a focus on what best serves the membership. Profits made are put back into the credit union by way of improved technology, products, and services; lower interest rates on loans; and higher dividends (interest) on deposits.
Credit Utilization Ratio: The percentage of a borrower's total available credit that is currently being used. It is used by credit reporting agencies in calculating your credit score. A lower percentage of credit use will improve your credit score.
Creditworthiness: A measure of how likely you will default on your debt obligations according to a lender's assessment.
Cryptocurrency: A form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of government and central authorities. See also Bitcoin and US Coin.
Cut-Off Time: The end of the current trading day and the beginning of a new trading day. This is done for administrative, logistical, and financial reasons.
Cyber Crime: Crime that occurs digitally, such as through email phishing scams or illegally accessing consumer or business banking accounts.
Cyber Security: Refers to the measures taken to protect devices, networks, and data from unauthorized access and criminal use.
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Debit: Increases the value of an asset, expense, and loss accounts. EX: A debit to a checking account is an increase in the account - a deposit.
Debit Card: A card issued by a bank or credit union to deposit account holders (usually checking accounts) that is used to access funds in the account through a credit card system.
Data Breach: An incident wherein information is stolen or taken from a system without the knowledge or authorization of the system's owner.
Debt-to-Income Ratio (DTI): A calculation of all your monthly debt (see below) payments divided by your gross monthly income. It is used to determine your ability to pay a debt when being considered for a new loan or credit card. It also affects your credit score.
Debt: Money you owe a person or business. EX: A loan, mortgage, or credit card.
Debt Consolidation: The use of a single loan or credit card to pay off multiple debts. The benefit is usually a lower overall interest rate and lower monthly payments.
Debt Ratio: See Debt-to-Income Ratio (DTI) above.
Debt Scam: When someone contacts you, claiming you own a debt. The debt may be completely fake, canceled, discharged, forgiven, or beyond the period for collection. Typically, debts stay on your credit report for 7 years.
Debtor: The person or company that owes a sum of money. IE: When you take out a loan, you are the debtor.
Deductible: The amount you pay for services covered by insurance before your insurance policy starts to pay.
Deferred Payment: A payment that is delayed, either completely or in part, in order to give the person or business making the payment more time to meet their financial obligations. Texas Bay offers Skip-a-Pay to qualified loans twice a year, which offers a deferred payment.
Delinquency: A failure to pay an outstanding debt.
Deposit: Money placed into a deposit account at a banking institution.
Deposit Slip: A small paper form that a credit union member includes when depositing funds into a bank account.
Depository Institution: A place to deposit, or place, assets such as cash or securities. EX: A credit union.
Derogatory Information: Any reported negative credit information that can be used to deny an individual a loan or credit card.
Digital Banking: Accessing banking features and services via your bank's website from your computer, tablet, or phone.
Digital Wallet: A type of financial transaction app that runs on any connected device. It securely stores your payment information and passwords. EX: Google Pay, Apple Pay, Samsung Pay, PayPal, Venmo, etc.
Direct Deposit: The deposit of funds electronically into a bank account rather than through a physical, paper check.
Disbursement: The act of paying out our disbursing money, which can include money paid out for a loan, to run a business, or as a dividend payment.
Disbursement Fee: An additional charge from a vendor to cover payments made on behalf of their clients.
Disclosures: The act of making something known. In banking, this refers to providing information to members that is required by regulation.
Discretionary Spending/Expense: A cost that is not essential for the operation of a home or business, often defined as nonessential spending. Meals at restaurants and entertainment costs are examples of discretionary expenses.
Dividend: 1) The sum of money paid regularly by a credit union on deposit accounts. 2) In a corporation, the sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits.
Down Payment: A sum a buyer pays upfront when purchasing an expensive good, such as a car or house, usually in the form of a percentage of the total loan amount.
Draft: A payment that is like a check, but its amount is guaranteed by the issuing financial institution.
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Early Withdrawal Penalty: The financial penalty if an amount (all or part) is withdrawn from a deposit account with a term. EX: A Certificate of Deposit (CD) or Individual Retirement Account (IRA).
Earn: 1) Activity - To cause someone to obtain money. 2) Capital Invested - A gain as the interest of profit.
Earned Income: Regarding income tax returns - Includes all income from employment, but only if it's includable in gross income. EX: Wages, salaries, tips, and other employee compensation. It also includes net earnings from self-employment.
Elder Financial Exploitation: The improper use of an adult's funds, property, or resources by another individual including, but not limited to, fraud, false pretenses, embezzlement, conspiracy, forgery, coercion, etc.
Elder Fraud: The act of targeting older adults in which attempts are made to deceive with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented.
Electronic Banking: Funds are transferred through an exchange of electronic signals rather than through an exchange of cash, checks or other types of paper documents.
Electronic Funds Transfer (EFT): See Direct Deposit.
Electronic Signatures: Also known as an e-signature, this is a digital version of a conventional handwritten signature.
EMV Chip Technology: Short for Europay, Mastercard, and Visa. The three companies created the EMV standard where cardholder information is stored on a metallic chip instead of in a magnetic strip. These chips can only be authenticated by special readers, making them more secure than stripe-only cards.
Emergency Fund: A stash of money set aside specifically to cover unforeseen expenses.
Endorsement: The act of signing the back of a check before depositing or cashing it. The endorsement signifies the payee's approval to either deposit the check into the designated bank account or to cash it directly.
