Results for letter: B
BACS (BANKERS AUTOMATED CLEARING SYSTEM)
A method of transferring funds from one bank account to another.
The interest rate set by the Bank of England which other banks use to set their rates. When the base rate changes, lenders usually follow by adjusting their Standard Variable Rate.
BASIC STATE PENSION
The single person’s flat rate state pension paid when you reach state pension age [60 for women, 65 for men – although these are set to increase to 65 for women by 2020]. To qualify you must have paid enough National Insurance Contributions during your working life.
The price at which you sell units in a unit trust back to the investment manager.
The difference between the prices at which you buy and sell back units in a unit trust.
A form of investment offered by an institution such as a building society, insurance/investment company or the government. Its purpose is to raise capital; the sum borrowed is repaid with interest at maturity. Bonds can be bought and sold on the stock market.
An extra payment that may be added to the funds accumulated in a with profits pension, endowment or investment policy. The amount of bonus depends on the profits the insurance/investment company makes in any one year, or over a period of years. Bonuses are normally either ‘reversionary’ for the annual bonus or ‘terminal’ for the final bonus.
A short-term, high interest loan used in house purchase to bridge the gap between the date on which you have to pay for your new home and the date you receive money from the sale of your old home.
BUY TO LET MORTGAGE
A mortgage for people who buy property and intend to let it out. The Financial Conduct Authority does not regulate some forms of buy to lets.
A comparative measure used to determine the relative performance of a market sector or fund. A benchmark is often a target against which investment performance is measured.
The business of acting as a broker (A broker is a person who buys and sells goods or assets for others.)
A person who buys and sells goods or assets for others.
Business protection insurance is a way of helping to protect against possible financial losses in the event of the death or critical illness of a business owner or key individual during the length of the policy.
BCE (BENEFIT CRYSTALLISATION EVENT)
There are eleven different types of Benefit Crystallisation Event (BCE) that measure pension funds against the Standard Lifetime Allowance (SLA) following certain events. The ones we come across most in retirement are:
· BCE 6 – Taking pensions commencement lump sum (PCLS)
· BCEs 1, 2 & 4 – Crystallising funds to provide income via drawdown, scheme pension or annuity respectively
· BCE 7 – Lump Sum payable on death. It is worth noting that any fund used to provide an income to dependant on death before crystallisation is not measured against the SLA.
BASIC STATE PENSION
The sum paid to all pensions with sufficient National Insurance contributions. This pension is being replaced in April 2016 (see Single-tier pension).