Transaction Account Glossary Of Terms
Please note that these are a general explanation of the meaning of terms used in relation to transaction accounts. Your bank or financial institution may use different terms, and you should read the product disclosure statement (PDS) carefully to understand everything that may apply to your account. You cannot rely on these terms in relation to any transaction account you may purchase.
What is account-keeping fee or administration fee?
An Account-keeping or administration fee is an ongoing fee charged to cover the lender’s administration costs for creating and maintaining the account. Usually charged monthly.
What is an annual equivalent rate (AER)?
An annual equivalent rate (AER) is a rate that can be compared between lenders. Any advertisement for a savings product that quotes an interest rate must also quote the AER so that you can compare the return you might expect over time with other products.
What does ‘At call’ mean?
“At call” transaction accounts or savings accounts allow you to immediately withdraw your money from the account whenever you like.
What is a balance?
A balance is the amount of money available in your transaction account.
What is a cheque account or checking account?
A cheque or checking account is a transaction account that allows you to make payments with your own money by writing cheques. If you do not have enough money in your account when the recipient cashes your cheque, the cheque will “bounce”, meaning it is not paid and you may be charged penalty fees.
What does debit mean?
Debit means a withdrawal.
What is a deposit?
A deposit is money that you put into an account with a financial institution.
What is interest?
Interest is the amount of ‘extra’ money that you earn by having a positive balance of money deposited into your bank account, earned over time and calculated as a percentage of the balance of your account.
What is a introductory rate?
An introductory rate is a bonus offer where a variable interest rate applies to the account for a set time period. At the end of the bonus period, rates revert to the base rates.
What is a junior transaction account?
A junior transaction account is a transaction accounts for children and youth. A parent or guardian operates the account in the child’s name until they reach legal age, but the child also has access to their account. View our Junior Banking Award for under 12s and Youth Banking Award for under 18s on our website.
What is a transaction?
A transaction is the movement of money in or out, including deposits, withdrawals, and transfers between bank accounts.
What is a withdrawal?
A withdrawal is when instructions are carried out to pay money out of your account and it is paid, e.g. when you get cash out from an ATM.
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