Equal Credit Opportunity Act (ECOA): Prohibits discrimination in any aspect of a credit transaction.
Equal Housing Opportunity: Everyone has an equal right to be judged fairly in financing decisions related to housing.
Equity: Home Equity - The difference between what your home is worth and what you owe your lender.
Escrow: A legal arrangement in which a third party temporarily holds money or property until a particular condition has been met (such as the fulfillment of a purchase agreement).
Estate Account: An account used by the executor or court-appointment administrator of an estate to manage a deceased person's assets - to pay debts and to distribute money to beneficiaries. It is designed to keep the assets separate from those of the estate administrator.
Estate Tax: The tax levied on the net value of the estate of a deceased person before distribution to the heirs/beneficiaries.
Excess Deposit Insurance Protection: A type of insurance that provides coverage for depositors who hold more than the maximum insured amount offered by the NCUA. Texas Bay holds Excess Share Insurance of up to $250,000, in addition to the NCUA coverage of up to $250,000 for a combined share insurance of up to $500,000.
Exchange Rate: The rate at which one currency will be exchanged for another currency. Current exchange rates.
Expected Family Contribution: Regarding FAFSA: An index number used to determine eligibility for federal student financial ad. This number results from the information provided in the Free Application for Federal Student Aid (FAFSA) form.
Extended Coverage (Overdraft): Texas Bay's optional additional coverage on top of Courtesy Pay (overdraft protection).
Extended Warranty (Auto): An optional protection plan or service contact purchased to help cover repair costs not covered by the manufacturer's warranty. It generally starts once the manufacturer's warrant expires, but may overlap for some covered items.
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Face Value: The amount a financial product is worth when it's issued, also known as "par" value.
Fair Credit Reporting Act (FCRA): The Act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies, and tenant screening services. Information in these reports cannot be provided to anyone who does not have a purpose specified in the Act.
Fair Debt Collection Practices Act (FDCPA): The Act prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you.
FASFA (Free Application for Federal Student Aid): This form is required to apply for federal student aid such as federal grants, work-study funds, and loans. Additionally, many states and colleges use FAFSA information to determine eligibility for state and local aid.
Federal Deposit Insurance Corporation (FDIC): Independent agency created to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits, examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
Federal Funds Rate: The interest rate at which banks and other depository institutions lend money to each other, usually on an overnight basis.
Federal Housing Administration (FHA): Part of the US Department of Housing and Urban Development (HUD) that provides mortgage insurance on loans made by FHA-approved lenders.
Federal Income Tax: Levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. It is the largest source of revenue for the US government.
Federal Insurance Contributions Act (FICA): A US federal payroll tax deducted from each paycheck that funds both Social Security and Medicare programs which provide benefits for retirees, the disabled, and children.
Federal Minimum Wage: The Fair Labor Standards Act provides the right to a minimum wage. The Department of Labor's Wage and Hour Division enforces these rights. The rate applies to covered non-exempt workers.
Federal Reserve: The central bank of the US which monitors the financial system risks and engages at home and abroad to help ensure the system supports a healthy economy for US households, communities, and businesses.
Federal Student Loan: Money borrowed from the federal government (through a qualified lender) to help pay for education and must be repaid with interest.
Federal Work-Study: Provides part-time jobs for students with financial need, allowing them to earn money to help pay for college.
Fee Schedule: A list or table showing fixed fees for goods or services. Texas Bay's Fee Schedule.
Finance Charge: A fee charged for the use of credit or the extension of existing credit. EX: Interest rate.
Financial Aid: Money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
Financial Capability: The capacity, based on knowledge, skills, and access to manage financial resources effectively.
Financial Emergency: Any expense or loss of income not planned for, like a missed paycheck, roof damage, flat tire, or medical bill. Setting up an emergency fund can help with these unexpected expenses.
Financial Planning: The process of taking a comprehensive look at your financial situation and building a specific financial plan to reach your goals.
Financial Well-Being: The state of being wherein a persona can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices to allow them to enjoy life.
Financial Wellness Check: A review of your financial situation, making sure you're meeting your own personal benchmarks. Texas Bay offers FREE financial wellness checks at all of our locations.
Find a Car: Texas Bay's online vehicle search service. Search cars, motorcycles, RVs, and more for sale based on the criteria you set.
First Mortgage: The primary or initial loan obtained for a property. When you get the first mortgage loan to buy a home, the mortgage lender who funded it places a primary lien on the property. This lien gives the lender the first right or claim to the home if you were to default on the loan. There can be only one first mortgage.
First Time Auto Buyer Loan: Texas Bay's loan designed to help those with little or no credit navigate the car-buying experience.
First Time Homebuyer Mortgage: Texas Bay's mortgage loan for first time home buyers, allowing a lower down payment than normal.
Fixed Expenses: Costs that are the same on a routine basis such as mortgage, rent, or car payments. They're the costs you plan for and are likely already factored into your budget.
Fixed Income: 1) Business - A class of assets and securities that pay out at a set level of cash flows to investors, typically in the form of fixed interest or dividends. 2) Retirement - Generally applies to older adults who are no longer working and collecting a regular paycheck. Instead they depend mostly or entirely on fixed payments from sources such as Social Security, pensions, and/or retirement savings.
Fixed Rate: An unchanging interest rate charged on a liability, such as a loan or a mortgage. A fixed interest rate avoids the risk that a mortgage or loan payment can significantly increase over time.
