Glossary
A
Annual percentage rate (APR)
The cost of credit expressed as an annual rate.
Annual percentage yield (APY)
A percentage rate reflecting the total amount of interest paid on any account, based on the interest rate and compounding for a one year period.
Automatic payment
A pre-authorized payment deducted automatically from an account to pay recurring bills. Payments are usually scheduled for the same calendar day of the month.
Automatic transfer
A pre-authorized transfer that moves funds from one account to another within the institution automatically. Automatic transfers are scheduled to be made on the same day of the month; for example, the 1st and the 15th of every month.
Automated clearing house (ACH)
The networks used as a means to transfer money electronically between accounts at different institutions, usually in one day.
C
Credit
Increases in an account (such as a deposit made to the account).
Credit card
A plastic card issued to an individual for the purpose of purchasing goods and services using credit; a credit limit is established for each card holder.
Credit rating
For individuals, credit rating is based on your financial resources and
credit history. Your total debt level compared to your income level,
timeliness in paying bills, number of credit cards, and many other
factors are taken into consideration. Credit bureaus use credit
scoring to quantify to potential creditors how likely you are to
pay back a loan.
Consumers may obtain a copy of their credit reports from Trans Union, Equifax or Experian. Consumers can get a free annual credit report by going to annualcreditreport.com.
Credit score
A number that indicates an individual's creditworthiness. Credit bureaus determine the score with a statistical program. You are given points for such things as your credit card debt, number of cards, total debt level, and whether you rent or own your home. Even the number of inquiries from potential creditors can affect your score because a high number of inquiries may signal credit problems. Creditors use the score to decide whether to give you a mortgage, issue a credit card, or offer a small business loan.
D
Debit
Decreases in an account, such as that which occurs when a check is written against that account.
Direct deposit
Electronic deposit of wages or benefits, such as pension or social security, into a personal bank account; deposits are handled through the automated clearing house (ACH).
F
FHA Modernization Act
With the passage of the FHA (Federal Housing Authority) Modernization Act, you may be able to receive more money from a reverse mortgage than ever before. The FHA Modernization Act is designed to improve the Federal Housing Authority’s ability to help Americans get more affordable home loans.
Fixed rate
A rate of interest that does not vary for the term of the loan or deposit.
I
Interest
The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value of money, the credit risk of the borrower, and the inflation rate.
Interest rate
The annual rate paid on an interest-bearing account, such as a savings and CDs, which does not reflect compounding; also, the rate charged on a loan or line of credit not reflecting other costs than interest. Different types of accounts and loans pay or charge different rates of interest. The interest paid on an interest-bearing account is usually expressed as an Annual Percentage Yield. The rate charged on a loan is usually expressed as an Annual Percentage Rate.
Interest transfer
A process that allows interest earned in one account to be transferred to another account.
M
Mortgage loan
A consumer loan secured by residential real estate, usually the borrower's primary residence. May be used to purchase or refinance a home or property, with payments usually spread over 15 to 30 years.
O
Online banking
A service that allows a personal account holder to obtain account information and perform certain banking transactions through a personal computer.
Online Statements
All bank statements tied to the primary account owner are accessible by the primary account owner on the MetLife Bank website via the "Manage your Statements" menu.
P
Personal unsecured loans
These are loans, often obtained from a bank, savings and loan, or credit union, that require no collateral and are not "secured" by any real assets.
R
Random Payment Verification
A quick and easy method of expediting the external account verification process that is required when either registering an external bank account, or funding a new MetLife Bank account. The process requires verification of 2 small payments made to an external account, and it is a process that results in faster access to funds.
Return
The profit earned on an interest bearing account, expressed as an Annual Percentage Yield.
T
Total net worth
Your total net worth is the total of all of your assets (stocks, bonds, bank accounts, home equity, real estate, personal property, business receivables, notes receivable, and so on) minus the total of your liabilities (outstanding loans owed, credit card balances, taxes payable, bills payable, etc.)
U
Uncollected funds
Refers to items deposited in an account that have not yet been collected, or paid, by the bank on which they were drawn.
V
Variable rate
An interest rate that may fluctuate during the term of a loan, line of credit, or deposit account, according to changes in an index rate, such as the prime rate or other prescribed criteria.
W
Wire transfer
An electronic payment service for transferring funds by wire. These transfers may be conducted through the Federal Reserve Wire Network or the Clearing House Interbank Payments System, among others. Wire transfers are guaranteed funds for the recipient, meaning that the payment cannot be revoked by the sender after the transfer is made.
