Savings Help

Offshore Savings Glossary

"A brief guide to all words associated with offshore savings to give our customers an understanding."

AER:

Annual Equivalent Rate – illustrates what the interest rate would be if interest was paid and added to your offshore savings account each year.

Annual Interest:

Interest is paid on an annual basis.

Cooling Period:

This is a period where you can either add or withdraw your funds before they become locked in.

Compound Interest:

This is where the interest earned on the offshore savings account is added to the capital.

CHAPS Payment Method:

Is a sterling same-day system that is used to settle high-value wholesale payments as well as time-critical, lower-value payments like buying or paying a deposit on a property. Please refer to our Savings Tariff of Charges for our latest payment fees.

BACS:

Withdrawal method to either a UK or Channel Island Bank (free of charge & takes 3 working days).

Deposit:

Money being paid into the account.

Easy Access:

Money can be withdrawn from the offshore savings account without giving notice.

Electronic Transfer:

Withdrawal method which offers same day transfer to UK or Channel Island Banks. Also used when withdrawing money to send overseas, however this would not be for same day value.

Fixed Bond:

The interest rate on the offshore savings account is fixed for a set period.

Gross interest:

Interest is paid without the deduction of tax. The tax treatment will depend on your individual circumstances and may be subject to change in the future.

Interest Rate:

This is the percentage return that you will receive on your offshore savings.

Maturity Date:

The date on which either a fixed bond or notice period expires. The date a fixed bond expires.

Notice Account:

An offshore savings account that requires a certain number of days’ to be served notice before you can make a withdrawal.

Nominated Account:

A nominated account is the beneficiary account we hold on file for you in the event of a withdrawal from Skipton. This account must be held at a Bank or Building Society and must be in your own name.

Transaction:

The movement of money either into or out of your offshore savings account.

Variable Rate:

The interest rate paid on your offshore savings account may change over time.

Withdrawal:

Money being paid out of the account.