Arrears
Amounts that are both unpaid and past the due date for payment. (Source: https://www.abs.gov.au/)
Assets
Something you own. It may be a financial item like money, bonds, shares or a bank account or physical item like a house, land or a car. (Source: https://moneysmart.gov.au/glossary)
Australian Business Number (ABN)
An ABN is a unique 11-digit number issued by the Australian Tax Office (ATO) to identify your business.
Australian Securities & Investments Commission (ASIC)
The Australian Federal Government agency that enforces laws relating to companies, securities, financial services and credit, in order to protect consumers, investors and creditors. (Source: https://moneysmart.gov.au/glossary)
Automatic Teller Machine (ATM)
ATMs are a common banking channel for consumers to make cash withdrawals and deposits or conduct a balance inquiry, 24/7. (Source: https://www.ausbanking.org.au/)
Available balance
The amount available to spend out of the current balance, as sometimes the current balance showing is yet to remove the pending transactions.
Bank@Post
Bank@Post is an Australia Post program that provides simple transaction services. This means that instead of having to visit a branch, you can do some of your banking at more than 3,500 participating post offices across the country.
Bankruptcy
A process for individuals to be legally declared as being unable to meet their debt obligations. (Source: https://moneysmart.gov.au/glossary)
Beneficiary
Someone who will receive a benefit or asset in the event of the owner’s death. Beneficiaries of a super fund are the members, and their dependants (if the member dies). (Source: https://moneysmart.gov.au/glossary)
Bitcoin
See Cryptocurrencies
Borrower
A person or entity that incurs a debt to a lender on agreed terms. (Source: https://www.rba.gov.au/glossary/)
BPAY®
BPAY is a bill payment system that allows you to pay your bills through online or mobile banking.
Broker
A person who arranges a contract between you and, for example, an insurance or mortgage service provider. Brokers usually receive a commission or fee for arranging a contract. (Source: https://moneysmart.gov.au/glossary)
BSB
A six-digit number that identifies a specific branch of a bank or other financial institution within Australia. The BSB (Bank State Branch) number plus an account number identifies a particular account. (Source: https://moneysmart.gov.au/glossary)
Cash advance
Cash advance means a transaction on the account which results in you receiving actual cash (whether at a branch or via an electronic terminal or by other means) and includes:
(a) a purchase of “quasi-cash” items such as gambling chips or travellers cheques;
(b) the payment of a bill at a bank or agent of the biller, which is nominated by the biller (for example, the payment of tertiary fees or utility bills);
(c) a funds transfer to another account held by you or a third party with us or another financial institution; or
(d) a BPAY® payment.
Chargeback
A return of funds from a retailer or service provider to a consumer's bank account, line of credit or credit card, often initiated by the consumer's bank. (Source: https://moneysmart.gov.au/glossary)
Comparison rate
A rate that helps you work out the true cost of a loan. It includes the interest rate, and most fees and charges relating to a loan, reduced to a single percentage figure. (Source: https://moneysmart.gov.au/glossary)
Compound interest
Compound interest is interest that applies not only to the initial principle of an investment or loan, but also the accumulated interest from previous periods.
Conveyancer
A conveyancer helps you meet all legal requirements involved with purchasing your home. They'll handle most of the paperwork and questions you have about the process. They review and explain the terms and conditions of the contract. (Source: https://moneysmart.gov.au/glossary)
Cooling off period
A specific amount of time during which a person can reconsider their choice without penalties. Eg. They may decide not to go ahead with a contract. It is important to always check the details of a cooling off period to ensure you are covered by this.
Credit
A lending term for when a customer purchases a goods or services with an agreement to pay at a later date. This could be an account with a supplier, a store credit card or a bank credit card. (Source: https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms)
Credit card
A credit card gives you access to a set amount of money the bank has agreed to lend you. See Credit limit.
