Annual equivalent rate is the interest that will be earned on the money in one year and takes into account how often the provider pays the interest (for example, monthly or annually), the effect of compounding the interest and any fees and charges.
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ATM
ATM Automated teller machine, also known as a cash machine.
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BASIC BANK ACCOUNT
A current account that allows people to store their money as an electronic balance and make payments by direct debit, standing order, prepaid cash card or by withdrawing cash. There is no debit card, cheque book or overdraft facili
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BUDGET SURPLUS
A sum of money available once all the essential expenditure in a given period, eg a month, has been made.
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CASH CARD
A card used to withdraw cash from ATMs or branch counters.
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CHEQUE
A written instruction to the provider (eg the bank or building society) to pay a specified amount to a specified person or organisation. (The law relating to cheques is quite complex so this is a simplified explanation for the purpose of these study.
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CURRENT ACCOUNT
A bank or building society account where people can store their money in the form of an electronic balance and withdraw it to make payments.
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DEBIT CARD
A card that can be used to withdraw cash, to make face-to-face transactions in, for example, shops, and to make payments online or over the phone.
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DIRECT CREDIT
An electronic payment into an account, for example a salary or benefit payment.
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DIRECT DEBIT
An electronic payment out of an account. The amount and frequency of a direct debit payment can vary.
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HMRC
Her Majesty’s Revenue and Customs – the organisation that collects taxes on behalf of the government.
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INTEREST
Money either paid to an account holder by the provider, or charged to the account holder by the provider. Interest is paid on savings accounts and some current accounts and charged on borrowing, eg an overdraft.
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MONEY LAUNDERING
The process of making ‘dirty’ money (money gained from criminal activities) ‘clean’ – in other words making it look as though it has been acquired legitimately.
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OFFICE OF FAIR TRADING
The government department that monitored how businesses compete with each other. It was abolished in April 2014 and its responsibilities shared between the Financial Conduct Authority and a new organisation, the Competition and Markets Authority.
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OVERDRAFT
A facility that allows an account holder to withdraw more money than they actually have in their account.
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PACKAGED ACCOUNT
A current account that offers extra benefits such as travel insurance, for which the account holder pays a monthly fee.
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PREMIUM ACCOUNT
A current account that offers additional benefits, such as a personal banker, for wealthy customers with an income or savings above a certain level.
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PREPAID ACCOUNTS
A card that has to have money credited to it before the card holder can use it to pay for goods. Once the initial sum of money on the card runs out, it can be topped up again. Some prepaid cards can be loaded with foreign currency and used abroad.
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STANDING ORDER
An electronic payment out of an account. Standing orders are used to make regular payments of the same amount.
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STATEMENT
A record of the transactions on an account, issued at regular intervals such as monthly or quarterly. The statement indicates whether a debit or credit to the account was made by cheque, withdrawal from an ATM, direct debit, etc.
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STUDENT ACCOUNT
A current account designed for students in higher education that charges low interest or no interest on overdrafts and offers other benefits such as low cost contents or travel insurance.
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TRANSACTION
Buying or selling something.
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YOUTH ACCOUNT
A current account designed for people under 18; no overdraft facility is provided as banks do not usually allow under-18s to borrow.
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Other cards in this set
Card 2
Front
ATM Automated teller machine, also known as a cash machine.
Back
ATM
Card 3
Front
A current account that allows people to store their money as an electronic balance and make payments by direct debit, standing order, prepaid cash card or by withdrawing cash. There is no debit card, cheque book or overdraft facili
Back
Card 4
Front
A sum of money available once all the essential expenditure in a given period, eg a month, has been made.
Back
Card 5
Front
A card used to withdraw cash from ATMs or branch counters.
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