A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Minimum BalanceThe lowest amount you must keep in an account to avoid fees, earn interest, or qualify for certain account benefits.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Savings AccountA bank account meant for storing money you don't need right away, usually paying a small amount of interest on the balance.
- NSF Fee (Non-Sufficient Funds Fee)A charge the bank applies when it rejects a payment because your account lacks the money to cover it, unlike an overdraft that is paid.
- OverdraftWhat happens when you spend more than your account holds, leaving a negative balance that the bank may cover for a fee.
- Online BankA bank that operates entirely over the internet without physical branches, often passing lower costs on as higher rates and fewer fees.
More in Banking
Account NumberAccount ReconciliationACH TransferAPR (Annual Percentage Rate)APY (Annual Percentage Yield)ATM (Automated Teller Machine)
Plain-English education — not personalized legal, tax, or investment advice.