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A yearly fee that may be charged for having a credit card. Some card issuers assess the fee in monthly installments.
- Browse Related Terms: Annual fee, application fee, Authorized charge, Credit-limit-increase fee, Late-payment fee, Over-the-limit fee, Penalty fees, Protected balances, Returned payment, Set-up fee, Workout arrangement
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The cost of credit on a yearly basis, expressed as a percentage.
A loan's annual percentage rate, or APR, is what credit costs you each year, expressed as a percentage of the loan amount.
The APR, which is usually higher than the nominal, or named, rate you're quoted for a loan, includes most of a loan's up-front fees as well as the annual interest rate.
You should use APR, which is a more accurate picture of the cost of borrowing than the interest rate alone, to compare various loans you're considering.
- Browse Related Terms: Adverse Action Notice, Annual Percentage Rate (APR), Credit application, Discount rate, Federal Open Market Committee (FOMC), Finance Charge, interest, Interest rate, Money factor, Origination fee, Periodic interest rate, Prequalification, Prime rate, Regulation Z, Right of rescission, Truth-in-Lending Act
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The actual cost of credit to the borrower, including interest and certain other charges, expressed as a yearly rate. Determining the APR’s for two products permits consumers to comparison-shop for credit.
State of Maine, Department of Professional and Financial Regulation - Cite This Source - This Definition- Browse Related Terms: Annual Percentage Rate (APR), Closing Costs or Settlement Fees, Consummation, Credit Card, discount points, Finance Charge, interest, Loan origination fees, Origination fee, Points and Origination Fees, Principal
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- For credit cards, the APR is the cost of credit expressed as a yearly interest rate. Each billing period (usually about a month), the company charges a fraction of the annual rate, called the periodic rate.
APR or “annual percentage rate” is an annualized interest rate. Different APRs may apply to different balances on your account, such as your purchase balance or your cash advance balance. We use the APR that applies to each balance to calculate the interest that you owe us on the account.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Balance-transfer fee, Cash-advance fee, Interest rate, Membership fee, Participation fee
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The cost of credit expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay. An APR, or an equivalent rate, is not used in leasing agreements.
- Browse Related Terms: Annual Percentage Rate (APR), application fee, appraisal fee, HUD-1 Uniform Settlement Statement, Loan origination fees, point, Points (also called discount points), Prepayment penalty/prepayment premium, Unpaid Principal Balance (UPB)
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A percentage rate reflecting the total amount of interest paid on a share account based on the interest rate and the frequency of compounding for a year.
Annual percentage yield is the amount you earn on an interest-bearing investment in a year, expressed as a percentage. For example, if you earn $60 on a $1,000 certificate of deposit (CD) between January 1 and December 31, your APY is 6%.
When the APY is the same as the interest rate that is being paid on an investment, you are earning simple interest. But when the APY is higher than the interest rate, the interest is being compounded, which means you are earning interest on your accumulating interest.
- Browse Related Terms: Annual percentage yield (APY), certificate of deposit, Certificate of deposit (CD), Compound Interest, Escheat, Eurodollar, Individual Account, Interest Rate (High/Low), Jumbo CD, Passbook, Savings account, Simple interest, Time deposit
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DoD personnel who file Public Financial Disclosure Reports (SF 278) must certify annually that they are aware of the disqualification and employment restrictions in 18 U.S.C. 207 and 208, and 41 U.S.C. 423, and that they have not violated those restrictions. The Annual Post-Employment Certification and Notification contains the contents of those provisions. DoD FDM SF 278 filers complete the required certification and acknowledgement concurrent with certifying the accuracy of the information reported in the SF 278 when submitting the report.
- Browse Related Terms: Annual Post-Employment Certification and Notification, Category of Amount, Excepted Trust, FDM, Flags, Relative, SF 278 of Record, trust, Vested Interest
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If your term life insurance is an annual renewable policy, you can renew your coverage each year without filling out a new application or passing a physical exam.
