Glossary
We all know that when it comes to money there’s a lot of needless and confusing Jargon to wade through, so here’s our plain English guide to help you through it.
Just click from A-Z to browse all our handy definitions!
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all inclusive - An indication that any calls you make and texts you send are part of your mobile phone contract. Even though the contract says there are no limits some phone providers use a different definition of 'no limit' from the rest of us and it is always wise to ask what is meant by this turn of phrase in your contract.
Annual Percentage Rate - The Annual Percentage Rate is supposed to represent the total cost of borrowing money so that consumers can use it as a guide to compare different sources of finance. Basically the higher the APR, the more your loan or purchase will cost you. It includes things like fees and final payments so that where one loan that has a lower APR than another may look cheaper, a higher APR would suggest that there are some hidden costs that need to be explained.
annuities - An annuity is an income for life that is purchased using the money built up in a pension fund (or any lump sum of money for that matter). Effectively your lump sum is 'sold' to an insurance company in return for a regular income. This income can be paid in different ways. It can be guaranteed for a certain periond after your death, or continue to be paid to a surviving spouse. It can also be paid as a level amount or a sum that increases annually with inflation. The method of payment will determine the initial level of income tyou receive.
annuity - An annuity is an income for life that is purchased using the money built up in a pension fund (or any lump sum of money for that matter). Effectively your lump sum is 'sold' to an insurance company in return for a regular income. This income can be paid in different ways. It can be guaranteed for a certain periond after your death, or continue to be paid to a surviving spouse. It can also be paid as a level amount or a sum that increases annually with inflation. The method of payment will determine the initial level of income tyou receive.
APR - The Annual Percentage Rate is supposed to represent the total cost of borrowing money so that consumers can use it as a guide to compare different sources of finance. Basically the higher the APR, the more your loan or purchase will cost you. It includes things like fees and final payments so that where one loan that has a lower APR than another may look cheaper, a higher APR would suggest that there are some hidden costs that need to be explained.
