SavingsEveryone's better off when savings are made simple
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- Account balance
- This is the amount of money in an account. This could be a credit balance (money you own) in a savings account or a debit balance (money you owe) in a current account.
- AER stands for the Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added to the capital balance each year. The higher the AER, the better the return you will receive.
- Assets are things that a person or company owns, such as a house or money.
- ATM stands for Automated Teller Machine. They are known as cash machines and can be found in many public places. They allow you to check your balance and take out money from your current account by using your cash or debit card and entering your PIN (Personal Identification Number).
- This means Bankers’ Automated Clearing Services and it’s simply a way to electronically process financial transactions. It is a UK scheme and there are also BACS Direct Debits and BACS Direct Credits.
- This is the amount of money in an account. A positive balance refers to the amount you have in your savings account. A negative balance refers to the amount you owe, for example an overdraft on a current account.
- Bank of England Base Rate
- By Bank of England Base Rate we mean the Bank of England’s official dealing rate (the Official Bank Rate) as set by the Monetary Policy Committee.
- A beneficiary is an individual that has the right of enjoyment from the funds in the account and this remains with them throughout the period the money is deposited.
- A bond is a savings account which will earn interest over a specified period of time. Bonds have a defined term (usually between one to five years), after which the bond will mature and you can access your money. Learn about Fixed Term Bonds
- A budget is a financial plan drawn up for an individual or family to work out how much money is coming in and going out each month. A budget would usually cover a period of one month, although it can be longer. You can use our budget planner to work out what you can afford.
- This is the amount of money saved or invested in your savings account.
- Capital balance
- This is the amount of money saved or invested in your savings account.
- Cash ISA
- An Individual Savings Account (ISA) is a savings account where you don’t pay tax on the interest you earn. As your earnings are tax-free, this means you get to keep everything that you invest and earn. There are two different types of ISAs - Cash ISAs which are available to any one aged 16 or over and Stocks and Shares ISAs – which are available to anyone aged 18 and over. Virgin Money have a great range of Cash ISAs for you to choose from. Learn about Cash ISAs
- Cash ISA allowance
- Cash ISA top up
- Cash ISA transfer authority form
- You need to complete this form alongside your application if you wish to transfer your existing Cash ISA to a new one. transfer authority form
- Certificate of Deposit
- A Certificate of Deposit is something offered by banks and building societies where you agree to keep money in your account for a certain period of time in return for a specified interest rate.
- This stands for Clearing House Automated Payment System. Is an electronic payment system which provides for same-day transfers of funds between accounts.
- When we talk about charges, it means expenses which will be incurred if a transaction takes place. For example, if you withdraw money instantly from an account which requires you to give notice, then charges may apply.
- Citizens Advice Bureau
- A voluntary organisation offering help to resolve legal, money and other problems by providing free information and advice.
- Compound interest
- Interest that is calculated on the original amount saved, as well as any interest already earned.
- Cooling-off period
- This is the time you have to change your mind on any savings accounts you have opened excluding Fixed Rate Bonds.
- Credit check
- This is where a bank or other organisation carries out a credit check on a person before deciding whether to lend them money or to open a bank account.
- Customer identification
- We are required to confirm the identity of all customers who open an account. To prove your identity documents such as a passport or driving licence may be required. Suitable forms of identification
- Debit card
- A debit card is issued by a bank, at Virgin Money this may be with your current account. A debit card is used in a similar way to a credit card, but when an individual makes a purchase, the money is taken from the associated account straight away.
- This is money you owe to another individual or a business.
- This is someone who relies on another person for financial support. So if you have young children, they are your dependants.
- This is someone who puts money into a savings or bank account.
- Direct Debit
- This is an instruction that someone gives to their bank, allowing another company or organisation to take a specific amount from their account on a regular basis. Direct Debits are usually taken from an account on a monthly basis but can be annual or twice yearly.
- A dormant account is one which has had no money withdrawn from it, nor money added to it for a long period of time. Lost accounts
- Easy Access
- An Easy Access account is a savings account which offers you the flexibility of adding to your savings as often as you like with the benefit of being able to take money out as you need to. Some of these accounts are operated online for 24/7 access to your funds. Learn about Easy Access accounts
- Easy access accounts
- Operated either online or via one of our Stores, these accounts are great if you want the flexibility of being able to save as and when you want to.
- Your estate is everything you own when you die, less what you owe.
- This is the amount of money spent on goods or services, usually calculated over a month. You can use our budget planner to help you work out how much you can afford to save by adding up your monthly bills and looking at other financial commitments over the year.
- Financial advice
- Financial advice can help you decide what’s financially important to you right now, so you can make the best decisions. This is provided by an adviser who is regulated by the FSA. We offer our customers a thorough review with a fully qualified financial consultant who knows exactly what’s what. View our Financial Planning website
- Financial gifts
- This is money given to someone as a gift, for example, money added to a child’s account from a parent or relative.
- Financial Ombudsman Service (FOS)
- This is the official independent complaints service which works to resolve complaints between consumers and businesses that provide financial services. If we cannot resolve the complaint to your satisfaction you have the right to refer your complaint to the Financial Ombudsman Service.
- Financial Planning
- This is a free service which helps customers to work out the best accounts and financial arrangements to suit their specific needs. We offer our customers a thorough review with a fully qualified financial consultant who knows exactly what’s what. Financial Planning
- Financial Services Authority (FSA)
- This is the UK financial services regulator.
- Financial Services Compensation Scheme (FSCS)
- The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme. We are covered by the Financial Services Compensation Scheme (FSCS).