However, the premium, or the amount you pay for the policy, isn't fixed, and goes up each time you renew. Policies with five- or ten-year terms may also be renewable, with comparable increases in their premiums.
- Browse Related Terms: Annual renewable term insurance, Cash value, Convertible term, Council of Economic Advisors (CEA), Elimination period, Guaranteed renewable policy, Lapse, Level term insurance, Life insurance, Nonforfeiture clause, Own-occupation policy, Paid-up policy, Premium, Renewable term, Term insurance, Variable Life Insurance, Waiver of premium
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By law, each publicly held corporation must provide its shareholders with an annual report showing its income and balance sheet.
In most cases, it contains not only financial details but also a message from the chairman, a description of the company's operations, and an overview of its achievements.
Most annual reports are glossy affairs that also serve as marketing pieces. Copies are generally available from the company's investor relations office, and annual reports may even appear on the company's website. The company's 10-K report is a more comprehensive look at its finances.
- Browse Related Terms: Annual report, authorization, Credit bureau, Credit Report, FACT Act (Fair and Accurate Credit Transactions Act), Fair and Accurate Credit Transactions Act of 2003 (FACT Act,FACTA), Fair Credit Reporting Act (FCRA), Fraud Alert
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An annuitant is a person who receives income from an annuity. If you receive a distribution from an annuity that you or your employer buys with your 401(k) assets, you're the annuitant.
Similarly, you're the annuitant if you take distributions from an individual retirement annuity (IRA) or from an individual annuity you buy with after-tax income.
If your beneficiary receives annuity income after your death, he or she becomes the annuitant. It's also possible to buy an annuity naming someone other than the buyer - a disabled child, for example - as annuitant.
- Browse Related Terms: Account balance, Accumulation period, Accumulation unit, Annuitant, Annuitization, Annuitize, Annuity, Annuity principal, Deferred annuity, Fixed annuity, Hybrid annuity, Immediate annuity, Income annuity, Life expectancy, Lump-Sum Distribution, Minimum required distribution (MRD), Nonqualified annuity, Split-funded annuity, Systematic withdrawal, Variable annuity, Withdrawal
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Annuitization means that you convert part or all of the money in a qualified retirement plan or nonqualified annuity contract into a stream of regular income payments, either for your lifetime or the lifetimes of you and your joint annuitant.
Once you choose to annuitize, the payment schedule and the amount is generally fixed and can't be altered.
If you have a qualified retirement plan, such as a 401(k), you generally have three major options when you retire. You can annuitize, roll over the account balance to an IRA, or take the money all at once as a lump sum distribution.
If you have a nonqualified deferred annuity, you have a choice of annuitizing, taking a lump sum, setting up a systematic withdrawal plan, or arranging some other payout method that the contract allows.
- Browse Related Terms: Account balance, Accumulation period, Accumulation unit, Annuitant, Annuitization, Annuitize, Annuity, Annuity principal, Deferred annuity, Fixed annuity, Hybrid annuity, Immediate annuity, Income annuity, Life expectancy, Lump-Sum Distribution, Minimum required distribution (MRD), Nonqualified annuity, Split-funded annuity, Systematic withdrawal, Variable annuity, Withdrawal
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When you annuitize, you choose to convert the assets in your deferred annuity or other retirement savings account into a stream of regular income payments that are guaranteed to last for your lifetime or the combined lifetimes of yourself and another person, called your joint annuitant.
You typically annuitize when you retire. But, if you own a nonqualified annuity, you may begin receiving income at 59 1/2 without risking an early withdrawal penalty, or you can postpone the decision to annuitize well beyond normal retirement age.
One reason people may give for choosing not to annuitize is that they're afraid if they die shortly after they begin receiving payments, they will forfeit a large portion of the annuity's value. To avoid that situation, some people choose to annuitize with what's called a period certain payout, guaranteeing that they or their beneficiaries will receive income for at least a minimum period, typically 5, 10, or 20 years.