Float: Essentially, double-counted money: A paid sum which, due to delays in processing, appears simultaneously in the accounts of both the payer and the payee.
Flood Insurance: Insurance coverage designed specifically for flooding events, covering home, automobiles, and personal items from damage caused by flooding. Flooding is the most common natural disaster in the US.
Flood Plain: The Federal Emergency Management Administration (FEMA) defines it as any land area susceptible to being inundated by floodwaters from any source.
For-Profit: Any activity or enterprise entered into for profit. A bank is a for profit entity. A credit union is a not-for-profit organization.
Foreclosure: the process that begins when a borrower fails to make their mortgage payments. When a home is foreclosed upon, the lender typically repossesses and attempts to sell the house.
Foreclosure Relief Scam: The fraudster claims to be or have an attorney or expert that can perform a very detailed review of your mortgage agreement. They have you pay them for this review and give you false hope that the report will allow you to avoid foreclosure, get a loan modification, change the amount owed, or even cancel the loan.
Foreign Transaction Fee: A surcharge on your credit card bill that appears when you make a purchase that either passes through a foreign bank or is in a currency other than the US dollar.
Forged Check: A check where the drawer's signature has been forged to draw money from a bank.
Forgery: The crime of falsely and fraudulently making or altering a document.
Form W-2 Wage and Tax Statement: Filed by employers with the IRS and submitted to the employee that reports an employee's annual wages and the taxes withheld.
Form W-4 Employee's Withholding Allowance Certificate: A tax document that employees fill out when they begin a new job. It tells the employer how much to withhold from n employee's paycheck for taxes.
Fraud: Wrongful or criminal deception intended to result in financial or personal gain.
Fraud Alert: A notification you can add to your credit report, instructing anyone receiving a credit application in your name to verify your identity before processing the application. Texas Bay also offers fraud alerts on a variety of our products.
Fraudulent Charge: When an unauthorized third party card is used, obtaining services, credit, or funds through misrepresentation of identity or information (someone steals your credit card number).
Frozen Account: The bank suspends certain transactions, usually withdrawals.
Funds: A sum of money saved or made available for a particular purpose.
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Gap Insurance: Insurance that covers the difference between what a vehicle is worth and what is owed on the auto loan.
Garnishment: A court order directing that money or property of a third party (usually wages paid by an employer) be seized to satisfy a debt.
General Ledger: An accounting term referring to the record-keeping system for a company's financial data, with debit and credit account records validated by a trial balance. It is the foundation of a company's double-entry accounting system.
Generational Wealth: Assets passed down from one generation of a family to another.
Gig Economy: A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
Goal: The subject of a person's ambition or effort; an aim or desired result. Texas Bay helps members' reach their financial goals.
Goods: 1) Consumer - Goods sold to consumers for their use or enjoyment. 2) Public - A commodity or service that is made available to all members of society, often provided for free through public taxation.
Government Benefits Card: A prepaid debit card option for federal or state benefit recipients to receive their benefits electronically. Benefits are directly deposited onto the card account.
Grace Period: Allows a borrower or insurance customer to delay payment for a short period of time beyond the due date. During this period, no late fees are charged, and the delay cannot result in default or cancellation of the loan or contract.
Grant: Money set aside by the State of Texas and the federal government for students who need to pay for college. Grants are often called "Gift aid" because they do not need to be repaid.
Gross Income: Related to a paycheck, this is the amount before taxes and other deductions are taken out of the paycheck.
Guaranteed Growth Investment: A Texas Bay flexible term Certificate of Deposit (CD). You choose the term, we give you a great rate!
Guarantor: Someone who guarantees to pay another borrower's debit if they default on the loan obligation.
H
Health Savings Account: A type of savings account offered by a health insurer that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.
healthCAR: A type of warranty service offered through Texas Bay. Pricing up to 70% less than warranties offered at dealerships, no long-term contracts, and more.
Hold: 1) Securities/Investments - An analyst's recommendation to neither buy nor sell a security. 2) Funds Availability - Texas Bay reserves the right to put a hold on all of part of the funds deposited in the form of a check.
Home Equity Line of Credit (HELOC): A line of credit secured by the equity in your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans such as credit cards.
Home Equity Loan: Allows you to borrow money using the equity in your home as collateral.
Homeowner's Insurance: A policy that covers damage to your home, property, personal belongings, and other assets in your home. Required by mortgage lenders.
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Identity Theft: When someone uses your personal or financial information without your permission. It can damage your credit status and cost you time and money.
Imposter Scam: A scammer may call, text, or email to convince you they are someone in authority.
Impulse Purchase/Buying: The sudden and immediate purchase of a product without any pre-shopping intention; it is not consciously planned.
Inactive Account: A checking or savings account is considered Dormant or Inactive if the account has had no deposit or withdrawal activity (other than posting dividends) for more than one year.
Inactivity Fee: A service charge on an account when there is no activity for a specified period of time. See Inactive Account above.
Income: Money received, especially on a regular basis, for work or through investments.
Income Tax: A type of tax governments impose on income generated by businesses and individuals within their jurisdiction. Texas does not have a state income tax.
Individual Retirement Account (IRA): An account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. Two types: Roth and Traditional.
Inflation: The rate at which prices for goods and services rise.
Installment Loan: A common type of loan that's used to pay for a car, house, or other large purchase where you borrow a lump sum of money and you repay it in regular payments - installments - over a period of time.
