Word of the Day

thrift banks:

Financial institutions that specialize in home and small business loans.

About your Bank

About your Bank

ABA Routing / Transit Number

This number, often referred to as simply the routing number, identifies the specific financial institution responsible for the payment of a negotiable instrument.


Bank Services

Services offered by a bank for convenience, such as online banking, automatic transfer and check cancellation.


Credit Union

A nonprofit cooperative that is owned by its members and functions similarly to a bank with regard to savings, loans, credit cards, etc.


Disclosure

Information relevant to specific transactions that is required by law.


Federal Deposit Insurance Corporation (FDIC)

A body that regulates most banks in the United States and insures most private bank deposits.


Federal Trade Commission (FTC)

A federal agency established in 1914 that administers consumer protection legislation.


Mutual Fund

An investment program funded by shareholders that trades in diversified holdings or assets.


National Credit Union Share Insurance Fund (NCUSIF)

A fund administered by the National Credit Union Administration to help protect individual deposits to credit unions at insured U.S. institutions.


Online Banking

Allows customers to conduct financial transactions via the Internet.


Shareholder

An owner of shares of stock in a company.


Thrift Banks

Financial institutions that specialize in home and small business loans.


U.S. Securities and Exchange Commission (SEC)

A U.S. government agency that oversees investment transactions to help prevent fraud.


Withdrawal Limit

The maximum amount a customer is able to withdraw from an account on a given day.

Building Your Credit


Building Your Credit

Canceled Check

A check that a bank has paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable.


Annual Fee

A yearly fee associated with some financial accounts.


Annual Percentage Rate (APR)

The yearly interest rate charged on outstanding credit card balances.


Credit Limit

The maximum dollar amount that can be charged on a specific credit card account.


Debt

The state of owing money to another individual or business, or the amount of money borrowed.


Debt Collectors

Businesses or individuals that pursue the payment of debts owed.


Debt Consolidation

Taking out one loan to cover a variety of debts, often with the goal of paying a lower interest rate overall.


Fair Credit Reporting Act

Legislation that promotes the accuracy and privacy of information and enables consumers to receive a copy of their credit report.


Fair Debt Collection Practices Act

A law that ensures debt collectors follow specific procedures and protocols when collecting debts.


Good Debt

The concept that sometimes it is worth taking on certain types of debt in order to generate income in the long run. Common examples include college education debt and real estate.


Late charge

The penalty a borrower must pay when a payment is made after its due date or courtesy period.


Minimum balance

A specific amount of money that a bank or credit union requires in order to open or maintain a particular account.


Minimum payment

The smallest amount that a consumer is required to pay toward a credit card balance monthly in order to keep the account in good standing.


Rewards

Benefits and bonuses a credit card company offers customers to entice them to open a card.


Variable expenses

Expenses that change in price and frequency each month.


Variable interest rate

An interest rate that fluctuates based on market changes.

Buying a Home


Buying a Home

Index-linked Certificate of Deposit

An index-linked CD is a deposit obligation of the issuing bank and is often sold through bank branches and affiliated and unaffiliated brokers. Index-linked CDs provide the investor the ability to participate in the appreciation, if any, of a particular index, during the term of the CD. Index-linked CDs may have complicated payout structures and may not be suitable or appropriate for all investors. Investors should carefully review the investment risk considerations detailed in the relevant offering documents and disclosure statements. Index-linked CDs are not securities and are not registered under securities laws.


Addendum

An agreement or list that is added to a contract, agreement, or other document such as a letter of intent.


Appraisal

A report made by a qualified person setting forth an opinion or estimate of property value. The term also refers to the process by which this estimate is obtained.


Appraised value

An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data.


Conventional mortgage

A mortgage not obtained under a government program (such as FHA or VA).


Credit rating

A financial institution’s evaluation of an individual’s ability to manage debt.


Credit report

A document outlining an individual’s credit history, for use by credit card issuers and others considering providing you with a loan.


Credit reporting agency

A company that compiles and provides information to creditors to facilitate their decisions about extending credit.


Credit score

A number representing a person’s creditworthiness, based on past credit and payment history.


Creditworthiness

An analysis made by a lender about a consumer’s riskiness as a borrower.


Depreciation

The decrease in value of assets over time.