You should be aware that the promise to pay lifetime income is contingent on the claims-paying ability of the company providing the annuity contract. That's why you'll want to check the ratings that independent analysts give your annuity company before you annuitize your contract.
- Browse Related Terms: Account balance, Accumulation period, Accumulation unit, Annuitant, Annuitization, Annuitize, Annuity, Annuity principal, Deferred annuity, Fixed annuity, Hybrid annuity, Immediate annuity, Income annuity, Life expectancy, Lump-Sum Distribution, Minimum required distribution (MRD), Nonqualified annuity, Split-funded annuity, Systematic withdrawal, Variable annuity, Withdrawal
All > Business > Finance > Insurance > Life Insurance
A life insurance product that provides an income either for a specified period of time or for a person's lifetime.
- Browse Related Terms: Annuity, Convertible Term Insurance, Cost Index, Cost-Of-Living Rider, Guaranteed Insurability, Insured, policy, Policy Loan, Renewable Term Insurance, Straight Life Insurance, Term insurance, Term Rider, Universal life insurance, Whole Life Insurance (Straight Life or Permanent Life)
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A life insurance contract sold by insurance companies, brokers, and other institutions. It is usually sold as a retirement investment. An annuity is a long-term investment and can have steep surrender charges and penalties for withdrawal before the annuity's maturity date. (Annuities are not federally insured by the NCUSIF.)
Originally, an annuity simply meant an annual payment. That's why the retirement income you receive from a defined benefit plan each year, usually in monthly installments, is called a pension annuity.
But an annuity is also an insurance company product that's designed to allow you to accumulate tax-deferred assets that can be converted to a source of lifetime annual income.
When a deferred annuity is offered as part of a qualified plan, such as a traditional 401(k), 403(b), or tax-deferred annuity (TDA), you can contribute up to the annual limit and typically begin to take income from the annuity when you retire.
You can also buy a nonqualified deferred annuity contract on your own. With nonqualified annuities, there are no federal limits on annual contributions and no required withdrawals, though you may begin receiving income without penalty when you turn 59 1/2.
An immediate annuity, in contrast, is one you purchase with a lump sum when you are ready to begin receiving income, usually when you retire. The payouts begin right away and the annuity company promises the income will last your lifetime.
With all types of annuities, the guarantee of lifetime annuity income depends on the claims-paying ability of the company that sells the annuity contract.
An annuity is a contract with a life insurance company, though sometimes marketed through banks and financial planners. The investor (annuitant) pays a premium to the insurance company in either a single payment or a series of payments. In return, the insurance company makes payments to the investor, beginning at some future time, such as retirement or at a specified age. Tax-deferred investment income accumulates in the annuity. The two basic types of annuities are a fixed annuity and a variable annuity [see definitions of fixed annuity and variable annuity].
Fixed annuities: These annuities offer a specified rate of return that the issuing company guarantees. Individual investors have no direct financial interest in how the insurance company invests the premiums. Investors do have an interest in the insurance company in that if it becomes insolvent, they can lose their money.
Variable annuities: These annuities offer investors a limited series of options in which they can invest, typically mutual funds. Investors choose how their money is invested and receive a return based on the performance of the investments they choose.
- Browse Related Terms: Account balance, Accumulation period, Accumulation unit, Annuitant, Annuitization, Annuitize, Annuity, Annuity principal, Deferred annuity, Fixed annuity, Hybrid annuity, Immediate annuity, Income annuity, Life expectancy, Lump-Sum Distribution, Minimum required distribution (MRD), Nonqualified annuity, Split-funded annuity, Systematic withdrawal, Variable annuity, Withdrawal
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A contract, usually issued by an insurance company, that generally provides for the accumulation of contributions and a guaranteed income paid at regular intervals, usually monthly, for a specified period of time or for life. Many annuity contracts have significant mortality charges.
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The annuity principal is the sum of money you use to buy an annuity and the base on which annuity earnings accumulate.
If you're buying a deferred annuity, you may make a one-time - or single premium - purchase, or you may build your annuity principal with a series of regular or intermittent payments.
