Additional account owner
Anyone other than the primary owner on a joint account.
Ally Assist is a service to help you find answers to questions you have about Ally Bank and your accounts.
Annual Percentage Yield (APY)
A percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period.
A convenient way to have your monthly Ally auto payment automatically withdrawn from your checking or savings account.
Automated Clearing House (ACH)
An electronic funds transfer system that allows transfers of transactions. They're processed through the Automated Clearing House and regulated by the National Automated Clearing House Association (NACHA).
Automated Teller Machine (ATM)
An electronic terminal where you can get cash using your debit card or check your balance. Some banks charge a fee for using their ATM.
Average daily balance
The sum of the daily balances during an accounting period, usually a month, divided by the number of days in the period.
A state or federally chartered institution that is authorized to offer deposit accounts.
Basis Point (BP)
One-hundredth of one percent (0.01%). Basis points measure the changes in yield–such as the interest paid on CDs, online savings accounts, money market and checking accounts.
A person or entity named in a will or financial contracts to whom an owner leaves his or her assets.
A service that lets you pay most bills online rather than mailing a check. You can make one-time payments or set up recurring payment plans, and you can receive electronic versions of your bills (eBills) to make it easy to keep track of all your bills in one place.
A way of marking and remembering a specific Web page for easy access. Your Web browser provides this feature, which can be used by selecting in the menu bar.
A check or other deposit that is not paid by the bank on which it was drawn.
A check issued by a bank and drawn on the bank's own funds. Also called an Official check.
Certificate of Deposit (CD)
A deposit account that pays an interest rate, usually higher than other types of deposit accounts, for a fixed period of time
A service in which the accountholder's bank keeps copies of canceled checks and makes them available only on request, instead of returning them with a monthly statement.
An additional borrower whose income and credit history contributes to the qualification process for a loan account. A co-borrower usually has the same legal obligations as the primary borrower.
Interest that is calculated not only on the principal, but also on interest earned during previous compounding periods. Interest can be compounded quarterly, yearly, or daily. The more often your interest is compounded, the more it grows.
Consumer Price Index (CPI)
A measure of the average change over time in the prices paid by urban consumers for consumer goods and services.
In the case of a deposit account, this is an amount added to the account, such as a deposit.
A card that lets you make purchases using credit. A credit limit is established by the issuer of the card.
A financial cooperative that makes personal loans and offers other consumer banking services to its members.
Cross Border/Currency Conversion Transaction
If you are in a foreign country and use an ATM or make a purchase with your debit card, you may be charged a fee of up to 1% of the transaction amount for the currency conversion and/or cross border transaction.
An individual, bank, or other organization that holds assets (such as a deposit account) for a beneficiary. Frequently, custodians are named to oversee accounts designated for minor beneficiaries. Deposits in such accounts are held for the benefit of the minor according to the terms of the custodial agreement.
A specific type of account created on behalf of a minor. If you have established the account as a custodian for a minor beneficiary under our state version of the Uniform Gifts to Minors Act, your rights and duties are governed by the Act. Upon the death of the custodian, a successor custodian will be appointed in accordance with the donor's instructions or state law, as applicable. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held for the exclusive right and benefit of the minor.
Daily compounded interest
Interest that is calculated daily and paid on the principal combined with interest earned the previous day.
In the case of a deposit account, this is an amount deducted from the account, such as a check you've written.
This card is typically used for ATM withdrawals and purchases.
When wages or benefits, such as pension or Social Security, are deposited electronically into your bank account.
This is a fee for selling a vehicle when you return it at the end of a ComTRAC lease. The fee is $250 (or $500 for medium duty vehicles).
The strategy of spreading investments across a number of different securities to reduce risk.
Domestic Wire Transfer
An electronic transfer from one U.S. bank account to another made through the Federal Reserve Wire Network.
The amount earned on an account since the initial investment or deposit was made.