Insufficient Funds: When the account holder does not have enough money to cover a check, direct debit, or other withdrawal.
Insurance: A contract (policy) in which an insurer indemnified another against losses from specific contingencies or perils. Texas Bay Insurance Group was voted Houston's 2023 #1 Insurance Agency!
Insurance Premium: The amount you pay to your insurer regularly to keep a policy in force.
Insured: 1) Adjective - Covered by insurance. 2) Noun - A person or organization covered by insurance.
Insured Deposits: At Texas Bay, all deposit accounts are insured for up to $500,000 through the NCUA and ESI.
Insurer: The person or company that underwrites an insurance risk.
Interest: the monetary charge for borrowing money - generally expressed as a percentage, such as an annual percentage rate (APR).
Interest Capitalization: The addition of unpaid interest to the outstanding principal balance of a loan. When your unpaid interest capitalizes, it increases the outstanding principal amount due on your loan.
Interest Rate: See Interest above.
Invest: Expend money with the expectation of achieving a profit or material results by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.
Investment: An asset or item acquired with the goal of generating income or appreciation.
Investment Fees: Fees charged to use financial products, such as broker fees, trading fees, and expense ratios.
Investment Fraud: When people try to trick you into investing money. They may give you fake information about a real investment or make up a fake investment opportunity. Often, they will tell you an investment opportunity is time sensitive.
Irregular Income: An income where the amount differs each pay period. An example would be a commission-based position.
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Joint Account: A bank or brokerage account shared by two or more individuals.
Jumbo Certificate of Deposit (CD): A type of CD that requires a higher opening amount and generally pays a higher rate. At Texas Bay, Jumbo CDs require $50,000 minimum to open.
Jumbo Mortgage: A type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). It cannot be purchased, guaranteed, or securitized by Fannie May or Freddie Mac.
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Kiting: The fraudulent use of a financial instrument to obtain additional credit that is not authorized.
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Late Charge/Fee: A charge imposed on a consumer who fails to make the payment on a debt or other financial obligation by the due date.
Lease: 1) Rental Property - A contract outlining the terms under which one party agrees to rent an asset. 2) Auto Lease - A type of auto financing that allows you to "rent" a car for a certain length of time and amount of miles. At the end of the lease, you either pay off the balance or turn the car back in. It often offers a lower monthly payment. Texas Bay offers a Save Easy Auto Loan that is similar to a lease, but the title is in your name.
Lend: Grant to someone the use of something on the understanding that it will be returned.
Lender: An individual, group, or financial institution that makes funds available to a person or business with the expectation that the funds will be repaid, including interest.
Liability: Something a person or company owes, usually a sum of money.
Lien: A claim or legal right against assets that are typically used as collateral to satisfy a debt.
Limited Liability: A legal status in which a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company, or partnership.
Line of Credit (LOC): A flexible loan from a financial institution that consists of a defined amount of money that you can access as needed.
Linked Account: An account connected to another financial institution in some way. Did you know you can link accounts at other financial institutions in your Texas Bay app and transfer between them?
Liquidity: refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.
Loan: When money is given to another party in exchange for repayment of the loan principal amount plus interest.
Loan-to-Value Ratio (LTV): The amount of the loan compared with the value of the property.
Loan Contract: A written document outlining the terms and conditions agreed upon between the lender and the borrower.
Loan Fee: Fees charged to originate a loan. They are typically calculated as a percentage of the total loan amount.
Loan Modification Provision: Typically granted to a borrower in a financial crisis who can't repay the loan under its original terms. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
Loan Proceeds: The funds disbursed to the borrower according to an agreement or as part of a loan.
Local Check: A check deposited in a depository bank that is located in the same Federal Reserve check-processing region as the paying bank.
Long-Term Goals: Something you want to accomplish in the future. They require time and planning, not something you can do this week or even this year. They are usually several years away and often take many steps to complete.
Love My Credit Union Rewards (LMCUR): A program offered through Texas Bay Credit Union with benefits like discounts on tax services, and mobile and services.
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Mail Fraud Scam: Mail scammers will try to get your attention in various ways. Regardless of their tactics, the goal of a mail scam is to get you to either send money or provide your personal information.
Maturity (Date): 1) Loan - The date on which the principal amount of a debt instrument becomes due. It also refers to the termination or due date on which an installment loan must be paid back in full. 2) Certificate of Deposit - The date on which the certificate terminates and the depositor can withdraw the original deposit and interest/dividends earned without penalty.
Membership Agreement: A contract between an organization (credit union) and its members. It outlines the terms and conditions of the membership. You can find Texas Bay's Membership Agreement HERE.
Merchant Services: The umbrella term for various payment-related business support services and equipment. Provider offerings vary and are usually tailored to each merchant, depending on its needs. Did you know Texas Bay offers merchant services to its business members?
Military Lending Act (MLA): This Act implemented by the Department of Defense (DoD) protects active duty members of the military, their spouses, and their dependents from certain lending practices.
Minimum Balance: The minimum amount of money needed in an account to avoid fees. The account cannot drop below this amount at any time.
Minimum Daily Balance: The minimum balance that requires account holders to have in their accounts each day in order to avoid fees. The daily balance is the balance at the end of each day after all deposits and withdrawals have been processed.
