Cash Flow Terms

Account aggregation gathers balances and transactions from your different financial accounts into one place so you can see your whole financial picture at a glance.

An account number is the unique identifier for your specific account at a financial institution, paired with the routing number to send or receive money.

Account takeover is a form of fraud in which a criminal gains control of your existing financial or online account and uses it for theft.

Account verification is the process a bank or financial app uses to confirm you actually own an account, often through small test deposits or a secure login check.

Accrued interest is interest that has built up on a bond or loan but has not yet been paid; a bond buyer typically pays the seller for the interest earned since the last payment.

An ACH transfer is an electronic payment moved between banks through the Automated Clearing House network — the system behind direct deposits, bill payments, and most bank-to-bank transfers.

An add-on CD is a certificate of deposit that lets you make additional deposits after opening it, unlike most CDs that accept only a single deposit.

An ATM fee is a charge for withdrawing cash from a machine outside your bank's network — often levied twice, once by the ATM's owner and once by your own bank.

A bank bonus is a cash incentive a bank pays for opening a new account and meeting requirements such as direct deposits or a minimum balance, and it counts as taxable income.

A bank run happens when many depositors rush to withdraw their money at once because they fear the bank may fail, a panic that can itself push the bank into failure.

A bank statement is a periodic record of every deposit, withdrawal, fee, and interest payment in an account, used to track spending and catch errors or fraud.

A bank switch kit is a set of tools or a checklist a bank provides to help you move your direct deposits, automatic payments, and balances from an old account to a new one.

A brick-and-mortar bank is a traditional bank with physical branches, offering in-person service that online-only banks can't — often at the cost of lower deposit rates and higher fees.

A brokered CD is a certificate of deposit bought through a brokerage firm rather than directly from a bank, which can offer higher rates and be sold before maturity but carries different risks.

Budgeting apps are software tools that track your income and spending, often by linking to your accounts, to help you plan and stick to a budget.

A bump-up CD is a certificate of deposit that lets you raise your interest rate once, or occasionally more, during its term if the bank's rates rise.

A business bank account is a deposit account held in a company's name rather than the owner's, keeping business income and spending separate from personal finances for cleaner records and legal protection.

A business emergency fund is a cash reserve a company sets aside to cover unexpected costs or revenue dips without taking on debt or missing payments.

A callable CD is a certificate of deposit the issuing bank can redeem early, usually if interest rates fall, returning your principal and interest but ending the higher rate sooner than you expected.

A Form 1099-K is a tax form that reports payments you received for goods and services through payment apps and online platforms, covering business or sales income rather than personal transfers like splitting a bill.

Cash equivalents are very safe, short-term holdings — such as money market funds and Treasury bills — that can be converted to cash almost instantly with little risk of losing value.

Cash is king is an expression for the advantage of holding liquid money, which provides safety and the ability to seize opportunities, though holding too much cash for too long loses ground to inflation.

A cash management account is a brokerage account that combines checking-like features with competitive interest, typically sweeping cash to partner banks for FDIC coverage.

A cashier's check is a check drawn on the bank's own funds and signed by a bank representative, making it a guaranteed form of payment often required for large transactions.

A CD early withdrawal penalty is the interest you forfeit when you take money out of a certificate of deposit before its maturity date.

A certified check is a personal check the bank guarantees by verifying the funds and setting them aside, making it a safer form of payment for large transactions.

A chargeback is a reversal of a card payment initiated through your bank or card issuer, typically used to reclaim money for fraudulent, unauthorized, or undelivered purchases.

Check fraud is the use of stolen, forged, or altered checks to illegally take money from someone's bank account.

Check washing is a form of fraud where criminals steal checks and use chemicals to erase the ink, then rewrite them to a new payee and amount.

A check-cashing service converts a check into cash for a fee, a costly alternative to a bank account used mainly by people without traditional banking access.

Combining finances is the process of merging some or all of a couple's money, such as joint accounts and shared budgets, while deciding how much to keep separate.

Compounding frequency is how often interest is calculated and added to a balance, whether daily, monthly, or annually, with more frequent compounding producing slightly faster growth.

Credit card rewards are the cash back, points, or miles issuers pay you for spending on their cards — worthwhile only when you pay balances in full, since interest quickly outweighs any rewards earned.

A foreign transaction fee is a charge some banks and credit cards add when you make a purchase in a foreign currency or through a foreign bank, usually a small percentage of the amount.

