What Is an Early Withdrawal? The term early withdrawal refers to the removal of funds from a fixed-term investment prior to the allowed date. Early withdrawals can be made from investment vehicles, such as annuities, certificates of deposit (CDs), or qualified retirement accounts, before the maturity date. Doing so can result in fees and penalties
What Is Earned Income? Earned income is money received as pay for work performed, such as wages, salaries, bonuses, commissions, tips, and net earnings from self-employment. It can also include long-term disability, union strike benefits, and, in some cases, payments from certain deferred retirement compensation arrangements. Earned income can be contrasted with unearned income, also
What Is the Earned Income Tax Credit (EITC)? The earned income tax credit (EITC) is a refundable tax credit that helps certain U.S. taxpayers with low earnings by reducing the amount of tax owed on a dollar-for-dollar basis. Taxpayers may be eligible for refunds if their tax credit exceeds their tax liability for the year.
What Is an Earned Premium? The term earned premium refers to the premium collected by an insurance company for the portion of a policy that has expired. It is what the insured party has paid for a portion of time in which the insurance policy was in effect, but has since expired. Since the insurance company covers
What Is the Depository Trust Company (DTC)? The Depository Trust Company (DTC) is one of the world’s largest securities depositories. Founded in 1973 and based in New York City, the DTC is organized as a limited purpose trust company and provides safekeeping through electronic record-keeping of securities balances. It also acts as a clearinghouse to
What Is the Depository Trust and Clearing Corporation (DTCC)? The Depository Trust and Clearing Corporation (DTCC) is an American financial services company founded in 1999 that provides clearing and settlement services for the financial markets. When the DTCC was established in 1999, it combined the functions of the Depository Trust Company (DTC) and the National
What Is the Depository Trust Company IPO Tracking System? As its name suggests, the Depository Trust Company IPO Tracking System is a system, administered by the Depository Trust Company, that is designed to monitor the purchase and sale of securities that have recently been issued through an initial public offering (IPO). One of the principal
What Is the Debt-to-Income (DTI) Ratio? The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk. Key Takeaways The debt-to-income (DTI) ratio measures the amount of income a person or organization generates in order to
What Is a Dual Banking System? A dual banking system is the type that exists in the United States, in which state banks and national banks are chartered and supervised at different levels of government. Under the U.S. dual banking system, national banks are chartered and regulated under federal law and supervised by federal agencies.
What Is a Dual Currency Service? A dual currency service is a forex trading service that allows an investor to speculate on exchange rate movement between two specific currencies through a fund or instrument. A dual currency service typically requires the investor to make directional speculations between the currencies, such as speculating that the U.S.
