1	Annual equivalent rate (AER)		_____	the situation in which an asset or money decreases in value.
2	Annual percentage rate (APR)		_____	the interest paid on savings after income tax has been taken off.
3	Asset		_____	interest that is calculated on the principal plus the interest that has been charged or paid so far.
4	Bank rate		_____	anything that a person owns that has a monetary value, such as a house, car, stereo, jewellery and so on.
5	Basket of goods		_____	a savings account on which interest is paid tax-free and about which there are rules, including limits on how much money you can save.
6	Compound interest		_____	how much money you can make on savings or investments, or how much money you get back (ie your profit) compared with the amount that you put in.
7	Consumer Prices Index (CPI)		_____	the words used after percentage rates to mean ‘each year’.
8	Cost of living		_____	interest that is calculated only on the principal (or what is left of it).
9	Cost-push inflation		_____	the amount of interest that someone can earn on their savings tax-free in a tax year. ISA interest is always tax-free.
10	Demand-pull inflation		_____	the representative items that a household buys over a period of time on which inflation calculations are based.
11	Depreciation		_____	money that is paid to a person after they retire, paid either from the government or from personal savings, or a combination of both.
12	Equivalent annual rate (EAR)		_____	a charge made or paid for the use of someone else’s money.
13	Fixed rate		_____	the interest that would be charged on a sum borrowed over one full year; used to measure the interest rate on loans, mortgages and credit cards; the calculation includes the fees that lenders charge automatically on the product, so that it gives a clear picture of the cost.
14	Gross interest		_____	the official interest rate as set by the Bank of England.
15	Household		_____	the interest that would be charged on an overdraft if you were to borrow the money for a full year.
16	Hyperinflation		_____	a government benefit that assists older people in paying for their heating bills.
17	Individual savings account (ISA)		_____	all of the people living in a single residence.
18	Inflation		_____	the interest paid on savings before income tax has been taken off.
19	Interest		_____	the original amount of money put into something or taken as debt.
20	Net interest		_____	one of the main measures of inflation, calculated monthly by measuring the average cost of a ‘basket’ of goods less major household expenditure, such as mortgages and council tax.
21	Nominal interest rate		_____	an interest rate that follows Bank rate plus whatever charges the bank sets.
22	Pension		_____	the amount that you need to spend to buy the goods and services necessary for living an average life.
23	Per annum		_____	the amount of interest that you pay after taking inflation rates into account, eg if the interest rate is 5%, but prices have risen 10%, then the real interest rate is 5% (5% - 10%).
24	Personal savings allowance		_____	the interest rate as stated before taking inflation into account.
25	Principal (or capital)		_____	inflation that is driven by the numbers of people who want a particular item or service.
26	Rate of return		_____	the increase in prices over time, as measured by how much a typical ‘basket’ of goods costs.
27	Real interest		_____	very high inflation.
28	Simple interest		_____	an interest rate that is set at a particular amount for a particular period of time and does not change for that period.
29	Variable rate		_____	the interest rate that would be paid on a savings account if you were to leave the money in the account for a full year.
30	Winter Fuel Payment		_____	inflation that is driven by higher costs of production.