AccountSee Current accounts and Savings accounts
Annual feeA charge made once a year for a financial service such as a Credit card or charge card
Annual percentage rate (APR)The total cost of a loan expressed as a percentage for one year, including interest and any charges
Automated Teller Machine (ATM)A machine which allows you to withdraw money and make other transactions. Also know as a cashpoint or "hole in the wall".
Bad creditIf someone has a history of defaulting on repayments they may be considered a bad credit risk for further borrowing
BalanceThe total amount of money in an account - also applies to money owed
Bank accountSee Current accounts and Savings accounts
Bank statementA complete list of transactions from an account, usually sent to an account holder each month
BankruptcyA legal process of taking over someone's financial affairs when they are declared unable to repay their debts
BenefitsMoney paid by the Government to people in need
Bounced chequeA cheque which a bank is unable to cash usually because the payee does not have enough funds in their account
BudgetA list of income and expenditure for a period of time. Shows money coming in, money to be spent and any amount left at the end.
Building societyA financial institution similar to a bank and offering many of the same services
Charge cardA card which can be used to pay for goods but the total amount must be paid off at the end of each month
ChequeA printed form allowing money to be paid to a company or another person from a current account
Cheque guarantee cardA card issued by a bank which guarantees to pay cheque's up to a set limit, eg £100
ClearingThe process of moving money from one bank account to another. This can take a number of days. The money is unavailable until the funds have cleared.
Collection agencyA company paid by a lender to recover unpaid debts
Compound interestInterest earned by including previous interest in the calculation
ConsumerAn individual buying products or services for personal or household use
Council taxA tax paid to the local authority, per household and based on the value of the property
County Court Judgment (CCJ)An order made by the County Court for money to be repaid
CreditBuying goods by borrowing money and paying back at a later date including interest
Credit cardA card that is used to pay for goods or services using credit
Credit limitThe maximum amount you can spend using your credit card
Credit ratingA score based on your previous history of borrowing and repaying money
Credit reference agencyA company that stores credit ratings that are used by lenders
Credit unionA non-profit organisation run by volunteer members to help people save and borrow money at low rates of interest
CreditorA person or company who lends money
CurrencyA system of money accepted within a country, eg sterling, or an area, eg euros
Current accountA type of bank account used for every day transactions including paying in wages and using cheque's, standing orders and direct debits
DebitTake money out of an account
Debit cardA card that allows you to spend money directly from your current account, usually issued by banks
Debt counselorAn adviser who assists people with dealing with debt
DefaultFailing to pay an amount due by the agreed date
DepositPaying money into an account either as cash, cheque or by direct transfer
Direct debitA way to make regular payments by giving a company permission to take funds from your account
EconomyFinancial activities related to the production of goods and services of a particular region or country
EquityThe financial difference between the market value of an asset and the amount of loan or mortgage still outstanding on it. Usually applied to home ownership.
Exchange rateThe equivalent value used when transferring amounts of different currencies
FeesCharges made by a company for their services
Gross payAmount of pay earned before any deductions i.e Tax, National Insurance etc
GuarantorA person who agrees to pay a debt owed by another person if that person fails to meet agreed payments
Hire purchaseA type of credit. The goods are owned by the lender until the full amount is repaid.
Identity theftA crime involving the use of someone else's identity to obtain money
IncomeMoney earned as wages or received from other sources
Income taxTax paid on money earned
Individual savings account (ISA)A type of saving account which offers tax free interest
Individual voluntary arrangement (IVA)A legal agreement between the debtor and creditors to repay part of the debts over a specified period of time. Can be an alternative to bankruptcy.
InsuranceA financial arrangement in which an insurer agrees to pay out an amount in the event that certain losses occur. You pay a regular amount for this insurance cover.
Interest1) Money paid by the bank to the holder of a savings or investment account
2) The Charge for borrowing money. Interest is expressed as a percentage known as the interest rate. See also APR
Joint accountAn account opened in the name of one or more people
LenderA company (or person) who lends money to a borrower
LiabilityThe responsibility for a bill or amount owed
Life assuranceInsurance policy to give a cash sum to your dependants when you die
LoanAn agreement between a lender and a borrower by which the borrower agrees to repayment of money borrowed over a period of time can be with or without interest
Minimum paymentThe lowest amount that can be paid. Usually applies to credit cards monthly
MortgageA loan to buy a house or flat
National InsuranceA deduction from wages which is paid to the government to build up your entitlement to a State Pension and other social security benefits
National savingsA government organisation giving a range of Savings products - accounts, bonds, etc
Net payThe amount of wages paid to you after deductions such as Tax and National Insurance. Gross pay minus deductions equals Net pay. Also called "take-home" pay.
Online bankingAccessing your bank account via the internet
Outstanding balanceThe amount still owed
OverdraftAn agreement with the bank to withdraw more money from a current account than it contains - a way to borrow money
PawnbrokerA money lender who hold items as security on the money being repaid
Pay periodThe period of time a wages slip covers e.g. weekly or monthly
PayeePayday loans are short-term loans for small amounts of money
PayerThe person you are paying money to
PensionA form of investment which pays out a regular amount to you when you retire
Personal identification number (PIN)A four-digit code used as security to access bank accounts
RepossessionTaking back goods which are secured against a loan, in the event of failing to repay. This can apply to goods bought or, in the case of a mortgage, a house or flat.
Savings accountAn account designed for money to be paid in and saved, with limited facilities to access. Pays interest.
Sort codeA number which identifies the branch of your bank - shown as 6 digits appearing on cheques and guarantee cards
Student LoansSpecific type of loan organised by the Government to help students pay for living costs while studying at University
Take home paySee net income
TaxMoney deducted from income and paid to the government
Telephone bankingThe facility to access your bank account using the telephone to make transactions
Unsecured loanMoney borrowed without goods offered as security against non-payment
UtilitiesSuch as gas, electricity and telephone
Value Added Tax (VAT)A tax paid when you buy goods or receive services
WagesMoney paid to you by an employer
WithdrawalTaking money out of a bank account