Glossary


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  A
 
Account balance

The balance in an account at the beginning of each business day; includes all deposits and withdrawals that were posted from the previous night,
whether or not funds have been collected. See also Glossary term, "collected balance." 

Account statement

A printed or eStatement of all the debit and credit transactions on an account for a given statement cycle.

Active account

A bank account in which there are recent transactions.

Annual percentage yield (APY)

A percentage rate reflecting the total amount of interest paid on a deposit account (checking, savings, CDs, IRAs), based on the interest rate and the effect of interest compounding for one year.

Automated Clearing House (ACH)

A nationwide electronic funds transfer network that enables participating financial institutions to distribute electronic credit and debit entries to bank accounts and to settle such entries.

Automatic Funds Transfer

An arrangement that moves funds from one account to another automatically on a pre-arranged schedule; for example, every payday or once a month.

Automatic payment

An arrangement that authorizes payments to be deducted automatically from a bank account (usually a checking account) to pay bills (such as insurance payments, rent, mortgage or loan payments). Payments are usually scheduled to be made on a certain day of the month.

Available balance

The amount of money in an account that is available for immediate use.

Average daily balance

The average amount in a deposit account that equals the sum of the daily account balances during an accounting period, usually a monthly statement cycle,
divided by the number of days in the period. Can sometimes be used to calculate whether a service charge applies or to qualify for special services.
See also Glossary term, "minimum daily balance."
 
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  B
 

Banking Center

A CBTx branch office. There are 12 CBTx banking centers throughout Texas. See Locations  to find your nearest CBTx Banking Center.

Bill Pay

Bill Pay is a service of CBTx Online Banking that allows you to pay your bills online. In addition you can elect to receive e-Bills - electronic versions of your paper bills.

Bounced check

A check which a bank returns unpaid because there are not enough available funds in the account.
 
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  C
 

Cancelled check

A check that has been paid. A cancelled check may generally be used as proof of payment.

Cashier's check

 A check drawn on and issued by a bank. It does not usually bounce because its face amount is paid to the bank when it is issued and the bank then assumes the obligation.

Certificate of Deposit (CD)

A time deposit that is payable at the end of a specified term. CDs generally pay a fixed interest rate and generally offer a higher interest rate than other types of deposit accounts. Terms vary. CDs are insured by the FDIC up to the maximum allowed by law. If an early withdrawal from the CD prior to the end of the term is permitted, a penalty is usually assessed.

Certified check

 A check for which the bank guarantees payment.

Checking account

 A type of deposit account, sometimes interest bearing, which enables customers to place funds and withdraw their available funds on demand, typically by writing a check.

Check Image

A service where you receive images of the front of your cancelled checks. Each account statement includes images of checks that posted to your account during the statement cycle. You can view and print copies of the front and back of checks posted within the last 90 days by signing on to CBTx Online Banking, or you can request check copies by visiting your nearest CBTx Banking Center, or by calling the customer service number on your statement.

Co-Browse

A customer service feature that is available at www.cbtx.com or by using CBTx Online Banking during normal business hours.  This tool allows online banking customers the opportunity to share an internet browser with a CBTx Customer Service Representative.  This enables the user to more easily convey their questions and issues with a webpage without having to deal with the cumbersome task of explaining what page they are on.  Each Co-Browse session uses secure encryption to ensure the highest security standards are met.

Collected balance

The balance in a deposit account, not including deposited items that have not yet been paid, or collected. See also Glossary term, "account balance."

Combined balance

Any combination of balances from linked accounts, such as savings, checking, and CDs. Can be used to meet the balance required to waive the monthly fee on some checking accounts.

Compound Interest

Interest that is calculated not only on the principal balance in the account, but also on the accumulated interest. The more frequently interest is compounded, the higher the effective yield.

Credit

 A financial term that refers to an increase in a deposit account balance (such as a deposit made to the account). See also Glossary term, "debit."

Credit card

A plastic card issued to an individual for the purpose of purchasing goods and services using credit; a credit limit is established for each card holder.

Custodial account

An account created for the benefit of a minor with an adult as the custodian.
 
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  D
 

Debit

A financial term that refers to a decrease in a deposit account balance, such as a check posted to the account. See also Glossary term, "credit." 

Debit card

A plastic card issued by a bank which, in the case of CBTx cards, customers can use anywhere MasterCard debit cards are accepted. Because the money is deducted directly from a designated checking account, there are no finance charges. A debit card can also be used at ATMs so there is no need to carry both a debit card and an ATM card. 

Deposit

Money added into a customer's account at a financial institution.

Direct deposit

With direct deposit, your recurring deposits are made electronically into your checking, savings or money market account. Deposits can include salary, pension, Social Security and Supplemental Security Income (SSI) benefits, or other regular monthly income.

Disclosure

Information pertaining to the account services, fees and regulatory requirements.
 
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  E
 



Electronic Funds Transfer (EFT)

Any transfer of funds initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.

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  F
 

Federal Deposit Insurance Corporation (FDIC)

A federal agency that insures deposits in member financial institutions up to $250,000 per depositor.

Float

The amount of time represented by checks that are in transit between the date they are deposited to an account and the date they are paid. The time between deposit and payment of the check is referred to as the float.

Foreign ATM

Any ATM not owned or operated by CBTx.
 
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G



Gift Card

A non-reloadable plastic card that can be purchased at CBTx and that is accepted wherever Debit MasterCard is accepted.  This card may be loaded at a CBTx Banking Center for instant use or ordered for a large group such as a business loyalty or customer appreciation program.

