Please Login to view "member only" content

Bank Jargon

AER - Annual Equivalence Rate

This is the rate of interest you will earn on a savings product. Read our information of savings product

Bank Charges

Charges applied by a Bank if you have gone overdrawn on your account, over your agreed overdraft limit or do not have enough money in your account to honour a direct debit or cheque. The debate about whether these are unfair has been taken to the High Court. The Banks are currently appealing the High Court's decision. You may still apply to re-claim your Bank charges but whether they will be refunded depends upon the final outcome of the case.

Base rate

The rate of interest set by the Bank of England on which other Banks consider basing their rates.

Basic Bank account

These are account's with no overdraft or cheque facility. Some do not let you set up direct debits or standing orders on the account either. You should still be able to qualify for one of these accounts even if you have a poor credit rating or have been made bankrupt. However, different banks have different requirements. Please see the Financial Services Authority leaflet for further infomation. In this leaflet is a table showing different banks requirements.

Debit Card

Using your debit card to pay for goods and services means that the amount will be deducted from your bank account so you won't be accuring any debt like you would on a credit card.

Default

Failure to meet a financial committment. So, for example, if you fail to make your credit repayments, a company may send you what is called a 'default notice'. If they want to take further action to recover the debt, they must do this.

Direct Debit

An instruction from a customer to their Bank allowing payments to be deducted from their account by a company. The company can vary these payments but if they are part of the direct debit scheme, they should inform you first.

First Rights of Appropriation

Have you exceeded your overdraft limit and now the Bank is using any money going into your account to reduce this leaving you with no money for food and bills?

Find out further details as to what you could do with First Rights of Appropriation

Standing Order

A payment that you can ask to be made on a regular basis from your bank account to another account. Whereas with a direct debit, the Company can vary the repayment, you are in control of the amount of the standing order (not the person to whom it is going).

Student Bank accounts and overdraft facilities

Student accounts are special current accounts offered only to students. If you do not have a student account and you have a normal overdraft on which you are paying interest, you should consider getting an interest free student overdraft instead. Shop around and take advantage of the packages on offer. However, do remember to read the small print and terms and conditions before you take out a student account.

Find out more on Student Accounts

Back to Jargon

Smartphone App

Get the student experience on your phone. Staffordshire University Students' Union presents a handheld guide to your hottest news, photos, videos and events. You'll also find details for a range of clubs and societies you might enjoy.


App Store

Android Market

We Tweet

    Social Media

    Facebook Twitter YouTube

    Your Opinions Count!

    If you have any comments, suggestions, requests or feedback, please visit:

    www.staffsunion.com/feedback