Glossary

Glossary

Glossary

Description

Glossary

AER

Description

AER 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.

Glossary

Annual interest

Description

Interest is paid on an annual basis.

Glossary

Bank of England Bank rate

Description

The interest rate published by the Bank of England in connection with its open money market operations.

Glossary

Cash ISA

Description

A 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.

Glossary

Fixed rate

Description

A rate of interest that is fixed for a period of time.

Glossary

Fixed term

Description

A fixed period of time that money is deposited for, agreed on opening the account.

Glossary

Gross

Description

Gross 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).

Glossary

ISA allowance

Description

The amount allowed to be invested in an ISA which is free of income tax.

Glossary

Lump sum

Description

A one off amount of money an individual wants to make into an account.

Glossary

Monthly interest

Description

Interest is paid on a monthly basis.

Glossary

p.a.

Description

Per annum meaning every year.

Glossary

Regular savings

Description

Saving regularly (e.g. every month) into an account.

Glossary

Tax-free

Description

Tax free means you will not pay income tax on your interest.

Glossary

Variable rate

Description

A rate of interest that can change at anytime up or down.

Glossary

Withdrawal

Description

When instructions are carried out to pay money out of your account (e.g. cash taken out of an account).