The Tipton & Coseley Building Society
Savings
Helping your savings to grow
Jargon buster
| Savings glossary of terms | |
| AER | Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded (added to the account) each year. This allows you to compare more easily what return you can expect from your savings over time. |
| Annual interest | Interest is paid to your account on an annual basis. |
| Bank of England base rate | The interest rate published by the Bank of England. |
| Fixed rate | The rate of interest will remain fixed from the day you invest for a set period of time. |
| Gross | The contractual rate of interest payable before the deduction of income tax at the rate specified by law. |
| Introductory bonus | An additional rate of interest that is payable for an initial period of time. |
| ISA | Stands for Individual Savings Account. These are tax efficient accounts that allow you to save without paying income tax. |
| Monthly interest | Interest is paid to your account on a monthly basis and credited on the last banking day of the month. |
| Net | The rate of interest payable after the deduction of income tax at the rate specified by law. |
| Tax-free | The rate of interest on your savings is free from income tax. |
| Variable rate | The rate of interest payable is variable and can increase and decrease over time. |
© The Tipton and Coseley Building Society 2009
www.thetipton.co.uk