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Occupational pension scheme

A scheme run by your employer to help you build up a retirement pension.

Offer price

The price at which you buy shares or units.

Offset Mortgage

A mortgage linked to a current or savings account. Money in the account is offset against what’s owed on the mortgage, reducing the amount the mortgage interest is calculated on. An offset deal is designed to reduce the time a mortgage lasts, and therefore reduce the total interest paid.

Offshore account

A savings account - usually based in the Channel Islands or Isle of Man - that pays interest free from tax. This sort of account is popular with expatriates.

Open-ended

An investment fund which issues and cancels units or shares depending on demand (as opposed to a closed-ended fund).

Open-ended investment company (Oeic)

A fund run by an investment management company which invests in a portfolio of companies’ shares, like an investment or unit trust. Oeics issue shares (like investment trusts) but are open-ended (like unit trusts).

Orphan assets

These are the surplus assets which a life insurance company has once it has met all its liabilities to policyholders and shareholders.

Overdraft

If you withdraw more from your current account than you have available in funds, you have an overdraft. If you have your bank’s permission to do so, you have an authorised overdraft, if not, it is an unauthorised overdraft. You will pay fees and interest on both, and these are likely to be particularly high on unauthorised overdrafts.

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