Glossary

A guide to some of the financial language used in the UK.

Agreed Overdraft
A pre agreed lending facility linked to your sterling current account. It allows you to spend or access cash, up to the agreed limit, when the balance in your account goes below nil. Please refer to our Guide to Services and Pricing for interest rates and any unauthorised overdraft fees.

Annual Percentage Rate (APR)
Is the cost of a loan or overdraft expressed as an annual percentage of the balance of the loan. To calculate the interest rate, simply divide the APR by 12, so if the APR is 18% the monthly rate is 1.5%. This includes all costs.

ATM
Automated Teller Machine. Computer terminals at which you can make cash withdrawals. Also known as cash machines.

Barclays Connect card
A debit card which can be used to pay for goods and services wherever the VISA or Delta sign is displayed.

Cheque Book
A method of payment consisting of a number of payment slips which allow you to pay for goods and services in the currency of your cheque book. This method of payment is still widely used in the UK.

Cheque Account
An account which enables you to pay for day-to-day goods and services using either a card or a cheque book (a US term for a Current Account).

Credit Card
A payment card issued for purchasing goods, services and obtaining cash against a line of credit established by the issuer of the card. Bills are usually sent monthly and you can either choose to pay a minimum payment or pay in full, eg. Barclaycard / VISA / MasterCard.

Current Account
An account which enables you to pay for day-to-day goods and services using either a card or a cheque book (a UK term for a Cheque Account).

Debit Card
A payment card that debits payments made with it, directly from the bank account to which it is linked.

Direct Debit
This is a UK payments system designed to allow UK originators (eg. telephone, gas, electricity, companies) to regularly collect variable amounts due to them from your UK cheque, current or savings account by electronic funds transfer.

Fixed Rate
A predetermined and set rate of interest.

Fixed Term
A predetermined and set length of time.

Fixed Term Accounts
Fixed Term Accounts are savings instruments which require you to commit your money for a fixed period of time, at a fixed rate of interest.

Fund
A term used to describe a collective investment scheme where investors' monies are pooled together and managed as a single entity with a common investment aim.

Gross
The entire amount before deductions are made eg. UK Tax, National Insurance.

Inflation
The rate at which the general level of prices for goods and services is rising.

Inland Revenue
Is the UK tax authority. The Inland Revenue helpline phone number is +44 (0) 20 7667 4001.

Interest Rate
The set price for borrowing money or the set return you will make if you place your money in a
savings account.

International Payments
A cross border payment between bank accounts.

Limited Issue
We occasionally offer Limited Issue products. These are products which are available for only a limited period of time.

Mortgage
A loan secured against some specified real estate property which obliges the borrower to make a predetermined series of payments.

Net
The amount after deductions have been made eg. UK tax, National Insurance.

Portfolio
A collection of investments.

Regular Payment Instruction
Payments made at regular intervals. These can take three forms, a regular international payment, a Direct Debit, or a Standing Order.

Standing order
Allows you to make regular payments of a fixed amount from your UK account to a UK-based beneficiary by Electronic Transfer eg. monthly rental payments to a landlord.

Statements
Written details of the activity on an account, sent out regularly. Please note that statements are only issued when there have been transactions on the account during the previous month.

Tiered rates
Rates which apply to the whole balance in the account that are graduated and rise depending on how much you deposit into the account.

Variable Rate
Is distinguished from a fixed rate agreement as it calls for an interest rate that may fluctuate over the length of the agreement. Such rates are often linked to changes in the general rates of interest in the economy eg. Base Rates, the European Central Bank.

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