Savings
Savings accounts often have a higher rate of interest than current accounts.
This is offered as an incentive to save money with particular financial institutions.
However, there are sometimes limits on the amount of withdrawals that can be made from a savings account. Banks do this so that they can hold the money for a longer period.
APR - Stands for annual percentage rate – the annual rate charged for borrowing money or paid for saving money or investing.
p.a. - This means ‘per annum’ which is Latin for ‘per year.’ For example ‘Mia earned £35,000 p.a’ means that Mia earned £35,000 each year; ‘Jack earned 2.3% p.a. on his savings’ means that after a year Jack's savings will now be worth an extra 2.3% on top of the 100% he saved (102.3% in total).
