Letter of Credit

APY (Annual Percentage Yield)

The real rate of return on savings or deposits in one year, including the effect of compounding.

Auto-Debit

An arrangement where bills are paid automatically from your account on their due dates.

Bank Draft

A payment guaranteed by a bank, drawn on its own funds rather than yours directly.

Bank Rate

The rate at which a central bank lends to commercial banks, shaping all other interest rates.

Bank Run

When many depositors withdraw at once fearing a bank's collapse — which can cause it.

Central Bank

A national institution, like the CBN or the Fed, that manages currency, interest rates, and bank regulation.