Glossary of terms
AERStands for Annual Equivalent Rate, and shows you what the rate would be if interest was paid and added to your account each year (excluding any bonus interest payable).
APRStands for Annual Percentage Rate. This is a calculation that includes the amount of interest you pay plus any other fees charged such as arrangement fees for setting up the loan. It also takes into consideration when and how often interest and charges must be paid. An APR figure is intended to let you easily compare products from different lenders. The lower the APR the better the deal.
Bank of England Base Rate The Bank of England Base Rate is set by the Bank of England and determines the cost of borrowing money.
Building Societies Association (BSA) The trade association representing interests of member societies and mutuals.
CapitalYour investment, not including any interest earned.
Fixed RateThe interest rate is guaranteed not to change during a fixed term.
Gross RateThe rate of interest paid before deduction of income tax.
Immediate AccessAn account where you can access your money straight away.
ISAIndividual Savings Account. A type of account launched by the Government in April 1999 to enable UK savers to keep all that you earn from that investment and not pay any tax on it.
Minimum InvestmentThe minimum amount of money required to open an account.
Maximum InvestmentThe maximum amount of money which can be held in this account.
Net RateThe rate of interest paid after the deduction of income tax, currently 20%.
Notice PeriodThe amount of time you have to give before you can withdraw funds from a savings account without incurring any penalties. For example, the Cashbuild 60 Account requires 60 days' notice.
R85 FormThis can be completed by UK residents only, if you are eligible to receive interest without paying income tax.
Variable RateThe rate of interest paid can change according to market conditions and/or changes to the Bank of England Base Rate.