Credit file
A credit file (sometimes called a credit report or credit history) is a report that details your credit history, including every time you have applied for credit or defaulted on a repayment. (Source: https://moneysmart.gov.au/glossary)
A dollar amount you cannot exceed on a credit card or the maximum amount offered for a loan. (Source: https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms)
Credit rating (Credit score)
A ranking based on a person or business's credit history that represents their ability to repay a debt. (Source: https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms)
Credit union
An organisation that is member owned and provides a range of banking and loan services with a focus on serving members rather than making profits.
Cryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market. This is in contrast to national currencies, which get part of their value from being legislated as legal tender. The most well-known of these is Bitcoin. (Source: https://www.rba.gov.au/education/resources/explainers/cryptocurrencies.html)
Debit card
A Debit card gives you access to your bank accounts via ATM and EFTPOS facilities. (Source: https://moneysmart.gov.au/glossary)
Debt
Any amount that you owe, including bills, loan repayments and income tax. (Source: https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms)
Deposit
To put money into your bank account.
Digital wallet
A digital wallet is a software application (app) or service that allows users to make transactions. (Source: https://www.aph.gov.au/)
Direct debit
A payment collection method that allows loan or service providers to draw money from your bank account on a regular basis. (Source: https://moneysmart.gov.au/glossary)
EFTPOS (Electronic Funds Transfer at Point Of Sale)
EFTPOS is an Australian network for processing credit cards, debit cards and charge card payments at the 'point of sale'. EFTPOS also allows users of the system to withdraw cash at the time of purchasing a product or service through the merchant's EFTPOS terminal. (Source: https://moneysmart.gov.au/glossary)
Equity
The value of an asset such as your house or property, less any money owing on it. (Source: https://moneysmart.gov.au/glossary)
Establishment fee
A one-off fee which may apply to set up a loan. (Source: https://moneysmart.gov.au/glossary)
Estate
All of a person's assets, whether real property or personal property, and their liabilities or debts. (Source: https://moneysmart.gov.au/glossary)
Exchange rate
The price at which the currency of one country can be exchanged for the currency of another. (Source: https://moneysmart.gov.au/glossary)
Executor
A person specified in a will, or appointed, to administer the will. (Source: https://moneysmart.gov.au/glossary)
Financial adviser
A person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation. May also call themselves a financial planner. (Source: https://moneysmart.gov.au/glossary)
Financial wellness/wellbeing
Financial wellness is an important aspect of our general sense of well-being. It is achieved when we are able to cover our expenses with no worry, can absorb financial shock without much stress, and are on track to meet our financial goals. (Source: https://www.beyondblue.org.au/mental-health/financial-wellbeing)
Fixed interest rate
Interest that is paid at a fixed rate over a set period in a loan or investment. The fixed interest period may not cover the full term of the product. (Source: https://moneysmart.gov.au/glossary)
Fraud
Fraud is broadly defined as an act committed by a person that is deceptive or deceitful in a way that causes them to receive a benefit they are not entitled to. In this way, some other person or organisation suffers a disadvantage. (Source: https://www.police.nsw.gov.au/crime/frauds_and_scams)
Guarantor
A person who guarantees a loan for someone else. If the borrower is unable to repay the debt, the guarantor is legally responsible for covering the repayments. (Source: https://moneysmart.gov.au/glossary)
Interest-only home loan
On an interest-only home loan (mortgage), your repayments only cover interest on the amount borrowed (the principal). For a set period (for example, five years), you pay nothing off the amount borrowed, so it doesn't reduce. At the end of the interest-only period, the loan will change to a 'principal and interest' loan. You'll start repaying the amount borrowed, as well as interest on that amount. That means higher repayments. (Source: https://moneysmart.gov.au/home-loans/interest-only-home-loans)
Interest rate
The relationship between the amount of money borrowed or lent and the money paid in return for the use of that money. Usually expressed as a percentage per year. (Source: https://moneysmart.gov.au/glossary)
Internet banking
Internet Banking is one of the most cost-effective and convenient online banking options available. Our Internet Banking platform gives you secure access to your accounts online 24 hours a day, seven days a week at your convenience.
