Pearl - Jargon Buster

Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:

Fund Value (of a pension)
The pot of money you have saved while you are working to provide income after you retire. This pot normally is used to purchase an annuity to provide an income for life.
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Final Bonus (with-profits)
A bonus that may be added when your product is cashed in or it matures. Also known as Additional or Terminal bonus.
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Final salary pension schemes
A type of company pension scheme. The amount you receive on retirement generally depends on how long you have been a scheme member and how much you are earning just before you retire.
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Financial Services Authority (FSA)
An independent non governmental body, regulating all qualifying financial services and investment businesses in the UK.
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Fixed Interest Securities
Financial products that promise the lender one or more fixed cash payments in the future. They may be issued by central or local government or a company in order to raise capital.
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Fixed rate mortgage
A set rate of interest charged on a mortgage. At the start of a loan it is normally set just below the lender's standard variable rate and guaranteed for a certain length of time. Whether the standard variable rate falls below or rises above the fixed rate, you will still have to pay the same amount - so you could lose, or gain. At the end of the guarantee period, you will start paying the lender's usual rate. Sometimes this type of deal also involves paying a penalty if the mortgage or loan is redeemed (paid off) during or at the end of the discounted period.
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Flexible mortgage
A mortgage which allows you to change the amount you pay each month or how often you pay (subject to certain restrictions).
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Free standing additional voluntary contributions (FSAVC)
If you are in your employer's pension scheme, you may be able to build up a bigger pension pot by paying extra amounts into a separate, independent scheme which is known as a FSAVC.
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Fund Manager
A fund manager invests the money an investor has paid into the fund and offers a personalised investment service.
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