Understanding the key terms around savings can help you to choose products and make decisions that can help you make the most of them!
So let’s decode the acronyms and phrases around savings with our jargon buster.
The Annual Equivalent Rate of interest shows you a truer picture of what you can expect if you keep your money in a certain account for a whole year, making it easier to compare different accounts and rates side-by-side.
An Individual Savings Account that lets you pay in a limited amount each year and save tax free. Cash, stocks and shares, or life insurance ISAs are available to UK residents over 18 (16- and 17-year-olds can get a mini ISA).
An Innovative Finance ISA. Unlike other types of ISA, it contains peer-to-peer loans instead of cash, stocks and shares, etc.
Technically defined as ‘using money to purchase assets in the hope that the asset will generate income or appreciate over time’. In plain English: spending money to make money.
An easy one: it’s a bank account for your savings. The bank pays you interest on the funds you deposit.
Checking your credit reports
When it comes to your financial health, your credit score is really important. So checking your credit reports is a good place to start when seeking to improve your financial health.
Making yourself visible to the system
If you haven't managed to find your credit report, you might be 'invisible' to the system for some reason, meaning one or more CRA can't find you.