Minimum Payment: Generally referring to credit card payments, it is the lowest amount you can pay each month to keep your account in good standing. Making at least the minimum payment on your credit cards every billing cycle avoids late fees, penalty APRs, or derogatory marks on your credit reports.
Minimum Wage: See Federal Minimum Wage.
Mobile Banking: The act of making financial transactions on a mobile device (cell phone, tablet, etc.). Advantages to mobile banking include the ability to bank anywhere at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.
Money: Money can be anything that can serve as a store of value (can be saved and used over time), a unit of account (provides a common base for prices), or a medium of exchange can be used to buy and sell between parties).
Money Market Deposit Account: A type of deposit account offered by financial institutions that typically earn higher interest/dividend rates than other types of savings accounts, usually with a limited number of transactions that can be made by check, debit card, or electronic transfer. Texas Bay offers the Bonus Money Fund with unlimited transactions and a minimum balance of $500.
Money Order: A safe alternative to cash or a personal check, usually issued by a government or financial institution.
Monthly Fee: A monthly charge to cover the cost of maintaining a loan or deposit account.
Mortgage: A type of loan used to purchase or maintain a home, plot of land, or other types of real estate. Texas Bay offers a variety of mortgages to suit just about anyone's needs, including a First Time Homebuyers program and a Quick Close Mortgage.
Mortgagee: The lender of a mortgage.
Mutual Fund: A financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets.
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National Credit Union Administration (NCUA): Created by Congress in 1970, the NCUA is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions. Texas Bay is a State of Texas-regulated credit union that pays for deposits to be covered by the NCUA, as well as ESI.
National Flood Insurance Program (NFIP): A federal insurance program managed by FEMA and delivered to the public by a network of more than 50 insurance companies.
Needs: Referring to a budget, it's your daily expenses and short-term spending. Think groceries, gas, car payments, rent or mortgage payments, and other costs associated with basic needs of shelter, food, and transportation.
Net Income: 1) Personal - Your paycheck amount after taxes, fees, and other deductions are subtracted from your gross pay. 2) Business - Also called Net Earnings, the amount calculated as sales minus the cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses.
Net Worth: The value of assets a person or organization owns, minus the liabilities they owe.
Non-Profit: A legal entity organized and operated for a collective, public, or social benefit. Any revenues that exceed expenses must be committed to the organization's purpose, not taken by private parties.
Not-For-Profit: A legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives. Any revenue generated by its activities must be put back into the organization. Credit unions are not-for-profit, putting revenues back into the organization through lower loan rates higher deposit rates, and improving technology and systems to serve the membership. Banks are for-profit entities.
Non-Sufficient Funds (NSF): See Insufficient Funds.
Notary Public: An official of integrity appointed by a state government to serve the public as an important witness in performing a variety of official fraud-deterrent acts related to the signing of important documents. Texas Bay offers notary services to members for FREE.
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Occupation: A person's usual or principal work or business, especially as a means of earning a living.
Online Banking: A method of banking in which transactions are conducted electronically via the internet; typically referring to access via a computer vs. mobile banking. Texas Bay offers online banking through our website, simply click on the Login button above!
Online or Mobile Bill Payment: An electronic system offered by a financial institution that allows account holders to pay bills.
Open-End Credit: A type of loan that the borrower can draw money from repeatedly up to a certain pre-approved limit. EX: Line of credit and credit cards.
Opportunity Cost: The potential benefits that a business, an investor, or an individual consumer misses out on when choosing one alternative over another.
Origination Fee: An upfront fee charged by a lender to process a new loan application. These are common with mortgages and student loans. However, there are no origination fees on student loans through Texas Bay!
Out-of-Pocket Cost: Payments you make with your own money that may or may not be reimbursed later by an employer or insurance company.
Outstanding Check: A check that has not yet been deposited or cashed by the recipient.
Overdraft: When you don't have enough money in your account to cover a transaction, but the bank pays the transaction and your account is taken into the negative.
Overdraft Protection: An agreement with your financial institution to cover overdrafts on a checking account. Texas Bay offers Courtesy Pay for traditional transactions, and additionally, Extended Coverage for additional transactions.
Overdraw: When you draw money from an account in excess of what the account holds.
Over-the-Limit: Any extension of credit by a lender to complete a transaction that causes the borrower's account balance to exceed the credit limit.
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Paper Check: A form of payment that draws money directly from a checking account.
Password: A secret word or phrase that must be used to gain admission to something.
Past Due: Refers to a payment that has not been made by its cutoff time at the end of its due date.
Payday Loan: A short-term, high-cost loan, generally for $500 or less that is typically due on your next payday.
Pay Period: A regularly scheduled duration of time when workers earn wages that will be paid to them on their next paycheck.
Payee: The party in an exchange of goods and services who receives payment.
Payoff: The amount you actually have to pay to satisfy the terms of a loan and completely pay off your debt. Your payoff amount is different from your current balance. This typically refers to mortgages and auto loans.
Payroll: The compensation a business must pay to its employees for a set period or on a given date.
Payroll Card: A prepaid card employers can use to pay an employee's wages or salary each payday. Payroll cards allow employers to pay employees who do not have bank accounts and include the ability to pay bills and shop online.
Payroll Deduction: Wages withheld from an employee's total earnings (gross pay) for the purpose of paying taxes, garnishments, and benefits like health insurance.
Payroll Tax: Social insurance taxes employers withhold from employee wages for federal income tax, Medicare, and Social Security. These withholdings are deposited with the federal government.
