Topic 4 Everyday banking Key Terms

Question	Answer
AER / EAR	Annual Equivalent Rate: the interest that will be earned on the money in one year and takes into account how often the provider holder pays interest e.g. monthly, annually, the effect of compounding the interest and any fees and charges
Basic Bank account	a current account that allows people to store their money as electronic balances 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 of money available once all the mandatory and essential expenditures in a given period e.g. a month, has been made
HMRC	Her Majesty's Revenue and Customs: the organisation that collects taxes on behalf of the government
Interest	money either paid or charged to an account holder by the provider

Resource summary

	Created by Dawn S_akura over 7 years ago