Currency exchange is the process of converting money from one country's currency into another's, usually at a rate that includes a fee or markup.

A custodial account is an account an adult manages on behalf of a minor, with the assets legally belonging to the child once transferred.

A debit card is a payment card that pulls money directly from your checking account at the time of purchase, rather than borrowing as a credit card does.

A direct deposit switch scam is a fraud in which someone impersonates an employee to reroute their paycheck to a criminal's account, usually through a fake payroll change request.

A dormant account is a bank or investment account with no customer activity for an extended period, which can eventually be flagged and turned over to the state as unclaimed property.

Dry powder is cash or other easily accessible money an investor keeps on the sidelines, ready to deploy when an attractive opportunity or market dip appears.

Dynamic currency conversion is an option to pay in your home currency when abroad, which sounds convenient but usually comes with a worse exchange rate than paying in the local currency.

Escheatment is the legal process by which unclaimed money or property is transferred to the state after the owner has been out of contact for a set period.

An escrow shortage happens when the money set aside with your mortgage servicer for taxes and insurance falls short of what is owed, usually raising your monthly payment.

An extended warranty is a service contract that pays to repair or replace a product after the manufacturer's warranty ends. In most states it is regulated as a service contract rather than as insurance.

A financial power of attorney is a legal document that names someone to manage your money and financial affairs if you become unable to do so yourself.

Float is the gap between when a payment is initiated and when the money actually leaves the account, such as the days between writing a check and the check clearing.

Form 1099-INT reports the interest income you earned from banks, brokerages, and other payers during the year.

Inflation-protected savings are holdings designed to keep pace with rising prices, such as Series I savings bonds or TIPS, so cash does not quietly lose purchasing power.

Interest rate cuts are reductions in a central bank's benchmark rate that make borrowing cheaper and are meant to encourage spending and investment.

An international money transfer is sending money across borders between accounts, which typically involves fees and a currency conversion.

An IRA CD is a certificate of deposit held inside an individual retirement account, combining a CD's fixed, insured return with an IRA's tax advantages.

A joint account is a bank or investment account owned by two or more people, each with full rights to deposit and withdraw the money.

A jumbo CD is a certificate of deposit that requires a large minimum deposit, typically $100,000 or more, sometimes in exchange for a slightly higher interest rate.

A line of credit is a flexible borrowing arrangement that lets you draw funds as needed up to a set limit, paying interest only on what you actually use.

A maintenance fee is a recurring charge some banks apply simply for keeping an account open — often waivable by setting up direct deposit or holding a minimum balance.

A minimum balance requirement is the amount you must keep in an account to avoid monthly fees or to qualify for perks like higher interest rates.

Mobile deposit lets you deposit a paper check by photographing it with your bank's app instead of visiting a branch or ATM.

A money mule is a person who moves stolen or illicit funds through their own bank account on behalf of criminals — sometimes knowingly, often after being tricked — which can expose them to criminal liability.

A money order is a prepaid paper payment you buy with cash or a debit card, offering a secure way to pay someone without needing a bank account or personal check.

A multi-currency account is a bank or fintech account that lets you hold and manage money in several currencies at once, useful for travelers and cross-border earners.

NCUA insurance is the federal protection covering deposits at credit unions — up to $250,000 per member, per credit union, per ownership category — the credit-union equivalent of FDIC coverage.

A neobank is a financial technology company offering app-based banking services — often without being a chartered bank itself, instead holding customer money at partner banks.

A no-penalty CD is a certificate of deposit that lets you withdraw your money before maturity without forfeiting interest, usually in exchange for a lower rate than a traditional CD.

A non-sufficient funds fee is what a bank charges when it declines or returns a payment because your account lacks the money to cover it.

An online bank operates without physical branches, typically passing the cost savings on to customers as higher deposit rates and lower fees.

Open banking is a system that lets you securely share your financial data with approved apps and services through standardized connections, rather than handing over your login credentials.

Overdraft protection is a service that covers transactions exceeding your checking balance — usually by pulling from a linked account or credit line — to avoid declined payments and steeper fees.

Paper savings bonds are physical U.S. Treasury bonds issued on paper; most are no longer sold this way, though paper Series I bonds can still be bought with a federal tax refund.

A payable on death account is a bank account with a named beneficiary who receives the money directly when the owner dies, bypassing probate.

Earned wage access, sometimes marketed as a paycheck advance app, lets workers withdraw a portion of wages they have already earned before payday, often for a fee or optional tip.

