Collateral Real property including but not limited to real estate, equipment, stocks, cash, or any asset pledged to the bank as a secondary source of repayment for a loan. Collection Normally referred to in terms related to collecting payments on loans when the payment is past due, or to collect the balance owing on a loan that is in default. A Federal law that requires banks to offer appropriate services and products to the community that their branches are located in. For example, if a bank branch is located in a low income neighborhood, the bank can offer no fee checking account in order to comply with this law. Compounding The interest paid on an interest bearing account is added to the balance, thus the interest earns interest.
Interest is maximized if the interest is compounded daily.
Sum deposited in an account. The ability to borrow money or charge merchandise. Current Balance Balance as of last update. Debit A charge against a customer's balance usually refers to a withdrawal from a checking or savings account. Deposit Placement of cash, checks, or other drafts into an account for use by the customer.