Copy of `MoneyNet - Glossary of finances`

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MoneyNet - Glossary of finances
Category: Economy and Finance
Date & country: 24/09/2007, UK
Words: 112


Switch-Delta Card
A debit card which enables the consumer to pay for goods directly from their bank account without the need to carry cash or write out cheques.

Tax Return
Annual return supplied by the individual to the Inland Revenue detailing all incomes, from employment, investments, benefits and perks, in addition to allowable expenses. The tax return forms the basis on which the individual's tax liability is calculated.

Tax-free
Interest earned or credited without any income tax liability and not dependant on the investors tax status.

Term
Length of time for which an account has to be held or for which attracts an agreed amount of interest.

Term Assurance
This is life assurance which pays out the insured sum on the death of the policy holder providing it occurs within the policy term. This is a common method to protect the mortgage in the event of death and to ensure that the mortgage debt is repaid. The most common types of this insurance are Mortgage Protection or Level Term Assurance. Mortgage protection is normally used in connection with a capital and interest mortgage and the level of the insured cover reduces in line with the reduction in the mortgage debt. Level Term assurance is more likely to be used in connection with an interest only mortgage as the level of cover remains constant as does the mortgage debt. With Term Assurance cover there is no pay-out if the policyholder survives the policy term and the policy simply lapses with no value. This factor makes this type of cover relatively inexpensive.

Tessa
Tax Exempt Special Savings Account . TESSAs were replaced on 5th April 1999 by the new Individual Savings Account (ISA). Existing Tessas can be held for the remainder of their original term.

Tied Agent
A company sales person (or direct sales person) who promotes the products of his employer only, the company he or she is 'tied' to. They cannot search the whole market for the best product as an Independent Adviser can. Under the rules of the Financial Services Act they must make their status clear to the interviewee or applicant at the earliest opportunity.

Transfer
Movement of account from one provider to another or from one account to another with the same institution.

Trustee
Person responsible for administering the assets for the benefit of the beneficiaries.

Typical APR
The APR shown is for the company's typical borrower, and so is given as a best example. However due to individual circumstances and requirements the exact interest rate or cost may vary slightly. Specific costs or a quotation should be sought from the provider before commitment is made to the loan or credit agreement.

Unsecured
A loan where no collateral or security is given or charged to the lender. Unsecured lending is viewed as higher risk than secured lending and interest rates are generally higher to reflect this.

Variable rate
Interest rate can be altered by the account provider as and when they deem necessary, usually when general base rates change. This is also the traditional way that mortgages were arranged before the concept of fixed rates. A variable rate will fluctuate up and down to reflect the true cost of borrowing. Some variable rates may be discounted for a period of time (see Discounted Rates).