Many large companies, like your electric, phone, cable or major credit card companies, have the ability to send you eBills (electronic versions of your bills) that are delivered to you online. Getting these electronically not only reduces the number of paper bills you have to keep up with - it could also save up to 7 lbs of paper a year. You can also save time by setting up your eBills to be paid automatically as soon as they arrive.
Electronic mail messages that you send through your computer, usually over the Internet. These messages may not be secure or encrypted.
Encryption is a process that turns plain text into a non-readable form of code. It's used to scramble the information sent to and from your phone to prevent a third party from seeing your information.
Equal Credit Opportunity Act (ECOA)
A federal law prohibiting creditors from discriminating on certain bases when marketing and extending credit.
The portion of a property's value over and above any liens against it. The term can also refer to the ownership of stock or other interests in a corporation or other business.
An item of value, such as money or documents, deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit of money by a borrower with a lender to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
Essential government work
Essential government work includes police and fire department activities, school bus service, ambulance service, snow removal work, Department of Transportation travel, and Department of Public work activities.
Essential use vehicles
Includes all vehicles that a municipality uses to maintain day-to-day governmental operations.
These estimated earnings are based on the interest rate and a fixed period of time.
There are Federal limits on transactions from U.S. savings and money market accounts. Deposits and ATM withdrawals do not count against the Federal limits. But, Federal law limits other electronic, telephone and check transactions to a total of 6 per statement cycle. These limited transactions can be to other accounts or to a third party.
A document that appoints someone to manage the decedent's estate, as designated in a will or by a probate court. This can be a Certified Executorship, Personal Representative document, Letters of Testamentary or Letters of Administration.
Fair Credit Reporting Act (FCRA)
A law regulating providers and users of consumer credit reports.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits up to a specified limit in member banks against loss if the bank holding the deposit were to fail.
Federal Open Market Committee (FOMC)
Part of the Federal Reserve System, the FOMC controls interest rates by instructing the Federal Reserve Bank to buy or sell government securities on the open market.
A fee for the cost of credit, or how much it costs to finance. The fee is established at the time the financing agreement or contract is signed.
Software or hardware that limits certain kinds of access to a computer from a network or other outside source.
Fiscally sponsored programs and organizations
Fiscal sponsorship refers to the practice of nonprofit organizations offering their legal and tax-exempt status to groups engaged in activities related to the organization's missions. It typically involves a fee-based contractual arrangement between a project and an established nonprofit.
Five Year Rule
In order to withdraw money from a Roth IRA tax-free, you must wait 5 years from the date of the initial contribution.
An interest rate shown as a percent that is guaranteed to stay the same for a fixed period of time (term).
Floating interest rate
Also called a variable interest rate, it's a rate that goes up and down.
Foreign exchange rate
The price of one nation's currency as it relates to the currency of another nation.
The value of a present sum at a future date found by applying compound interest over a specific period of time.
An individual who agrees to sign the financing agreement and pay another's obligations if the buyer/lessee or cobuyer/colessee default on the purchase contract or lease.
Short for HyperText Transfer Protocol, the underlying protocol used by the World Wide Web. HTTP defines how messages are formatted and transmitted, and what actions Web servers and browsers should take in response to various commands.
Hypertext Transfer Protocol Secure is the protocol for the server software that provides secure transactions on the World Wide Web. If a Web site is running on an HTTPS server, you will see HTTPS instead of HTTP in the address bar of your browser. This verifies that you are in secure mode.
In Trust For
Funds in the account are held in a trust for the designated beneficiaries. Any funds left in the account are payable to the designated beneficiary or beneficiaries when the account owner passes away.
A published interest rate, such as the prime rate, LIBOR, T-Bill rate, or the 11th District COFI. Popular indices include the Standard & Poor's 500 and the Dow Jones Industrial Average. Banks use indexes to establish interest rates and compare investment returns. Indices are also used to measure market performance.
Individual Retirement Account
An Individual Retirement Account (IRA) is a retirement savings plan designed for tax-deferred growth.
The rise in the prices of goods and services, caused when goods and services are more scarce than money. Moderate inflation is considered by most economists to be the normal result of economic growth.
