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.





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