Topic 7 key terms(providers) Flashcards
AER
definition:annual equivalent rate-interest that will be earned on the money in one year
assets
definition:things that a person or business owns
bonds
definition:see savings bonds
cash card
definition:a card used to withdraw money from ATMs or branch counters
cash ISA(individual savings account)
definition:an account that pays interest tax free on cash savings up to certain level
chancellor of the exchequer
definition:British cabinet minister responsible for financial and economic matters and in charge of the treasury
cheque
definition:written instruction to the provider to pay a specified amount to a specified person
common bonds
definition: An interest or circumstance shared by a group of people, for
example working for the same employer
communication channel
definition: The medium through which information is transferred to its
intended recipient,In financial services, it
refers to the way a customer can contact their provider and manage their account
credit cards
definition: A card that allows the holder to make purchases face to face,online or over the phone, and to withdraw cash from an ATM,transactions are paid by the card provider,the card holder repays the amount owed to the provider either in one payment or instalments interest charged on cash withdrawals
credit union
definition:mutual organisation owned by its members that provides a range of financial products to members,the members in credit union must share a common bond
current account
definition: Bank or building society accounts where people can store their
money in the form of electronic balances and withdraw it to make payments
debit card
definition: A card that can be used to withdraw cash, to make face-to-face
transactions in, for example, shops and online
demutualisation
definition: process whereby a mutual organisation (building society)legally becomes a shareholder-owned joint stock company(bank)
direct debit
definition: An electronic payment out of an account. The amount and frequency of a direct debit payment can vary
dividend
definition: payment of profits from a company to its shareholders, often
at twice-yearly intervals, either as cash or as further shares
financial conduct authority
definition: One of the two main regulators of financial services in the UK
(the other is the Prudential Regulation Authority)
financial services compensation scheme
definition: compensation scheme that pays compensation to account holders of up to a certain amount per provider if the provider goes into default
insurance
definition: Products that give financial protection against certain events
interest rate margin
definition: The difference between the interest rate that a bank charges on
borrowing products and the interest rate that it pays on savings
life assurance
definition: type of insurance policy that pays out a sum of money if the insured person dies
life cover
definition:see life assurance
mortgage
definition: A loan taken out to pay for a property,usually over a long term
mutual organisation
definition: organisation owned by its customers, who are also its members, rather than by shareholders.
NS&I
definition: National Savings & Investments, a provider that is backed by the Treasury
overdraft
definition: A facility that allows an account holder to withdraw more money
than they actually have in their account,authorised overdraft is agreed with the bank in advance within certain limits,exceeding those limits or going overdrawn without permission is
an unauthorised overdraft
personal loan
definition: product that allows someone to borrow a fixed amount over a fixed period at a fixed rate of interest
premium bond
definition: A lottery bond, issued by NS&l, entered into a monthly prize
draw with tax-free prizes or ‘premiums’.
prudential regulation authority (PRA)
definition: One of the two main regulators of financial services in the UK
(the other is the Financial Conduct Authority)
public limited company (PLC)
definition: A large company whose shares are sold and traded to the
general public,shareholders have limited liability, up to the value of their investment, for the company’s debts
rate of return
definition: amount a saver qains in interest on their savings
savings bonds
definition: savings product held for a fixed period,the holder can only make a limited number of withdrawals, or none at all, during that period without incurring a penalty
standing order
definition: electronic payment out of an account. Standing orders are used to make regular payments of the same amount
stocks an shares
definition: Stocks, shares and equities are all words used to describe an
investment that qives the holder part ownership of a company,if company’s value increases, so does the value of your share
travel insurance
definition: product providing coverage for unexpected events such as trip
cancellation, medical expenses, travel delays etc
Treasury
definition: Her Majesty’s (HM) Treasury, the government department responsible for development and implementation of financial and economic policy
