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Annual Percentage Rate (APR)
The cost of credit annualized over a one year period including interest and fees. Since the APR includes interest and fees, it is the rate to use when comparing loans. The APR is most commonly shown as a percentage.
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Annual Percentage Yield (APY)
The percentage of dividends earned on deposit accounts (Savings, Money Markets, Certificates). The APY is shown as a percentage and assumes funds remain in the account for a 365-day year.
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Automated Teller Machine
(ATM)
Commonly referred to as an ATM, automated teller
machines provides 24/7 access to funds using an ATM card or Visa Check
Card. ATM machines offer many services including access to cash, balances,
account information and some may even sell stamps. San Diego County Credit
Union is a member of the CO-OP network which means members have access to fee-free withdrawals at over 25,000 CO-OP ATMs nationwide. See Surcharge.
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Balance
The amount of money in your account. For loans, the balance is the amount still owed on the loan.
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Balancing
Accounting for all the money deposited and withdrawn from your account. Also called reconciling.
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Budget
A plan you create to manage spending.
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Cashier's Check
An official credit union or bank check requested
by the member/customer and issued to another party.
Using a cashier's check instead of a personal
check guarantees to the receiving party that funds are immediately available for payment.
Typcially, credit unions and banks impose a fee for cashier's checks.
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Certificate Account
A savings investment that requires money to be invested for a specific period of time. In return, a Certificate guarantees the same rate for the entire time period and, in most cases, offers a higher APY than a traditional savings account. A minimum deposit is usually required.
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Check
A written, dated and signed legal document that allows the credit union or bank to take money out of your account for the payee.
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Check Register
A written record of all deposits to and withdrawals from your checking account, which includes checks you write. When your account statement arrives, the check register is used to balance or reconcile your account. Since it may take two or more days for a check to be withdrawn from your account, the check register contains an accurate account balance.
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Checking Account
An account where you deposit money to pay for the checks you write.
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Credit
Any loan that allows you to buy something now and pay for it at a future date.
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Credit Card
A card allowing you to make a purchase today and pay for it later. Credit cards typically have a 25-28 day grace period allowing you to pay the balance in full without a finance charge.
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Credit Limit
The highest amount you may charge on a credit card. The credit issuer sets the limit based on your ability to repay the debt.
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Credit History
See Credit Report.
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Credit Rating
A number or "score" assigned by the credit reporting company based on your ability to repay debts. Are you a good credit risk for the creditor? Your credit rating or score depends upon factors such as on-time payments, age and amount of debt.
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Credit Report
A report that contains information about your borrowing and paying habits. Lenders get your report from one of three credit reporting companies—Equifax, Experian or TransUnion—and use the report to approve your loan application. A person with a good credit report usually receives a better interest rate than someone with a bad credit report.
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Credit Score
See Credit Rating.
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Credit Union
A not-for-profit financial institution that returns
profits to its members in the form of dividends
that are paid on deposit accounts (Savings, Checking,
Certificates). Credit unions typically offer
services similar to national banks, but provide
higher returns and lower loan rates to members.
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Debt
Money you owe.
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Deposit
To put money into a savings, checking or other investment account.
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Dividend
A dividend is the interest you earn on deposit accounts (Savings, Checking, Certificates). This term is distinct to credit unions and is often referred to as interest.
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Direct Deposit
An automatic deposit set up by an employer that puts your paycheck directly into your account using electronic transfer.
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Earned Income
Wages paid in exchange for work.
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EStatements
EStatements are duplicate of your monthly paper statements that recap all the activity in your accounts. With EStatements, you are notified monthly by email that your statement is ready and you can view online anytime with internet access. Another advantage to EStatements is that you can view or get copies whenever you want.
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Expenses
Things you pay money for—needs and wants.
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Finance Charge
The fee you pay when you do not pay off the entire credit card debt within a single payment period.
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Joint Account
An account opened by two or more people who have equal right to the funds and liability.
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Grace Period
The additional time a lender allows the borrower to pay the entire balance of a bill or loan. You do not have to pay a finance charge within the grace period. See Credit Card.
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Gross Income
The amount you have before taxes are paid.
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Income Tax
Annual tax that working individuals pay to the federal and some state governments. The amount of the tax depends upon how much income you earn.
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Individual Retirement Account (IRA)
A tax-deferred retirement savings account for individuals. Taxes are deferred until funds are withdrawn. Contributions may be tax deductible in the current year depending on your income level and your employer-sponsored retirement plan. You will be required to pay taxes and a penalty on funds withdrawn before age 59½. Withdrawals are taxed as income.
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Insufficient Funds
When you do not have enough money in your account to cover a check or other withdrawal, you have insufficient funds. If you have overdraft protection, the credit union or bank will transfer money from your savings account into your checking account to cover the withdrawal. Also called non-sufficient funds (NSF).
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Interest
The amount paid by a borrower to a lender for the privilege of borrowing the money.
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Interest Rate
The cost of borrowing money, usually shown as a percentage. See Annual Percentage Rate (APR).
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Internet Branch
The name for San Diego County Credit Union’s online banking system. Avaialble 24/7 on sdccu.com, the system requires a user ID and password that can be set up by calling 877-732-2848. Once set up, a member can do almost any transaction on a secure system from anywhere internet access is available.
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Loan
Money or an object that is lent with the understanding that the loan will be paid back, usually with interest.
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Minimum Payment
The smallest payment you are required to make each month on a loan.
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Money Market Account
A deposit or savings account that may offer many of the same services as checking accounts. Minimum deposit requirements are higher than a traditional savings account, but the APY also may be higher. Credit union money market accounts are federally insured by the National Credit Union Administration.
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National Credit Union Association (NCUA)
A federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions through the National Credit Union Share Insurance Fund (NCUSIF).
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Net Income
The amount left after taxes have been paid.
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Overdraft Protection
A service that links your checking account to your savings account or credit card to protect against insufficient funds. Fees are usually charged for overdraft protection transfers.
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Return
The amount of money you receive from a savings
account or other investment. The return is usually
shown as a percentage, e.g. 4.5%.
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Revolving Credit
A line of credit with no repayment schedule, but may have a credit limit and minimum payment requirement. Credit cards are revolving lines of credit.
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Save
Depositing money into a Savings Account for a future goal.
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Savings Account
A deposit account that pays dividends. Credit union savings accounts are federally insured by the National Credit Union Administration.
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Surcharge
Another word for fee that may be imposed by other financial institutions for use of their ATMs or services.
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TalkTone Teller
The name for San Diego County Credit Union’s 24/7 phone banking system. With TalkTone Teller, you can call (877) 732-2848 and voice or use touchtone commands to make transactions on your account independently.
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Visa Check Card
A Visa Check Card is an ATM card that looks like a Visa, but acts like a check. The advantage to having a Visa Check Card over an ATM is that the card can be used to make purchases at merchants who take credit cards but not ATM cards. Just like a check, any Visa charge is withdrawn directly from your checking account.
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Withdraw
To take money out of an account.
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