Glossary
| Glossary | Description |
| AER | Annual Equivalent Rate - this illustrates what the interest rate would be if interest was paid and compounded each year. This allows individuals to compare more easily what return they can expect from their savings over time. |
Bank of England base rate | The interest rate published by the Bank of England in connection with its open money market operations |
| Bonus | The opportunity to earn annually an additional rate of interest by meeting account conditions (e.g.for the Bonus Gold account, keeping above a certain balance and minimising the number of withdrawals made) |
Fixed rate | A rate of interest that is fixed on the day of investment |
| Fixed term | A period of time that money is invested for which is agreed on opening the account |
| Gross | The contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%) |
| Annual interest | Interest is paid on an annual basis |
Monthly interest | Interest is paid on a monthly basis |
| ISA | Individual Savings Account - accounts designed to enable an individual to save without paying income tax on their savings. For more details, click here |
| Lump sum | An amount of investment an individual wants to make into an account |
| Net | The rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%) |
| p.a. | Per annum means every year |
| Regular savings | Saving regularly (e.g. every month) into an account |
Tax-free allowance | The amount allowed to be invested in an ISA account which is free of income tax |
| Variable rate | A rate of interest that can change over time |
| Withdrawal | When instructions are carried out to pay money out of your account (e.g. cash taken out of an account) |