• What does Certificate of deposit mean?
• What does DAE mean?
• What does Direct Debit mean?
• What does Volatility mean?
• What does Refinancing mean?
• What does Investments Fund mean?
• What does Stock Unit mean?
• What does Embossed Card mean?
• What does Account Extract mean?
• What does Giro mean?
• What does Engaged Credits mean?
• What does Marge mean?
• What does Mortgage mean?
• What does Maturity mean?
• What does Annuity mean?
• What does DAE mean?
• What does Current Account mean?
• What does Deposit Account mean?
• What does Claim (Debt) mean?
• What does Security mean?
• What does EFTPOS (POS) mean?
• What does Imprinter mean?
• What does EURIBOR mean?
• What does LIBOR mean?
• What does Travel Cheque mean?
• What does M-banking mean?
• What does Scorig File mean?
• What does Family Budget mean?
• What does Reimbursing Capacity mean?
• What does Overdraft mean?
• What does Capitalization of Interest mean?
• What makes a Credit different from a Credit Card?

Financial instrument for short term loans, issued by commercial banks, indicating that a certanin amount of money was deposited. It has dates of payment which may vary from weeks to years and can have any nominal value.

The interest rates are determined by the monetary market. It can negociated or not. The major advantage consists in the fact that most banks allow recuperating them before the payment date, without extra payments. In this case, the interest is calculated for the period between the date of buying the certificate and the date of selling it.

The total annual interest is the cost of the credit expressed in annual percentage of the toital value of te credit.

Simple and fast way for payments.

Through Direct Debit the client passes the bank for payment of verious bills in his / her name, within the account available sum (eg. Phone bill, energy bill etc.).

Variation/fluctuation in the price of a financial instrument.

Refinancing a credit means taking all the credits of any kind which was closed at other credit or financial institution.

Investments found – institution which invests in real estate values, without a juridical statue and which found actions make the subject of a continue emission and buying operation.

Financial tool that attests the property right in an investment fund.

The information regarding user name, card number and expiration date are imprinted on the card, embossed, so the cards can be used electronically, as well as off line (imprinter).

A document released by the bank to a client, automatically, at some periods of time or at his request in which are presented(exposed) all the movements (payments, revenues) that have been made in the precise account for a certain period of time.

Means of payment; banking operation that consists in trasfering a sum from one account to another: to the client's request, the bank person debits his account for crediting another account.

Engaged credits are the total sum of the credits of any kind that a certain person has registered.

Marge is the difference between the price of sale of a certain product/service and its cost; the difference between the payed interest for deposits and the interest perceived for credits given by the bank.

Mortgage is ceding the right of property on a real property; collateral security in the credit contracts.

Maturity represents the date of payment (cashing, recovering, reimbursing) a financial instrument (deposit, certificate of deposit, debenture, treasury certificate, credit etc.)

Annuity is the specific name of the fixed installment and it’s composed of the "principal" (the amount that is paid out from the value of the loan) and the "interest" (the interest for the loan).

DAE represents the annual effective interest calculated and mentioned in the case of the the loan for personal expenses and includes the cost covered by the consumer when contracting a loan. More precisely what is to be paied over the loan’s interest: annual interest, the cost of the insurance, the commission for the analysis of the file.

The annual interest is not used for the installement’s calculation, but it is useful for comparison purposes for various loan offers.

Banking financial instrument based on an agreement contracted between the bank and the client or, in the shape of an account which serves for the registering, in chronological order, in debit and/or credit, all the banking operations of the client (holder).

In keeping with this contract, the parties agree to confront together all the operations that will appear during the current account. The operations are reproduced in the account extract which is the picture of the funds' movements in the account

Banking financial instrument represented by a deposit of monetary funds registered in an account. The account registers the established deposit.

It is a simple mode of bookkeeping presentation, which reflects the operations of constituting and withdrawing the money at a certain term, operations that occur between the bank and the client.

The convey of the operations is made in the account extract which is the picture of the funds' movements in the account.

Claim (debt) is the right to get the executing of a service in kind or to get its equivalence.

It is a real or personal property that is mortgaged or pledged in favor of a Creditor as collateral that the Debtor will comply with the payment dues, it may also be a third person’s payment guarantee of honoring another person’s debts incapable of paying them.

It is an abbreviation from the english term: Electronic Fund Transfer at Point of Sale. Shortly, this is the electronic terminal of card acceptance. POS, unlike the Imprinter, makes all the transactions in an electronic, secured environment. This allows, through the authorized sistem, for the confirmation that there are suficient funds in the debit account and the transfer takes place automatically.

It's manual card reader, equipment made available to the economic agents by the banks issuing cards, through which the image of all the embossed letters of a bank card is imprinted on all the invoices or the receipts issued on the card owner’s name.

