A-Z financial terms glossary & jargon buster

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National Employment Savings Trust (NEST)

A new national workplace pension scheme to be launched in October 2012. For more on NEST see our guide.

National Insurance

The National Insurance system acts as a safety net providing financial assistance if you fall ill, are unemployed or on a low income. It also funds the basic state pension. For more on National Insurance and how it works see our guide.

National Insurance contributions (NICs)

These are contributions into the National Insurance system which pays for state benefits if you fall ill, are unemployed, or on a low income. Anyone aged between 16 and the state pension age who is working must pay National Insurance contributions unless they are on a low income. For more on National Insurance see our guide.

National Savings & Investments (NS&I)

Savings provider offering a range of tax-free products, Premium Bonds and other savings accounts which are backed by HM Treasury. This means that any money you save or invest with NS&I is 100% secure. For more on NS&I see our guide.


See net asset value.

Negative equity

When the amount owed on a mortgage is more than the property's market value.


See National Employment Savings Trust.


Amount after tax and other deductions.

Net asset value (NAV)

The value of assets in an investment trust divided by the number of shares in issue. This figure is used to show if the investment trust shares are trading at a value above (premium) or below (discount) the investments they represent. For more on investment trusts and how they work see our guide.

Net interest

Interest on savings after tax.

No claims discount

A discount on the insurance premium you have to pay if you have made no claims on your policy during the past year. With some types of insurance, such as car insurance, the longer you go without making a claim the higher your no claims discount.

Nominal value

The unit price of a gilt or corporate bond. This is the price the bond was first issued at and the price interest and maturity payments are based on. It is also sometimes called the face value of the bond.

Notice accounts

Savings accounts where you have to give a period of notice before you can withdraw your money penalty-free.


See National Savings & Investments.

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