Jargon buster

AER (Annual Equivalent Rate) - illustrates what the notional rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually the quoted rate and the AER are the same.

BACS (Bankers' Automated Clearing Service) - an electronic payment system allowing us to make direct credits to your bank or building society account.

Capital - the total of your deposits into your account or the original investment in your Bond or Certificate.

Customer Code - a document setting out the standards of good practice you can expect when dealing with us.

Data protection and confidentiality - see the Error! Bookmark not defined. section of this website.

Dormant holdings - savings or investments where we know we have lost contact with the customer.

Financial Intermediaries/IFAs (Independent Financial Advisers) - provide advice on investments and financial products.

Fixed or guaranteed rate products - savings and investments which have rates of interest fixed at the outset for a specified period.

Gross interest - is the taxable rate of interest without deduction of UK Income Tax

Growth - means your savings grow through the addition of interest.

Index-linking - for Index-linked Savings Certificates, it means that the value of a Certificate moves in line with changes in the Retail Prices Index (RPI) - a commonly used measure of inflation.

Inflation proofing/beating - for Index-linked Savings Certificates, it means that the value of a Certificate moves in line with changes in the Retail Prices Index (RPI) - a commonly used measure of inflation. Inflation beating is achieved through the addition of interest as well as index-linking.

Investment term (or sometimes just term) - for fixed rate products, it means the period of time for which the interest rates are fixed.

ISAs (Individual Savings Accounts) - tax-free savings accounts launched in April 1999 to replace PEPs and TESSAs, allowing investment in stocks and shares, cash deposits and life assurance up to certain limits each tax year.

Issue/Series - our fixed rate products are sold in Issues or Series, each with its own guaranteed interest rate(s). We bring out a new Issue or Series whenever the fixed rate on offer changes.

Net interest - is the rate of interest payable after the deduction of UK Income Tax at the rate specified by law (currently 20%).

Power of Attorney - a legal document that authorises a particular person to act on behalf of someone else, for example to make investment decisions on their behalf.

RPI (Retail Prices Index) - the most frequently used measure of inflation, calculated by the Office for National Statistics each month.

Superseded products - except for fixed rate products, a product is treated as superseded if we stop making it available or no longer actively promote it.

Tax-free - means the interest is exempt from UK Income Tax and Capital Gains Tax.

Tiered interest rates - where the interest rates increase according to how much money you have invested.

Trust deed - a formal document that lays down the terms of a trust.

Trust holding - a way in which one or more person(s), the 'trustee(s)', look after the investments of others. The trustees are the legal owners of the assets but they must use them for the benefit of the other person, usually called the beneficiary, in accordance with the trust deed.

UK Government securities - National Savings and Investments Bonds and Certificates are UK Government Securities issued by the Treasury under the National Loans Act 1968.

Variable rate products - savings and investments where the rate of interest can be changed by us from time to time.

Warrant - is a method of payment, like a cheque.

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