News

'Er, what's an ATM?'

July 8, 2013

As incredible as it seems, 11 percent of Brits do not know what an ATM or cash point is. Can they all be football hooligans who've been knocked on the head once too often?

A new survey of 1,600 adults in the U.K. also found that 20 percent of Britons don't know the difference between a debit card and a credit card.

The study, conducted by MyVoucherCodes.co.uk and reported by YourMoney.com, further noted that 62 percent of respondents did not know what APR stands for, and don't know what an annual percentage rate is. Nearly three-quarters did not know that an ISA is an individual savings account.

Still, less than one-third (32 percent) of those surveyed said that their lack of knowledge had ever proven a disadvantage, though 52 percent did fault their bank for not educating them well enough about financial terminology.

"I think it's important that consumers make it their business to know what these terms mean," said MyVoucherCodes.co.uk chairman Mark Pearson. "If you have a loan or credit card, for example, you should know what APR is so that you can be clear how much you'll owe back. Don't always rely on your bank to educate you!"

Read more about trends and statistics.