A

Account – See ‘Bank account’.

Account balance – See ‘Balance’.

Administration fees – Ongoing monthly fee that is charged by a bank for managing the bank account and providing the bank account services used by you.

Advocate – A person who supports, acts or speaks for you or another person or assists to communicate with authorities.

AML-CTF (Anti-Money Laundering and Counter-Terrorism Financing Act) – The AML-CTF Act is the law that requires information to be collected by specified organisations including banks from their customers.

Amount due – The amount of money that has to be paid on an outstanding account.

Annual percentage rate – The rate at which interest is charged over a yearly period in respect of money that is owed.

ANZ – Australia and New Zealand Banking Group Limited. ANZ is one of the largest companies in Australia and New Zealand and a major international banking and financial services group.

Arrears – The amount you have not paid in respect of scheduled repayments for a debt owed (i.e. past the due date).

Asset – Interest which is paid on accumulated interest as well as the original principal invested.

Asset (secured) – An asset that has been offered by you to secure the repayment of a loan.

ATM – See Automatic Teller Machine.

ATM card – A card that allows you to access your account via an ATM and EFTPOS facility. See Debit card ATM and EFTPOS.

Australian business number (ABN) – A number issued to registered businesses in Australia by the Australian Tax Office (ATO).

Australian Securities & Investments Commission (ASIC) – ASIC is an Australian government body that regulates banks and other financial services companies.

Automatic deduction – See Direct Debit.

Automatic Teller Machine (ATM) – A machine placed in supermarkets, outside banks, and other public places that can be used to withdraw money from your account.

B

Balance – The amount of money in your bank account. The balance can be positive/in credit or negative/debit.

Balance (closing/final) – The amount in a bank account at the end of a period of time or at a certain point in time after all the transactions are taken into account up to that date.

Balance (opening/prior) – The amount of money in your account at the beginning of a period of time.

Bank – In Australia, banks are financial institutions authorised under the Banking Act 1959.

Bank account – A financial product which allows you to deposit your money and gives you easy access to your money in the future.

Bank cheque – A cheque issued by a bank for you that is in the bank’s name.

Banking and Financial Services Ombudsman (BFSO) – A free and independent dispute resolution service that considers complaints about banks in Australia.

Bank fees – Charges made by a bank in return for the products and services provided.

Bank draft – Similar to a bank cheque but is usually drawn in a foreign currency for payment overseas.

Bankruptcy – A legal process that people go through when they cannot pay their debts.

Baycorp Credit Advantage – A company that holds the largest source of credit information about Australian people.

Borrower – A person using money that has been loaned to them by a bank or other lender or a person.

BPAY® – BPAY® is a service that allows people in Australia to easily pay their bills using their credit cards or from their bank accounts.

Branch – A branch is like a bank shop where a bank’s products and services are provided to their customers.

BSB – A BSB is a number which is like an electronic bank address in Australia.

Building society – A financial services organisation which is similar to a bank but is owned by members.

C

Card issuer – The bank, building society, or other financial institution which offers or issues credit cards and debit cards.

Cash – Money in the form of notes and coins.

Cash advance – This is a cash loan which is withdrawn from a credit card.

Cheque – A slip of paper that instructs a bank to pay a sum of money to the person named on the cheque.

Cheque account – An account offering you access to your money by writing cheques.

Chosen obstacle – An obstacle to saving money that occurs as a result of a choice that you have made.

Cleared funds – The amount of money in an account that is available for you to use.

Co-borrower – A person who borrows money jointly with you.

Commission – A reward or sum of money paid to a salesperson.

Comparison rate – The interest rate on a loan that includes interest and most fees and charges for the loan.

Compound interest – Interest earned on money that is invested over a period of time that is added to the original amount invested.

Consumer – A person who buys or uses products or services.

Consumer Credit Code – The Consumer Credit Code is a set of rules that regulate certain types of lending and borrowing transactions in Australia.

Consumer Data Right (CDR) – The Consumer Data Right (CDR) gives consumers the right to request for their data to be shared for specific purposes from one organisation to another organisation that has been accredited.

Contract – A written agreement that shows terms and conditions.

Cooling off period – A period of time during which a person/organisation can decide not to continue with a contract.

Credit – Credit can have different meanings.

Credit card – This is a plastic card that gives you access to money that the bank has agreed to lend you for a short period of time.

Credit file – A file or report that is kept by an agency such as Veda Advantage which shows your credit history.

Credit history – See Credit file.

Credit limit – The maximum amount that a bank will lend you for a loan or a credit card.

Credit rating – A person’s credit rating is based on their credit file or credit history.

Credit Report – See Credit file.

Credit union – A co-operative organisation that provides loans to its members.

Creditor – Someone who is owed money.

Creditor (secured) – A creditor who holds an asset belonging to the borrower/debtor as security for the repayment of the loan.

Creditor (unsecured) – A creditor who has provided a loan to a debtor and there is no security.

Customer Identification Process – All individuals or entities seeking banking services need to verify their identity through a Customer Identification Process (CIP).