Peer-to-Peer (P2P) Payment: Electronic transactions between two parties with separate bank accounts. Texas Bay offers Zelle® to make these P2P transactions.
Perks Checking: Texas Bay checking accounts that offer great benefits through the BaZing network. Two levels: Perks and Perks Premium, with the latter earning interest.
Personal Identification Number (PIN): A numerical code issued with a payment card (debit or credit) that is required to be entered to complete various financial transactions.
Personal Line of Credit (LOC): Unsecured, open-ended loans where the borrower can draw from as needed and only pays interest on the amount used.
Personal Loan: Unsecured loans that can cover a number of personal expenses.
Phishing Scam: A type of online scam that targets consumers by sending them an email that appears to be from a well-known source.
Point-of-Sale (POS): A place where a customer executes the payment for goods or services and where sales taxes may become payable. Did you know Texas Bay offers POS services to businesses?
Policy: Related to insurance, it is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured).
Policyholder: The person who owns the insurance policy. As the purchaser of an insurance policy, you are the policyholder.
Premium: Related to insurance, the amount you pay to your insurer regularly to keep a policy in force.
Prepayment: The settlement of a debt or installment loan in advance of its official due date.
Prepayment Penalty: A fee that some lenders charge when you pay all or part of your loan off early.
Previous Balance: The amount carried over from previous months' bills.
Prime Rate: The interest rate banks use as a basis to set rates for different loans, credit cards, and lines of credit.
Principal: The money actually received from a lender that needs to be repaid, along with interest and fees, during the loan period.
Principal Balance: The amount due and owed to satisfy the payoff of an underlying obligation. It is distinct from and does not include interest or other charges.
Private Mortgage Insurance: A type of mortgage insurance you might be required to buy if you take out a conventional loan with a down payment of less than 20% of the purchase price. It protects the lender - not you - if you stop making payments on your loan.
Private Student Loans: Loans made by a lender that are not funded by the federal government.
Promissory Note: A written and signed promise to repay a sum of money in exchange for a loan or other financing. It normally contains all the terms involved, such as the principal debt amount, interest rate, maturity date, payment schedule, the date and place of issuance, and the issuer's signature.
Profit: A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Property Tax: A tax paid on property owned by an individual or other legal entity, such as a corporation. Texas does not have a state property tax. Typically, property taxes in Texas are assessed and collected by school districts, cities, counties, water districts, etc.
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Quick Close Mortgage: A mortgage offer by Texas Bay that can close in as little as 15 business days.
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Raise: An increase in wages or salary.
Ransomware: A type of malicious software designed to block access to a computer system until a some of money is paid.
Rate of Return: The net gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost. It is used to measure the profit or loss of an investment over time.
Real Estate: Real property that includes land and anything permanently attached to it or built on it, ,whether natural or manmade.
Rebate: An incentive which a manufacturer or supplier offers customers a retroactive discount when they purchase a product or service.
Reconciliation: An accounting procedure that compares two sets of records to check that the figures are correct and in agreement. Reconciliation also confirms that accounts in a general ledger are consistent and complete. Reconciliation can be used for personal as well as business purposes.
Recreational Vehicle (RV): A motor vehicle or trailer that includes living quarters designed for accommodation, such as motorhomes, campervans, coaches, etc.
Refinance (Refi): The process of revising and replacing the terms of an existing loan or mortgage.
Regular Income: Income, such as wages or pension benefits, that is received at a fixed or uniform intervals.
Release of Lien: When a loan is paid off, the lender should issue a release of lien for the property. In the case of a car, a release of lien is required to remove the lender from the title. In the case of a home, this usually refers to a document provided by a contractor once they have been paid for work performed in your home.
Renewal: The action of extending the period of validity of a license, subscription, or contact.
Repayment: The amount of money paid back on a loan.
Residual Interest: Referring to credit accounts, the interest incurred between billing cycles. IE the interest incurred on balances not paid off during the previous billing period.
Return: The measure of an investment's total interest, dividends, and capital gains, expressed as a financial gain or loss over a specific timeframe.
Returned Item Fee: Charges assessed when you don't have enough money in your account to cover check, transfer, or other form of cash flowing out. Different from overdraft, in that the item is not paid.
Revolving Credit: A credit line that remains available event as you pay the balance. EX: A line of credit.
RFID Technology: Radio Frequency Identification uses a type of passive wireless technology that allows for tracking or matching of an item or individual. EX: Tap pay and pet microchipping.
Right of Offset: A financial institution may take money from your deposit account(s) to make a payment on a loan or credit card if you are not paying that loan on time and the terms of your contract(s) with the bank allow it.
Right of Rescission: Set forth by the Truth in Lending Act (TILA), the right of a borrower to cancel a home equity loan or home equity line of credit (HELOC) with a new lender, or to cancel a refinance transaction done with another lender other than the current mortgagee, within three days of closing.
Risk: In financial terms, the chance that an outcome or investment's actual gains will differ from an expected outcome or return.
Romance Scam: Scammers create fake profiles on dating sites and apps or contract you through social media sites to strike up a relationship. They build trust and eventually ask for money or the equivalent of money (like gift cards).
Roth Retirement Account: Contributions are deducted from after-tax income. IE Taxes are paid up front and therefore, no tax is due on withdrawals.
