With so many different terms around, banking terminology can get really confused. If you know someone who does not know their AER in April and the PIN from their Chip, then this guide is for general banking terms could alleviate.

EAR

AER stands for annual income of votes. EAR is used to calculate the amount you earn on an investment or savings account. The higher the AER, the better the investment or savings account. If you are looking for asavings then compare the AER working where the money goes to make the maximum profit.

April

April is the annual rate and the amount of interest payable each year for a loan or a mortgage. The lowest in the month of April, when the less you pay each year on the credit line. Subjects with high credit in the month of April, the figure for April is about 15-20%, while bonds have a figure in April down by about 5-7%. The fastest way to compare loans is to look at their April values.

Chip and PIN

Chip and PIN system used to pay for goods or withdraw cash with credit cards or debit cards. The card has a 4-digit PIN or personal identification number, which in an ATM machine or to obtain money or pay for goods. Smart card contains information which, together with the PIN, allows the machine to identify you as the beneficiary of the paper. Chip and PIN is more secure than the previous magnetic> Strip and signature technology, which was a few years ago spent.

Coating

An overdraft is a sum of money that you have suffered in an account. If you go beyond the actual amount that you have an account, go to discovery. Many accounts have a pre-agreed limit, which allows you to go overdraft, which can be useful, such as unauthorized overdraft interest and commission cost.

Phishing

If you use online banking services, in order to "phishing" is a term thatmay have heard, but you know what is not. Phishing is a form of fraud or illegal attempts to obtain information online banking, so you can withdraw money from them. When online banking started, it was a big problem, but with better security, the problem is improving. Most Internet browsers include an anti-phishing filter to stop these practices occur.

Standing orders and direct debits

Standing orders and direct debits are similar in somedifferent ways, but in others. Both involve a regular amount to be transferred from one account to another. Standing orders are regular, fixed amount is paid to another person or company, usually monthly. Direct debits are a sum of money that can be fixed or replaced, is to remove from your account at regular intervals. An example of a direct reimbursement of mortgage debt.

Get advice

If you are unsure of any banking terms, so visit your local bank branchor search online can help. Never be afraid to ask anything, because if you do not understand what part of your account policies, you may lose money or do not benefit fully from the opportunities offered to you.