D

Date of issue – The date a bill or account was prepared.

Debts (liabilities) – A debt is money that is owed. Another name for a debt is a liability.

Debtor – Someone who owes money. The opposite of creditor.

Debit – Most commonly, a debit is a withdrawal from a bank account.

Debit card – A card that gives direct access to a bank account through ATM machines and EFTPOS.

Direct debit – A payment that is made directly from a bank account and is usually an electronic payment.

Debt to Equity Ratio – This is the amount of the loan compared to the value of the property or asset purchased with the loan funds expressed as a percentage.

Default – When you fail to meet the terms or requirements of a signed contract.

Deposit – An amount of money put into a bank account or money that is left with someone or a company to secure the purchase of an item.

Draft – See ‘Bank draft’. A draft may also refer to a written item that is still being worked on being reviewed and is not finished.

Drawdown – This is when the approved loan funds are provided to you and deposited in your bank account or used by you.

E

Electronic banking – A way of banking that allows withdrawals, deposits, and transfers to be completed and account information to be obtained electronically using processes such as telephone or Internet banking, ATMs, or EFTPOS.

Electronic Banking Channel – Any Internet Banking or other ANZ electronic banking channel that enables ANZ’s customers to access account(s), give instructions, and use certain banking and services provided by ANZ.

EFTPOS (Electronic Funds Transfer at Point of Sale) – This facility lets you use your ATM card (debit card) to purchase goods, pay for services, and withdraw cash at a supermarket, shop, or restaurant.

Equity – Equity can mean shares in a company. Where you have borrowed money to buy an asset, equity also means the difference between the value of an asset and how much you owe on it.

Excess usage charge – Some bank accounts limit the number of free EFTPOS or ATM transactions that may be used each month.

Expenses – The amount it costs you for your everyday living including food, transport, housing, clothing, and entertainment.

F

Fast deposit – This service allows you to drop your cash and cheques off at a branch for counting and processing at a later time without having to wait to be served.

Finance company – A company which provides loans to customers usually at interest rates which are higher than banks, building societies, and credit unions.

Fixed interest – An annual percentage rate or an interest rate that does not change for a specified fixed period.

Fixed term loan – A loan that you must repay within a certain time called the term.

Floating loan – See ‘Variable interest’ and ‘Fixed interest’.

Foreign exchange – A foreign exchange service changes one currency into another currency.

Frequent flyer program – A product or service offered by many airlines to reward customer loyalty.

Funds transfer – Moving funds from one bank account to another.

G

Guarantee – With regard to a warranty: a promise or an assurance, especially one given in writing about the quality or durability of a product or service.

Guarantor – A person or company that provides a guarantee.

H

Home loan – A loan to finance the purchase of property/real estate to be used for the purposes of your home.

Honeymoon rate – An initial special low interest rate for a specified period on a loan.

I

Income – The amount of money you earn such as wages and salaries, rental income, interest, and government allowances.

Interest – The amount a lender charges a borrower for the use of the lender’s money.

Interest only – An ‘interest only’ loan means that your repayments only go towards repaying the interest for a specified period rather than repaying the principal amount of the loan.

Internet banking – Using the internet to manage your banking and for conducting transactions.

Investor – A person who lends money or buys assets or businesses and with the intention of making a profit.

Invoice – In Australia, an invoice is a bill that needs to be paid.

Invoice (tax) – A bill that needs to be paid and also includes tax.

J

Joint debt – When two or more people borrow money together or incur a debt together.

K

KYC (Know your customer) – This is the process that a bank should generally undertake so that it is providing the best service and advice to its customers.

L

Lease – An agreement between two people/parties where one party is granted a legal right to use or occupy the property of the other party for a specified period in return for payment.

Liability – See ‘Debt’.

Life events – These are important events or milestones in your life.

Loan – Money lent to a person for an agreed period of time (called the term).

Loan approval fee – This is a fee payable once in relation to the approval of a loan by a lender.

Lump sum payment – A single payment of money towards repaying a loan usually for a larger amount.

LVR (Loan to Value Ratio) – See Debt to Equity Ratio.

M

Managed funds – An investment fund that pools together money that has been contributed by many investors for the purposes of investing the total amount in different investments.

Maturity – The end or expiry of an investment or a loan.

Minimum repayment – The minimum amount to be paid on an invoice or a loan.

Money plan – A ‘big picture’ financial plan that maps out how your income and investments will be used to reach your financial goals.

Money order – Similar to a bank draft, a money order is an order for the payment of a specified amount of money usually issued and payable at a bank or post office.

Mortgage – A document drawn up between a borrower and lender giving the lender a conditional right to the property held as security for the repayment of the money lent.

Mortgage broker – A person or company that will assist you to find the most appropriate home or residential investment loan for your situation.

N

Needs – The basic things that you must have in your life so you can live comfortably such as food, clothing, and a home.

Net worth – Your assets less how much you owe on your assets is your net worth.

Nominated Representative – A Nominated Representative means a person appointed for the purposes of Open Banking who is able to manage data sharing on behalf of a business with an account on IB4B.

