Offshore Savings Glossary

AER:

Annual Equivalent Rate – illustrates what the interest rate would be if interest was paid and added to your offshore savings account each year.

Annual Interest:

Interest is paid on an annual basis.

Compound Interest:

This is where the interest earned on the offshore savings account is added to the capital.

BACS: 

Withdrawal method to either a UK or Channel Island Bank (free of charge & takes 3 working days).

Bed and Breakfast:

The closing and re-opening of an offshore savings account.

Deposit:

Money being paid into the account.

Easy Access:

Money can be withdrawn from the offshore savings account without giving notice. 

Electronic Transfer: 

Withdrawal method which offers same day transfer to UK or Channel Island Banks.  Also used when withdrawing money to send overseas , however this would not be for same day value

Fixed Bond:

The interest rate on the offshore savings account is fixed for a set period.

Gross interest:

Interest is paid without the deduction of tax. The tax treatment will depend on your individual circumstances and may be subject to change in the future.

Interest Rate:

This is the percentage return that you will receive on your offshore savings.

Maturity Date: 

The date on which either a fixed bond or notice period expires. The date a fixed bond expires

Notice Account:

An offshore savings account that requires a certain number of days’ to be served notice before you can make a withdrawal.

Transaction:

The movement of money either into or out of your offshore savings account.

Variable Rate:

The interest rate paid on your offshore savings account may change over time.

Withdrawal:

Money being paid out of the account.

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