Glossary: F

FEE

A sum of money you pay, for example, to have a loan or credit arranged for you.

FINANCE COMPANY

A company which makes money by lending to people who want to buy goods on credit. Most shops use finance companies for their credit deals.

FINANCIAL

To do with money.

FINANCIAL ADVISER

An individual or firm that can assess your financial needs, recommend suitable products, and arrange for you to buy or invest in these products. Some advisers can also manage investments for you. Where advice concerns ‘packaged products’ (such as unit trusts, open-ended investment companies, investment trust savings schemes, investment-type life insurance and pensions), an adviser must normally be either:

  • tied to a single product provider, or
  • independent and able to recommend any product on the market.

An adviser must be authorised by the Financial Services Authority (FSA).

FINANCIAL RECORDS

These will include statements, bills, receipts etc.

FINANCIAL SITUATION

Your financial situation refers to how much money you receive in wages and/or benefits and how much money you have saved up. It also includes how much money you owe and any financial arrangements you have made for the future, such as a pension. Sometimes people will also ask you about your regular outgoings, such as the amount you pay in rent.

FIRST £50 OF DAMAGE (ALSO CALLED AN ‘EXCESS’)

Some contents insurance policies ask you to pay the first £50 (or other amount) of the cost of the damage. The insurer will then pay for anything more than this.

FIXED INTEREST RATE

Interest rates can go up and down. A fixed interest rate account means that you are guaranteed that the interest you get will stay the same.

FORENAME

Your forename is your first name. For instance, Nigel Parker’s forename is Nigel.

FREE BUFFER ZONE

Some bank or building society accounts have a buffer zone (a free temporary overdraft) so you can take this money out. You will not be charged for being very slightly overdrawn on this basis.

FREE FROM INCOME AND CAPITAL GAINS TAX

Saving in these accounts means that you will not pay tax on the interest your money earns.

FULL NAME

Full name refers to your first name, any middle name or names and your surname. For instance, Nigel Matthew Parker.