Knowyourbank.com’s financial education posts are focused on helping our readers better understand credit union and banking terms, financial ratios and instruments. The educational posts share explanations for sometimes difficult or complex terminology.


  • cash and a diploma

Student Finance Resources

It's important for prospective, graduated, and current college students to know where to find finance resources. This list provides a number of important educational and financial sites for college students and gives details about their services. 1. National Association of Student Financial Aid Administrators (NASFAA) http://www.nasfaa.org/students/About_Financial_Aid.aspx The NASFAA provides information for parents, students and financial [...]

  • Woman in financial trouble

Personal Bankruptcy

When interest payments on debt reaches the point where there's no way to keep up with daily living expenses, let alone pay off existing debt, filing for personal bankruptcy provides a way to get a fresh start. This fresh start is not without its challenges, especially in terms of needing to repair your credit status [...]

  • house

What is a Home Equity Loan?

When you buy a home, you normally have to borrow in order to pay the large purchase price. While technically you own the home, the argument can be made that you don’t have a lot of value built up in it. If you were to turn around and sell the home, you would have to [...]

  • The word TRUST carved into a stone wall.

What is a Trust Account?

A trust bank account can be opened at almost any bank. The point of a trust bank account is that it allows an individual to give assets to another individual (child, grandchild, sibling) or organization (non-profit) while also allowing the individual giving the assets to retain some control of how the assets in the trust [...]

  • piggy bank

What is a 401k?

One of the most common investment accounts in use by Americans is the 401k. This is a special type of investment account designed to help workers save for retirement. 401k accounts come with tax advantages, and it's possible to use them to invest for the future. How Does a 401k Work? A 401k is an [...]

  • keys on top of title policy

What is Title Insurance

When you buy a home, one of the essential items you are expected to purchase is title insurance. The title insurance is issued by a title company, whose job it is to verify the line of ownership for the property. This is done to prevent you from buying a property from someone who doesn't have [...]

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TCE (tangible common equity)/RWA (risk-weighted assets) TCE/RWA Ratio is most commonly used to evaluate the capital strength of a bank. This parameter particularly helps investors and rating agencies to assess the value of a banking institution's core capital position minus intangibles and non-controlling interest. TCE equals shareholders equity (Total Equity Capital) minus intangible assets, preferred [...]

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Real-Estate Owned

If a bank or a credit union makes a loan and a borrower fails to meet the agreed mortgage payments on that loan, the property is put into a foreclosure auction. If the property does not meet the bank or credit unions base offer price at auction the property becomes the possession of the bank [...]

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Total Assets

Total assets of a bank is the sum total of all the long term and current assets owned by the bank.  The total assets of any bank are a measure of its capability to meet its liabilities in the normal course of business, and also when the bank ceases to be a going concern. Long [...]

  • home and money circle

What is a Reverse Mortgage?

There are many different retirement tools available to those looking to develop alternative income sources. While tax-advantaged retirement accounts and pensions, as well as part-time jobs, are commonly used, many retirees don’t realize that they have another source of income locked up in the equity of their home. By making use of the reverse mortgage, [...]

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