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Savings Jargon Buster

Bank Of England Base Rate
This is the interest rate set by the Bank of England (it is officially called the ‘repo rate’). The Bank of England rate is the main factor influencing interest rates charged by lenders.

Building Society
A mutual organisation owned by its members whose principle purpose is making loans secured on residential property which are funded substantially by its members.

Individual Savings Account. A tax efficient shelter for investments in stocks and shares, life assurance and cash. Can be used as a way of repaying an interest-only mortgage.

Anybody who has a qualifying account such as savings or a mortgage with Progressive Building Society. Our customers are ‘Members’ because we are a mutual society.

Mutual Organisation
A term for an organisation that is owned by its members, such as building societies, friendly societies and some life insurers. Mutual societies don’t have shareholders or issue shares like public limited companies, so any profits in a society are used for the benefit of its members only and not paid to shareholders in the form of dividends.