Routing Number: The 9-digit number identifying your financial institution in a financial transaction. On checks, this is found in the set of number at the bottom, being the first 9 digits. This is required for setting up direct deposit of your paycheck or tax refund. Texas Bay's routing number is found in the website at the top of each page: 313082935.
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Safe (or Safety) Deposit Box: An individually secured container, usually a metal box, that stays in the safe or vault of a federally insured financial institution. They are designed to withstand natural disasters and are used to keep valuables, important documents, and sentimental keepsakes protected.
Salary: A set amount of money you earn with each paycheck, regardless of how many hours you work.
Sales Tax: A consumption tax imposed by a governmental entity on the sales of goods and services. Texas' current sales tax is 6.25%. The City of Houston imposes a 1% sales tax and Metropolitan Transit Authority of Harris County imposes another 1%.
Satisfaction of Mortgage: Once a mortgage is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property.
Save (money): Keep and store for future use.
Save to Win CD: A CD offered by Texas Bay that participates in the Save to Win program where depositors can open the CD with as little as $100 and get entries into monthly and quarterly drawings of up to $5,000. Each $25 increase in the monthly balance earns a drawing entry for that month and quarter.
Savings: The money you have left over after spending and other obligations are deducted from earnings.
Savings Account: A deposit account that earns interest/dividends.
Savings Goal: Something you are saving to have in the future. EX: Emergencies, vacations, or large purchases.
Scam: A dishonest scheme; a fraud.
Scholarship: A grant of payment made to support a student's education, awarded on the basis of academic or other achievement. Texas Bay gives away scholarships each year to deserving local graduating high school students. Watch the website starting in December for information. Applications are typically due by the end of March.
Secured Credit Card: A type of credit card that is backed by a cash deposit from the cardholder. Texas Bay offers secured credit cards for those building or rebuilding their credit.
Secured Loan: A loan that is secured by a specific form of collateral, including physical assets, such as property and vehicles, or liquid assets, such as cash.
Security: 1) The collateral of a secured loan. 2) A convertible and tradable financial instrument used to raise capital in public and private markets.
Service Charge: A fee collected to pay for service related to the primary product or service being purchased.
Services (financial): A task that someone performs for you in the process of obtaining a financial product.
Share: Unit of ownership in a corporation or financial assets owned by investors who exchange capital in return for these units.
Share Savings Account: A savings account that establishes membership in a credit union.
Share Secured Loan: A loan that lets you borrow money using your savings account balance as collateral. While it is collateral, it cannot be withdrawn, but you will continue earning dividends on the whole balance.
Shared Branching: A coop shared branch national network that allows members of participating credit unions to do their banking at any credit union in the network. Texas Bay participates in this network, offering members thousands of convenient locations worldwide in which to perform most basic financial transactions.
Short-Term Goals: Something you want in the near future.
Signature Guarantee: A form of authentication, issued by a financial institution, which verifies the legitimacy of a signature and the signatory's overall request; often require when an individual investor wants to sell or transfer securities held in physical certificate form.
Signature Loan: A loan that uses the borrower's signature and promises to pay as the sole collateral for receiving the loan.
Silent Bank Run: When a financial institution's depositors withdraw funds in large volumes without physically entering the bank. See also Bank Run.
Simplified Employee Pension (SEP) Plan: A plan that provides business owners with a simplified method to contribute toward their employees' retirement as well as their own retirement savings.
Simple Interest: An interest charge that borrowers pay lenders for a loan. It is calculated using the principal only and does not include compounding interest.
Skip-a-Pay: A program that allows you to skip a loan payment on qualifying loans. Texas Bay offers this program twice a year: July and December.
SMART Goals: Goals that are Specific, Measurable, Achievable, Relevant, and Time-Bound.
SMishing: The fraudulent practice of sending text messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords or credit card numbers. EX: Account verification scams.
Social Security: The federal program designed to pay retired workers, age 65 and older, a continuing income after retirement.
Social Security Number (SSN): Created to keep track of the earnings history of US workers for Social Security entitlement and benefit computation purposes. It has come to be used as a nearly universal identifier. Getting a SSN for a newborn is voluntary, but may be necessary to obtain important services for your child.
Solvency: The ability of a company to meet its long-term debts and other financial obligations.
Spend: An amount of money paid for a particular purpose or over a particular period of time.
Spoofing: A type of scam in which a criminal disguises an email address, display name, phone number, text message or website URL to convince a target that they are interacting with a known, trusted source.
Starter Loan: Personal loan for individuals with little no credit in order to build their credit.
State Income Tax: A direct tax levied by a state on income earned in or from the state. 42 states and Washington, DC impose a state income tax, however Texas does not
Statement (bank): A record, typically sent to the account holder every month, summarizing all transactions in an account during a set time period.
Stock: Represents a share in the ownership of a company, including a claim on the company's earning and assets.
Stockholder: A partial owner of a company, holding stock in the entity.
Stop Payment: A formal request made to a financial institution to cancel a check or payment that has not yet been processed.
Student Aid Report (SAR): An electronic or paper document that gives you some basic information about your eligibility for federal student aid.
Student Loan: Money you borrow from the federal government or a private organization to pay for college expenses and repay it later with interest.
Student Loan Servicer: A company assigned by the federal government to handle the billing and other services on your federal student loan.
Subscription: The act of making or agreeing to make an advance payment in order to receive or participate in something.
