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41 Cards in this Set
- Front
- Back
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Faster payments |
Takes up to 2 hours, average transaction limit £10,000 |
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CHAPS
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Clearing House Automate Payment System, guaranteed same day payment, High value
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BACS
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Old system, took 3 business days |
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CPI
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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 |
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RPI
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Retail Price Index, Same as CPI but also includes mortgages, interest payment and other occupied costs |
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Standing order
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Pushes money between 2 accounts on a regular basis. e.g £100 a month from a current account into a savings account |
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Direct Debit
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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 |
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FSCS
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Financial Services Compensation Scheme, guarantees up to £85,000 per person if a bank said person is in goes bust |
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NS&I
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National Savings & Investments, guaranteed by royalty, premium bonds, keep money safe |
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Premium bonds
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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 |
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Credit Union
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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 |
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Banks
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Owned by investors, regulated by the PRA & FCA
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Post office
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Like a bank
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Building society
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Owned by members, 75% of assets must be mortgages, 50% funding from members balances in savings, regulated by the PRA & FCA |
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PRA
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Prudential Regulation Authority, one of the two main regulators of financial services in the UK |
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FCA
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Financial Conduct Authority, one of the two main regulators of financial services in the UK
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APR
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Annual Percentage Rate, charges for borrowing
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EAR
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Equivalent Annual Rate, charges for borrowing
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AER
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Annual Equivalent Rate, Interest paid for saving
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Margin
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Margin = (APR or EAR) – AER
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HMRC
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Her Majesty’s Revenue and Customs – the organisation that collects taxes on behalf of the government
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ATM
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Automated Teller Machine
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DRO
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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 |
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Bankruptcy
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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 |
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Assets
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Things that a person or a business owns. For a person their assets might include property, jewellery or financial products such as company shares |
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DMC
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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
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IVA
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Individual Voluntary Agreement, A formal alternative to bankruptcy comprising a contractual arrangement with those owed money
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MPC
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Monetary Policy Committee, people from the bank of England that decide whether to change the bank rate
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Minimum wage: Apprenticeship under 18
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£2.73
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Minimum wage: Under 18
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£3.79
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Minimum wage: 18-20
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£5.13
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Minimum wage: 21+
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£6.50
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Tax band: Basic rate
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20%, £0-£31,865
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Tax band: Higher rate
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40%, £31,866-£150,000 |
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Tax band: Additional rate
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45%, over £150,000 |
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(N)ISA
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(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 |
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Junior ISA
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Same as an ISA but for under 18’s, limits per tax year: £4,000, replaced the CTF |
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Child Benefit
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£82
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CTF
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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 |
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OFT
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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 |
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Student debt repayment
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Once income reaches £21,000 |
