Glossary

Glossary Description
AER Annual Equivalent Rate - this illustrates what the interest rate would be if interest was paid and compounded once each year. This allows individuals to compare more easily what return they can expect from their savings over time.
As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

Bank of England
base rate

 The interest rate published by the Bank of England in connection with its open money market operations.
Bonus The opportunity to earn an additional rate of interest for a stated period of time
Fixed rate  A rate of interest that is fixed for a period of time.
Fixed term A fixed period of time that money is deposited for, agreed on opening the account.
Gross The contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).
Annual interest  Interest is paid on an annual basis. 

Monthly
interest

 Interest is paid on a monthly basis.
Cash ISA A Cash Individual Savings Account - accounts designed to enable an individual to save without paying income tax on their savings.  For more details, click here.
Lump sum A one off amount of investment an individual wants to make into an account.
Net The rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).
p.a. Per annum meaning every year.
Regular savings Saving regularly (e.g. every month) into an account.
Tax-free Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

Tax-free
allowance

 The amount allowed to be invested in a cash ISA account which is free of income tax.
Variable rate A rate of interest that can change at anytime up or down.
Withdrawal When instructions are carried out to pay money out of your account (e.g. cash taken out of an account).