Common Banking Acronyms
June 26, 2012
Will you BRB or LOL? Acronyms are everywhere, from personal conversations to banking terms. To keep our customers informed, we have listed below some common banking acronyms. Of course our friendly business bankers are always here to help clarify any banking acronym you should encounter.
- ACH (Automated Clearing House) – The electronic network for financial transactions.
- APR (Annual Percentage Rate) – How much interest you will be charged on a loan.
- APY (Annual Percentage Yield) – Amount you earn on an interest-bearing account in a year, expressed as a percentage.
- ATM (Automated Teller Machine) – Allows you to withdraw money from your bank account without having to go into a bank. Most can be accessed 24/7.
- DBA (Doing Business As) – The trade name or alternative name under which a business or operation functions as.
- DDA (Demand Deposit Account) – A checking account.
- DDL (Demand Deposit Loan) – A checking reserve.
- EFT (Electronic Funds Transfer) – An electronic transfer or exchange of funds between accounts, across different institutions or within a single one.
- EFTPS® (Electronic Federal Tax Payment System) – You can pay any tax payment due to the Internal Revenue Service (IRS) using this system.
- TIN (Tax Identification Number) – The number used to identify an individual or entity for federal income tax purposes.
- NACHA (National Automated Clearing House Association) – Group that manages the development, administration, and governance of the ACH Network.
- NSF (Non-sufficient Funds) – Indicates a negative balance.
- OBB (Online Business Banking) – Allows you to manage your accounts and pay bills 24/7 from anywhere in the world.
- RDC (Remote Deposit Capture) – A service which allows you to scan checks at your home or office and transmit the scanned images to the bank for posting and clearing.
For further clarification or questions, please contact your Home Federal Business Banker.
Home Federal does Personal Banking, Business Banking, Ag Lending , Home Loans, Trust and Asset Management, and Investments. With so much to offer, learn what Home Federal can do for you.