Banking plays an integral role in pretty much everyone’s lives. Whether it’s day-to-day transactions, paying bills, receiving your wages or saving for something special, it’s important to equip yourself with the banking knowledge that matters. We help you debunk myths, decipher financial jargon and gain a better understanding of financial services with our helpful banking guides that give you the knowledge you need to make the most of your money.

The rundown
  • Knowing your banking basics will enable you to be savvier when it comes to your finances
  • Find out what ethical banking is, why it might appeal to you and who can use it 
  • Banking terms such as AER and APR explained

Understanding banking jargon and abbreviations

When you look at your bank statement, it’s easy to get overwhelmed by the abbreviations and acronyms. That’s why we’ve designed user-friendly guides to AER and APR, as well as introducing you to other things you might see on your statement that are important to know about, such as recurring payments and continuous payment authorities.  

What is Online Banking? A 2021 Guide
What is Online Banking? A 2021 Guide

In this comprehensive guide, we explain what online banking is, how it works, the benefits it provides and how safe internet banking really is.

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What is AER, and how does it work?
What is AER, and how does it work?

What is AER, and what does it stand for? Find out all you need to know about AER and why understanding how it works will make it easier to compare savings accounts.

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Annual percentage rate (APR)
Annual percentage rate (APR)

APR is used to help you understand the costs of borrowing. Find out how APR works and the differences between APR and other types of interest rates.

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What is an overdraft?
What is an overdraft?

In this guide, you’ll discover how an overdraft works, how to apply for one and six tips for paying off your overdraft.

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Representative APR explained
Representative APR explained

What is representative APR, and is it different to exact APR and APRC? Find out more about the Annual Percentage Rate and why the interest rate you receive could be different from the advertised rate.

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Recurring payments explained
Recurring payments explained

Find out the meaning of recurring payments, actions you can take if you find a recurring payment and how they might affect your credit or debit card transactions.

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Continuous payment authorities explained
Continuous payment authorities explained

Read on to find out what continuous payment authorities are, how they work, why you may want to avoid them and how they may affect your credit and debit card transactions.

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Challenger banks explained
Challenger banks explained

In this guide, we explain what challenger banks are and how they work, look at the different types of challenger banks and how safe they are and answer your challenger bank FAQs.

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Expected profit rate
Expected profit rate

We look at what is an expected profit rate (EPR), how it works, how secure it is and how Islamic banks raise your EPR.

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Understanding interest

People commonly open savings accounts with the best interest rates in mind, often asking “where can I earn the most interest?” and “where is the best place to put my money?”. The following guides will help you understand interest rates, why they change and how they can help you get the most out of your money.

Everything you ever wanted to know about interest rates
Everything you ever wanted to know about interest rates

This guide to interest rates explains what they are, how they work, the different types of interest rates and how best to compare savings accounts with different interest rates.

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Gross interest
Gross interest

If you want to earn as much from your savings as possible, it’s important to understand the different ways interest is advertised. This guide explains what gross interest is and the differences between gross interest, net interest and AER.

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Compound interest
Compound interest

What is compound interest and what does it mean for savers? Find out how it works, as well as the benefits of opening savings accounts with compound interest.

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Negative interest rates
Negative interest rates

Could you have to pay your bank to look after your savings if interest rates go negative? Read our guide on negative interest rates to find out more.

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Paying off debt explained
Paying off debt explained

Start saving effectively and pay off debt fast. This guide offers tips for how to pay off debt and take control of your hard-earned money.

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How to pay off credit card debt
How to pay off credit card debt

Having a credit card can be useful, but it can also mean incurring debt. Read our guide to find out how to pay off your credit card debt and avoid getting into debt on your credit cards.

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What is dividend tax?
What is dividend tax?

What is dividend tax, how does it work and what are the dividend tax bands? If you own shares in a business, you might receive dividends. In this guide, we take a look at dividend tax and how it might affect you.

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Ethical banking and wages

With many of us becoming more conscious of the effect our decisions have on the world around us, it makes sense to ensure our money doesn’t fund practices we find unethical. In these guides, we explain why ethical banking is worth considering, as well the importance of the minimum wage and ensuring you receive the right amount of pay.

All about ethical banking
All about ethical banking

What is ethical banking? What are the differences between ethical & traditional bank accounts? Explore the differences and find out why you might consider opening an ethical bank account.

