Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/41

Click to flip

41 Cards in this Set

  • Front
  • Back

Faster payments

Takes up to 2 hours, average transaction limit £10,000

CHAPS
Clearing House Automate Payment System, guaranteed same day payment, High value
BACS

Old system, took 3 business days

CPI

Consumer Price Index, A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living

RPI

Retail Price Index, Same as CPI but also includes mortgages, interest payment and other occupied costs

Standing order

Pushes money between 2 accounts on a regular basis. e.g £100 a month from a current account into a savings account

Direct Debit

An arrangement made with a bank that allows a third party to transfer money from a person's account on agreed dates, typically in order to pay bills

FSCS

Financial Services Compensation Scheme, guarantees up to £85,000 per person if a bank said person is in goes bust

NS&I

National Savings & Investments, guaranteed by royalty, premium bonds, keep money safe

Premium bonds

A lottery bond, issued by NS&I, entered into a monthly prize draw with tax-free prizes or ‘premiums’. Bonds must be held for a full calendar month after the month in which they were purchased, and retain an equal chance of winning until cashed in. £100-£30,000 to be entered

Credit Union

A mutual organisation (that is, owned by its members) that provides a range of financial products e.g. savings accounts and personal loans to members. Members of a credit union must share a common bond, regulated by the PRA & FCA

Banks
Owned by investors, regulated by the PRA & FCA
Post office
Like a bank
Building society

Owned by members, 75% of assets must be mortgages, 50% funding from members balances in savings, regulated by the PRA & FCA

PRA

Prudential Regulation Authority, one of the two main regulators of financial services in the UK

FCA
Financial Conduct Authority, one of the two main regulators of financial services in the UK
APR
Annual Percentage Rate, charges for borrowing
EAR
Equivalent Annual Rate, charges for borrowing
AER
Annual Equivalent Rate, Interest paid for saving
Margin
Margin = (APR or EAR) – AER
HMRC
Her Majesty’s Revenue and Customs – the organisation that collects taxes on behalf of the government
ATM
Automated Teller Machine
DRO

An order a person in specific conditions can apply for if they cannot afford to pay off their debts. It generally lasts one year, during which time none of the people owed money can take action, and after which the listed debts are cleared. Granted by the Insolvency Service, a DRO works out cheaper than going bankrupt

Bankruptcy

A situation in which a person cannot pay their debts and is the subject of a court order that shares out their assets between their creditors

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

DMC
Debt Management Company, An organisation to which a person in debt (debtor) pays what they can afford each month. The DMC then deals with the organisations (creditors) owed money
IVA
Individual Voluntary Agreement, A formal alternative to bankruptcy comprising a contractual arrangement with those owed money
MPC
Monetary Policy Committee, people from the bank of England that decide whether to change the bank rate
Minimum wage: Apprenticeship under 18
£2.73
Minimum wage: Under 18
£3.79
Minimum wage: 18-20
£5.13
Minimum wage: 21+
£6.50
Tax band: Basic rate
20%, £0-£31,865
Tax band: Higher rate

40%, £31,866-£150,000

Tax band: Additional rate

45%, over £150,000

(N)ISA

(New) Individual Savings Account, tax free interest, limits per tax year: £15,000 in cash ISA or £15,000 in stocks and shares ISA or £15,000 spread between both kinds of ISA

Junior ISA

Same as an ISA but for under 18’s, limits per tax year: £4,000, replaced the CTF

Child Benefit
£82
CTF

Child Trust Fund, A long-term savings account only available to children born between 1 September 2002 and 2 January 2011. CTFs were set up by the government to encourage people to build up savings for their children

OFT

Office of Fair Trading, The government department that monitored how businesses compete with each other. It was abolished in April 2014 and its responsibilities shared between the Financial Conduct Authority and a new organisation, the Competition and Markets Authority

Student debt repayment

Once income reaches £21,000