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OEIC - Open Ended Investment Company: an Open Ended Investment Company (OEIC) can invest in, for example, shares in the stock market, fixed interest securities and money market instruments. It’s a type of fund where people can invest together and where the fund is divided into shares which can be bought or sold.

Offset Mortgage: with an offset mortgage you can offset the balance in certain current accounts and savings accounts against the amount of your offset mortgage and you only pay interest on the difference.

Overdraft: an overdraft is when a customer borrows from the bank, usually through their current account, by arranging to take money or make a payment from the account which exceeds the available funds in the account. There are two kinds of overdraft: a Planned (or authorised) Overdraft which a customer can set up in advance for a specific amount they know they need – like £500, and an Unplanned (or unauthorised) Overdraft, where the bank agrees to lend you money to cover payments you want to make, but for which you don’t have enough money.

Overdraft Extension: an overdraft extension is an increase in someone’s existing overdraft limit for a temporary or permanent length of time as agreed with the bank.

Overdraft Limit: when the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft. The Overdraft limit is the amount of money set up in agreement with your bank that you can overdraw on your account.