The Swansea Building Society sets out key savings terms below with a brief explanation.

AER Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year. Bank of England Base Rate This is the official rate of interest set by the Monetary Policy Committee (MPC). Bonus Interest Your account may include a bonus interest element which is payable if the bonus conditions are met. See individual account information for any bonus conditions. Capital Your investment, not including any interest earned. Gross Rate The rate of interest paid before deduction of UK income tax. Net Rate The rate of interest paid after deduction of UK basic rate income tax, currently 20%. Instant Access An account where you can access your money immediately, without penalty. The Society's accounts are all instant access. ISA Individual Savings Account. A type of account launched by the Government for the saver to benefit from tax-free savings. Minimum Investment The minimum amount of money required to open an account. R85 Form This can be completed by a UK resident, only if they are eligible to receive interest without deduction of income tax (i.e. gross interest).