Financial Terminology Library
Understanding common financial vocabulary can help you make informed decisions.
Financial jargon made simple
When it comes to buying a car or house, planning for retirement or preparing for another major financial event, understanding complex terminology can be overwhelming. Dominion Energy Credit Union is here to help you make sense of common financial terms so the next time you need to make a major financial decision, you have the vocabulary to set you up for success.
An electronic money transfer system for payments. These transactions are called electronic debits, or ACH (Automatic Clearing House) transactions, and are often managed through online banking. You may see ACH in front of transaction details on your account statement, meaning they handled the transfer. Real-life examples may include your monthly gym membership, Netflix or car insurance.
APR stands for annual percentage rate. It represents the annualized interest percent to be paid on your loans balance. APR includes any fees an institution may charge.
APY stands for annual percentage yield and is typically associated with deposits or investments. APY is the annual interest rate earned on qualifying accounts, representing the yearly amount of money returned to the owner. Certificates of Deposit/Savings Certificates, as well as special checking and savings accounts are common interest-earning accounts.
Automated teller or cash machine.
This is a plastic card that allows you to perform transactions on your account when you insert it into an ATM and enter your PIN.
The value of your account, either positive (credit) or negative (debt).
A person who is designated to receive distributions from a trust, 401(k) plan, IRA, will or life insurance policy is known as a beneficiary. For example, if you have a 401(k) plan through your employer and pass away suddenly, your beneficiaries will receive the money you’ve saved. Contact us to ensure your DECU account beneficiaries are set up as you wish.
A cashier’s check is a check guaranteed by the Credit Union. Cashier’s checks are treated as guaranteed funds because the Credit Union, rather than the purchaser, is responsible for paying the amount.
A check is a written order which instructs the Credit Union to pay a specific amount of money from your account to another person or organization.