Understand the language of money.
Search clear explanations of UK financial terms across banking, savings, investing, credit, mortgages, property, tax, insurance and retirement.
Explore financial terms by topic.
Start with the area of money you are researching and explore related guides, calculators and explainers.
Banking
Understand current accounts, overdrafts, bank rates, direct debits and everyday banking terminology.
Savings
Learn about savings accounts, AER, interest rates, compound interest, ISAs and emergency savings.
Investing
Explore shares, funds, dividends, portfolios, investment returns, diversification and risk.
Credit & Borrowing
Understand APR, credit scores, loans, credit cards, repayments, interest and borrowing costs.
Mortgages
Learn about deposits, LTV, fixed rates, tracker mortgages, mortgage repayments and remortgaging.
Property
Understand buying, renting, ownership, equity, property costs and buy-to-let terminology.
UK Tax
Explore Income Tax, Capital Gains Tax, allowances, taxable income and common UK tax terminology.
Insurance
Learn about premiums, excess, exclusions, claims, policy terms and different types of insurance.
Life Insurance
Understand life cover, premiums, beneficiaries, policy terms and financial protection.
Health Insurance
Explore health insurance premiums, cover, excesses, exclusions, claims and policy terminology.
Pensions
Learn about workplace pensions, personal pensions, retirement income and pension terminology.
Financial Planning
Build knowledge around budgeting, emergency funds, saving goals, investing and long-term planning.
Start with the terms you see most often.
Explore commonly used terminology across savings, borrowing, mortgages, investments and property.
APR
Annual Percentage Rate is used to express the annual cost of borrowing and can include interest and certain fees.
AER
Annual Equivalent Rate helps compare the annual interest return on savings accounts.
ISA
An Individual Savings Account is a UK tax-efficient wrapper for eligible savings and investments.
LTV
Loan-to-value compares a mortgage amount with the value of the property.
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AER, or Annual Equivalent Rate, shows what the annual interest rate on a savings account would be when the effect of compounding is included. It helps consumers compare savings products.
APR is used to express the annual cost of borrowing. Depending on the product, it can take interest and certain charges into account and can help with comparing credit products.
Bank Rate is the Bank of England's key interest rate. Changes can influence borrowing and savings rates offered by financial institutions.
Buy-to-let generally describes property purchased with the intention of letting it to tenants. Costs, tax, financing and landlord responsibilities can all affect the financial position.
Capital Gains Tax may apply when certain assets are disposed of and a taxable gain is made. The amount payable depends on the asset, gain, allowances and individual circumstances.
Compound interest occurs when interest earned is added to the balance and can subsequently earn further interest. The effect depends on the rate, balance and frequency of compounding.
A dividend is a payment a company may make to its shareholders. Dividend payments are not guaranteed and can change depending on the company's circumstances.
A property deposit is the amount a buyer contributes towards a purchase price. A mortgage may finance part of the remaining amount, subject to the lender's criteria.
Property equity is broadly the value of a property minus outstanding mortgage debt secured against it. Equity can change as the property value or mortgage balance changes.
An emergency fund is money kept aside for unexpected expenses or income disruption. The appropriate amount varies according to personal circumstances and essential living costs.
A fixed interest rate remains unchanged for an agreed period. Fixed-rate mortgage products can provide more predictable payments during that period, although product fees and early repayment conditions may apply.
An ISA is a UK tax-efficient wrapper for eligible savings and investments. Types include Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs.
Loan-to-value, or LTV, compares the amount borrowed with the value of the property. It is commonly used when discussing mortgages and property finance.
A mortgage is a loan commonly used to buy property. The property is normally used as security for the loan. Mortgage products differ in rates, fees, terms and eligibility requirements.
A pension is a long-term arrangement designed to help provide benefits or income in retirement. UK pensions include workplace and personal arrangements.
An insurance premium is the amount paid to an insurer for a policy. Premiums can vary according to the cover selected, risk factors, policy terms and the insurer.
Investment return describes the gain or loss generated by an investment over a period. It can include changes in value and income such as dividends or interest.
Shares represent units of ownership in a company. Shareholders can potentially benefit from changes in share prices and dividends, but investments can also fall in value.
A tracker mortgage normally follows a specified reference rate, often with a stated margin. Because the underlying rate can change, payments can change too.
A voluntary excess is an amount the policyholder agrees to contribute towards an eligible insurance claim, in addition to any compulsory excess where applicable.
Yield generally describes income generated by an investment relative to its value or price. The exact calculation depends on the type of investment.
Go beyond the definition.
Once you understand a term, explore the related topic to understand how it fits into real-world financial decisions.
UK Banking
Understand everyday banking, current accounts, overdrafts, interest rates and common bank terminology.
Explore Banking →Savings & Interest
Learn about savings accounts, AER, compound interest, ISAs, saving goals and emergency funds.
Explore Savings →Credit & Borrowing
Understand APR, credit scores, loans, credit cards, repayments and the cost of borrowing.
Explore Credit →Buying Property
Understand deposits, mortgages, property costs, ownership terminology and the home-buying process.
Explore Property →Understanding Mortgages
Learn how mortgage rates, deposits, LTV, repayments, fixed rates and remortgaging fit together.
Explore Mortgages →UK Tax
Explore common UK tax terminology including Income Tax, Capital Gains Tax and tax allowances.
Explore UK Taxes →Insurance
Learn about premiums, excesses, exclusions, claims and different types of insurance cover.
Explore Insurance →Pensions
Understand workplace pensions, personal pensions, retirement income and long-term retirement planning.
Explore Pensions →Financial Planning
Build your understanding of budgeting, saving goals, emergency funds and long-term financial planning.
Explore Planning →Financial terminology should be easier to understand.
Financial products often use technical language that can make everyday decisions feel more complicated. This glossary brings together commonly used terms and connects them to practical GrowthSmartly resources.
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