Card Dictionary
| Independent bank | A bank that is locally owned and operated, and not associated with a bank holding company. Also referred to as a community bank. |
| Index | A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable rate loans such as credit card debt. Some of the most common indices are: the one-year Treasury Constant Maturity Yield; the Federal Home Loan Bank (FHLB) 11th District Cost of Funds; prime rate as listed in the Wall Street Journal. |
| Indexed rate | The sum of the published index plus the margin. For example, if the index is 8 percent and the margin 2.75 percent, the indexed rate is 10.75 percent. |
| Interest | Money paid for a borrower?s use of money, calculated as a percentage of the money borrowed and paid over a specified time. |
| Interest accrual rate | Percentage a borrower pays for the use of money, usually expressed as an annual percentage. |
| Interest rate | The amount charged per year on a personal or home loan. The rate varies according to the type of loan. Or, the percentage of interest paid for money in deposit accounts, without regard to compounding, shown as an annual figure. |
| Interest rate cap | A limit on how much a borrower?s percentage rate can increase or decrease at rate adjustment periods and over the life of the loan. |
| Interstate banking | Bank expansion across state lines through the use of bank holding companies and acquisitions of existing banks. |
| Introductory (or intro) rate | The low rate charged by a lender for an initial period to entice borrowers to accept the credit terms. After the introductory period is over, the rate charged increases to the indexed rate or the stated interest rate. Often called a teaser rate. |
| Issuing financial institution | The financial institution that issues a credit card and bills the customer for purchases made against the card account. |
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