Surcharge-Free ATMs: An ATM that does not charge transaction fees for withdrawals. Texas Bay participates in the Allpoint ATM Network, offering over 55,000 surcharge-free ATMs worldwide.
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Tariff: A tax or duty to be paid on a particular class of imports or exports.
Tax Credit: A dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.
Tax Deduction: The amount you can deduct from your taxable income (see below) to lower the amount of taxes you owe.
Tax Refund: Refers to a reimbursement made to a taxpayer for any excess amount paid in taxes.
Taxable Income: The portion of your gross income used to calculate how much tax you owe in a given tax year.
Tax-Related Identity Theft: When someone uses your stolen personal information, including your Social Security number, to file a tax return claiming a fraudulent refund.
Tax Return: Documentation filed with a tax authority that reports income, expenses, and other relevant financial information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.
Tax Revenue: Money collected by a government body from its constituents for public spending.
Taxes: Mandatory contributions levied on individuals or corporations by a government entity. Tax revenues (see above) finance government activities, including public works and services.
Term: An asset, liability, or security's time over which conditions of a contract will be carried out; it can also refer to the provisions to a contract.
Time Deposit: A deposit in an account that cannot be withdrawn before a set date or for which notice of withdrawal is required. EX: Certificate of Deposit (CD).
Tip: 1) Income - A sum of money given to someone as a reward for their services. 2) Advice - A small but useful piece of practical advice.
Tip Income: Tips received directly from customers.
Traditional Retirement Account: Employee contributions are deducted from gross income before income taxes are deducted. This reduces the amount of taxable income (see above). Taxes are not due until money is withdrawn from the retirement account, usually in retirement.
Transaction: 1) Business - The act of conducting business. 2) Financial - A completed agreement between a buyer and a seller to exchange goods, services, or financial assets in return for money.
Transaction Fee: The charge to a consumer for using an account or payment card.
Transfer: The move of assets, monetary funds, or ownership rights from one account to another.
Traveler's Check: A check for a fixed amount that can be cashed or used in payment after endorsement with the holder's signature.
Trust Account: A legal arrangement in which the grantor allows a third party, the trustee, to manage assets on behalf of the beneficiaries of the trust. A trust can provide legal protection for your assets and make sure those assets are distributed according to your wishes. Texas Bay does offer trust accounts!
Trust Administrator: A person or entity charged with managing a trust. Duties include communicating with beneficiaries, filing tax returns, accounting and reporting of trust, settle debts, handle disbursements, etc.
Truth in Lending Act (TILA): Protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so you can comparison shop.
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Unauthorized Charge/Use: Referring to credit card accounts, it is when someone other than the cardholder or a person that has the actual, implied, or apparent authority to use a credit card and the cardholder receives no benefit from the use. To limit your liability, it is important to notify your card issuer promptly upon discovering any unauthorized charges.
Uncollected Funds: The portion of a check deposit that remains unavailable to the accountholder who made the deposit until the financial institution verifies the funds associated with the deposit have been received by the depositor's financial institution.
Unbanked: Those not served by a financial institution.
Underbanked: An area with insufficient financial institutions to meet market demand.
Underwriter: Any party, usually a member of a financial organization, that evaluates and assumes, for a fee, another party's risk in mortgages, insurance, loans, or investments.
Unearned Income: Income not acquired through work or business activities. EX: Inheritance money and interest/dividends earned on deposit accounts or from investments.
Unsecured Loan: A loan that doesn't require any type of collateral. EX: Personal loan.
US Savings Bond: A bond issued by the federal government where you lend money to the US government and they agree to pay that much money back later, with interest earned.
USD Coin (USDC): A digital currency (cryptocurrency) that is fully backed by US dollar assets.
Usury: The illegal action or practice of lending money at an unreasonably high rate.
Usury Rate: An interest rate deemed to be illegally high.
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Value: Can be a quantity or number, but in finance, it's often used to determine the worth of an assets, a company, and its financial performance.
Variable Expenses: Costs that change in amount or occurrence. These are more difficult to plan for, as they vary depending on several factors, such as unforeseen events and discretionary spending.
Variable Rate: An interest rate the fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically with the market.
Veteran's Administration (VA): The largest integrated health care system in the US offering services to those who served in the US Military.
Virtual Banking: Access to banking services without visiting a physical location - such as online banking or mobile banking.
Virtual Currency: A digital representation of value only available in electronic form. EX: Cryptocurrency.
Vishing: The fraudulent practice of making phone calls or leaving voice messages purporting to be from reputable companies in order to induce individuals to reveal personal information.
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Wage: A fixed regular payment, typically paid on an hourly, daily or weekly basis, made by an employer to an employee.
Wants: In a budget, something that is desired, but not necessary.
Warranty: A product manufacturer or service provider's documented guarantee of quality as promised to a customer. Warranties provide customers with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the duration of its term.
Wire Transfer: An electronic transfer of funds via a network that is administered by financial institutions and transfer service agencies around the world.
Wire Transfer Fraud: When a scammer poses as a trusted source, usually a vendor, company or family member, and requests an immediate wire transfer of funds.
Withholding Tax: A set amount of income tax that an employer withholds from an employee's paycheck.
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Yield: A measure of interest that takes into account fluctuating changes in value.
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Zelle®: A way to send money directly between almost any US bank account, typically within minutes. Texas Bay offers Zelle® through our online and mobile banking. There is no fee to use Zelle®.
Zogo: A FREE financial education app that rewards you for learning.