Glossary - I

An account that has no activity; neither deposits nor withdrawals posted to the account, for a significant period of time.

An index-linked SC is a deposit obligation of the issuing credit union. Index-linked SCs provide the member the ability to participate in the appreciation, if any, of a particular index (stock), during the term of the SC. Index-linked SCs may have complicated payout structures and may not be suitable or appropriate for all members.

An account in the name of one individual.

A retirement savings program for individuals to which yearly tax-deductible contributions, up to a specified limit, can be made. The amount contributed is not taxed until withdrawn. Withdrawal is not permitted without penalty until the individual reaches age 59 1/2.

Insolvency is when your total debts are more than the fair market value of your total assets.

When a member's checking or share draft account balance is inadequate to pay a check or ACH presented for payment.

Insurance to protect the homeowner and the lender against physical damage to a property from sources such as but not limited to fire, wind, or vandalism.

Deposits held in federal and most state chartered credit unions that are guaranteed by the National Credit Union Share Insurance Fund (NCUSIF) against loss due to credit union failure.

The term interest is used to describe the cost of using money, a right, share, or title in property.

The rate paid by a borrower to a financial institution in exchange for the use of the financial institution's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures.