A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A-day:

6 April 2006, when wide-ranging reforms to simplify pensions were introduced. The new rules allowed savers to increase the contributions they could make to their pension. They also imposed a cap on contributions which qualify for tax relief to £215,000 a year.

Age allowance:

An additional personal allowance for people aged over 65. This For those aged over 65 in the 2006/07 tax year, £7,280 can be earned before income tax is paid. For those aged over 75, the allowance is £7,420. A married couple’s allowance - an additional £6,065 in the 2006/07 tax year - applies if either you or your spouse were born before 6th April 1935,

Annual Equivalent Rate (AER):

The rate of interest usually stated as being paid on savings and investments. This is what your interest return would be if the interest was compounded and paid annually.

Alternative Investment Market (AIM) :

An alternative index to the FTSE of around 400 companies listed on the London Stock Exchange. Usually used by smaller companies.

Annual percentage rate (APR): T

The annual rate of interest that will be paid over the whole term of a loan. The law requires savings institutions to disclose this rate.

Annuity:

A lifetime income. A lump sum is paid to a life insurance company which guarantees a monthly income until your death. The rate of income you receive from annuities will depend on how much capital you hand over and how old you are.

Arrangement fee:

One of a number of upfront costs that may be charged by a lender for organising a home loan. Can be charged to cover administration and the cost of reserving of funds for a mortgage and may be paid separately or added to the mortgage.

Arrears:

When mortgage payments have not been paid on time or are not made at the correct amount, borrowers are said to be in arrears. .