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Money Glossary

The world of personal finance is filled with complex terms and jargon. Don't worry, we're here to help you understand it.

Acceptance criteria

Conditions that must be met for you to be accepted for a financial service product.


Annual Equivalent Rate (AER)

Interest earned on a current or savings account if your interest is compounded and paid annually.


Annual fee

The yearly fee charged on some credit cards


Annual income

Annual income is the total you earn in a calendar (or financial) year.


Annual Percentage Rate (APR)

The interest you'll pay on credit expressed as a percentage of the money borrowed.


ATM

Automated Teller Machines are the machines used to withdraw cash from a 'hole-in-the-wall'.


Credit rating

A credit rating is a score assigned to you by a credit reference agency, which numerically expresses your creditworthiness.


Balance transfer fee

The amount a credit card issuer will charge you to transfer an existing balance to them.


Bank of England

The central bank of the United Kingdom.


Debt

Borrowed money you must repay, alongside any interest it has accrued.


Easy Access

A type of savings account which offers savers quick access to their money.


Financial Distress

The state an individual with 'problem debt' Is considered to be in.


Negative equity

The position homeowners find themselves in if their mortgage is higher than the value of their property.


Phishing

An email used to obtain money or account details from victims illicitly.