A peer-to-peer payment is money sent directly from one person to another through an app or service — like Zelle, Venmo, or Cash App — instead of using cash or checks.

Plaid is a technology company whose service connects your bank accounts to financial apps, letting them securely access your account data with your permission.

A prepaid debit card is loaded with money in advance and can only spend what you load onto it, working like a debit card without a linked bank account.

A prime money market fund is a money market fund that holds short-term corporate debt in addition to government securities, typically paying a slightly higher yield with slightly more risk than a government-only fund.

Rate chasing is repeatedly moving savings between banks to capture the highest advertised yield, a habit whose real payoff is often smaller than it looks once effort and transfer delays are counted.

Reconciliation is comparing your own records against your bank or account statement to confirm every transaction matches and to catch mistakes or unauthorized activity.

Regulation E is a federal rule that protects consumers who use electronic transfers, such as debit cards and online payments, by limiting your liability for unauthorized transactions and setting rules for disputing errors.

Remittances are money that people working in one country send back to family or others in their home country.

A round-up savings feature automatically rounds each purchase up to the next dollar and moves the spare change into savings or investments.

A routing number is the nine-digit code identifying which financial institution holds an account, used to direct transfers, direct deposits, and check payments.

A safe deposit box is a locked container in a bank's vault that you rent to store valuables and important documents, though its contents are generally not insured by the bank or FDIC.

Savings bond maturity is the point when a U.S. savings bond stops earning interest, after which holding it gains you nothing and any accrued interest becomes taxable if not already reported.

A security deposit is money a tenant pays a landlord upfront to cover potential damage or unpaid rent, refundable when the lease ends if its terms are met.

Separation of business and personal finances is the practice of keeping company money in its own accounts, which simplifies taxes, tracks true performance, and helps protect the owner's personal liability shield.

A Series EE savings bond is a U.S. savings bond that earns a fixed interest rate and is guaranteed to at least double in value if held for 20 years.

Card skimming is the theft of payment card data using a hidden device attached to an ATM, gas pump, or point-of-sale terminal that copies your card's information when you swipe or insert it.

A stablecoin is a cryptocurrency designed to hold a steady value by being pegged to an asset such as the U.S. dollar.

A stop payment is a request asking your bank to refuse to honor a specific check or scheduled payment before it clears, usually for a fee.

A sweep account automatically moves idle cash into an interest-earning or insured holding, so uninvested money is never sitting completely unproductive.

A teaser rate is a temporarily attractive interest rate used to win new customers, which resets to a less favorable rate after the introductory period ends.

A teen checking account is a bank account for a minor, typically jointly owned with a parent, that lets a teenager practice managing money with some oversight.

A travel notification tells your bank or card issuer you will be traveling so they do not mistake your out-of-town purchases for fraud and freeze your account.

TreasuryDirect is the U.S. government's website where individuals can buy Treasury securities such as savings bonds and Treasury bills directly, without a broker.

Two-factor authentication is a security method that requires a second proof of identity beyond your password — such as a code sent to your phone — making it much harder for a thief to access your accounts.

A UGMA account is a custodial account under the Uniform Gifts to Minors Act that holds financial assets such as cash and securities for a minor until they reach adulthood.

Unbanked describes households with no checking or savings account at a bank or credit union, often relying on cash and costlier alternative financial services.

Unclaimed property is money or assets — like forgotten accounts, uncashed checks, or insurance payouts — that a holder turns over to the state after the owner cannot be located, where it waits to be claimed.

Underbanked describes people who have a bank account but still regularly rely on services like check cashers, money orders, or payday lenders for financial needs.

A utility deposit is an upfront payment a utility company may require before starting service, typically refunded after you build a record of on-time payments.

A UTMA account is a custodial account under the Uniform Transfers to Minors Act that lets an adult hold nearly any type of asset for a child until the child reaches the age set by state law.

Wire fraud is a crime in which someone uses electronic communications, such as email or phone calls, to deceive a victim into sending money, frequently by impersonating a trusted party and requesting an urgent transfer.

A wire transfer is a fast electronic transfer of money between banks, typically settling the same day — it usually carries a fee and, once sent, is very difficult to reverse.

Yield is the income an investment pays out — interest or dividends — expressed as a percentage of its current price or your cost.

Zelle is a bank-backed payment network that sends money between U.S. bank accounts within minutes — fast and free, but payments are hard to reverse, which makes it a frequent target for scams.