Does it matter that I know nothing about banking?

JasonS

I am not in debt

When I hear banking terms and conditions I turn off. I don't get what APR is, I don't understand what my overdraft limit is, when I get a fine or when I have to pay it back for. I don't really understand an ISA. Apparently its tax free saving.. yet today I had an option transfer my ISA to a new decent rate ISA or keep it separate. It will effect my tax free limit!? I don't know what this means.. I was just told put 5k or whatever it is in an ISA. Its good.

I don't even understand what tax on bank account interest is. Is it taken out automatically or should it go on my self assessment?

After doing last years self assessment I am surprised I was allowed to do it. At least 30% of the answers were educated guesses on something I had no idea on.

I don't know if finance is complicated or I am just thick. Does anyone else have this problem?

Lokolo

I don't know you so I can't say you are thick, but the finance stuff is not complicated, it's just a matter of willing to understand.

For instance, APR is the Annual Percentage Rate, it's as simple as that. If I borrow £100, and interest over 1 year is £10, the APR would be 10%, as £10 of £100 over a year is 10%. Similarly, if I was charged interest of £10 from £100 over 6 months, the interest over a year would be £20, so the APR would be 20%.

meer53

If you've guessed answers on your self assessment form, i'd be getting some advice pronto !

DrSyn

JasonS. I also do not know if you are thick or even if your post is for real. If it is :

(a) If you are rich best see a qualified account.

(b) If you are not rich, then may be some one you know and trust can explain these things to you.

(c) If you do not know or trust some one to help, then educate your self. This can be done:

(i) via reading articals on the subject on the internet. Try this site or thisismoney.co.uk as starting points.
(ii) Local libaries normally have introductory books on the subject."Which" use to do a good book on money

If you not do something then you will almost certainly run into debt or someone will take you to the cleaners.

pmduk

I suspect banks love people like you who don't know exactly what the might be charged for.

scott_lithgows

Leave the guy alone,he,s just trying to get some info before he takes up the job of CEO at Santander.

pmduk

Come on, he not only speaks English but can write a whole sentence!

scottishblondie

Yes, it matters. Get reading ALL the guides on the main site!!

You definitely shouldn't be guessing answers on your self assessment form - best hope you've done it right or it could come back to bite you! Aside from that if you don't have at least a basic understanding then you're not going to be making the most of your money, and your banks are probably ripping you off.