The rate of change in prices. Two major U.S. indicators of the inflation rate are the Consumer Price Index (CPI) and the Producer Price Index (PPI), which track changes in prices paid by consumers and by producers.
Interactive Voice Response (IVR)
The system that allows you to get information about your account via telephone.
1) The rate paid by an interest-bearing account, such as a CD, online savings account, and money market account; and 2) the rate charged by creditors, such as banks, credit card companies, and mortgage lenders on a loan or other obligation.
When interest earned in one account is transferred to another account. For example, interest earned on a CD can automatically be transferred at maturity to a designated checking account.
Internal Revenue Service (IRS)
The U.S. agency charged with collecting nearly all federal taxes, including personal and corporate income taxes, Social Security taxes, and excise and gift taxes.
International Outgoing Wire
An electronic transfer from a U.S. bank account to a non-U.S. bank account made through the Federal Reserve Wire Network.
Internet Service Provider (ISP)
A company that provides access to the Internet.
When you jailbreak your phone, you modify its operating system to remove limitations placed on the device by the manufacturer. This removes the built in safeguards and protection which could expose your device to malicious software.
Java is a programming language used to create applications for the Internet.
Letter of instruction
A non-legally binding letter from the designated owner, beneficiary, trustee or representative of an estate that contains instructions on what to do with the funds in the decedent's account.
Light duty trucks
This includes trucks weighing up to 10,000 lbs.
Short for malicious software, malware is designed to install on your computer or mobile device without your consent. It is most commonly used to steal your information and login credentials, which can lead to ID Theft and other financial crimes.
The price buyers and sellers use to trade similar items in an open marketplace.
Maturity is when your CD's term ends. At that time, you can renew your CD or redeem the balance of your CD without penalty.
Medium duty trucks
This includes trucks weighing from 10,001 to 26,000 lbs.
Minimum daily balance
The minimum amount that may be required to be kept in an account each day to earn interest, avoid a service charge, or qualify for special services.
Minimum monthly payment
A minimum payment based on the percentage of your outstanding balance or a minimum fixed amount.
Minor's custodial account
An account created on behalf of a minor child, usually under a state law called the Uniform Gifts to Minors Act.
Money Market Account
An interest-bearing account that allows transactions to be made electronically online, by phone, by check, and by check card. Federal law limits the number of withdrawals and transfers per statement cycle to six. ATM withdrawals, however, are unlimited.
The amount you've agreed to pay on your purchased or leased vehicle every month.
Non-Sufficient Funds (NSF)
Happens when you don't have enough money in your account to cover your expenses–an overdraft.
A written promise to pay a specified amount to an individual or entity on demand, on a specified date or in installments, usually with interest.
NOW Account (Negotiable Order of Withdrawal)
A deposit account that pays interest and on which checks may be written.
An account statement you can access and view safely online.
With an open-ended lease, your business is responsible for the vehicle's residual value at the end of the lease.
When the amount of a check or other withdrawal presented for payment exceeds the available balance in an account.
An account with a beneficiary or multiple beneficiaries designated by the account owner. Any funds left in the account are payable to the designated beneficiary when the account owner passes away.
The amount of time you can take to pay off your vehicle financing or how long you'll have to drive your leased vehicle.
One percent of the loan or a measure of the interest rate.
Personal Identification Number (PIN)
This code, chosen by you or assigned by your bank, allows you to use your debit card at ATMs and retail locations.
Fraudsters send "phishing" emails to trick consumers into providing personal, non-public information on fake websites. Often that information can include account numbers, Social Security numbers and passwords, but, could also include answers to commonly asked screening questions such as mother's maiden name or high school mascot. Fraudsters then use the information provided on those fake websites to steal consumer identities, usually for the purpose of setting up or accessing financial accounts.
Popmoney is an easy way to send money to just about anyone with a U.S. bank account. All you need is their email address or mobile phone number to get started.
A web browser feature that prevents pop-up windows from appearing on your screen. Access to pop-up blocker controls can be found under the "Tools" menu at the top of your browser window.
