The words your bank uses, translated.

The actual total interest you'll earn on a deposit account over a full year, including the effect of compounding (interest earning interest).

Example — 4.5% APY on $10,000 = about $450 in a year if you don't touch it.

The yearly cost of borrowing money, expressed as a percentage. Includes the interest rate plus most required fees, so it's the truer price of a loan or credit card.

Example — A 22% APR credit card carrying $1,000 costs about $220/yr in interest.

The US government agency that insures money in your bank account up to $250,000 per depositor, per bank. If the bank fails, you still get your money.

Same idea as FDIC, but for credit unions. Your deposits are insured up to $250,000.

Interest that gets added to your balance and then itself earns interest. It's the reason savings grow faster the longer you leave them alone.

Example — $1,000 at 5% compounded yearly = $1,050 after year 1, then $1,102.50 after year 2.

Your monthly debt payments divided by your monthly income (before tax). Lenders use it to judge whether you can afford more borrowing. Under 36% is usually considered healthy.

Example — $1,500 in debt / $5,000 income = 30% DTI.

A 3-digit number (usually 300–850) that summarizes how reliably you've paid back debts. Higher = cheaper loans. 740+ is generally 'excellent'.

An interest rate that stays exactly the same for the whole term of the loan or savings account. Predictable — no surprises up or down.

An interest rate that can move up or down over time, usually tracking a benchmark like the central bank rate. Cheaper today can mean more expensive tomorrow.

What happens when you spend more than you have in your account. The bank usually covers it but charges a fee and/or interest until you top up.

An upfront fee a lender charges to process a new loan, usually 1–8% of the loan amount. Often subtracted from what you actually receive.

Example — $10,000 loan with a 3% origination fee = $9,700 in your pocket, but you still owe $10,000.

A temporary low (often 0%) rate a card or loan offers for a set number of months, after which it jumps to the regular rate. Great if you pay off before it ends.

The smallest amount you can pay on a credit card each month without penalty. Paying only the minimum is expensive — most of it goes to interest and the balance barely moves.

Moving debt from one credit card to another (usually to a card with 0% intro APR) so you can pay it down without new interest piling up. Often comes with a 3–5% transfer fee.

For a mortgage: how much you're borrowing vs. what the home is worth. 80% LTV means you're putting 20% down. Lower LTV = better rates, no PMI.

An extra monthly charge you pay on a mortgage when your down payment is under 20%. It protects the lender (not you) and typically drops off once you own 20% of the home.

A neutral holding account. In a mortgage, part of your monthly payment goes into escrow so the bank can pay your property taxes and home insurance for you when they're due.

Money set aside in an easy-to-reach account to cover unexpected costs (job loss, medical, car). Rule of thumb: 3–6 months of essential expenses.

A bank that operates entirely through an app — no branches, usually lower fees, and slick tech. Examples: Revolut, Wise, Chime, Monzo.

Platforms that connect people who want to lend money with people who want to borrow it, cutting out the bank. Investors earn interest, borrowers often get cheaper rates.

The small fee a merchant's bank pays your card issuer every time you swipe. It's invisible to you but funds most credit card rewards programs.

A one-off reward (cash or points) a bank or card gives you for opening an account and meeting a spending or deposit requirement in the first few months.

A savings account that usually pays a higher rate than a regular savings account and often comes with limited check-writing or a debit card. FDIC-insured just like normal savings.

A savings product where you lock your money away for a fixed term (3 months to 5+ years) in exchange for a guaranteed, usually higher, interest rate. Withdraw early and you pay a penalty.

The benchmark interest rate US banks charge their most creditworthy customers. Most variable-rate products (credit cards, HELOCs) are priced as 'prime + X%'.

The behind-the-scenes review a lender does before approving you — checking your income, debts, credit, and (for mortgages) the property. It's why loans don't get approved instantly.