371698
| Question | Answer |
| AER | Annual equivalent rate is the interest that will be earned on the money in one year and takes into account how often the provider pays the interest (ie monthly or annually), the effect of compounding the interest and any fees and charges |
| ATM | Automated teller machine, also known as a cash machine |
| Basic bank account | A current account that allows people to store their money as an electronic balance and make payments by direct debit, standing order, prepaid cash card or by withdrawing cash. There is no debit card, cheque book or overdraft facility on this type of account |
| Budget surplus | A sum on money available once all the essential expenditure in a given period, eg a month, has been made |
| Cash card | A card used to withdraw cash from ATMs or branch counters |
| Cheque | A written instruction to the provider (eg bank) to pay a specified amount to a specified person or organisation |
| Current account | A bank or building society account where people can store their money in the form of an electronic balance and withdraw it to make payments |
| Debit card | A card that can be used to withdraw cash, to make face-to-face transactions in, for example, shops, and to make payments online or over the phone |
| Direct credit | An electronic payment into an account, for example a salary or benefit payment |
| Direct debit | An electronic payment out of an account. The amount and frequency of a direct debit payment can vary |
| HMRC | Her Majesty's Revenue and Customs - the organisation that collects taxes on behalf of the government |
| Interest | Money either paid to an account holder by the provider, or charges to the account holder by the provider. Interest is paid on savings accounts and some current accounts |
| Money laundering | The process of making 'dirty' money (money gained from criminal activities) 'clean' - in other words making it look as though it has been acquired legitimately |
| Office of Fair Trading | The government department that monitors how businesses compete with each other, with the aim of making sure that competition serves the interest of consumers as well as the businesses themselves |
| Overdraft | The facility that allows an account holder to withdraw more money than they actually have in their account |
| Premier account | The current account that offers additional benefits, such as a personal banker, for wealthy customers with an income or savings above a certain level |
| Prepaid cards | A card that has to have money credited to it before the card holder can use it to pay for goods. |
| Standing order | An electronic payment out of an account. Standing orders are used to make regular payments of the same amount |
| Statement | A record of the transactions on an account, issued at regular intervals such as monthly or quarterly. |
| Student account | A current account designed for students in higher education that charges low interest or no interest on overdrafts and offers other benefits such as low cost contents or travel insurance |
| Transaction | Buying or selling something |
| Youth account | A current account designed for people under 18; no overdraft facility is provided as banks do not usually allow under 18s to borrow |
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