What is this?
Below you’ll find a glossary of common terms used by all UK banks and building societies whenever they talk about current accounts.
The terms have been put together by the Financial Conduct Authority (FCA) to make it easy for people to compare products offered by different providers (including fees). Please take a little time to read through the glossary. Whenever we use these terms in communications to you, they have the meanings below (unless we've said otherwise).
Terms and definitions
Maintaining the account
The account provider operates the account for use by the customer.
Arranged overdraft
The account provider and the customer agree in advance that the customer may borrow money when there is no money left in the account. The agreement determines a maximum amount that can be borrowed, and whether fees and interest will be charged to the customer.
Unarranged overdraft
The customer borrows money when there is no money left in the account (or when the customer has gone past their arranged overdraft limit) and this has not been agreed with the account provider in advance.
Refusing a payment due to lack of funds
The account provider refuses a payment from the customer’s account because there is not enough money in it (or it would take the customer past their arranged overdraft limit).
Allowing a payment despite lack of funds
The account provider allows a payment to be made from the customer’s account although there is not enough money in it (or it would take the customer past their arranged overdraft limit).
Direct debit
The customer permits someone else (recipient) to instruct the account provider to transfer money from the customer’s account to that recipient. The account provider then transfers money to the recipient on a date or dates agreed by the customer and the recipient. The amount may vary.
Standing order
The account provider makes regular transfers, on the instruction of the customer, of a fixed amount of money from the customer’s account to another account.
Sending money within the UK
The account provider transfers money, on the instruction of the customer, from the customer’s account to another account in the UK.
Sending money outside the UK
The account provider transfers money, on the instruction of the customer, from the customer’s account to another account outside the UK.
Receiving money from outside the UK
When money is sent to the customer’s account from an account outside the UK.
Cash withdrawal in pounds in the UK
The customer takes cash out of the customer’s account in pounds at a cash machine, bank or Post Office in the UK.
Cash withdrawal in foreign currency outside the UK
The customer takes cash out of the customer’s account in foreign currency at a cash machine or, where available, at a bank outside the UK.
Debit card payment in pounds
The customer uses their debit card to make a payment in pounds. This can be in a shop, online or over the phone.
Debit card payment in a foreign currency
The customer uses their debit card to make a payment in foreign currency. This can be in a shop, online or over the phone.
Cancelling a cheque
The customer asks the account provider to cancel a cheque that the customer has written.
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Your deposit is eligible for protection by the Financial Services Compensation Scheme (FSCS). The information sheet and exclusions list are available to view in the app. For further information about the compensation provided by the FSCS, refer to the FSCS website at https://www.FSCS.org.uk