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).