Glossary

Annual Equivalent Rate (AER)

The amount you will be given for any money held in a savings account is presented to you as a percentage Annual Equivalent Rate (%AER). The AER is given to demonstrate what your interest return would be if the interest was compounded and paid annually instead of any other period (e.g. monthly)....more

APR (Annual Percentage Rate)

The percentage amount of interest you will pay on any money you borrow from a lender. It is there as a means of comparison so that you can compare how much it will cost you per year to borrow money from different providers. ...more

ATM (a.k.a. cash machine)

Automated Teller Machines, or ATMs, are the machines used to withdraw cash from bank accounts when it is inconvenient to use a branch of the bank. ...more

Gilt-edged stocks (gilts)

Gilts are fixed income, or index-linked, bonds issued by the UK Government....more

Gross per annum (gross p.a.)

The amount of interest you receive will be worked out as a gross per annum percentage. ‘Gross’ means before tax has been deducted and ‘per annum’ means each year....more

Negative equity

You are said to be in negative equity when you buy something for a lot more than it's worth. The term is used to describe those homeowners who have taken out a mortgage on their house which then decreases in value....more

Pet insurance

Pet insurance is cover you buy for your pet in the event of illness or accident. This cover is primarily there to pay for any vet bills that accumulate in the course of getting your pet back to full health....more

Top-up loan (a.k.a. second mortgage)

A top-up loan is an additional loan given by a lender to a borrower as an extension of a previous loan. The top-up loan most commonly occurs with mortgage lending where the lender gives the borrower an additional loan to ‘top up’ their existing borrowing to a higher level. ...more