Qualified advisers answering your
Financial Questions
call 0800 092 1245

Glossary of Investment Terms (N)

The following are useful investment terms beginning with ‘N’

National Insurance Contributions
A payment made by most employers, employees, and self-employed (as well as some unemployed) people to the government, to fund such things as national healthcare and education. The rate charged can change on a regular basis.

National Savings
This is a savings service offered by the UK Post Office network.

Negotiable Instrument
This is in simple terms a piece of paper representing ownership of a financial asset or debt, which can be traded on the open market between investors. The most common forms are Bills of Exchange, Promissory Notes, etc.

This relates to a figure which is quoted after all taxes have been deducted - Net of Tax.

Net Asset Value (NAV)
This is the value of an investment fund after all assets and liabilities have been taken into account. In simple terms this is the true value of any investment fund.

Net Interest
Interest received on a savings account after basic rate tax has been deducted. Those in the higher tax bands will need to make additional payments through their tax returns.

Net Present Value (NPV)
This is a calculation which produces the current value of a future income stream. Inflation, interest rates, length of income stream and similar elements are taken into account.

Net Relevant Earnings
Net Relevant Earnings are used to determine the maximum contributions to a Retirement Annuity, Personal Pension or Stakeholder Pension.

New Issue
This is the specific issue of new shares or other investment instruments in order to raise new capital.

National Insurance Contributions Office.

Nil Rate Band
This refers to the earnings allowance on which no income tax is paid.

No Claims Bonus
This is a reward from an insurance company if you do not make a claim, resulting in lower premiums.

Nominal Value
The official face value of something e.g. a Share issue, although in reality it means very little to shareholders.

An individual or company in whose name a security is registered to be owned, although the real (or beneficial) ownership is actually held by another party. Nominees are often referred to as custodians, and are very common in the investment industry.

Non Contributory Pension
An occupational pension where the employee makes no contribution as the plan is entirely funded by the employer.

Normal Retirement Date
Refers to the date when benefits can normally be taken from a pension scheme, as defined in the rules of the plan. Please note that in some circumstances the date can be changed with the approval of the scheme trustees.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details