EXPLANATION OF FINANCIAL TERMS
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National Savings
A range of savings accounts
that raise money for the Government and pay you interest. Some offer tax-free
interest, others are taxable. National Savings interest rates may be fixed like
the rate paid out on the certificates, variable or index-linked to the rate of
inflation.
Net interest rate
Rate after tax has been deducted.
See gross interest rate for a full explanation of the difference between net and
gross interest rates and how they apply to you.
Net relevant earnings
Earnings on which personal
pension contributions are based. For the self employed they are broadly equivalent
to annual profits.
Non-contributory scheme
A company scheme that does
not require members to contribute.
Normal pension age
The age at which members of
a pension scheme are normally expected to take their pension benefits, usually
60-65. |
