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. |