![]() The benchmark interest rate is also known as the base interest rate or the threshold interest rate since the benchmark interest rate is the threshold below which investors refuse to invest funds. The benchmark interest rate is the lowest interest rate that an investor will accept for a non-treasury investment. ![]() Such a right is also called implied pledge and gives the banker the power to sell the goods or securities with reasonable notice to the debtor. ![]() Once it has been confirmed that sufficient funds are available, the bank effectively sets aside the funds from the person's account to be given out when the bank draft is used.Ī right of the bank to retain any goods or securities of the debtor against any debt due, which comes to its lawful possession in the ordinary course of business, in the absence of an agreement in contrary. Typically, bank will review the bank draft requester's account to see if sufficient funds are available for the cheque to clear. Balance transfer fees are typically expressed in percentage terms of the balance being transferred, but there may also be a flat fee or a minimum balance transfer fee.Ī large payment due at the maturity of the loan the principle amount and interest on a loan repaid in one lump sum interest payment may be withheld until the end of the loan period, when both interest and principal repaid together.Ī cheque issued by an account holder on his account maintained with the bank it is payable on demand and does not require acceptance of drawee bank.Ī type of instrument where the payment is guaranteed to be available by issuing bank. That is, when you transfer the balance from one credit card to another. Usually the interest rate on the amount borrowed is lower than the rate of the cards that are being paid off by the balance transfer.Ī balance transfer fee is charged when you make a balance transfer. Machines installed by banks to dispenses cash withdrawal to the account holders like a bank teller computerized machines linked with the database of the bank, enabling customers to draw down cash without the need to line up at the bank counter, by using magnetically encoded bank card that verifies the customers through specific identification numbers, checks available account balance or line of credit on an account, and dispenses cash withdrawal specially useful to customers in non banking hoursĪ debt for which repayments of principles or interest are long overdue and is unrecoverable because of worthless collateral, or insolvency or effective bankruptcy of the borrower the loan may have to be removed from the bank portfolio and charged to loan loss reserves if any, or written off by the lender and charged to profits, retained earnings or bank’s capitalĪ balance transfer is an option offered by many credit card issuers which enables the card holder to use their available credit from one card to pay off the balances due on one or more other cards. One who maintains a deposit account with the bank to make deposits and withdrawal by cheques or cash as per agreed terms and condition a person, a firm, or a company maintaining accounts with banks for deposits and withdrawals as per agreed terms and conditions.Ī general term embracing various categories of lending by the banks in business, advance may also means payment made before receipt of goods and services. Usually either the name of the payee or the amount of cheque is changed. The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.Ī cheque or another negotiable instrument that has been materially and maliciously altered to affect a fraud. The term Annual Percentage Rate describe the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. The cumulative interest that is due and not yet paid and booked as an expense along with a corresponding liability for the unpaid amount. These definitions explain the meaning of words and terms used in day to day banking transactions and these are not precise legal or t¬echnical definitions. This endeavor aims to help consumers in understanding some important banking terminologies. ![]()
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