Glossary of financial terms

An annuity payment is a loan repayment scheme in which you pay the same amount every month for the whole term.

Compound interest is interest charged not only on the original amount but also on interest earned earlier.

A credit history is the record of all your loans and how you repaid them, kept by credit bureaus and the NBU Credit Register.

A deposit is money you place with a bank for a set term or on demand, and the bank pays you interest for it.

The Deposit Guarantee Fund is the Ukrainian state body that repays depositors if their bank is declared insolvent.

An emergency fund is a cash reserve covering 3-6 months of expenses in case you lose income or face unexpected costs.

OVDP are Ukrainian domestic government bonds: you lend money to the state at a fixed rate for a set term.

Inflation is the rise in prices that means the same money buys fewer goods and services over time.

The insurance record is the period during which ESV was paid for you; your right to a pension and its size depend on it.

Interest capitalisation means adding earned interest to the deposit balance, so future interest is calculated on a larger amount.

The key policy rate is the National Bank of Ukraine's main rate, which drives interest on deposits, loans and government bond yields.

Leverage lets you open a position larger than the money in your account, magnifying both profit and loss equally.

The military levy is a tax on income paid alongside personal income tax; on salaries and deposit interest the rate is 5%.

The minimum wage is the lowest amount an employer must pay for a full working month in Ukraine; ESV and group 2 single tax are based on it.

A money mule is a person whose card or account is used to move other people's, often criminal, money.

Personal income tax in Ukraine is the tax on individuals' income, with a main rate of 18%.

Phishing is fraud in which someone posing as a bank, shop or government service tricks you into giving card details, passwords or codes.

The real annual interest rate is the full cost of a loan as an annual percentage, including all fees and charges.

The single social contribution (ESV) is the mandatory payment that builds your insurance record and future pension in Ukraine.

The single tax is Ukraine's simplified tax system for sole proprietors, with a fixed tax (groups 1 and 2) or a percentage of income (group 3).

The spread is the difference between the buying and selling price, such as between the rates at which a bank buys and sells currency.

The subsistence minimum is an amount set by Ukrainian law used to calculate social benefits, allowances, child support and group 1 single tax.

The tax discount lets you reclaim part of the personal income tax you paid if you spent money on tuition, a mortgage or other purposes allowed by law.