Banking can be confusing, with many terms and abbreviations. Below are explanations for many of the products, services, and terms you may find on the Bank5 Connect site. Please take a look and contact us if you have any questions.
Annual Percentage Yield (APY) – The APY is the rate earned from an investment or deposit over the course of one year, assuming the balance is kept in the account or investment for the entire year. APY factors in the interest rate earned and compounding period (monthly for Bank5 Connect) and is often higher than the interest rate.
ATM Surcharge – An ATM surcharge is a charge to use an ATM. Bank5 Connect will never charge a fee to use an ATM; however, some banks do. In order to make it easy for our customers to get cash, we may rebate Bank5 Connect customers’ accounts up to $15 per month.
Bank5 Connect – Bank5 Connect is an online division of BankFive. It was launched in July 2013 to serve customers looking for maximum flexibility in banking, backed by a well-established bank.
BankFive – BankFive is a community bank located in the SouthCoast area of Massachusetts and headquartered in Fall River, MA. The bank has been in operation since 1855 and operates 13 branch locations in southeastern Massachusetts and Rhode Island.
Bill Pay – Bill pay is a convenient service that allows customers to pay bills directly through Online Banking. This provides the safety and security of knowing exactly when a vendor will be paid, instead of relying on mail service, writing checks, and buying postage to mail payments. As an added bonus for Bank5 Connect customers, bill pay can be done through Online Banking as well as through our mobile app for customers that have either an iPhone or Android.
Certificate of Deposit – A certificate of deposit, often referred to as a CD, is a timed deposit account that accrues interest for the term of the deposit. Because financial institutions know that the funds deposited will remain at the bank for a set amount of time, interest rates are generally higher than other types of deposit accounts, such as savings or checking accounts, where money can flow in or out at any time.
Depositors Insurance Fund (DIF) – The DIF is a private insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks. Bank5 Connect customers are insured by the FDIC to at least $250,000 and all deposits above the FDIC insurance amounts are insured by the DIF. For Bank5 Connect customers, this means that 100% of deposits are safe, sound, and insured!
Direct Deposit – Direct deposit is an easy way to receive regularly recurring deposits into an account. Many employers and employees prefer direct deposit, where the employee’s paycheck is electronically deposited into his or her account. With direct deposit, there is no waiting; funds are available as soon as they get sent to the account.
eStatements – eStatements are free monthly account statements that are delivered electronically online. Effective January 1, 2018, Checking and Savings accounts that receive paper statements delivered through U.S. Mail will incur a $1.00 charge per statement each month. However, Checking and Savings accounts that receive eStatements will not incur a fee. To sign up for and access their eStatements, Bank5 Connect customers simply log into their Online Banking profile, click on "Additional Services", and select "eStatements".
Early Withdrawal Penalty (CDs only) – Certificates of Deposit (CDs) are accounts that have a certain term set. If a customer decides to close out a CD prior to the end of the term, an early withdrawal penalty will apply for taking the money out. Penalties vary between banks, but at Bank5 Connect, the fees are equal to 3 months interest for CDs of less than 1 year term, and 6 months of interest for CDs over 1 year terms.
Equal Housing Lender (EHL) – The Equal Housing Lender designation indicates that BankFive, the parent company of Bank5 Connect, participates in lending practices that create equal housing opportunities for all persons. BankFive adheres to laws that prohibit discrimination in lending on the basis of race, color, religion, sex, national origin, disability, and familial status. This is a charge that the Bank takes seriously.
External Transfers – The External Transfers service, located in the “Move Money” section of Online Banking, allows customers to easily move money to and from their Bank5 Connect accounts, to and from accounts at other banks or financial institutions. This provides the ultimate in convenience for deposits, as Bank5 Connect customers do not need to drive to several different bank locations to deposit funds. Everything can be done easily through Online Banking.
Federal Deposit Insurance Corporation (FDIC) – The FDIC “preserves and promotes public confidence in the U.S. financial system by insuring depositors for at least $250,000 per insured bank; by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.”
High-Interest Checking – By offering online products, banks can pass the savings from less overhead directly to the customers through higher interest rates.
High-Interest Savings – By offering online products, banks can pass the savings from less overhead directly to the customers through higher interest rates.
Interest Rate – The interest rate is the rate paid on a deposit. This is a straight calculation of balance times the rate, and does not take into account the effects of compounding interest.
Live Chat – Live chat is a feature found both on Bank5 Connect’s website and in Online Banking. This allows customers to chat directly and instantly with Bank5 Connect customer service without having to call. Our customer service team is located in Fall River, MA, and is ready to help our customers!
Mobile Deposit Capture – A really easy way to make deposits, mobile deposit capture allows customers to make check deposits through their smartphone with a few clicks of the camera. Just follow the instructions in the Bank5 Connect mobile app for iPhone or Android, and the check will be automatically deposited.
Online Banking – The Internet banking system for Bank5 Connect allows customers to check their account balances and transactions, make and set up bill payments, and move money to other accounts, to other people, and between accounts at other banks.
Overdraft – An overdraft is a charge for making transactions without having sufficient balances in the account. Bank5 Connect offers overdraft protection to help customers avoid overdraft charges.
Overdraft Protection – Overdraft protection allows customers to cover overdrafts by linking a savings account, where in the event the customer overdraws his or her account, funds are automatically swept over to cover the overdraft. The fee for this service is generally less than the fee for insufficient funds.
PIN Debit Transaction (Personal Identification Number) – A PIN debit card transaction is when a customer uses his or her Bank5 Connect Visa Debit Card at a vendor and enters their PIN to complete the transaction.
Pay People (person-to-person payments) – Pay People (a.k.a. Popmoney), is a person-to-person payments system that allows Bank5 Connect customers to send money to friends, family, or anyone with a cell phone or email address. It’s a quick, efficient, and safe way to send money. The Pay People service can be accessed via the "Move Money" menu within Online Banking, or through the "Popmoney" link in the mobile app.
POS Debit Transaction (Point of Sale) – A Point of Sale (POS) transaction is when a customer uses his or her Bank5 Connect Visa Debit Card at a vendor and signs either an electronic signature pad or a receipt to complete a transaction. In POS transactions, the debit card is processed like a credit card and the funds are automatically deducted from the customer’s account. Customers can shop with confidence knowing that Bank5 Connect protects their accounts and Visa®’s Zero Liability protection covers them for unauthorized purchases on signature transactions.
SUM ATM – SUM ATMs are ATM locations that are surcharge free. These locations are partners with Bank5 Connect, and provide instant access to cash without a surcharge.