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Savings account
An interest-bearing deposit account at a bank or other financial institution that provides an interest rate. The number of withdrawals per month may be limited by the financial institution. A fee also may be charged if a certain average monthly balance is not maintained.
SEC
See Standard entry code.
An entity that owns the electronic connection that is used to send ACH files to the federal reserve bank.
Settlement
Process of recording the debit and credit positions of two parties in a transfer of funds.
Share draft account
Credit union account which can be compared to a personal checking account at a bank.
SP
See Sending point (SP).
Per NACHA requirements, when a transaction is submitted for processing, it must include an ACH Standard Entry Class (SEC) Code to designate how the transaction was authorized by the originator. The following are SEC codes.
| SEC Code | Definition | Description |
|---|---|---|
| CCD | Corporate Credit or Debit | Identifies an entry initiated by an organization to transfer funds to or from an account of that organization or another organization. |
| PPD | Prearranged Payment and Deposit Entry | Identifies an entry initiated by an organization based on a standing or single entry authorization from a receiver to transfer funds to or from a consumer account of the reviewer. |
| WEB | Internet-initiated/Mobile Entry | Identifies an authorization that is communicated from the receiver to the originator via the Internet or a wireless network. |
Statement
Detailed record of the customer's account, listing debits, credits, transfers between related accounts and service charges throughout the preceding month. A checking account statement lists checks by the paid date, bank teller deposits, electronic deposits (e.g., payroll, MRDC), ATM withdrawals and deposits, preauthorized debits (e.g., loan payments automatically deducted) and the beginning and end of month account balances.
A descriptive statement lists the payee's name next to each account entry (e.g., the merchant's name in a bank credit card statement).
A combined statement lists account balances of related accounts (e.g., checking and savings accounts that are maintained under a single account number).
Sweep account
Transaction account offering convertibility of balances above some of the minimums into a higher yielding savings or investment instrument. A typical sweep account may be a negotiable order withdrawal (e.g., NOW account) on which a percentage of interest (e.g., 5.25%) is paid on the first deposit (e.g., $2,000). Balances above the specified amount periodically are transferred into a money market mutual fund or percentage agreement. If the NOW account falls below the minimum balance, some funds in the higher yielding account are liquidated and transferred back into the NOW account.
Historically, sweep accounts were popular in the early 1980s when deposit interest ceilings were still in effect, but have been replaced by super NOW accounts. A variation is the repurchase agreement, or sweet repo, in which funds are moved from a depositor's account and invested in government securities. The next business day, the customer's funds plus interest are recredited to the deposit account.