Power of attorney
A legal document authorizing one person to act on behalf of another.
This is the price set to sell the vehicle to Ally on the Special Prepayment Date. Determined when you sign your Ally Buyer's Choice (ABC) contract rider, the price is subject to a disposition fee and any excess vehicle wear and mileage charges. See your contract for details.
The current dollar value of a future sum. In other words, the amount that would have to be invested today at a given interest rate over a specified period in order to equal the future sum.
In the case of an interest-bearing deposit account, this is the amount deposited to that account on which interest is paid.
Real rate of return
The return on an investment adjusted for inflation. For example, if an investment pays 6% annually, but inflation is 2%, the real rate of return is 4% (6% - 2% = 4%).
Receive interest as earned income
Once a CD matures, you can claim the interest you've earned as income, making it eligible for the federal government's Earned Income Tax Credit.
Determined before the lease begins, this is the anticipated value of the vehicle at the end of the lease term.
The change in value of an asset plus any cash distribution, expressed as a percentage of the beginning investment value. For example, an investment of $100 that is worth $112 at the end of one year has a return of 12%.
Returned deposit item
A check or other deposit that is not paid by the bank on which it was drawn. See your bank deposit agreement for rules concerning returned deposit items.
Revocable Trust Account
Any account that is set up to be payable to one or more designated beneficiaries.
Simple interest rate
The percentage rate at which interest accrues. This rate is used to compute the APY.
Small Estate Affidavit
A document that appoints someone to manage the decedent's personal property, including bank accounts, when their assets are valued under a certain amount and a formal probate isn't required.
Special Prepayment Date
This is a date at 48 or 60 months of the Ally Buyer's Choice term when the buyer can either prepay by selling the vehicle to Ally at a predetermined price or continue making scheduled payments.
An order to your bank not to honor a debit from your account. You can place a stop payment on checks and certain types of electronic funds transfers. Check your deposit agreement for more details.
A paper reproduction of an original check.
Taxable compensation is income received from wages, salaries and tips - in general, income you receive for work you do. Other income, such as income from an investment, is not considered taxable compensation for IRA purposes.
Tax-deferred growth means that your savings grow within the IRA without being taxed until you take a distribution (withdrawal) out of the IRA. This is the kind of growth you get with a Traditional or SEP IRA.
Free from tax liability.
Tax-free growth means that your savings grow within the IRA without being taxed and is also not taxed when you take a distribution (withdrawal) out of the IRA. This is the kind of growth possible with a Roth IRA.
The period of time between when a CD is opened and when it matures.
The legal evidence of ownership rights to real property.
Copies of pages in the Trust agreement describing the Trust, including the Grantor's name, names of Trustees and Successor Trustees, type of Trust and signature page. Also include copies of pages with Trustee powers and provisions related to the death of a Trustee.
Truth in Lending Act
A federal law requiring full disclosure of credit terms, using a standard format, intended to facilitate comparisons between lending terms and financial institutions.
TWAIN helps scanners and computers work together without special software. Most scanners are TWAIN compliant. Check your scanner's instructions if you aren't sure yours is TWAIN compliant.
Deposited checks that have not been paid by the bank on which they were drawn.
These are additions to your vehicle for work-related purposes, accessibility or otherwise. For leased vehicles, Ally allows additions to your vehicle's cab and chassis package as long as installation or removal doesn't damage or materially alter the vehicle.
Someone – a person or company – that specializes in modifying vehicles by adding items like toolboxes, storage drawers, etc.
Uniform Resource Locator (URL) is the address of a file or webpage accessible on the internet.
Annual Percentage Yield lets you know how much interest you could earn in one year. Since it is variable, it can go up or down at any time based on market fluctuations.
An interest rate that changes periodically. Like many institutions, our rates are based on the market and competition.
A tool Ally makes available at no extra charge that helps you to measure tires, dings, scratches, and chips to see if you have excess wear on your leased vehicle. You can download the Wear Square tool including instructions on our website.