Glossary of savings terms
Below you will find definitions of the most commonly used terms when describing our savings products.
Annual Equivalent Rate (AER)
This is the amount of interest that you can expect to earn on your savings if interest is paid yearly. The AER is an easy way to compare the amount of interest you will earn from different products.
Balance
This is the amount of total money in your account at any given time.
Bank of England Base Rate
The base interest rate set by the Bank of England upon which most other lending or savings interest rates are based. The Bank of England's monetary policy committee (MPC) meet on the first Thursday of every month to decide whether the rate should go up or down. An increase in the Base Rate usually means an increase in the amount of interest you will earn on your savings.
Direct access account
A savings account that allows you to withdraw your money without having to give notice or lose any interest.
Direct access accounts for personal savers | Direct access accounts for business savers
Financial Ombudsman
An independent body who offer a free service to help settle individual disputes between businesses providing financial services and their customers.
To find out more visit the Financial Ombudsman website.
Financial Services Compensation Scheme (FSCS)
This scheme fully protects the first £35,000 of your savings in the event of your bank becoming insolvent.
To find out more visit the FSCS website.
Financial Year
In the UK this runs from 6 April to 5 April every year.
Fixed rate
A rate of interest that is fixed on the day of investment.
Fixed term
Period of time that money is invested for, which is agreed on opening the account. Interest rate can be either variable or fixed.
Gross interest
This is the interest that is earned on your savings before tax is deducted.
Identity theft
When criminals use another person's details for fraudulent purposes. To avoid this, do not share your PIN numbers or passwords with anyone, and rip up or shred bank statements and receipts before putting them in the bin.
Interest
We will pay you interest on the money you hold in your savings account. The rate of interest earned may go up or down as interest rates change, or it may be fixed. For all our accounts, you can choose whether interest is to be paid monthly or yearly.
Take a look at our current savings rates.
ISA (Individual Savings Account)
A savings account that allows you to save up to £7,200 tax-free each financial year. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with
either the same or another provider.
Read
more about ISAs
Net interest
This is the interest that is earned on your savings after tax is deducted.
Notice account
A savings account that offers a higher rate of interest in return for giving 10, 50, or 60 days' notice before making a withdrawal.
Notice accounts for personal savers | Notice accounts for business savers
Online servicing
Online servicing enables you to access details of your Standard Life Bank savings account securely via the Internet. Simply enter your User ID and 3 random characters from your password.
Read more about Online servicing.
Phishing
The use of 'spoofed' or fake e-mails or websites designed to trick users into revealing personal financial data such as account usernames and PINs/passwords.
Take a look at our Guide to safer home computing.
PIN (Personal Identification Number)
A Personal Identification Number is required for telephone banking. When you open a savings account with us we will ask you to choose a 4-digit PIN. When you ring us to transact on your account you will be asked for a random number from your PIN as well as a character from your password.
Pooling accounts
Link together the savings accounts of your family and friends to earn the rate of interest applicable to the combined balances.
Pooling for personal savers | Pooling for business savers
Variable rate
A rate of interest that can change over time.
