AER
The AER (Annual Equivalent Rate) illustrates what the interest rate would be if it were paid and added each year. All savings product advertisements which quote interest rates should contain an AER so you will be able to compare more easily what return you can expect over time.
ATM
Automated Teller Machine, also referred to as cash machine
CHAPS
CHAPS is a telegraphic transfer service which allows money to be transferred to another account quickly and conveniently
Escalating Rate
The rate is set to increase at fixed intervals during the investment period
Fixed Rate
The rate is fixed from the outset of the investment period
Gross
Gross means the contractual rate of interest payable before the deduction of income tax at the specified rate
ISA
'Individual Savings Account' are longer term, tax efficient savings accounts which were introduced to replace PEP's and TESSAs
Net
The Net rate is an illustrative rate only allowing for deduction of income tax assuming continuation of the current prescribed rate of 20%. (The tax position affecting our accounts is subject to changes in the law.) We normally pay interest Net. We can pay interest Gross if you can provide us with an appropriate completed form complying with Inland Revenue regulations.
PIN
Personal Identification Number. Your unique pass code to be used along with your cash card when using a cash machine
Tax Free
Tax free is the contractual rate of interest payable where interest is exempt from Income Tax
Transfer
Movement of money between accounts
Trustee
A trustee is a person who holds an account for the benefit of another
Withdrawal
Taking out your savings