Financial Glossary
Level up your understanding of common money terms and complex finance concepts with our glossary.
A
Adjusted Gross Income
Adjusted Gross Income is your total income minus specific deductions, determining tax liability and eligibility for credits.B
Bank Failure
Bank failures occur when banks cannot meet their obligations to depositors and creditors, leading to closure by regulators.Beneficiary
A beneficiary is an individual or entity entitled to receive benefits or assets from a will, trust, insurance policy, or retirement account.C
Commercial Banking
Commercial banking refers to financial institutions offering services like loans, deposits, and payments to businesses and individuals.Cryptocurrency
Cryptocurrency is digital currency secured by cryptography, operating on a decentralized network, typically utilizing blockchain technology.D
Day Trading
Day trading involves buying and selling financial instruments within the same day to capitalize on short-term market fluctuations.E
Equity
Equity represents ownership value in an asset or company, reflecting the residual interest after deducting liabilities from assets.G
Gig Economy
A gig economy is a labor market characterized by flexible, short-term jobs as opposed to traditional, permanent roles.H
Home Equity LIne of Credit
A home equity line of credit is a revolving loan where your home serves as collateral, allowing you to borrow against your home's equity.I
Income-Driven Repayment
Learn about income-driven repayment (IDR) plans for federal student loans. Discover how these plans adjust payments to make student loans more manageable.M
Marginal Tax Rate
The marginal tax rate is the percentage at which your next dollar of income is taxed, reflecting how income tiers affect your tax obligations.P
Passive Income
Passive income is earnings derived from ventures requiring minimal active effort, allowing individuals to generate revenue with little ongoing work.Pyramid Scheme
A pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of "investors".R
Real Estate Investment Trust
A reverse mortgage is a loan allowing homeowners 62 or older to convert home equity into cash without selling their home or making payments.S
Subsidized Loan
A subsidized loan is a financial aid where the interest is paid by the government during school and grace periods, reducing borrower costs.W
Wire Transfer
A wire transfer is an electronic method of sending funds directly between banks or financial institutions, often used for same-day, secure transactions.Join the Most Loved Banking App.™
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