Glossary of Terms

Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

This is the Bank of England base rate

This is the amount of your investment – it does not include any interest

Where the interest rate does not change during a specified term.

The interest paid before tax is deducted.

Interest paid after tax has been deducted.

This is the form that non tax payers complete to entitle them to receive interest without the deduction of tax.

This is a certificate confirming the gross interest paid, tax paid and net interest paid on an account during the tax year.

This indicates that you will receive the interest without any tax.

This refers to the clearing, money transmission and computer systems which financial institutions use.

· CHEQUES

• The complete central cheque clearing cycle normally takes six working days.
• If the cheque you pay in was written by a customer of your own bank, this process may be faster. This varies from bank to bank.
• The cycle may also be longer when paying in via some financial institutions or agents (such as post offices).

· AUTOMATED PAYMENTS (for example, internet, telephone and standing orders)
When you give an instruction to your bank to make an automated payment (including payments over the phone or internet), the money will normally be taken from your account on the same day.

· The central clearing cycle is normally three working days.

· If the person you are paying banks at the same bank as you, the amount will usually be credited on the same day.

· Payments may take longer than three working days through some financial institutions.

Organisations, licensed under the Consumer Credit Act 1974, which hold information about people that is useful to lenders. Financial institutions may contact these agencies for information to help them make various decisions, for example, whether or not to open an account or provide loans or grant credit. Financial institutions may also give the agencies information.

This applies to products and services which have a set lifetime. The customer may be charged if the financial institution agrees to alter the product or service before the end of its life.

A selection of facts and information (which only you know) which is used for identification when using accounts in addition to a password.

A cheque which has not been paid because the date written on the cheque is too old (normally older than six months).

Any person who is acting for purposes which are not linked to their trade, business or profession.