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Glossary |
Description |
---|---|
GlossaryAER |
DescriptionAER stands for Annual Equivalent Rate. Whenever you see an advert for a savings account which shows an interest rate, you will see the AER. This means you can use the AER to compare accounts. It shows what the interest rate would be if your interest was paid and compounded once each year. |
GlossaryAnnual interest |
DescriptionInterest is paid on an annual basis. |
GlossaryBank of England Bank rate |
DescriptionThe interest rate published by the Bank of England in connection with its open money market operations. |
GlossaryCash ISA |
DescriptionA Cash Individual Savings Account - accounts designed to enable an individual to save without paying income tax on their savings. For more details, take a look at our guide to ISAs. |
GlossaryFixed rate |
DescriptionA rate of interest that is fixed for a period of time. |
GlossaryFixed term |
DescriptionA fixed period of time that money is deposited for, agreed on opening the account. |
GlossaryGross |
DescriptionGross rate means we will not deduct tax from the interest we pay on money in your account. It’s your responsibility to pay any tax you may owe to HM Revenue and Customs (HMRC). |
GlossaryISA allowance |
DescriptionThe amount allowed to be invested in an ISA which is free of income tax. |
GlossaryLump sum |
DescriptionA one off amount of money an individual wants to make into an account. |
GlossaryMonthly interest |
DescriptionInterest is paid on a monthly basis. |
Glossaryp.a. |
DescriptionPer annum meaning every year. |
GlossaryRegular savings |
DescriptionSaving regularly (e.g. every month) into an account. |
GlossaryTax-free |
DescriptionTax free means you will not pay income tax on your interest. |
GlossaryVariable rate |
DescriptionA rate of interest that can change at anytime up or down. |
GlossaryWithdrawal |
DescriptionWhen instructions are carried out to pay money out of your account (e.g. cash taken out of an account). |