A bounced check is nothing but an ordinary bank check that any bank can refuse to encash or pay because of the fact that there are no sufficient finances in the bank account of the originator or drawer of the check. Cash advance fee is basically charged when a person uses a credit card to obtain cash. The market value is the equilibrium point on the supply and demand graph, where the demand and supply curves meet. The party that assigns the contract is the assignor and the party who receives the assignment is the assignee. The bridge loan also known as a swing loan, is basically a real estate loan or a home loan, where the current residence/real estate is pledged by the borrower as a collateral in order to purchase a new residence. For example, purchase of gold in one nation and the simultaneous sale in another nation, (international markets) to achieve profit. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Banking Ombudsman: Banking Ombudsman is a quasi-judicial authority, which functions under India's Banking Ombudsman Scheme 2006. Performance & security by Cloudflare, Please complete the security check to access. A balance transfer is the repayment of a credit debt with the help of another source of credit. We also use third-party cookies that help us analyze and understand how you use this website. When the monthly payment is unable to cover the principal and the interest due, there is a slow increase in the mortgage debt. The average annual yield that an investor receives because he holds it for life or till the maturity date is known as the yield to maturity. Rate it: RET: Real Estate Trainers. A service which permits a verification account to be connected to other savings or line of credit for facilitation of protection against overdraft is called overdraft protection. Adjustable rate mortgage or ARM is basically a type of loan, where the rate of interest is calculated on the basis of the previously selected index rate. The accommodation maker usually receives no direct financial benefit from the loan. As the name suggests, it is a check or rather an amount of check, which is above the balance available in the account of the payer. As a return favor, the broker overpays the investor for the security or the investment that he wants to get rid of. Banking overachievement: By not restricting the years in which a Large-scale Generation Certificate (LGC) may be surrendered, the RET scheme permits unlimited banking of overachievement. Analytical solutions, also known as closed form solutions, are simple mathematical techniques and models, used to calculate projections and interest rates by the lending, banking, and finance organizations. A fixed rate mortgage is a home loan, for which the interest rate remains constant and fixed throughout the lifetime of loan. The customer is issued a safekeeping receipt, which indicates that the assets do not belong to the bank and they have to be returned to the customer, upon his request. This WealthHow article presents to you a glossary of banking terms and definitions that might help resolve your doubts. An analytical VAR is basically the measurement of a financial instrument, portfolio of the financial instruments or an entity’s exposure to the reductions in its value resulting from changes in the prevailing interest rates. We hope you enjoy this website. Cash money or liquidity that member banks need to hold with the Federal Reserve System. It is not an account from where you may use money for everyday purposes. In short, a transfer of money, which can be used by the recipient on the same day of transfer and this provision is subject to the net settlement of accounts between the bank, through which the money is sent and the receiving bank. This term is also known as carryback loan or seller’s second. It is a numeric coding that indicates and facilitates the amount of check payments, balances, and dues that are to be cleared among different banks at the clearing house. The part of the conglomerated benefit obligation under a specified benefit plan to which the workers possess a legal right, even if their employment is terminated before retirement. Account reconciliation is usually done at the end of a week, month, financial year or at the end of any financial period. A person who finds a buyer for the seller of a property and aids the latter in negotiation, in lieu of a commission. The term ‘fixture’ is used in the context of a real estate property, when assets, like furniture, are attached to the real estate and are also included in its book value. These terms hold universal meaning for buyers and sellers around the world. Get in touch with us and we'll talk... Reference: To know more on account reconciliation read: Steps to Account Reconciliation and Purpose of Bank Reconciliation Process, Reference: Read more on Mortgage Loan Underwriting, Reference: The column ‘What is Amortization?’ will give an even better explanation about amortization period, Reference: To know more about Annuities, you may also read more on Fixed Annuities Explained andAnnuities Pros and Cons, Reference: To know more on Capital you may also refer to Venture Capital. In the field of banking and finance, accretion is the process where the price of a bond that has been bought at a discount is changed to the par value of the bond. A series of the rate of paying finances in advance, in succession that is chosen to contemplate an assumed rate of interest scenario. As-extracted collateral are extracted or non-extracted minerals created by a debtor having an interest in minerals, and are subject to security interest, either before or after extraction. The cash reserve is the total amount of cash that is present in the bank account and can also be withdrawn immediately. A whole life insurance is a contract between the insurer and the policy owner, that the insurer will pay the sum of money on the occurrence of the event mentioned in the policy to the insured. Sometimes, an account statement also carries some precise details, like the date of transaction, code of transaction, mode of transaction, sales, purchases, etc. or that is) the lender can demand the full amount of loan before the date of maturity. Posting date is the date on which outdoor advertisements hit the markets. The term ‘absorption time’ is used to define the time period that is required to complete the process of absorption. This is the sum of money that an option’s premium surpasses its intrinsic worth, and is also known as ‘time premium’. ABM - Automated banking machine. Usually these dates are in multiples of five. Interest rate is the percentage of principal amount that is paid as an interest for the use of money.