Down payment

The amount a consumer pays up front for something on the day of the purchase.


Escrow

An item of value, money, or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.


Escrow account

The segregated trust account in which escrow funds are held.


Fixed-rate mortgage

A mortgage in which the interest rate and monthly payments remain the same for the life of the loan.


Foreclosure

A legal process in which a mortgaged property is taken because the borrower has failed to keep up payments.


Grace period

The time a borrower is allowed after a payment is due to make that payment without adding to the interest owed.


Homeowners insurance

Insurance designed to cover the costs of damage to home or property in the event of a theft, natural disaster or other unexpected event.


Investment

An item or financial product on which a consumer expects to earn a profit in the future.


Lease

A contract outlining the rental terms of a piece of property, whether a car, an apartment or another space.


Lien

A legal claim or attachment against property as security for payment of an obligation.


Mortgage

A loan secured in order to purchase property.


Mortgage loan

A loan for the purpose of purchasing real estate.


Mortgage payment

The payment a borrower makes each month toward the purchase of a home.


Mortgage term

The agreed-upon amount of time to pay off a mortgage.


Principal

The amount borrowed or remaining unpaid; also, that part of the monthly payment that reduces the outstanding balance of a mortgage.


Principal balance

The remaining balance due on a debt, exclusive of accrued interest.


Principal payment

The portion of a monthly payment that goes toward reducing the principal balance. Borrowers should strive to make additional principal payments whenever possible to pay down a loan balance faster and possibly reduce the amount of interest paid over the term of the loan.


Private Mortgage Insurance (PMI)

Insurance to help protect a mortgage lender in the event a borrower cannot make payments.


Property tax

A capital tax on property based on its estimated value.


Purchase price

The price paid for an item or service.


Resale value

The amount at which an individual or company would be able to sell a specific item.

Finding the Right Insurance


Finding the Right Insurance

Auto insurance

Insurance designed to protect a driver, and often a vehicle, financially in the event of an accident or theft.


Collision insurance

Auto insurance that covers certain costs if your vehicle is damaged.


Deductible

The amount an insured person must pay for services before the insurance provider begins to cover costs.


Health Savings Account (HSA)

A pre-tax savings account designed specifically for medical expenses.


Insurance

An agreement that helps to protect against financial risk in the event something unexpected happens.


Insurance policy

A contract between a consumer and insurance company outlining coverage plans.


Life insurance

Provides financial protection for one’s family in the event of death.


Personal property insurance

Coverage that allows an individual to insure important or expensive personal items.


Premium

The amount paid to an insurance provider monthly in order to maintain an insurance plan.


Travel insurance

Ensures an individual has access to quality medical care when abroad; or, insurance that protects you against cancelled trips.

Getting a Loan


Getting a Loan

Additional principal payment

A payment by a borrower of more than the scheduled payment due in order to reduce the remaining balance on the loan.


Amortization

Payment of a debt in regular, periodic installments of combined principal and interest.


Bad debt

Debt taken bad debton for items that a consumer does not need and cannot afford. (See “good debt.”)


Amortization schedule

A timetable for payment of a mortgage showing the amount of each payment applied to interest and principal and the remaining balance after each payment is applied.


Bond

A type of loan in which an investor extends money to the government or a corporation with a set interest rate and maturity date.


Co-borrower(s)

Additional borrower(s) whose income contributes to qualifying for a loan and whose name(s) appear on documents with equal legal obligations.


Collateral

An asset or amount of money provided as security for repayment of a loan.


Compound interest

Interest calculated on both the principal and the accrued interest.


Contingency

A condition that must be met before a contract is legally binding.


Covenant

A clause in a contract that obligates or restricts the parties and which, if violated, can result in legal action.


Credit

An agreement by which a borrower receives something of value now and agrees to pay the lender at a later date.


Credit bureau

A reporting agency that collects information on consumer credit usage.


Creditor

A person or business to whom money is owed.

v

Debt-to-income ratio (DTI)

Often used in qualifying a consumer for a home loan, DTI reflects the consumer's monthly debt and debt-related costs, such as taxes, fees, and insurance premiums as a percentage of their monthly gross income.


Delinquency

A loan payment that is overdue, but within the period allowed before actual default is declared.


