Britons more literate in text speak than financial terminology

People in the UK are more fluent in so-called text speak than financial terminology, a new study has revealed.

According to research by Nationwide Building Society, 79 per cent of people understand what LOL means, while 77 per cent are familiar with the acronym OMG.

However, just 8.55 per cent understand what NCD (No Claims Discount) stands for, and only 4.90 per cent are familiar with the term FRISA (Fixed Rate Individual Savings Account).

Nationwide is concerned that this is storing up trouble for many people, as 14 per cent have experienced financial difficulties because they did not know some of the acronyms linked to certain products.

Andrew Baddeley-Chappell, head of mortgage and savings policy, commented: "Organisations such as banks, building societies and insurers have been using abbreviations for many years, but it's alarming to see that people still don't have a grasp of the basic financial terminology."

He urged people to take the time to understand all the acronyms when they are applying for products such as credit cards, savings accounts and mortgages.
 
"After all, a lack of understanding of text speak is not going to cost you financially, but not knowing financial terms will," he said.

PAYE (Pay As You Earn) is the most well-known financial acronym, with 66.05 per cent understanding what this means.

ATM (Automated Teller Machine), HMRC (Her Majesty's Revenue & Customs) and ISA (Individual Savings Account) were also widely understood, by 65.9 per cent, 62.25 per cent and 60.85 per cent respectively.