Not negotiable – Words written on a cheque or bill of exchange to ensure that the proceeds of the cheque or bill of exchange are only paid to the person named.

O

Offset account – A bank account that is linked to a nominated home or residential investment loan.

Offshore account opening (Overseas account opening) – The process of opening an account in another country.

Online account opening – The process of opening an account on the internet.

Open Banking – Open Banking means as part of the Consumer Data Right, the ability to share data held by ANZ.

Original documents – Paperwork or documents that are not a copy or reproduction ie. not photocopied or faxed and all signatures on the document are original.

Overdrawn – When an amount of money is taken out of a bank account which is greater than the balance of the account.

Overdue – An amount of money that has not been paid by the due date and is still owed.

Over-the-counter – Any banking activity that is done in a bank branch.

Overseas account opening – See ‘Offshore account opening’.

P

Pay anyone – A term that means to transfer funds to another person or a business by using internet or phone banking.

Per annum (pa) – This means for the year. For example, if the interest rate on a personal loan is 9% pa, the borrower must pay 9% in interest each year on the balance that is still owing.

Period – The same as time or term.

Personal Identification Number (PIN) – A number used as a security access code for your bank accounts when you use internet banking, phone banking, an ATM, or EFTPOS.

Personal loan – A type of loan that is used for things like buying a car, a boat, or furniture.

Phone Banking – In Australia, phone banking is another popular way to check bank account and credit card balances and perform transactions.

Principal – For an investment, the principal is the amount of money invested.

Private banking – A service that most banks provide to their high net worth customers with more demanding sophisticated or complicated banking requirements.

Q

Quarter – A period or duration of three months or one fourth of an amount.

R

Rebate – An amount that is given back, returned, or refunded.

Receipt – A record showing that a payment has been received or an invoice has been paid.

Records – Any documents and paperwork.

Redraw – A redraw facility gives you easy access to the money that you have repaid on your loan in excess of your scheduled repayment amounts.

Reducible – Something that can be brought down or prices or costs that can be lowered.

Reducible interest – Loan interest that is calculated on how much you owe each day.

Refinance – Paying off an existing loan with the proceeds from a new loan usually provided by a different lender.

Render – To present or to give a bill or invoice for payment.

Repossession – A lender may be able to claim or take possession of any property, assets, or investments that have been provided as security for the repayment of a loan in circumstances where the borrower cannot repay the loan.

Retail banking (personal banking) – Services provided to meet your personal banking requirements.

Risk grade – When lending money, a ‘risk grade’ is calculated so that a bank can assess how secure or risky a loan or investment is likely to be.

S

Savings – Money that you put away for use at a later time.

Savings account – An everyday bank account where your savings can be deposited and easily withdrawn.

Scams and scammers – A person or an organisation that is not honest, lies, or cheats customers or consumers.

Secondary cardholder – If you allow another person to use an ATM card or credit card that is linked to your account they are a secondary cardholder.

Secondary User – A Secondary User means an individual who is a third-party signatory or additional cardholder who has been granted permission by an Account Holder to share data for that account using Open Banking.

Security – An asset offered by a borrower to a lender as security for the repayment of a loan.

Simple interest – Interest is paid on a set principal only and not re-invested.

Spending leak – Money that you spend but you don’t notice.

Staff-assisted withdrawals – When you withdraw money from your bank account with the help of a teller in a bank branch.

Stamp duty – A duty (like a tax) charged by Australian states on certain transactions.

Statement – A record summarising all the transactions that have occurred on your bank account (or any other account) and any fees charged or interest paid each month or each quarter.

Superannuation – This is Australia’s mandatory pension scheme or saving for retirement.

T

Teller – The person in a bank branch that is there to help you with your banking.

Term – A period of time. For example, the length of time for which a deposit is made or the time in which a loan must be repaid.

Term deposit – A banking product that offers a slightly higher annual percentage rate than savings accounts payable on the amount invested.

Terms and conditions – Terms and conditions set out the specific obligations of each party in respect of a transaction or product.

Transactions – The name given to movements of money such as deposits and withdrawals or transferring money between bank accounts.

Tax file number (TFN) – A nine-digit number issued by the Australian Taxation Office to individuals and companies to identify them for taxation purposes.

Transfer – To move money from one bank account to another bank account.

Trust account – An account that is usually used by lawyers, accountants, and other professionals such as stockbrokers to identify and control their clients’ money.

U

Unconscionable conduct – Behaviour that is considered unreasonably excessive, unfair, or unjust.

Utilities – A business that provides an essential service such as the provision of electricity, water, or public transport generally under government regulation.

V

Variable interest – A type of interest where the rate may go up and/or down during the term of the loan.

W

Wants – The things that are not essential to your survival such as a mobile phone, candy and chocolate, a CD or DVD, or designer clothes.

Will – A legal document stating how you wish your possessions to be distributed after your death.

Withdrawal – To take money out of a bank account for example using an ATM, EFTPOS, or by cheque.

X

Y

Z