- Fixed rate
- An interest rate that stays the same i.e. doesn't move up or down for a set period of time.
- Fixed Rate Bond
- The type of fixed term accounts which Virgin Money currently offer. They offer a fixed rate of interest for a specified period of time. They can be fixed for a number of years, typically ranging from one to five, and will mature at the end of the fixed term.
- Fixed Term Bond
- A Fixed Term bond is a savings account which will earn interest over a specified period of time. Bonds have a defined term (usually between one to five years), after which the bond will mature and you can access your money. Learn about Fixed Term Bonds
- This is usually an estimate of future financial outcomes.
- This stands for Faster Payments Service and it enables customers to make electronic payments. Faster Payments are typically made via the internet or telephone and processed in hours rather than days.
- FTSE 100
- This stands for the Financial Times Stock Exchange 100 index, which is made up of the 100 largest firms quoted on the London Stock Exchange.
- The full amount of money earned or paid before any deductions such as tax.
- HM Revenue & Customs (HMRC)
- HM Revenue & Customs (HMRC) is a government organisation that ensures the correct tax is paid at the right time, whether this relates to payment of taxes received by the department or entitlement to benefits paid.
- Income tax
- This is tax which is payable on any income you earn.
- Independent Financial Advisor (IFA)
- A professional who is authorised and regulated by the FSA to advise on suitable financial products after researching the whole market and a customer’s needs and circumstances.
- Inheritance tax
- Inheritance tax may be payable in the event of death if the estate is over the threshold specified for that tax year
- This is the money that you earn in a savings account.
- Interest rate
- The percentage figure that shows how much interest you will earn with that savings account.
- Introductory bonus
- On certain accounts, an introductory bonus will be included within the interest rate. This is available for a fixed term, usually twelve months from you opening the savings account.
- An Individual Savings Account (ISA) is a savings account where you don’t pay tax on the interest you earn. As your earnings are tax-free, this means you get to keep everything that you invest and earn. There are two different types of ISAs - Cash ISAs which are available to anyone aged 16 or over and Stocks and Shares ISAs – which are available to anyone aged 18 and over. Virgin Money have a great range of Cash ISAs for you to choose from. Learn about Cash ISAs
- Limited Access
- A limited access account is a savings account which could earn you a higher rate of interest by giving us notice when you wish to withdraw. Usually with a variable interest rate, a limited access account gives you the flexibility of adding to your savings when you like. Learn about Limited Access accounts
- Limited issue
- Some products such as Bonds are limited issues and therefore, may only be available for a short period of time and may be withdrawn without notice.
- Once reaching the end of a fixed term, your money will mature and will be available to access. Alternatively it may become a matured account and receive a different rate of interest.
- Maximum additional deposits
- This is the most amount of money you can add to a savings account.
- Maximum investment
- This is the most amount of money you can invest into a savings account.
- Minimum additional deposits
- This is the least amount of money you can add into a savings account.
- Minimum investment
- This is the least amount of money you can invest to open a savings account.
- This is a free, impartial guide on bank accounts provided by the FSA (the UK financial services regulator) which you may find useful if you are opening an account or thinking about getting a new savings account.
- Net is the annual rate of interest payable after the deduction of basic rate tax (currently 20%).
- No-notice accounts
- With a no-notice account you have easy access to your money.
- Notice period
- This is the time you have to give to notify the bank or building society that you want to withdraw your money without paying a penalty. 60 , 90, 120, 180 days are common notice periods.
- Online account
- An account you can access and manage online.
- Overdraft / Overdrawn
- A facility allowing you to spend more money from your bank account than you have in it. The bank will usually charge you interest and sometimes other fees as well if you do this.
- An annual summary of all your payslips. Your employer gives you one at the end of every tax year, if you still work for the employer. Keep it safe.
- A payslip shows how much you’ve been paid by your employer and also how much tax you’ve paid. Your employer should give you one every time you get paid.
- This is an arrangement that provides people with an income when they are no longer earning money from employment.
- Power of Attorney
- A written legal document that gives an individual the authority to act for another.
- This is the company or organisation that provides the account.
- R85 form
- The HM Revenue & Customs R85 form is completed when you are entitled to receive interest without tax being taken off. By completing the R85 form you are telling your bank or building society that you do not have to pay tax on the interest that is paid to you.
- The figure that shows how much interest you earn.
- Sole account holder
- If the account is in one name, this is the person who holds the account.
- Standing Order
- A Standing Order is an instruction someone gives to their bank to pay a set amount at regular intervals to another account. This is also known as a Banker's Order.
- This includes details of all transactions carried out within your account.
- Summary box
- A summary box is the key product information about a savings account
- A charge you pay to the government – there are different types of tax but income and inheritance tax are the ones most people may be aware of.
- Tax free
- This simply means that you don’t pay tax. For example, with a tax-free Cash ISA, you don’t pay tax on any interest you earn.
- Tax year
- A tax year runs from 6th April one year until 5th April the following year.
- Tax year for Cash ISAs
- A tax year runs from 6th April one year until 5th April the following year. The current ISA subscription limit is £5,760 for the 2013/2014 tax year.
- The term is the period of time your investment runs for, for example, three years.
- Quite simply, a trustee is someone who is appointed to hold the funds in the account for the benefit of the beneficiary.
- Interest rates offered by banks and financial institutions on loans or deposits which are liable to change according to circumstances. For example, a movement in the Bank of England Base Rate which is set by the Monetary Policy Committee.
- Welcome Pack
- You will receive a welcome pack within five business days of opening your account. This will include everything you need to know about saving with Virgin Money and how to use your account.
- A withdrawal simply means to take money out of an account.