For example, if you own an annuity in an employer-sponsored retirement plan, you add to your principal each time you defer some of your income into your account - typically every time you're paid.
When you buy an immediate annuity, you commit your annuity principal as a lump sum, and that amount is one of the key factors that determines the amount of your annuity income.
- Browse Related Terms: Account balance, Accumulation period, Accumulation unit, Annuitant, Annuitization, Annuitize, Annuity, Annuity principal, Deferred annuity, Fixed annuity, Hybrid annuity, Immediate annuity, Income annuity, Life expectancy, Lump-Sum Distribution, Minimum required distribution (MRD), Nonqualified annuity, Split-funded annuity, Systematic withdrawal, Variable annuity, Withdrawal
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Annuity units are the shares you own in variable annuity subaccounts, also called annuity funds or separate account funds, during the period you're receiving income from the annuity.
The number of your annuity units is fixed at the time that you buy the income annuity contract, or when you annuitize your deferred variable annuity.
While the number of units does not change, the value of each unit fluctuates to reflect the performance of the underlying investments in the subaccount. That's why the income you receive from a variable annuity may differ from month to month.
- Browse Related Terms: American depositary receipt (ADR), Annuity unit, Block trade, Capital appreciation, Exchange-traded fund (ETF), expense ratio, Institutional fund, Mark to the market, Net asset value (NAV), Offshore fund, Open-end mutual fund, Proprietary fund, share, Standard & Poor's Depositary Receipt (SPDR), Underlying investment, Unit investment trust (UIT), Unit trust
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To call for a review of an IRS decision or proposed adjustment.
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Ethnicity of the applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report applicant ethnicity for purchased loans. When the applicant is not a natural person (a business, corporation or partnership, for example) or when the applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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Race of the applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report these data for purchased loans. When the applicant is not a natural person (a business, corporation or partnership, for example) or when the applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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Sex of the applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report these data for purchased loans. When the applicant is not a natural person (a business, corporation or partnership, for example) or when the applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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A form you fill out with information about you that an insurance company will use to decide whether to issue you a policy and how much to charge.
A request for insurance, giving information about the prospective policyholder.
A request for insurance, giving information about the prospective policyholder.
The request for insurance, giving information about the prospective policyholder.
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The request for insurance, giving information about the prospective policyholder.
A form you fill out with information about you that an insurance company will use to decide whether to issue you a policy and how much to charge.
Texas Department of Insurance and Office of Public Insurance Counsel - Cite This Source - This DefinitionA signed request for insurance, giving information about the individual requesting insurance.
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Under the Equal Credit Opportunity Act (ECOA), an oral or written request for a loan that is made in accordance with the procedures established by the financial institution for the type of loan requested.
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All > Business > Finance > Personal Finance > Consumer Credit > Credit Card
- A fee charged when you apply for a credit card.
- Browse Related Terms: Annual fee, application fee, Authorized charge, Credit-limit-increase fee, Late-payment fee, Over-the-limit fee, Penalty fees, Protected balances, Returned payment, Set-up fee, Workout arrangement
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Fees that are charged when you apply for a loan or other credit. These fees may include charges for property appraisal and a credit report.
- Browse Related Terms: Annual Percentage Rate (APR), application fee, appraisal fee, HUD-1 Uniform Settlement Statement, Loan origination fees, point, Points (also called discount points), Prepayment penalty/prepayment premium, Unpaid Principal Balance (UPB)
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The date the application was received or the date shown on the application form. For purchased loans, "NA" for not applicable is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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The date the filer entered a covered position or the President nominated them. The promotion date (not the frocking date) is the appointment date for General officer filers. Most filers will use their date of appointment when filling out this field on the SF 278 or the OGE Form 450.
- Browse Related Terms: Annual, Appointment or Nomination Date, Incumbent, Incumbent and Termination, New Entrant OGE Form 450, New Entrant SF 278, Reporting Status, Termination, Termination Date