Draw period

The fixed period of time during which a borrower may access or “draw” money from a home equity line of credit.


Equal Credit Opportunity Act

A law that helps protect consumers from being discriminated against due to race, sex, marital status, religion or age when obtaining credit.


Fixed interest rate

An interest rate that does not change during the loan term.


Guaranteed interest rate

The minimum interest rate an investor can expect from an issuing company.


Home Equity Line of Credit (HELOC)

A form of revolving credit secured by a borrower’s home. A borrower is approved for a specific credit limit and can draw on those funds up to the limit as needed during the draw period, making monthly payments as required according to the signed contract.


Home Equity Loan

A form of closed-end credit secured by a borrower’s home. The borrower receives the full loan amount once, at the beginning of the loan term, and makes monthly payments as required according to the signed contract.


Interest rate

The rate at which a borrower pays interest for borrowing an item or money; or the percentage rate earned on a given investment.


Liquidity

The ability to readily convert assets or investments to cash.


Loan

Money or assets borrowed and paid back with interest over time.


Loan-to-value (LTV)

The ratio of the amount of a potential mortgage to the value of the property it is intended to finance, expressed as a percentage.


Loan principal

An amount borrowed that remains unpaid, excluding interest.


Loan term

The period of time during which a loan is active.


Payoff

The amount that will pay off a loan in full. In general, a borrower can pay off a loan more quickly by making larger or more principal payments than required. Borrowers should check their contract terms to determine if there are any early payoff fees or penalties.


Principal

The amount borrowed or remaining unpaid; also, that part of the monthly payment that reduces the outstanding balance of a mortgage.


Securitized loan

A loan that is protected by collateral to ensure loan repayment.


Simple interest

An amount earned on an account holder’s principal, according to a specified rate.

Giving Back


Giving Back

Charitable contributions

Cash, stocks, gifts or other items donated to a charitable organization.


Nonprofit organization

An organization chartered for purposes other than making profits.


Transparency

The degree of disclosure by a charity of their financial and administrative practices.

Knowing Your Finances


Knowing Your Finances

Adjusted gross income

A person's total income, as reported on his or her IRS 1040 tax return form, after allowable contributions, deductions, and expenses.


Asset

Anything of material value owned by an individual or company.


Available balance

amount of money in your account you can use without incurring an overdraft charge. Your available balance is reduced by any pending debit card transactions (purchases and ATM withdrawals), and includes any deposited funds that have been made available. Your available balance does not reflect checks that you have written that have not yet cleared, or payments made in Bill Pay that have not yet cleared.


Balance

The amount of money in a savings or checking account, or the amount of money owed on a credit card account or loan.


Bankruptcy

A condition of insolvency where an individual or business is unable to pay debts.


Budget

A plan for future spending and saving, weighing estimated income against estimated expenses.


Capital

Wealth in the form of money or property.


Capital gains

Profits from the sale of an investment.


Credit card

A card issued by a bank or other business for purchases using borrowed funds to be paid pay back later.


Debit card

A card that allows consumers to make purchases using money from their checking account.


Emergency fund

Money set aside for emergency expenses, recommended to cover six to nine months worth of living costs.


Estate

The whole of an individual’s possessions, including property and debts.


Estate plan

The process of arranging for the dispersal of an individual’s estate in the event of death.


Executor

A person or institution appointed to carry out the terms of a will.


Expenditures

The action of spending funds or an amount of money spent.


Expense

The money an individual spends regularly for items or services.


Finance

To borrow funds for the purpose of a purchase.


Financial advisor

A professional who provides financial services and advice to individuals or businesses.


Financial partnership

A relationship that requires financial dependence, contribution and communication.


Financial plan

A strategy for handling one’s finances to ensure the greatest future benefit.


Fixed expenses

Personal expenses that are the same each month.


Gross income

The total amount of money an individual has earned before taxes are taken out.


income tax

Tax levied by a government directly on personal income.


Internal Revenue Service (IRS)

A United States government agency that is responsible for the collection and enforcement of taxes.


long-term financial goal

A financial goal that will take longer than a year to achieve.


medium-term financial goal

A financial goal that will require less than a year to achieve.


needs

Items needed in order to live, such as clothing, food and shelter.


net income

The amount an employee earns once taxes and other items are deducted from his or her gross pay.


payroll deduction

An amount withheld from an employee’s earnings, such as income tax and Social Security tax.


recession

A period of economic decline during which trade and industrial activity are reduced.


short-term financial goal

A financial goal that will require less than six months to achieve.