Investment
An asset bought with the aim of producing an income and/or an increase in value over time. (Source: https://moneysmart.gov.au/glossary)
Joint account
A joint account is an account held by two or more people. Any individual whose name is on the joint account can operate the account; but it is possible to restrict any withdrawals by requiring both people to sign. (Source: https://moneysmart.gov.au/glossary)
Land tax
Land tax is an annual tax levied at the end of the calendar year on property you own that is above the land tax threshold. (Source: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax)
Lease
A document that grants someone the use of a property for a given period in return for rental payments. The document will specify the terms and conditions of the agreement. (Source: https://moneysmart.gov.au/glossary)
Lender’s Mortgage Insurance (LMI)
Lenders mortgage insurance (LMI) protects a credit provider if borrowers are unable to repay their loan. LMI is usually a one-off cost to a home loan borrower, generally payable when the amount borrowed exceeds 80% of the value of the property. LMI does not benefit the borrower, it only protects the lender. (Source: https://moneysmart.gov.au/glossary)
Liability
A debt or money owed, for example, a bank loan or credit card debt. (Source: https://moneysmart.gov.au/glossary)
Loan to Value Ratio (LVR)
The amount of a loan as a percentage of the value of the asset it was used to buy. It is calculated by dividing the loan amount by the value of the asset. For example, if you're buying a $600,000 house and you have a $450,000 loan, your LVR would be 75%. (Source: https://moneysmart.gov.au/glossary)
Maturity
The date on which a debt or investment and all outstanding interest payments must be paid in full. (Source: https://moneysmart.gov.au/glossary)
Mortgage
A form of security (usually over real estate) that is used to secure repayment of a debt (usually a home loan). (Source: https://moneysmart.gov.au/glossary)
Mortgage broker
A person who matches borrowers to lenders and arranges mortgage contracts between the two parties. (Source: https://moneysmart.gov.au/glossary)
Multi-factor authentication
Multi-factor authentication (MFA) is a security measure that requires two or more proofs of identity to grant you access. (Source: https://www.cyber.gov.au/protect-yourself/securing-your-accounts/multi-factor-authentication)
Mutual bank
A financial institution that is owned by its members rather than shareholders, which means the members get a say in how the bank is run. It offers the same products and services of a standard bank, but has a stronger focus on the needs of the members.
New Payments Platform (NPP)
The New Payments Platform is Australia's national fast payments infrastructure.
Offset account
A transaction account that is linked to your homeloan. It reduces your interest payable as interest is only charged on the net balance, i.e. your home loan balance less your offset account balance. Some offset accounts offer a partial offset, where only a portion of the balance is used to reduce interest. (Source: https://moneysmart.gov.au/glossary)
Open Banking
Open banking gives you the ability to share your banking data with third parties that have been accredited by the Australian Competition and Consumer Commission (ACCC). This will allow you to get better-suited banking products and switch products or banks more easily.
Osko
Osko by BPAY® is a secure payment service which enables you to send and receive near real-time payments on the New Payments Platform (NPP). You don't actually have to do anything different to use it. It's been built right into your existing Internet Banking and Australian Mutual Bank Mobile App transfers.
Overdraft (Overdraft facility)
An arrangement that allows you to withdraw more funds than you have in your account. (Source: https://moneysmart.gov.au/glossary)
Overdrawn account
When the limit on a credit card or bank account (including any overdraft facility) has been exceeded. (Source: https://moneysmart.gov.au/glossary)
PayID
PayID is a fast and secure way to send and receive payments using a mobile number, email address or ABN, all within the security of your online banking.
payWave (VISA payWave)
Visa payWave is a contactless payment method that lets you make purchases by waving your Visa card or device in front of a contactless terminal.
Personal loan
A personal loan lets you borrow money to pay for something special, like a holiday, car or home renovations. You have to repay it with interest over a fixed term, usually between one and seven years. (Source: https://moneysmart.gov.au/loans/personal-loans)
Phishing
Emails or text messages that attempt to trick you into giving out your personal information such as usernames, passwords or banking details. (Source: https://moneysmart.gov.au/glossary)
Power of Attorney (POA)
A Power of Attorney is a legal document allowing someone to make legal and financial decisions for you. There are 2 types of Power of Attorney documents:
General Power of Attorney - A legal document that allows you to appoint a person to manage financial and legal decisions on your behalf, only while you have the ability to make your own decisions. A General Power of Attorney becomes invalid when you die, or you lose capacity to manage your own affairs.
