Counter credit occurs when a letter of credit is issued as collateral for another letter of credit, according to BusinessDictionary.com. The bank of the first credit becomes the issuer of the second credit line. Both credits are irrevocable.
BusinessDictionary.com adds that counter credit is also called back-to-back letter of credit or reciprocal letter of credit. Investopedia notes that both forms of credit are meant to help sellers purchase items or services from subcontractors. The first letter of credit comes from the buyer's bank, and the seller relies on his bank to receive the second letter of credit. The subcontractor is the beneficiary of the credits, and payment is issued when the subcontractor fulfills his obligations. Counter credit is normally found when international parties are involved.Learn More
A DDA number is the account number of a checking account, or demand deposit account. A checking account and a DDA refer to the same financial instrument.Full Answer >
According to Bankrate, overdraft protection is a service that banks offer which covers purchases made when a customer's account is in the negative. It is essentially a short-term loan that typically carries a fee.Full Answer >
According to Bankrate, advantages of a savings account include money liquidity, money safety and multiple withdrawal options; disadvantages include interest rates that are usually lower than these of CDs and other investment options and the relatively high minimum balances mandatory on some savings accounts. On the other hand, many are available with low minimum balances. A person may need only $1 to open a savings account.Full Answer >
An eligible recipient of a Pag-IBIG Fund calamity loan may borrow up to a maximum of 80 percent of his total accumulated value subject to terms and conditions of the program. The current interest rate for a Calamity Loan is 5.95 percent per annum.Full Answer >