Social Security taxes

A tax on individuals used to fund the U.S. government’s social security program.


tax exemption

A factor that reduces or eliminates a person’s obligation to pay tax.


tax return

A tax form to be filed with a government body to declare liability for taxation.


W-2 form

A form that outlines an individual’s earnings, and tax deductions incurred.


wants

Items that are desired, but that are not needed to live.

Planning for the Future


Planning for the Future

401(k)

A retirement savings plan funded by employees and often matched by contributions from the employer; contributions are usually made before taxes and grow tax-free until withdrawn, although after-tax contributions are also allowed.


529 plan

A savings plan operated by a state or educational institution designed to help set aside funds for future college costs. Savings deposited in a 529 plan grow tax-free until withdrawn.


contribution limits

Maximum legal limit on contributions to a specific account.


Individual Retirement Account Fund (IRA)

A retirement account that allows individuals to contribute a limited yearly sum toward retirement on either a pretax (traditional IRA) or after-tax (Roth IRA) basis.


money market account

A deposit account offered by banks, in which money is invested in government and corporate securities.


savings account

An account where money is kept for future use.


tax-deferred growth

Growth in which income taxes on investment earnings are not payable until the money is withdrawn.


retirement account

retirement account


Time Deposit

A savings certificate issued by a bank, depositing money for a specified length of time.


tuition

Fees paid in exchange for instruction.


tuition inflation

The annual rate of increase in the cost of tuition.


withdrawal penalty

Any penalty incurred by an account holder for early withdrawal from an account with withdrawal restrictions.

Protecting Your Identity


Protecting Your Identity

identity theft

The fraudulent use of another person’s information for financial gain.


identity thief

An individual who uses another person’s financial information for financial gain.

Mobile Banking


Mobile Banking

Android Pay™

a digital wallet payment system that utilizes Near Field Communication (NFC) to initiate secure payment transactions between contactless payment terminals and Android devices.


Apple Pay®

a mobile payments service and digital wallet app that utilizes Near Field Communication (NFC) to initiate secure payment transactions between contactless payment terminals and Apple iOS devices like the iPhone 6, iPhone 6 Plus and Apple Watch.


contactless payment

transactions that use chip-based technology and require no physical connection between the payment device (a card or mobile device) and the physical merchant terminal.


Magnetic Secure Transmission (MST)

sends a magnetic signal from a compatible device to the payment terminal’s card reader to emulate swiping a physical payment card. Samsung Pay is an example of a mobile wallet application that utilizes Magnetic Secure Transmission (MST). MST payments do not require the merchant to upgrade the payment terminal, making Samsung Pay available for use at nearly all payment terminals with a card reader.


mobile wallet

the digital equivalent to the physical wallet we already have in our pockets today. It is a container (or vault) to store digitized valuables for authorization. These valuables grant permission for usage or access to goods, services or places. They can be: • A personal identification like an ID or social security card, driving license, health card, payments card, loyalty card, website access or login data, etc. • Non-personal means of authentication like tickets for public transport or events, car and hotel keys, gift cards and coupons May also be referred to as a digital wallet.


Near Field Communication (NFC)

is a wireless technology with a range of only a few inches that is built into most new smartphones, and it may be included in tablets, cameras and household appliances. NFC is used for identification, mobile payments, train and bus tickets and other transactions. It can also be used to transfer data between devices, as well as connect a new wireless device to a Wi-Fi hotspot.


Samsung Pay

Samsung's digital wallet payment system introduced in the U.S. in 2015. Supporting credit and debit cards as well as store and loyalty cards, Samsung Pay works with both old and new terminals, whether they read magnetic stripes or use NFC





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1818 Beneficial Bank Place
1818 Market Street
Philadelphia, PA 19103

888.742.5272
info@thebeneficial.com
The use of non-secure email is intended for general questions, inquiries and comments only. Confidential Customer information cannot be accepted electronically.


Routing No: 236075689
SWIFT Code: BENFUS33

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USA PATRIOT Act

To help the government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you – When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license and other identifying documents.