A-Z financial terms glossary & jargon buster


Get started now




RDR

See Retail Distribution Review.

Real estate investment trust (REIT)

Fund which invests in commercial property and occasionally residential property. These funds do not pay any tax on the income and gains they make from their property investments.

Redemption date

The date when a gilt or corporate bond matures and the loan becomes repayable.

Redemption value

The amount you get when a gilt or corporate bond matures and the loan is repaid.

Redemption yield

The return on a gilt or corporate bond if it is held to maturity. This includes any interest paid plus the redemption value.

Reducing term insurance

Life insurance that pays out a lump sum if you die within a set period of time. The level of cover reduces over the term of the policy. This type of life insurance is usually linked to a repayment mortgage where the outstanding balance reduces during the term of the loan. Reducing term insurance is also called decreasing term insurance.

Regular savings account

A savings account which you agree to pay a set amount of money (or a minimum amount of money) into each month in return for a preferential rate of interest. If you don't keep up the regular payments or you make more withdrawals than allowed, the interest rate is usually reduced.

REIT

See real estate investment trust.

Renewable term insurance

Life insurance which runs for a set term but which can be renewed at the end of this period. No medical is required if you take out further cover as the new policy is based on your health at the time you took out the original policy.

Renewal notice

Document telling you your insurance policy is about to run out and inviting you to renew your cover.

Rent-a-room scheme

Scheme that allows you to receive up to a certain amount of tax-free income from renting out a furnished room in your home. Any rent above this amount is subject to income tax.

Rent deposit scheme

Scheme to help those on a low-income move into private rented housing. Typically, a local authority will pay any deposit required by a landlord or promise to pay the landlord for any damage done by the tenant.

Rental income

Income earned from rented property. For more on buy-to-let property and owning a second home, see our guides.

Residential property

Property used to provide homes for people rather than for commercial purposes such as shops, offices and factories.

Retail Distribution Review (RDR)

A review of how consumers pay for financial advice and the level of professionalism they can expect from financial advisers. Changes as a result of the review are due to be introduced in January 2013. For more on RDR see our guide.

Retail Prices Index (RPI)

Inflation index which measures the average monthly change in the price of consumer goods and services and housing. It is a wider measure of inflation than the Consumer Prices index (CPI) which does not cover house prices. The government used to increase state benefits in line with the RPI but it now uses the CPI.

Return

The total amount of money you get back on an investment or savings scheme. This can include interest or income earned and any capital gain or loss.

Reversionary bonus

The annual bonus paid on a with-profits investment.

Right-to-buy mortgage

Mortgages specifically designed for people who want to buy their council home.

RPI

See Retail Prices Index.


Get started now