What are the basic banking terms?

10 Basic terminologies that you should know about Indian banking

  • Base rate. Want to take a personal or home loan from your bank?
  • Cashback. Owning a credit card issued by your bank?
  • Credit History.
  • Collateral.
  • Compound interest.
  • Demat account.
  • Electronic Fund Transfer.
  • Fixed and Floating rate.

What is the active financing exception?

EXCEPTION” CORPORATE TAX LOOPHOLE The Active Financing Exception (AFE) tax loophole is an exception to an exception: an end run around rules meant to prevent the simplest form of offshore tax dodging.

What is BOA billing cycle?

Billing cycle The period of time (usually one month) between credit card account statements.

What is a cash equivalent transaction fee Bank of America?

The Bank of America cash advance fee is either 3% or 5% of the amount withdrawn, with a $10 minimum. Whether you get charged a 3% or 5% BofA cash advance fee depends on how you get your cash.

What term refers to passive investment in a foreign company’s financial assets?

A passive foreign investment company (PFIC) is a corporation, located abroad, which exhibits either one of two conditions, based on either income or assets: At least 75% of the corporation’s gross income is “passive”—that is, derived investments or other sources not related to regular business operations.

Are banks considered Pfics?

Active financing income. Under the final regulations, only entities licensed as banks are eligible for the active financing trade or business exception to PFIC testing. This change is significant for investors in nonbank foreign finance companies because they now are subject to the PFIC regime.

What are terms of credit card?

A credit card’s terms and conditions officially document the rules and guidelines of the agreement between a credit card issuer and a cardholder. Common terms and conditions include the fees, interest rate, and annual percentage rate carried by the credit card.

What is Bank of America APR?

There’s the regular APR, which applies to purchases and balance transfers and ranges from 12.99% (V) to 23.99% (V). Several cards have a 0% APR on purchases and/or balance transfers for a certain number of months, before the regular APR takes effect.

How can cash equivalent fees be avoided?

Link a money transfer app like Venmo to a bank account or a debit card instead of your credit card. Cash-equivalent transaction fees only apply to credit cards, so keeping your credit card out of the loop is the surest way to avoid the additional fees.

What are cash equivalent transactions?

Definition. A cash equivalent is something that can be easily redeemed for actual cash, like a check, money order or traveler’s check. A cash equivalent transaction, thus, is a financial transaction in which a cash equivalent, rather than cash, changes hands.

What is a controlled foreign company CFC?

CFC rules will first examine the relationship between a given domestic company (in the home country) and its foreign subsidiary (in another jurisdiction). The aim of the first step is to determine whether that subsidiary is a controlled foreign company (CFC) of the domestic corporation.

What does CFC stand for?

What does CFC stand for? Rank Abbr. Meaning CFC Controlled Foreign Corporation CFC Certificat Fédéral de Capacité (French: CFC Consumer Federation of California CFC Cash for Clunkers (Consumer Assistance t

What are CFC rules and why do they matter?

So, what exactly are CFC rules? They are rules that are created to prevent multinational corporations from profit shifting and tax evasion in their home countries. CFC rules will determine how much profits of a foreign subsidiary will be taxed domestically in the home country where the parent company is located.

What are the technical terms associated with banking and finance?

While many of us are aware of basic banking terms, there is a plethora of confusing technical terminology associated with banking and finance. This WealthHow article presents to you a glossary of banking terms and definitions that might help resolve your doubts. You may have come across the terms, like amortization, basis point, hedge, payee, etc.