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Islamic banking
Islamic banking

Is Islamic banking right for you? Find out what Islamic banking is, why some consider it to be ‘ethical’, which UK banks are Sharia-compliant and how Islamic savings accounts work.

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Minimum wage in the UK explained
Minimum wage in the UK explained

In this article, you’ll learn what the minimum wage is, how it’s decided and how minimum wage affects workers depending on their age.

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Is my money safe in the bank?
Is my money safe in the bank?

In this guide, you’ll discover what happens when a bank goes bust and how FSCS protection works, including how much you can claim.

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Are you more loyal to your bank than your partner?

We conducted research to better understand the relationships British people have with their banks, and the results show that as a nation we are more loyal to our banks than to our partners, even though we may not get as much back.

 

  • On average, British people stay with their banks for over 14 years, compared to an average of 12 years with a long-term partner
  • Our research shows that men are more loyal to their bank than women
  • Staying loyal to banks that cut interest rates could mean UK savers are missing out on earning more from their savings
  • Southampton residents stayed with their bank 24% longer than their average relationship

 

For the average UK saver, it seems that the old adage of “for better or worse, in sickness and in health” holds true more so for relationships with banks than personal relationships. Our research reveals that account holders are more likely to stay with their bank than their partner, with bank relationships typically lasting for almost fourteen and a half years and the average British relationship lasting just twelve years.

Beating high-street bank interest rate cuts

Our research follows hot on the heels of Barclays Bank becoming the latest high-street bank to cut rates on their Easy Access savings accounts to 0.01%, joining the ranks of other high-street banks that only pay around £1 on a £10,000 savings account deposit. Remaining loyal to a high-street bank could result in missing out on the earning potential of your savings.

 

You can see how much high-street bank savings account rates have fallen by comparing them to the rates offered by our partner banks:

Does age affect loyalty?

Surprisingly, our research suggested mature savers might be the group most likely to be missing out from moving away from their bank comfort zone. We found that savers aged between 23 and 35 spent an average of nine years with their bank and six years with a long-term partner, while those aged over 45 spent an average of nearly nineteen years with their bank versus fourteen years with a partner.

Kevin Mountford Raisin UK Co-FounderKevin Mountford Raisin UK Co-FounderKevin Mountford Raisin UK Co-Founder

Discussing our research, Raisin UK co-founder, Kevin Mountford, commented:

“The last six months have been really tough for savers, with multiple interest rates cuts and now some of the big banks providing less than 0.01%, and with inflation currently at 0.8%, these accounts are actually losing people money on their hard-earned savings.”

“Of late we have seen some positive signs for savers with 1 and 2 year fixed deals improving, and hopefully this will continue however it further demonstrates the need for savers to remain vigilant and grab these offers when they can.”

“Thanks to reduced spending during the lockdown period, the savings ratio in the UK is increasing to a record high, meaning people are clearly keen to save. However, in the UK we have high levels of apathy and inertia, and we need more savers to move from the big banks to better offers from others, noting that up to £85,000 of their money is just as safe’ under the Financial Services Compensation Scheme.”

Which gender is more loyal?

Our research showed that women are more money savvy than men when it comes to harbouring unhealthy relationships with their bank. We found that women average a thirteen-year relationship with their bank, compared to men who average an over fourteen-year relationship with their bank.

Where you live could affect the length of your relationship

From our research, we found that where people live in the UK can affect the duration of their personal and financial relationships. We found that residents of Southampton stay with their bank 24% longer than their average long-term relationship, whereas people from Plymouth seemed to be more loyal in their romantic relationships; spending 2% longer with their other half than with their bank.

Making the most of your lockdown savings

The COVID-19 pandemic has affected us all in different ways. In research we carried out earlier this year, we found that over three-quarters of Brits changed their attitude towards their savings during the lockdown. That’s not all, according to the Bank of England, households unable to spend during the lockdown between March and May saved a record £56.6 billion, and according to Moneyfacts.co.uk, the amount of money held in interest-paying easy-access accounts increased by £43.3 billion between January and May.

If you want to make the most of your lockdown savings, why not register for a Raisin UK Account? It only takes a few minutes to register for free online, and once you’ve registered with us, you’ll gain access to competitive FSCS protected savings accounts from a range of partner banks, as well as exclusive rates, accounts, offers and bonuses.

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