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Banking Part2
Ch 1. 9-10
| Term | Definition |
|---|---|
| Savings | are that part of our income that we do not spend. |
| Investing | using your savings to produce a better return than you would get in interest from an ordinary deposit acc with a financial institution. |
| Building Society | a financial institution which provides a wide range of banking facilities to their customers but which specialises in lending money to help customers to buy their own home. |
| Credit Union | an organisation where a group of people save regularly and lend to each other at very reasonable rates of interest. |
| A postal money order | is an order from one post office to another to pay a stated sum of money to the person named on the order. |
| Simple Interest | is where the interest is calculated as a percentage of the amount of money you have put into the account. |
| Compound Interest | is where the interest is calculated as a percentage of the amount in the account at the end of each year. |
| Compound Annual Rate (CAR) | true rate of interest you're receiving on your savings or investment from a financial institution. |
| DIRT | Deposit Interest Retention Tax |
| Overdraft | is when bank customer gives permission to overdraw their current account up to a certain limit,should be fully repaid within a year. |
| Term Loan | available from banks and building societies and are given for a stated period of time usually between 2 and 5 years.Loan and interest are repaid on a regular basis.When applying you must provide statement of income and expenditure. |
| Long Term Loan |
Created by:
karinanatyahanchuk12
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