The card is issued by MetaBank™ pursuant to license by MasterCard International Incorporated.

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   I
 

Inactive account

A bank account in which there have not been any transactions for an extended period of time. In some cases (no activity within the period specified by state law, generally at least three years), the law requires a bank to turn the account over to the state as unclaimed property.

Interest bearing

An account that earns interest is an interest bearing account.

Interest rate

The rate paid on an interest-bearing account, such as savings, CDs and some checking accounts; also, the rate charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest.
 
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  J
 

Joint account

Any account owned by two or more people.

Jumbo CD

Same as Certificate of Deposit (CD), except the deposit amount usually is a minimum of $100,000.
 
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  L
 


Linked account

Any account linked to another account at the same financial institution so that funds may be transferred electronically between accounts, and, in some cases, the combined balance may be used to help meet the balance required to waive a monthly service charge on one of the accounts.
 
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  M
 


Maturity Date

Date in which a CD matures, or is available for withdrawal or renewal without a penalty.

Minimum daily balance

The lowest end-of-day balance in an account during a statement cycle. It is often required to be kept in an account each day to earn interest, avoid a service charge or qualify for special services. See also Glossary term, "average daily balance."

Money market account

A savings account that generally permits up to three withdrawals by check or debit card each statement cycle.

Money order

A financial instrument, issued by a bank or other institution, allowing the individual named on the order to receive a specified amount of cash on demand. Often used by people who do not have checking accounts.

Monthly maintenance fee

The fee charged to maintain a particular account, such as a checking account.  CBTx offers many options to avoid the maintenance fees on checking and savings accounts. 
 
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  N
 


Non-bank ATM

An ATM or cash machine that does not prominently display a bank's name or logo. Fees generally apply to cash withdrawals at non-bank ATMs. Non-bank ATMs generally do not accept deposits.
 
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  O
 


Online banking

A service that allows an account holder to obtain account information and manage certain banking transactions, including bill payment through a computer.

Overdraft

An overdraft occurs when you do not have enough available funds in your account to cover a check or other withdrawal, but the bank pays the items and overdraws your account. See also glossary term "Overdraft protection."

Overdraft protection

A service that allows a checking account to be linked to another account that helps provide protection against returned items or overdrafts. When your checking account does not have sufficient available funds to cover a check, funds are automatically transferred from the available balance in the linked account to cover the check.  If an account holder does not have an account linked for overdraft protection and he/she qualifies, CBTx will pay up to a certain amount of overdrafts (fees may apply).
 
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  P
 


Personal identification number (PIN)

Personal Identification Numbers (PINs) are numbers that customers use with their ATM or Debit Card to access their accounts via ATMs or to make purchases with their Debit Card. These numbers should always be kept confidential. 
  
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  R
 


Rate

The percentage of an amount of money charged for its use per some period of time (often a year).

Returned Item

When you do not have enough available funds in your account (including any overdraft protection transfer from another account) to cover a check, the bank may decide not to pay the check and to return it to the payee. A returned item fee may be charged to your account. See your account agreement for additional information.
 
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  S
 


Savings account

A deposit account which pays interest, but funds cannot be withdrawn by check writing.

Secure Chat

A customer service feature that allows an end user the opportunity to chat live with a CBTx Customer Service Representative during normal business hours.
 

Simple interest

The interest calculated on a principal sum, not compounded on earned interest.
 

Stop payment

When you ask a bank not to pay a check or payment you have written or authorized. Stop payments are generally placed on lost or stolen checks or on checks related to disputed purchases. Stop payment orders generally expire after 6 months and a fee usually applies.
 
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  T
 


Time deposit or CD

An account for a fixed term with the understanding that the funds will remain on deposit until the end of the term. Penalties for early withdrawals may apply.
 

Transaction limitations

Refers to a Federal Reserve Board regulation that limits certain types of withdrawals and/or transfers from savings and money market deposit accounts. There can be no more than six preauthorized or automatic transfers, or telephone/online transfers (including bill payments) out of the account each month; of the six, if applicable, no more than three of the six limited transfers may be by check or debit card. Withdrawals at ATMs and teller windows from these accounts are unlimited.
 

Transfer

A movement of funds from one account to another.
 

Travel Card

A reloadable card that can be purchased at CBTx  and that is accepted wherever Debit MasterCard is accepted.  It is safer than cash in that it is protected against loss or theft. It is useful when traveling.  Also referred to as the CBTx Travel Card.

The card is issued by MetaBank™ pursuant to license by MasterCard International Incorporated.
 
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  U
 


Uncollected funds

Refers to items deposited in an account that have not yet been collected, or paid, by the bank on which they were drawn. 
 
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  V  




Variable rate

An interest rate that may fluctuate during the term of a loan, line of credit or deposit account. Sometimes the rate changes based on changes in an index rate, such as the prime rate or other prescribed criteria. Sometimes the bank changes the rate at its discretion. 
 
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  W
 


Wire transfer

An electronic payment service for transferring funds by wire (for example, through the Federal Reserve Wire Network or the Clearing House Interbank Payments System).

Withdrawal

A removal of funds from an account.
 
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  Z
 


Zero Liability Debit Card Protection

A CBTx and MasterCard guarantee for personal debit cards. If your card is lost or stolen, you may not be responsible for unauthorized purchases made with your card if you report the theft promptly*. The Zero Liability is free and automatically available on all CBTx consumer debit cards.

¹Some restrictions may apply.  Please see the CBTx Debit Cardholder Agreement for more information.

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