Annual Equivalent Rate (AER)

This shows you what the earnings would be on your account if the interest earned were reinvested in the account each year.

Branch-based account

All withdrawals or deposits are made at a branch rather than by post or online. Click here to find your nearest branch.

Charitable assignment

All new savers opening share accounts must sign a declaration saying that they agree to pay over any future windfall rights to Charities Aid Foundation.

Clearing House Automated Payments (CHAPS)

A computer system that allows payments to be made electronically. The money goes from the paying bank to the receiving bank on the same day.

Data Protection Act (DPA)

The DPA gives individuals certain rights regarding information held about them. It places obligations on those who process information (data controllers) while giving rights to those who are the subject of that data (the customer).

Deposit account

An account without membership rights – see below for more information.

Financial Services Compensation Scheme

This protects your investment if a building society becomes unable to repay it. Nottingham Building Society is a participant in this scheme, which is part of the Financial Services Act.

Fixed-rate account

The interest rate on your savings account remains the same until a specific date.

Gross interest

Interest is paid on your savings without any deductions for income tax.

Individual Savings Account (ISA)

An account that pays interest on your savings tax-free, i.e. free of UK income and capital gains tax.

Instant access account

An account that allows you to make a withdrawal at any time, without having to give notice.

Membership rights

A mutual building society is owned by its members – see below for more information. These members have certain voting rights to help shape the society.

Mutual building society

A mutual building society is owned by its customers and run for their benefit. Unlike banks, there’s not a focus on driving profit to pay external shareholders.

Net interest

Interest is paid on your savings with deductions for income tax. All of our net rates shown assume income tax is at the lower rate of 20%.

Notice account

A savings account that requires a certain number of days’ notice, e.g. 30 or 60 days, before you can withdraw money. There is usually an option to take out your money immediately, but you will be charged for this based on the amount you withdraw.

Postal account

An account where withdrawals and deposits are made by post, rather than in a branch or online.

Share account

An account that gives you membership rights – see above. Most of our accounts are share accounts.

Tax free

Interest paid free of UK income and capital gains tax.

Tiered interest rates

Some of our accounts have tiered rates, so when the total amount you have saved reaches the next tier, you will earn a higher interest rate on the whole balance.


The movement of money either into or out of your account.


A person who is made the legal owner of ‘property’ (this could include funds held in a building society account) and who is under an obligation to hold it or deal with it on behalf of someone else. An example includes a parent being made trustee on a savings account for a child.

Variable rate

The interest rate can change.