Basic Rate Tax
Basic rate tax is charged at 20% on the first £35,000 of income above your annual personal allowance. The personal allowance is £9,205 for the under 65s, £10,500 for those aged 65-74 and £10,660 for the over 75s.
This type of account allows you to deposit or withdraw your money at any time, with no notice or penalties.
This is the amount the financial institution that holds your account will pay you in return for saving with them. To find out how much your savings will earn, you can look at the AER- the Annual Equivalent Rate. Shown as a percentage, this tells you the rate of interest you will earn over the period of 1 year. The interest rate may be fixed, which means it will not change throughout the life of the account, regardless of whether the Bank of England base rate goes up or down. Alternatively, the rate may be variable and fluctuate along with the base rate.
An introductory bonus is a fixed amount of extra interest which will be paid on any money you have saved in a variable interest account for a certain amount of time after you open the account. Once the introductory period is over the rate will revert to the normal variable rate, so you may wish to consider moving your money to make sure you're always getting the best rate.
An ISA is a type of account which allows you to save without paying tax on the interest you earn. There are several different types of ISA- the most common is a cash ISA, in which every adult over the age of 18 can save up to £5,760 each year. There are also investment ISAs- commonly known as stocks and shares ISAs- where you can save another £5,760 on top of your cash ISA allowance, or any amount up to the full total of £11,520 if you decide not to use your full cash ISA allowance. Finally, there are Junior ISAs which can be opened for children under the age of 18.
A one off amount of money an individual wants to pay into an account. Most accounts with a fixed term will require you to pay in a lump sum and will not allow you to make any more deposits, whereas instant access accounts may allow you to make regular payments into the account.
Standard Variable Rate
This is the basic rate at which financial institutions pay interest to their savers. It's usually a certain percentage amount above the Bank of England base rate. Many savings accounts have an introductory bonus rate which allows you to earn more interest on your savings for a fixed length of time before the amount you earn reverts to the standard variable rate.
The amount allowed to be invested in an ISA account which is free of income tax. This is currently £5,760 in a cash ISA or £11,520 in an investment ISA.