a
A-Day
6 April 2006, the date on which many of the restrictions on pension saving were swept away
Actuary
Someone who makes calculations on which pensions, insurance and investment companies base their products.
AER
Annual Equalivalent Rate. What the interest rate would be if interest was paid and compounded each year.
Amortise
To pay off a debt in instalments, such as a mortgage or loan.
ANNUAL PERCENTAGE RATE
The real cost, including fees and charges, as well as the actual interest, on a loan or credit card. Note: Many credit card providers now offer risk-based APR pricing, with the best rates reserved for customers with a clean credit history.
b
BACS
Bankers Automated Clearing System. Electronic transfer of funds, e.g. salaries, between banks.
Bank assurance
Combined banking and insurance activities of finance companies.
BANK CODE
Sets minimum customer service standards for banks and building societies.
Base Rate
The main interest rate in the economy, set by the Bank Of England, upon which others rates are based.
Bull Market
One in which share prices are rising.
c
Cap and Collar
A mortgage that cannot go above the cap - but cannot fall below the collar.
Capital Gains Tax
The tax paid on profits from selling investments such as shares. Applies over a set level for each year. See our tax tables in Tax Advice for this year's threshold.
Capital Growth
Increase in the value of an investment.
Capital Units
A misleading term that allows extra charges to be taken from your life insurance or pension plan.
Carpetbagger
Someone who opens a building society account with the minimum investment with the sole aim of getting a windfall if it floats on the stock exchange or is taken over.
CDS
A CDS or credit default swap is a contract issued by big City firms or fund that guarantees the holder will be covered if a particular company defaults on its debts. It is basically a type of insurance used by large investing institutions.
Chapter 11
A part of the US Bankruptcy Code which allows a company to ask the courts to protect it from hostile litigation and collection tactics by creditors seeking to recover debts, allowing it to continue day-to-day operations and providing breathing space while it develops a plan to financially reorganise
Charge card
A plastic card where everything you spend has to be paid off in full at the end of the month.
County Court Judgement
A judgement for debt, which can remain on file for six years and make it hard, or impossible, to borrow money in the future.
Coupon
The rate of interest paid by a fixed-interest bond
Credit Scoring
A test of an individual's financial status. Points are awarded on the basis of factors that include income, home ownership, debts and repayment history.
d
Debit card
Plastic money where the purchase price comes straight out of your account.
Defined Contribution
Also known as money purchase - a pension with a payout that depends on the amount saved rather than a person's salary at retirement.
Derivative
A term that covers specialist financial markets such as those in options and futures.
Derivative
A term that covers specialist financial markets such as those in options and futures.
Discount Mortgage
A mortgage where you get a fixed cut of the lender's normal rate. The cut is fixed for the period, but you could still pay more if the lender's rate rises.
Dividend
The payout from shares. Expressed in pennies. Most shares pay an interim and final dividend. A share on This Is Money with 'xd' next to it has gone ex-dividend.
