The financial world is full of terms, definitions and acronyms that you may find unfamiliar and difficult to understand.
Please click on a term below to reveal a simple explanation of each term:
This illustrates what the interest rate would be if interest was paid and added to the account each year. This allows you to compare various products with each other.
An account in which your interest is paid once per year, usually at the end of the Society’s financial year (30 November).
The rate of interest set by the Bank of England, which is reviewed each month by the Monetary Policy Committee.
An electronic transfer system which allows you to make deposits into your savings account with same day clearance.
The original investment you make, for example into a bond. This will then attract interest for the life of the investment.
The interest your money has earned, which is added to your original investment.
An account which does not give you membership rights to the Society
An account which allows you to withdraw your money without incurring charges.
An electronic transfer system which allows you to make transfers into your savings account from accounts held elsewhere by the next business day.
The FCA regulates the financial services industry in the UK. Their aim is to protect consumers, ensure the industry remains stable and promote healthy competition between financial services providers. The FCA has rule-making, investigative and enforcement powers that are used to protect and regulate the financial services industry. Further information about the FCA can be found by clicking here.
The Financial Services Compensation Scheme was established under the Financial Services and Markets Act 2000. Its purpose is to protect your savings, up to certain limits, currently £75,000, in the unlikely event that the Society became unable to repay it. Full details of the Financial Services Compensation Scheme can be found on the Important Information page within the Savings section of this website.
The contractual rate of interest to be paid on a deposit savings account without any deduction being made in respect of personal Income Tax liability
A tax-free savings account, launched on 6th April 1999. All individuals can receive gross interest on limited amounts of their savings each year through ISA accounts.
The day when an investment placed in a fixed term account reaches the end of its term.
The committee that determines the Bank of England Base Rate each month.
An account in which your interest is paid at the end of each calendar month.
A small booklet which details all deposits and withdrawals made on your account, along with the balance, which must be presented whenever you wish to make a withdrawal from your account.
The Prudential Regulation Authority (PRA) is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. In total the PRA regulates around 1,700 financial firms.
An account which gives you membership rights to the Society.
Shows the amount of interest your savings account has earned. The Society can provide you with this on request for the tax year ending April 2016 (or before).
The end of the accounting year, when interest is paid on annual interest accounts. This is 30 November for all annual accounts except ISAs, for which the year end is 5 April.