Adjustable Rate Mortgage (ARM)
The interest rate is tied to a market index (see Prime Rate below). As the index goes up or down, your interest rate and payments will also change at each scheduled adjustment period. “Rate caps” limit the amount your interest rate can change.
Annual Percentage Rate (APR)
A term representing the total cost of credit. The APR of a loan is the total finance charge, including interest and fees, expressed as a yearly rate.
Annual Percentage Yield (APY)
The effective annual yield that reflects the total amount of interest paid on the account, based on the interest rate and frequency of compounding for a 365-day period and calculated according to the rules developed by the Federal Reserve Bank.
Automated Clearing House (ACH)
The automated clearing house (ACH) is an electronic funds transfer system. This nationwide network processes electronically originated credit and debit transfers such as direct deposit payroll payments and corporate payments to contractors and vendors.
Automatic Payment
With automatic payments you can have your monthly payment deducted from your checking or savings account to make payments on your Pacific Crest loan.
Bill Pay
An Online Banking service that offers the convenience and control of managing and paying bills online. With Pacific Crest’s Online Bill Pay, you can pay any company or individual in the U.S., schedule one-time, recurring payments and choose to receive electronic bills from selected billers.
Cashier’s Check
A check drawn on and issued by Pacific Crest Savings. A cashier’s check can be used instead of a personal check to guarantee that funds are available for payment.
Certificate of Deposit (CD)
Also called Time Deposit, this is a certificate issued by a financial institution that indicates a specific sum has been deposited. Our CDs bear a maturity date of up to five (5) years and a specified interest rate for that period of time.
Compounding Interest
Interest earned on previously earned interest as well as on the principal (the original amount deposited excluding any interest earned).
Credit Score
A score or rating given to a person by a credit bureau that helps a lender determine how likely you are to repay a new loan. To calculate your score, a credit reporting agency considers factors such as how you pay your bills, your outstanding debt, how long you’ve had credit, the types you’ve had and how many times you’ve applied for credit.
Individual Retirement Account (IRA)
Offering both traditional and Roth IRAs. Depending on the type of account, contributions may or may not be deducted from taxable income and earnings may not be taxed until disbursed, or in the case of Roth IRA may be tax-free.
Penalty for Early Withdrawal
Certificates of Deposit have a penalty when a withdrawal occurs before the specified maturity date. The penalty varies by the term of the CD. A 6 month to 1 year CD has a penalty of 90 days interest on the principal amount withdrawn. A CD of over 1 year and up to and including 3 years has a penalty of 180 days interest on the principal amount withdrawn. A CD with a term of 4 to 5 years carries a penalty of 365 days interest on the principal amount withdrawn.
Pre-Payment Penalty
A fee charged to a borrower who pays off a loan before it is due or 20% of its outstanding balance in a 12-month period if they chose the pre-payment option at closing.
Prime Rate
The most favorable interest rate charged by lenders to qualified customers. Pacific Crest uses the Prime Rate as published in the Wall Street Journal.
Remote Deposit Capture
A service which allows a user to scan checks and transmit the scanned images to Pacific Crest for posting and clearing. The basic requirements for an RDC service currently include a PC, an internet connection, a check scanner and a business account with Pacific Crest Savings Bank. Checks you receive can be scanned to create a digital deposit. This digital deposit is then transmitted (over an encrypted internet connection) to Pacific Crest Savings Bank, who then accepts the deposit, posts the deposit to your account and assigns availability based upon the items deposited.
Term of Deposit
The contractual maturity or length of time funds must remain on deposit.
Wire Transfer
A wire transfer is a method of electronic funds transfer from one person or institution (entity) to another. The Federal Reserve Bank provides the Fedwire Funds Service, a real-time gross settlement system that enables participants to initiate funds transfer that are immediate, final, and irrevocable once processed. Funds transfers are originated by instructing Pacific Crest Savings Bank to debit funds from an account and credit funds to the account of another institution.