AER
The true yearly interest rate on savings accounts.
ISA
A tax-free savings or investment account.
Compound Interest
Earning interest on your interest, not just your original money.
Emergency Fund
Cash savings kept aside for unexpected costs or job loss.
Pension Contributions
Money paid into your pension from your salary, usually matched in part by your employer.
Index Funds
Investment funds that track a market index automatically, rather than trying to beat it.
Diversification
Spreading your investments across different assets so one bad bet does not ruin everything.
Risk vs Return
The principle that higher potential returns always come with higher potential losses.
Lifetime ISA
A savings account with a 25% government bonus, designed for your first home or retirement.