According to National Savings 60 per cent of people said they would stop saving with a particular bank or building society if jargon got in the way of their understanding of terms and conditions.

So what terms are stumping Brits the most?

Some 77 per cent of Brits were unfamiliar with the term FSCS, an abbreviation that stands for ‘Financial Service Compensation Scheme’. 

AER, another abbreviation, was also a stumper. More than 60 per cent of Brits had no idea that it stood for Annual Equivalent Rate, a way in which interest can be calculated. 

Almost half of Brits were unaware that an ISA is an Individual Savings Account, while 45 per cent were confused by the meaning of the term ‘gross’. In a financial context it means the interest that is paid without tax being taken off – a far cry from something icky.

People are most likely to turn to the internet when a financial term stumps them, but 27 per cent would ask friends or family and one in ten would take a guess.

Julian Hynd, director of retail at NS&I, said: “It’s clear that customers are being bombarded with financial jargon, not only from their banks and building societies but from other financial service providers, too. It’s important for customers to remember that although the information supplied to them won’t be a riveting read, it will provide essential information relevant to them.”

Danny Cox of Hargreaves Lansdown added: “Financial institutions have a history of over complicating money matters. Jargon is an obstacle to making good savings decisions and the easier you make it for people, the more they are likely to do the right things with their money.

“There are parts of the financial services industry working hard to help people to understand the importance of financial matters. Savings and investing rates need to improve, borrowing needs to fall, and this can only be done with the right information, guidance and use of simple language.”

Hungry for more jargon-busting this bank holiday weekend? Click here.