


Bounced Check 


A check that a financial institution has refused to cash or pay because you have no funds to cover it in your account. See NSF or overdraft protection.


Cashier’s Check


A check drawn by the credit union on itself. The check is signed by an officer of the credit union or cashier and payable to a third party named by the member.


CD - Certificate of Deposit (Share Certificate)


A time deposit with a maturity date that generally pays higher interest rates than other types of deposit accounts. Banks call them certificates of deposit while credit unions call them share certificates. Maturities can range from seven days to 10 years. Insured by the NCUA up to the maximum allowed by law. A penalty may be assessed if funds are withdrawn before the maturity date.


Collected Balance 


The balance in a deposit account, not including deposited items that have not yet been paid, or collected. This balance may be used to calculate interest payments, avoid monthly maintenance fees, etc. See also, ledger balance.


Compounding (or Compound Interest)


Interest added to interest previously earned on a principal balance. The more frequently interest is compounded, the higher the effective yield.




The person who signs on a credit agreement in addition to the primary applicant. This person is legally responsible for repayment of the debt.




A financial term that refers to an increase in a deposit account (such as a deposit made to the account). See also, debit.


Credit Card




Credit Limit


The maximum amount that can be spent on a line of credit or a revolving charge account.


Credit Union


A member-owned financial institution, either state or federally chartered. Credit unions are often more competitive than banks and savings and loan associations because its nonprofit status makes its operating costs lower.