Enduring Power of Attorney - A legal document that allows you to appoint a person to manage financial and legal decisions on your behalf and continues even if you lose the ability to make decisions for yourself. It also becomes invalid when you die.
(Source: https://moneysmart.gov.au/glossary)
Principal
The original sum of money invested, or the amount borrowed or still owing on a loan. (Source: https://moneysmart.gov.au/glossary)
Product Disclosure Statement (PDS)
A document that financial service providers must provide when offering certain financial products. It includes important information about the product’s key features, fees, commissions, benefits, risks, and the complaints handling procedure. Not all financial products require a PDS, so check with your provider for details. (Source: https://moneysmart.gov.au/glossary)
Quarter
A quarter is a three-month period of a financial calendar.
Redraw facility
Gives you access to any extra money you have deposited into your home loan. (Source: https://moneysmart.gov.au/glossary)
Refinance
When you replace or extend an existing loan with funds from either the same or a different bank or financial institution. (Source: https://moneysmart.gov.au/glossary)
Repayment
Repayment refers to paying back money that you have borrowed.
Salary sacrificing
When you and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation. This can be a tax-effective strategy and usually suits middle to higher income earners. (Source: https://moneysmart.gov.au/glossary)
Savings account
A savings account is a deposit account held at a bank or other financial institution that offers a higher interest rate than most basic transaction accounts. Account holders can usually access their account at any time, unlike term deposits, which restrict withdrawals until the end of a fixed term. (Source: https://moneysmart.gov.au/glossary)
Scams and scammers
A deliberate and targeted deception to obtain money or information unlawfully. (Source: https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms)
Secured loan
A loan that is backed by an asset. The lender may sell the secured asset to get its money back if you cannot repay the loan. Opposite of unsecured loan. (Source: https://moneysmart.gov.au/glossary)
Settlement
Settlement is the process of paying the remaining sale price and becoming the legal owner of a home. At settlement, your lender will disburse funds for your home loan and you'll receive the keys to your home. (Source: https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-residential-property-nsw/exchanging-contracts-and-settlement)
Split rate home loan
See How do split rate home loans work?
Stamp duty
Stamp duty is a state tax imposed on certain transactions, such as car registrations, mortgages and property transfers. (Source: https://moneysmart.gov.au/glossary)
Superannuation
Money that you and your employers put into a special fund during your working life to provide you with money to live on when you retire. (Source: https://moneysmart.gov.au/glossary)
Tax file number (TFN)
A tax file number is your personal reference number in the tax and superannuation systems.
Term
A period or length of time.
Term deposit
A term deposit is a financial investment product offered by banks and financial institutions where a sum of money is deposited for a specific period. During this term, the deposited funds typically earn a fixed interest rate that is generally higher than that of regular savings accounts. (Source: https://moneysmart.gov.au/glossary/term-deposit)
Two-factor Authentication (2FA)
See Multi-factor authentication
Unauthorised transaction
An unauthorised transaction is when someone transfers money from your account without your permission. (Source: https://moneysmart.gov.au/banking/unauthorised-and-mistaken-transactions)
Unsecured loan
A loan for which no asset has been used as security. The interest rate is usually higher than for a secured loan as there is a higher risk to the lender of not getting their money back. (Source: https://moneysmart.gov.au/glossary)
Valuation
When taking a home loan, a real estate valuation is performed to determine the market value of the property you are using as security for your loan. This is done by a professional appraiser. (Source: https://moneysmart.gov.au/banking/unauthorised-and-mistaken-transactions)
Variable interest rate
Where consumers receive interest on an investment or pay interest on a loan at a rate that may go up or down during the term. (Source: https://moneysmart.gov.au/glossary)
Will
A legal document that sets out how you want your assets and other belongings to be distributed when you die. (Source: https://moneysmart.gov.au/glossary)
Withdrawal
To take money out of your bank account.
