Are you confused by bank acronym jargon?
See below for some jargon busting!
GROSS:
The rate before the deduction of tax applicable to interest on savings.
"This is the rate you would get before the taxman takes a chunk"
NET:
The rate after the deduction of tax applicable to interest on savings.
"This is the rate you get after the taxman has taken a chunk"
EAR: Effective Annual Rate
This takes account of the interest rate and how often interest is paid, and does not include any fees or charges.
"Use this rate to compare the total cost of all overdraft products"
AER: Annual Equivalent Rate
This is a notional rate which illustrates what the Gross rate would be if interest were paid and compounded each year.
"It shows the true rate of interest you will have received by the end of the year on any saving products"
APR: Annual Percentage Rate
This is the total cost of credit, including all interest and any other charges.
"Use this rate to compare the total cost of lending products"
DEBIT CARD
A payment card that is linked to a customer's bank account, from which debit card purchases and cash withdrawals are directly deducted – reducing the account balance.
"A debit card uses money directly from your account"
CREDIT CARD
A bank-issued Card that allows consumers to purchase goods or services on credit.
""A card that allows the customer to buy goods and services and pay for them later.
If, on the due date, the customer does not pay the balance, interest is charged on the unpaid balance"
All rates are quoted per annum, unless otherwise stated, and are variable.
