General Banking Glossary

A - D, I - L, M - P, Q - T, U - X

Account Number

A unique number allocated to a bank account (see also IBAN).

Annual Equivalent Rate (AER)

This is the rate of interest earned within a year, no matter how often interest is added to your account. The higher the AER, the higher the return you receive.

Annual Percentage Rate (APR)

The total cost of a credit facility, expressed as an annual percentage of the amount of credit granted.  It takes into account the interest rate charged and any other fees.

Arrears

Arrears occur where you fall behind with regular payments (for example, monthly mortgage or loan payments), or do not pay the correct amount required.. In certain cases, surcharge interest may apply to the amount of arrears. (refer to Surcharge Interest)

ATM (Automated Teller Machine)

Also known as cash machines.  Using an ATM Card, Debit Card or Credit Card you can use these machines to withdraw cash from your account, make account enquiries and in certain cases make a lodgement to your account.

Authorised User

A person nominated by the Cardholder and permitted to use an additional credit card on the Cardholders credit card account.

Balance

This is the amount of money as shown on your bank statement in your bank account at any given time.

Bank Fees & Charges

Account Fees may be incurred for the processing of transactions on your account including lodgements and withdrawals and also the maintenance of your account. Service charges relate to charges for additional services associated with your account such as Bank Drafts, duplicate statements etc

Bank Identifier Code (BIC)

Also known as the SWIFT address, this is a unique number that identifies your bank.   It is the code necessary (together with your IBAN) to send and receive automated international payments.

Business Day

This meansa day (other than a Saturday, Sunday or public holiday) on which the Bank is generally open for business in Ireland.

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Cheque

A written order to make a payment of a sum of money from a current account to someone else. Supplies of cheques are available in book format on certain current accounts.

Cheque Guarantee Card

This plastic card from a Bank makes cheques written on a current account up to the guaranteed limit widely accepted, because the person being paid is guaranteed to receive the money.

Chip

An integrated circuit embedded in a Card e.g. Debit Card or Credit Card for increased security.

Consumer

A person who buys goods or services for personal consumption.

Credit Card

A Credit Card is a payment tool which allows you to pay for goods and services as well as withdraw cash from ATM machines.  The funds used are borrowed and must be repaid at a later stage.  If the Credit Card is not paid back in full you will be charged interest.

Credit Interest

Money paid by the Bank to you in return for the deposit of funds, expressed as an annual percentage of the amount of the funds.

Credit Search

This is where the Bank obtains credit references from a credit reference agency or agencies to enquire on your credit history.  This may influence your ability to obtain credit.

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Current Account

A bank account used to hold money that is needed on a regular day-to-day basis.   It is used to manage money in the short-term and allows you to receive money such as salary or other types of income, withdraw cash by using a Debit Card or at a bank counter; pay for items using a Debit Card or by writing cheques; make payments by standing order or direct debit; transfer money to other accounts; carry out transactions using Phone and Online Banking.

Debit Card

A debit card is a card linked to your bank account that allows you to pay for items at POS (Point of Sale) terminals in shops, restaurants etc. or to withdraw cash at ATMs.  You can also pay for items or pay bills by telephone or in the internet by quoting your debit card details.

Debit Interest

This is the amount you pay to borrow money and is added to the loan or overdraft.  The rate is the amount charged

Deposit Interest Retention Tax (DIRT)

This is a tax on any credit interest paid to you (currently 25%, but subject to change) and forwarded by the Bank to the Revenue Commissioners.  There are certain exceptions where customers may be exempt from paying DIRT.  Check out www.revenue.ie for more information.

Direct Debit

This is a service for making payments from the Payer’s account which are initiated by the Payee on the basis of the Payer’s consent.

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IBAN (International Bank Account Number)

This is a unique number for your account which along with your Bank Identifier Code (BIC) is required for international transactions, particularly but not exclusively in Europe.

Interest

See Credit Interest and Debit Interest.

International Payment

A payment to and/or from an account outside the Republic of Ireland in any currency or a payment to and/or from an account in the Republic of Ireland in a currency other than in euro.

Joint Account

An account opened in more than one name. This can apply to personal customers e.g. husband and wife, and business customers e.g. partnerships

Lodgement (Credits)

An amount of money paid into your bank account.

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National Sorting Code (NSC)

This is a unique number to identify your bank and branch for domestic payments.

Online Banking

This refers to carrying out certain banking transactions over the internet. All the major banks offer this service to their customers. It generally offers customers easier access to their bank accounts and the option to transfer money, pay bills and top up their mobile phone.

Overdraft

An agreement with your bank to spend more money than you actually have in your account. An agreed overdraft is the limit up to which you may borrow from the bank, when there are no funds in your current account. Your bank must normally approve an overdraft in advance. If you do not have overdraft permission the bank may still allow your account to go into overdraft but may charge an unauthorised overdraft fee.

Payee

Payee means the receiver of a payment

Payer

Payer means the maker of a payment

Personal Identification Number (PIN)

A Personal Identification Number (PIN) is the secret four digit number that is used with a credit card as issued by the Bank and/or subsequently chosen by the Cardholder.

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Referral Item Charges

These charges apply when cheques, withdrawals, direct debits and standing orders are presented for payment on your account and, when paid, place the account in an unauthorised overdraft position.

Same Day Value

Using the same day value electronic payment service, you can make a payment in euro to another bank account in participating banks in the Republic of Ireland to arrive on the same day.

Single Euro Payments Area (SEPA)

SEPA will create a single, transparent payment market for domestic and international euro transactions.  Individuals can make an electronic payment to any recipient located in the SEPA zone from their bank account using the BIC and IBAN standard to identify the recipient's account.

Standing Order

This is an instruction from you to the Bank to pay a specified amount from your Account at regular intervals to the account of a specified payee.

Surcharge Interest

This is additional interest that is charged on unauthorised borrowings on loan, mortgage and overdraft accounts and is payable for example (a) if there is no agreed overdraft limit on your current account and you overdraw; (b) if you exceed your authorised overdraft limit without prior arrangement with the Bank; (c) if the account remains overdrawn after the limit has expired.

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Uncleared Effects

When cheques, drafts or other non-cash items drawn on other financial institutions are lodged to your account, they are shown in the balance of your account although the Bank has not received value for them. Until the Bank receives value, these items are known as “uncleared effects”. You may not be able to withdraw these funds until they are “cleared”. If you do you may be liable to pay Uncleared Interest on any amount withdrawn.  

Uncleared Interest

If you withdraw funds from your account for which the Bank has not received value (i.e. a cheque has not cleared), then you may be subject to uncleared interest being charged on the amount withdrawn.

Legal Notice

The information provided in this guide does not constitute tax, legal, investment or any other advice.

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