Annual percentage rate of charge – this shows the overall cost of a loan, taking into account the term, interest rate and other associated costs.
Basic bank account
Allows you to receive money and pay bills. Opening one can be a first step towards opening a regular account later on. You don’t get a cheque book, but you can pay in cheques for free, take money out at cash machines, and pay bills by direct debit.
Banks Automated Clearing System is an automated payment system that banks use to transfer money electronically from one account to another.
Credit Unions require their members to have a common bond. Each member needs to have something in common, such as living in the same area or working for the same employer.
An annual reward paid out to members from Credit union profits, decided each year at the Credit Union’s AGM.
Interest refers to the amount earned on your savings (in the case of banks, as Credit Unions give out dividends) and the charges made on money borrowed from the Credit Union.
A sum of money that is borrowed and paid back with interest.
A loan that is not linked to your home or any of your belongings – however you are still responsible for repaying it.
A loan that is linked to your shares. Any amount less than or equal to your shares can be borrowed.
Also in this section…
What are credit unions?
A credit union is a not-for-profit financial cooperative set up and controlled by members with something in common to benefit their community. Credit unions work by members saving into a common fund. That fund is then used to give low-in…
Terms and Jargon Glossary
APR Annual percentage rate of charge – this shows the overall cost of a loan, taking into account the term, interest rate and other associated costs. Basic bank account Allows you to receive money and pay bills. Opening one can be a …
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What should I do if I am worried about debt? If you’re struggling financially, you may want to talk to someone independent. StepChange Debt Charity provides free, impartial debt advice and solutions to anyone struggling with their debts.…
Credit Unions and other financial institutions
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