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Glossary of financial terms



National Savings

A range of savings accounts that raise money for the Government and pay you interest. Some offer tax-free interest, others are taxable. National Savings interest rates may be fixed like the rate paid out on the certificates, variable or index-linked to the rate of inflation.

Net interest rate

Rate after tax has been deducted. See gross interest rate for a full explanation of the difference between net and gross interest rates and how they apply to you.

Net relevant earnings

Earnings on which personal pension contributions are based. For the self employed they are broadly equivalent to annual profits.

Non-contributory scheme

A company scheme that does not require members to contribute.

Normal pension age

The age at which members of a pension scheme are normally expected to take their pension benefits, usually 60-65.

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