| Burgess & Lee Ltd, 4 Stratfield Saye, 20-22 Wellington Road, Bournemouth. BH8 8JN Tel: 01202 312288 |
| Burgess & Lee Ltd, 4 Stratfield Saye, 20-22 Wellington Road, Bournemouth. BH8 8JN Tel: 01202 312288 |
Glossaries: SavingsAER (annual equivalent rate)
This the annual rate of interest, taking into account how often the interest is added to your account.
The higher the AER, the better the return on your savings.
Capital
Your overall amount of money invested.
Fixed interest
The interest rate is fixed for a set period. So you win if interest rates on other accounts later fall, but you will be stuck on a poor rate if interest rates rise. There are usually penalties to stop you switching to another account and you may not be able to get your money out early.
Gross interest
Interest paid to you before tax is taken off is gross interest. If you are a non-taxpayer you can register to have the interest paid gross - ask the bank or building society for form R85.
Instant access accounts
These let you take your money out whenever you want, without penalty.
Interest
Your savings earn interest. The interest rate can go up or down or it may be fixed.
ISA - Individual Savings Account
Savings and investments accounts with limits on how much you can pay in and what type you can have - such as a 'mini' or 'maxi' ISA - each year.
Net interest
Savings accounts from banks and building societies pay interest after the tax is taken off. This is called net interest.
Notice period
You have to notify the bank or building society a set number of days before you make a withdrawal - 30, 60 or 90 days are common notice periods. You can usually get your money out earlier but if you do you lose 30, 60 or 90 days' interest, depending on the notice period.
Term account
Term accounts last for a set period, such as two years. You may not be able to get your money out early.
Variable interest
Most current accounts pay variable interest, which means the interest rate goes up or down. From time to time you should check whether you could get a higher interest rate from a different account and, if so, be prepared to switch.
For independent financial advice, please call Burgess & Lee on 01202 312288 or email us