Glossary: A


Some contents insurance polices will allow you to claim for accidental damage. It is the damage done to your possessions by accident, for example, you spill a pot of paint over your carpet.


Where you live. This includes living with your parents, in a hostel,renting somewhere or buying on a mortgage.


This is the service provided by a bank or building society that holds money for you. A current account is an everyday account for money to be paid in or taken out – it helps you budget and manage your money and pay for things in a convenient and secure way. A deposit account is for savings.


If you believe an estimate on your electricity or gas bill is wrong, you can ask the electric company to send someone around to read the meter. They can even show you how to read the meter yourself, so you can phone up and give them an accurate reading in the future.


Stands for Annual Equivalent Rate. This shows what the interest rate would be if the interest on savings were paid and added to savings at the end of each year. Actually interest is often paid more often, such as four times a year. The AER is worked out in a standard way so you can compare interest rates directly with each other. The higher the AER the better the return is on your savings.


Means what you are left with after tax has been paid. You must pay tax on most types of income (such as interest from savings, earnings from your job and pensions), but everyone can have some income tax-free. In 2013 -14, the tax-free allowance for people under age 65 is £9,440. Older people may get a higher allowance.


This means that your possessions are covered by the contents insurance policy even though you have taken them outside your home.


It means ‘ante meridiem´ which is Latin for ´before noon


Every year


An applicant is a person who is applying for something.


Is the Annual Percentage Rate. This tells you the cost of a loan, taking into account the interest you pay, any other charges and when the payments fall due. The cost is standardised as an annual percentage rate so you can easily compare the cost of one loan with another e.g. a loan with an APR of 15% is more expensive than one with an APR of 11%.


ATM stands for Automated Teller Machine. These are also known as ‘cashmachines’. You can find them in many places including banks, shopping centres and railway stations. In order to be able to use an ATM you need a cash withdrawal card and a personal identification number (PIN).


This is the amount of money the store card or Credit Card Company will lend you now. That is, your credit limit, take away the amount you have already borrowed. You can use this money to buy goods or as a loan.