| Payday Loan |
A short-term loan for a relatively small sum of money ($250-$1500) provided by a non-traditional lender and to be repaid next payday. It is meant for urgent financial requirements only, as the interest charges are steep. |
| Penalty Interest |
A loss of interest or charge incurred on a partial withdrawal or the closure of account. |
| Pension |
A way to accumulate savings for retirement, which are then paid out in the form of a steady income. |
| Pension fund |
A fund set-up by an employer to facilitate the investment of its employees' retirement funds, contributed by both the employer and employees. |
| Portable |
In reference to a mortgage, this means a mortgage that can be transferred between properties when the policyholder moves homes. |
| Power of Attorney |
A written document that authorizes an individual to act on behalf of someone else. |
| Premium (Insurance) |
Payments made to an insurance company to cover the cost of insurance. |
| Prime Rate |
The annual rate of interest set forth by the Federal Reserve, which the US banks will lend to their prime corporate customers. |
| Principal |
The outstanding balance of a loan, exclusive of interest and other charges. |
| Proxy |
A person who represents or stands in the place of another, particularly in some meeting. |
| Public Record |
Information obtained from public or court records about such things as electoral roll registration, tax liens, bankruptcy filings, and judgments against you in civil actions. Public records are open to any person who requests them. |
| Purchase Agreement |
A contract between buyer and seller of a property, outlining terms of the agreement, including the purchase price and contingencies of the sale. |
| Redemption |
The payment of any formal obligation incurred by any business or institution. |
| Refinance |
The repayment of an existing loan with the proceeds from a new loan. |
| Remortgage |
The repayment of one mortgage with the proceeds from a new mortgage in order to release capital or reduce interest payments. |
| Repayment Mortgage |
A mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest; the most popular kind of mortgage. |
| Repossession |
The act of a creditor regaining possession of an item sold to you. |
| Retail Price Index (RPI) |
An index that gathers the prices of retail goods across the United States in order to give an indication of the rate of inflation. |
| Retirement |
The point at which you stop your employment and withdraw from your occupation. |
| Reverse Mortgage |
A loan given to senior citizens allowing them to use their home as collateral essentially turning their home equity into cash; the loan must be repaid from the estate when the owner dies. |
| Reversionary Bonus |
A guaranteed addition to the sum assured, not payable immediately, but at the same time as the sum assured is paid out. |
| Revolving Balance |
The total balance of all revolving credit accounts. |
| Revolving Charge Account |
An account that requires at least a specified minimum payment each month plus a service charge on the balance. As the balance declines, the amount of the service charge, or interest, also declines. |
| Running Yield |
The income you derive from your investment portfolio as a percentage of market value of the securities. |
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