Net

The amount of money left over after all deductions, such as tax or fees, have been subtracted from the gross amount.

Nominal annual rate

The rate of interest that would apply if interest were not compounded each year and if there was no inflation.

OFT

The Office of Fair Trading is responsible for making markets work well for consumers by promoting and protecting consumer interests throughout the UK, while ensuring that businesses are fair yet competitive.

Online banking

Online banking, also called e-banking or Internet banking refers to banking services that are offered over the Internet by independent operators and increasingly by major high street banks. Online banking allows customers to do many traditional banking transactions, such as bill payments and account transfers, right from the comfort of their own home.

Online payday loans

Loans that are applied for on the Internet and are borrowed against the next payment of a person’s salary. You can find the right online loan for you here at SameDayCash.

Outstanding balance

The amount of money that you have yet to pay back to a lender.  The outstanding balance reduces as you make payments towards the debt.

Overdraft

The extension of credit by your bank that allows you to withdraw funds beyond what you have available in your account. The interest rate on this service can be quite high, but if you repay the amount borrowed very quickly, then the interest is usually less than the bank fee would be for going overdrawn on your account.

Overpayment

Payments that are for higher amounts than you are required to pay or are extra payments that you make towards a debt.  Overpayments assist you with paying off your loan or mortgage early.  Many loans and mortgages do not permit overpayment as this reduces the amount of interest that the lender will collect for making the loan.

p.a.

This stands for per annum, meaning each year.

Payday loan

A payday loan (also called a pay cheque advance or payday advance) is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.  The amount borrowed must be less than the wages.

Penalty charges

Fees that are charged for breaking your banking and borrowing agreements.  Penalty charges can be incurred for unauthorised overdrafts and unpaid items such as cheques, direct debits or standing orders.

Personal loan

Loans available from banks and other financial institutions to private individuals for their personal use. Such loans are often used to purchase a motor vehicle, holiday or similar item.  Repayment periods vary from one to five years.

PIN

A Personal Identification Number is a four-digit number that you enter into a cash point when you want to withdraw funds or access you account balance.  A PIN is also used for purchases that you pay for with a chip and PIN card. For security, you should never give your PIN to anyone nor write it down.

Promise date

This is the date that you say you will certainly repay your loan.  This can also be called your repayment date or due date.