May 9, 2008
This section is designed to help you understand banking terms. If you are interested in receiving additional information on any of these products or services, please call 1-612-379-8811 or e-mail banker@northeastbank-mn.com. Electronic mail is not secure. Confidential or personal information should not be communicated in this manner.
ACH Processing — ACH (Automated Clearing House) processing occurs between a nationwide network of financial institutions that send electronic messages, via telecommunication lines instead of paper (checks), to transfer money between two parties. The most common ACH transactions are direct deposit, pre-authorized debits, cash concentration and corporate to corporate payments.
Automatic Funds Transfer – AFT – An automatic transfer between accounts or loans in accordance with your instruction to your financial institution.
Automated Teller Machine (ATM) — A machine that allows the customer to perform some of the more common teller transactions, such as cash withdrawals, deposits and transfers. ATMs are generally accessible 24 hours a day, 7 days a week.
Cashier's Check — A check drawn by a bank on itself, signed by a cashier or other authorized bank officer and payable to a third party named by the customer. Cashier's checks are universally accepted.
Certificate of Deposit (CD) — A type of deposit account typically with a fixed minimum term and a minimum initial deposit; interest payments may be either fixed or variable. Generally, CDs offer a higher interest rate than other deposit accounts.
CheckCard (Debit Card) — A plastic card with the Visa logo, designed to give a customer access to funds in his/her checking account to obtain cash, purchase goods and services, or transfer funds from one account to another. The cards are accepted around the world wherever you see the Visa logo.
Direct Deposit — Funds are automatically deposited to your account per your instructions to your employer, Social Security Administration, loans or other payers of your choice. In order for accurate account information to be obtained, you must provide a voided copy of a check from the account to which you would like the direct deposit to be made.
EFT — Electronic Funds Transfer
Official Bank Check — A check drawn by a bank on itself, signed by a cashier or other authorized bank officer and payable to a third party named by the customer. Official Bank Checks, often known as Cashier's checks, are universally accepted.
