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.
Electronic funds transfer, or EFT, refers to the many types of electronic payments, including direct deposit, online bill pay and electronic debits.
The actual portion of an asset you truly own. In real estate, it is the market value of your home minus the amount you still owe on your mortgage.
An estate plan is a document created by an attorney that outlines what will happen to your money and assets when you die or become incapacitated. Generally, the goal is to reduce taxes and make it easier for living family members to manage financial-related issues. Estate plans include specifics about how assets will be handled with heirs and how estate taxes will be addressed, as well as naming of beneficiaries for things like IRAs, 401(k) plans and life insurance policies. Estate plans also generally reference a person’s will.
An eStatement is an electronic version of your statement that you can view, print, or download at your convenience.
Fair Isaac Corporation is the largest and best known of several companies that provide software for calculating a person’s credit score.
A fixed interest rate loan is a loan where the interest rate doesn’t fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast, are anchored to the Prime Rate, the most common index for the base interest charged for most loans.
Fraud occurs when a transaction is attempted on an account that you have not authorized. This can happen as a result of your card details either being compromised or having been lost or stolen.
A Health Savings Account (HSA) is a tax-advantaged account created for individuals to save for medical expenses.
The percentage rate used to calculate interest on all money saved or borrowed.