Financial terms beginning with I
10 terms in our plain-English finance glossary starting with the letter I.
- IBAN — International Bank Account Number
A standardised account number that identifies your account for international payments.
- Income Protection Insurance
Pays a regular income if illness or injury stops you working.
- Indemnity
Being restored to your pre-loss position, often minus wear and tear.
- Index Fund
A low-cost fund that tracks a whole market index rather than picking shares.
- Individual Voluntary Arrangement — IVA
A formal, binding agreement to pay what you can for a set period, then write off the rest.
- Interchange Fee
A behind-the-scenes fee paid between banks on each card payment.
- Interest
The cost of borrowing money, or the reward for saving it, usually shown as a yearly percentage.
- Interest-Free Period
The window to repay credit card purchases before interest kicks in.
- Interest-Only Mortgage
A mortgage where you pay only the interest each month and repay the full balance at the end.
- ISA — Individual Savings Account
A tax-free savings or investment account with an annual limit set by the government.