Definitions of Terms
Daily Available Balance: Funds you have deposited into your account for which the bank has received payment.
Average Positive Available Balance: The total accumulated daily available balance divided by the number of days in the month.
Reserve Requirement: Federal regulations require that banks hold a percentage of business checking account funds in a non-interest bearing account.
Investable Balance: Determined by subtracting the the reserve requirement from the average available balance, which is used to calculate the net earnings credit.
Earnings Credit Rate: Indexed to the short-term Treasury Rates. Ask your commercial banker about our current rate.
Earnings Credit: A credit applied based on your balance that is an offset against your service charge.
Uncollected Funds: The portion of the deposit not yet collected by Highland Bank. If a negative collected balance occurs during the month, it will be charged interest at the Wall Street Journal Prime Rate plus 3%
"On-Us" Deposited Items: Checks you deposit which are drawn on Highland Bank.
"Local" Deposited Items: Checks you deposit which are drawn on a bank located in the Twin Cities whose routing and transit number begins with 0910 or 0960.
"Transit" Deposited Items: Checks you deposit, which are not considered "local" or "on-us". These are usually drawn on a bank located outside the Twin Cities metropolitan area.
