- Our Autumn newsletter 2023 is now available. You can download it here
- View our Christmas opening hours here. For information on bank transfer processing times over the Christmas period please click here.
Mortgage payment difficulties? We may be able to help. Find out more
Confusing jargon?Find out what some of the more complex financial words and phrases mean, easily explained.
If you can't find a specific word or term in our glossary below but want to know more about what it is, then please call our friendly team on 03300 244612 who will be pleased to help.
This is a charge that is applied when you withdraw money from a savings account which requires notice beforehand.
Additional Permitted Subscription
This allows someone to inherit the ISA savings from a spouse or civil partner when they pass away. This allowance is on top of their annual allowance (£20,000 per tax year).
Annual Equivalent Rate (AER)
What you could earn from a savings account over a year. Unlike the standard interest rate on your savings account, the AER takes into account compound interest.
This is when interest is paid yearly on your savings account.
Bank of England Bank Rate
The rate of interest set by the Bank of England. This can be subject to change at any time.
This is the person who ultimately owns or controls the savings account.
A bond is a type of fixed term savings account where your money is locked away for the set period specified. No withdrawals can be made until the end of the term. These accounts are best suited to customers that won’t need to access their money and don’t need the flexibility of an easy access account or a notice savings account.
Cash Individual Savings Account (ISA)
A tax-free savings account that allows you to save money without paying Income Tax or Capital Gains Tax on your savings. At Family Building Society we only offer Cash ISAs.
Capital Gains Tax
A tax on the profit or gain you make when you sell or dispose of an asset. You can receive gains of up to the value of £12,300 before you have to pay Capital Gains Tax.
Interest that is applied to interest previously added to your savings. For example, if you put £1,000 in your savings account at an annual interest rate of 4.0% AER, you would earn £40.00 after one year. In the second year, you would then earn interest on that amount, earning £41.60 (4.0% AER of £1,040.00), taking your total to £1,081.60.
This is any payment into your savings account. Deposits can be made through debit card, bank transfer, cheque or cash (this can be done at our Epsom branch).
Easy access account
A savings account that allows you to withdraw your money without notice.
An electronic or digital way of transferring funds.
Fixed interest rate
When the interest rate for a savings account does not change for a fixed period of time.
Fixed term (Bond / ISA)
The amount of time you choose to lock your money away for i.e. 1 year.
Flexible Cash ISA
An ISA that allows you to take money out of your savings account and put it back it within the same tax year without it affecting your ISA allowance.
Financial Services Compensation Scheme (FSCS)
All of your savings are FSCS protected up to £85,000. This protects you from losing some or all of your cash if the authorised financial services firm(s) you keep your money with goes bust.
Gross interest rate
The amount of interest you’ll get on your savings or investment before paying any tax.
His Majesty's Revenue and Customs (HMRC)
A Government department that is responsible for collecting taxes such as Income Tax, Capital Gains Tax and Inheritance Tax to make sure that money is available to fund the UK’s public services. It also administers National Insurance and State benefits. They also help families with targeted financial support.
This is the total amount that is paid into a savings account on the opening date. Additional deposit rules vary depending on the savings account you hold with us. Please refer to your savings account's Summary Box Flyer for more information.
This is how much you will earn on your savings account as a percentage amount.
The amount of money that is placed into a savings account.
ISA allowance / ISA subscription limit
The limit on how much money can be put into an ISA in any tax year, without having to pay any tax on your earnings. For more information on current ISA allowances please refer to gov.uk/individual-savings-accounts
A savings account shared by two or more individuals.
Junior Individual Savings Account (Junior ISA)
A tax-free savings account for children. Save up to £9,000 with paying tax. The account is opened and operated on behalf of a child by a person with parental responsibility. Children who are 16 or 17 years old may open and operate a Cash Junior ISA on their own behalf. When the child reaches 18, the account will automatically transfer to the available issue of our Market Tracker Cash ISA.
When your fixed rate bond term ends, you can access your money. This is known as maturity. On the maturity date your bond/ISA becomes available for reinvestment or withdrawal. The date of maturity is shown on your Savings Account Certificate.
This is when interest is paid monthly on your savings account.
A type of savings account that allows withdrawals, without any charges, if we are notified beforehand. The period of time you have to let us know you would like to make a withdrawal varies depending on the account.
For example, a 35 Day Notice Saver account requires 35 days notice before making a withdrawal.
Nominated bank account
Is the current account that you link to your savings account with us. All nominated accounts must be UK accounts, named in sterling (£) and must be in your name (if the account is a joint account the nominated bank account may be in the name of either account holder).
Our online banking system where you can access and manage your savings account. It can also be used to apply for new savings accounts, send and receive secure messages, and update your personal details.
Passbook savings account
A savings account that comes with a book that we may provide to you, to record your account activity. For example, our Branch Saver requires a passbook for all transactions.
Personal Savings Allowance (PSA)
A tax-free allowance that lets you earn interest on your savings without paying tax on that interest. This varies depending on your tax bracket. For more information please on your PSA please refer to gov.uk/apply-tax-free-interest-on-savings
Power of Attorney
A legal document which gives permission to another person to act in your place.
Savings Account Certificate
This is sent to you after opening and funding your savings account. It contains your account information and is confirmation of your initial deposit.
A system which HMRC uses to collect Income Tax. Tax is usually deducted automatically from your pay, pensions and savings, but if you have other income, it is your responsibility to report it in a self-assessment tax return.
This is a summary of the key features of your savings account. This is included within the product pack along with a Product Features Leaflet and the General Conditions for our Savings Accounts booklet.
Tax-free savings account
A type of savings account that lets you earn interest on your savings without paying tax on the interest that you earn.
The period over which taxes and benefits are calculated. The year used by the Government for calculating personal taxes is April 6–April 5. Other organisations, such as companies, may use different periods for their tax year.
With Fixed Rate Bond or ISAs, this is the amount of time you choose to lock your money away for i.e. 1 year.
Tracker Rate Bond
A type of savings bond where the interest rate tracks the Bank of England Bank Rate.
Variable interest rate
The interest rate you receive on variable interest rate accounts could go up or down. We will always let you know in advance if this happens.
Variable tiered interest rate
A savings account that pays different rates of interest, depending on the amount of the funds held in it. Normally, the higher the balance, the higher the interest rate.
When you remove money from your savings account. In the case of your fixed term account, withdrawal is only allowed on the maturity date shown on your Savings Account Certificate (or the next working day, if maturity falls on a weekend or Bank Holiday). Withdrawals can be made via our Online Service or our Epsom branch. Please refer to your savings account's Summary Box Flyer or Product Features Leaflet for more information on withdrawals for your account.
See our helpful money guides
From looking after your money to planning for future life events such as saving for children or higher education, our useful guides can help and support you along the way.
Try our mortgage guides
Buying a new home is complex so we've got a variety of guides to help you, including stamp duty, first time and later life borrowing, plus specific questions about certain circumstances.