OPEN - ESDS

GLOSSARY
ACCIDENT INSUFW4CE -
ADDITIONAL PENSION -
ANNUITY
ATTENDANCE ALLOWANCE -
BANK BUDGET ACCOUNT -
BANK CHARGES -
BANK CURXSNT ACCOUNT -
BANK DSPOSIT ACCOUNT -
ThxB in a private insurance taken out by inti tiduals to
gi W2 them a lUHQ sum payment or a weekly payment if they
suffer from an accident.
See Earnings related supplement.
This is basically a form of providing a regular income. A
lump sum of money ia paid to an innurance coupany and, in
return, the company pays out ● regular income. There are
three mein types of annuity~’ ~ annuities, where the
incoma runainm the ●ama ●ath yearl incraaainq ●nnuities,
where the incoma increasem at en ●greed rate and
unit-linked annuities, where the income is linked to the
Wlue of a fund (e? property).
‘fhis is a banefit for adults or children who are severely
disabled mentally or physically and need attention. In
order to qualify, the person has to satisfy certain
residential and medical con&tions. There are two rates
of allowance. the higher rate for those who need
attention day and night, and the lower rate for those who
need attention only ly day or night. The allowance is
normally paid by order book and IS usually in ad&tlon to
other Nat~onal Insurance (N.I.) benefits.
A budget account is a way of spreading the cost of
household bills and other lump aum payments over the year.
The bank normally has to agree to the precise estmmte of
the year’ s cost of all the bills to be Included in the
scheme. This total is diw.ded by 12 and a standing order
for this amount LS made to the bank each month. The b~lls
are usually paid with a special cheque tmok from the
budget account. Interest charged on this type of account
varies batween benks.
sank charges are amounta paid to a bank (by deduction by
the bank from the account ) to cover the administration of
its services, ●g for processing chaques, stopping cheques,
paying etanding orders.
m account into which nmney ia deposited, usually to meet
the needa of everyday expenditure. A cheque book is
supplied to write chequea for cash or goods. In ninny
caaea (although not in all), an individual does not
raceiw interest on this type bf account. Bank charges
may be le yied to cowsr the administration of the account.
This is the type of account into which salary ia paid and
from which standing orders are paid.
An account into which people can deposit any amount of
money and on which they can get interest. Money can ba
drawn out of such an account at reasonably short notice.
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