Savings A-Z

Whether you are new to saving or not, the financial world is full of terms and phrases that can seem unfamiliar or confusing. Our Savings A-Z guide is on hand to help make dealing with your money as straight forward as possible for you.

Savings A-Z


This stands for Annual Equivalent Rate (AER) and illustrates what the interest rate would be if interest was paid and compounded once each year. This allows you to compare more easily what return you can expect from your savings over time.  Rates are illustrative only and have been rounded to two decimal places. The AER makes savings rates easier to compare.

Annual Interest
This means the interest is paid on an annual basis.


Bank of England Bank Rate
The official bank rate (also called the Bank of England base rate or BOEBR) is the interest rate that the Bank of England charges Banks for secured overnight lending. It is the British Government's key interest rate for enacting monetary policy.

A bond is a savings account which will earn a fixed rate of interest over a set period of time. The term of the account can vary and the longer the term the higher the rate of interest tends to be.

  • Click here to see our range of Fixed Rate Bonds. 


Cash ISA
An ISA (Individual Savings Account) is designed to enable you to save without paying income tax on your savings. Cash ISAs come in various shapes and sizes, ranging from easy access to notice accounts. Each year you can save up to the annual ISA allowance. 

Compound Interest
This is where interest is added to your total savings balance and your next interest payment is based on the now larger amount. So not only does your saving balance go up, it goes up increasingly quickly.


This is a sum of money paid into a savings account.


Fixed Rate
This is a rate of interest that is fixed for a period of time.

Fixed Term
This is the period of time that money is saved for which is agreed on opening the account. You can't usually access your money during this period so make sure to carefully check the Terms and Conditions of the account to make sure.


Gross means how much you would earn in interest on your savings account before tax is deducted.


When you open an account with the West Brom we may need to confirm your identity. For full details on why this is required, and the types of identification accepted, please refer to the Society's Important information on Identification leaflet, which can be found

Interest Rate
This is the percentage return that you will receive on your savings. There are Gross, Net and tax-free interest rates, depending on the account that you have.

ISA Allowance
This is the amount you are allowed to invest in a Cash ISA and/or Stocks and Shares ISA which is free of income tax.


Maturity or Maturity Date refers to the date when an account reaches the end of its term (in most cases this is the end of a fixed rate period). At the end of the term, the account matures and you can then consider other options for your savings.

Monthly Interest
This is when the interest on your savings is paid on a monthly basis.


Notice Accounts
These are savings accounts where the account holder is required to give notice that they wish to access to their account a specified number of days before making a withdrawal. 


This is short for 'per annum', which simply means, every year.


Regular Savings
This is a type of savings account that requires you to pay in a regular amount each month. 

  • Click here to see our range of Regular Savings accounts.


Stocks and Shares ISA 
This type of ISA (Individual Savings Account) allows you to invest in the stock market. It aims to give your savings a greater growth potential than a Cash ISA. Each year you can invest up to the annual ISA allowance. 


Tax-free means that you won’t have to pay any tax on the interest you earn. ISAs are tax-free which means you’ll receive 100% of the interest earned on the money in your account. 

Tiered Interest Rates
Some savings accounts have tiered interest rates, meaning that the rate of interest you earn depends on the balance of your account.

Variable Rate
This is an interest rate that may change over time.


This is when instructions are carried out to pay money out of your savings account (e.g. cash taken out of an account).