Topic 7: Providers

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 (for example, monthly or annually),

the effect of compounding the interest and any fees and

charges.

• AER

• Assets

Things that a person or a business owns. For a person their

assets might include property, jewellery or financial products

such as company shares.

• Assets

• Bonds

See savings bonds.

• Cash card

• Bonds

A card used to withdraw cash from ATMs or branch counters.

• Cash card

• Cash ISA (individual

  savings account)

The British Cabinet minister responsible for financial and

economic matters and in charge of the Treasury.

• Chancellor of the

  Exchequer

• Cheque

An interest or circumstance shared by a group of people, for

example working for the same employer or living in a certain

area.

• Common bond

• Communication

  channel

A card that allows the holder to make purchases face to face,

online or over the phone, and to withdraw cash from an ATM.

Unlike a debit card, where the money is taken from the holder’s

own account, transactions are paid by the card provider. The

card holder repays the amount owed to the provider either in

one payment or in instalments. The provider charges interest on

cash withdrawals from the time the withdrawal is made and on

purchases after a certain period.

• Credit card

• Credit union

Bank or building society accounts where people can store their

money in the form of electronic balances and withdraw it to

make payments.

• Current account

• Debit card

The process whereby a mutual organisation (eg building society)

legally becomes a shareholder-owned joint stock company (eg a

bank).

• Demutualisation

• Direct debit

A compensation scheme that pays compensation to account

holders of up to a certain amount per provider if the provider

goes into default (in other words cannot pay account holders the

money they have in their accounts).

• Financial Services

  Compensation

  Scheme (FSCS)

• Financial Conduct

  Authority (FCA)