Euribor (Euro Interbank Offered Rate) is the rate at which euro inter-bank term deposits within the euro zone are offered by one prime bank to another prime bank. It is one of the two benchmarks for the money and capital markets in the euro zone.

It is a term analogous to LIBOR, but it is referred to euro and it is the most often used term on the currency market in the euro zone. EURIBOR is the name for an index based on the interest rates for 12-month euro deposits that is published by the European Central Bank and commonly used as reference rate for variable mortgages rate.

Stands for London Interbank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the so-called wholesale money markets in the City of London. Money can be borrowed overnight or for a period of in excess of five years. The most often quoted rate is for three month money. It is the financial index to which many adjustable rate mortgage loans are tied when they have short-term adjustment periods.

LIBOR can be also expressed as an average of the quoted interest rates of different international banks that they impose for lending American Dollars on the money market from London. There are similar rates on other markets, such as PIBOR in Paris and RIBOR in Rome, but Libor is frequently used as a generic term for all inter-bank rates.

Travel cheques are payment tools with a fixed value that can be used world-wide. These cheques are available as cheque books or as cheque files. Travel cheques may be in different currencies and they may have different values.

M-banking defines your banking services (varied banking information such as the balance of the card account or current account) through the mobile phone.

The scoring file is a tool used in the evaluation of the credit petitioner’s profile. Also, it helps to estimate the probability that the petitioners develop a certain behaviour of using the credit and establishes their capacity of credit reimbursement.

The principles of the scoring file’s functioning are set on the ground of different statistical analysis with historical character. These allow the modeling of specific behaviours for different customer segments, but also the substantiation of the yes/no answer, which will be formulated for a certain request for credit granting.

The family budget is a work tool used to measure one’s capacity to reimburse a credit.

This includes two chapters: one of income and one of spending.
In the chapter dedicated to incomes, the certain income of the requester are recorded (salaries, dividends etc), that are stated in the imposing statement and, according to the type of credit, the husband/wife income. In the spending chapter, the spending performed for rents and payments of utilities (phone, electricity, thermal energy etc), as well as the minimum sub-existing income of the family) are recorded.

You have surely heard a lot of talking, in the credit context, about the reimbursing capacity. When you apply for a banking credit, the bank decides upon the maximum value of the credit it is able to grant to you, taking into account your capacity to reimburse this credit.

Shortly, the reimbursing capacity represents your financial potential to pay your credit installment and the respective interest every month.

You need to know that, in accordance with the Romanian National Bank regulations, the credit installment can not be higher than your net monthly income, after deducting all the other debts you might have to pay.

The term defines a facility granted by the bank to its clients, through
a special credit, evaluated by taking into account their capacity to
reimburse it.

Clients, by means of this facility, can get permission to use,
in a certain limit, amounts of money higher than the existing ones in
their bank accounts opened to a certain date.

This type of credit is engaged when the need of the client to make higher payments than the one available in his/her account. The credit can be reimbursed at each of its supplying.

It's good to know that your options are as following:

• To request the payment of the interest when this is due, meaning at the end of the 3 months;
• To request the monthly payment of the interest, meaning you can collect the interest after each month, as it won't be necessary to wait until the 3 months term is completed;
• To request the capitalization of the interest, meaning that at the completion of the maturity term, the bank calculates the interest, adds it to your deposit and reconstructs your deposit for its new value on the same term as the initial one (in our case, after 3 months) and with the interest valid on the renewal date.

When you request a credit from a bank and it is granted, you will start paying the interest in the month that follows the 3 months. You will also start paying monthly the credit installments, in equal or variable parts, as you have decided together with the credit officer.

The crediting term is fixed (1 year, 2 years or more), and you know about this thing from the very beginning. Plus, more often you have to respect a certain destination of the credit, the one stated in the request application addressed to the bank.

On short, this is what a credit means.

Now Let’s See What Makes a Credit Card Different

When you place a request application for a credit card, the credit officer will let you know from the very beginning what credit limit can be allocated to you, according to the level of your income and its source. The maximum credit card is of 3.000 USD (the equivalent in ROL).

Until now, nothing is new!

You will feel the difference when your credit card will stay in your wallet and you will notice that you pay the interest only for what you spend from your credit card.

Let’s suppose that you have the amount of 10 million on the card, but you have only spent only 2 million! You will pay the interest only for the 2 million that you have spent!

This is a first very important difference.

How Much Do You Have to Pay Back Every Month?

Out of the first 2 million that you have already spent, you will have to pay back every month only 10%, therefore 200.000 ROL plus the interest afferent to the 2 million.

This is the second very important difference.

Bancpost introduces BRILIANT, credit card VISA Electron, account in ROL, with national and international usage, valid for 4 years.

This is the money at your disposal that you can use any way and any time you want.