Aim B Flashcards
Bank of England
The UK’s central bank responsible for keeping a healthy financial stability
Banks
A financial institution that handles financial transactions and stores money on behalf of its customers.
Building societies
They are also an institution that stores money for customers , however, they do not have share holders on the stock exchange like banks do which allows costs to be cut down. Members also get a say and vote with the running of the society.
Credit unions
Non-for-profit organisation that handles financial transactions and stores money on behalf of its members , their responsibility to support a community , members have voting rights
National savings and investments
Backed by the government, offers a secure saving option ISA’s, premium bonds, gifts and bonds
Insurance companies
Companies that protect against the risk of loss in return for premium, they are profit making
Pension companies
Businesses that sell policies to individuals privately or through employers, allows them to save for retirement , the companies usually invest the money so it usually increases in value , this may be risky
Pawnbrokers
These are businesses that loan money against the security of a personal asset , if the item is not bought back within a certain time frame it will then be sold on.
Payday loans
Short-term source of finance that bridges the gap between now and the next receiving wage, high interest is usually charged and is suitable for emergencies.
Branch
Physical place where transactions are carried out face to face, customers visit to sort any banking needs, however is restricted to the times the branch is open and the commute may be far
Online banking
Allows customers to manage banking needs online on the laptop or computer, can carry out many of the things that they do in branch but cannot withdraw money. Convenient and 24/7 access
Telephone banking
Carried out over the phone, available 24/7 and usually for checking balance or paying bills
Mobile banking
Similar to online, accessed via a mobile device and is available 24/7
Postal
Paper based financial transactions, some customers prefer this traditional way of receiving their bills by a cheque
Financial conduct authority - FCA
Independent organisation is the conduct regulator for 59,000 financial services firms and financial markets in the UK
Financial Ombudsman Service - FOS
appointed by government to protect and represent customers who are in disputes with financial service providers, only get involved if the disputes cannot be settled between the consumer and financial provider
Financial service compensation scheme - FSCS
Organisation that pays compensation to those when the financial service is unable to
Consumer credit
Laws passed by UK government to ensure consumers are protected and that financial providers do not take advantage of
Citizens advice
A charity run organisation that provides financial advice on both financial and non financial issues, can be done in person and on time , free service but they are volunteers which may not give the best advice
Independent financial advisor
Professional individuals who provide advice and guidance, must be qualified and regulated by UK government, charged service
Price comparison websites
They compare the prices of goods and services from a range of companies, allows you to see the one best suited to you
Debt councillors
Professional service that offers independent advice, helps people with debt and settlement through education , however it is also another charged service
Individual voluntary agreement - IVA
An agreement for creditors to pay all or parts of your debt , you can make regular payments who will divide the money to creditors however fees are charged for the service
Bankruptcy
Legal process through which people or other entities who cannot repay debts to councillors may seek relief from some or all of their debts, it does stay on your credit report for 7-10 years
