Money Terms in Plain English.

N

Nasdaq

A US stock exchange full of technology companies, and the indexes named after it.

In plain English:An American stock exchange where many big tech companies, like Apple and Amazon, are listed. The Nasdaq index tracks them.

MoreLess about Nasdaq

It started in 1971 as one of the first electronic exchanges. It's often seen as a guide to US tech shares.

It can swing a lot more than broader indexes.

For example: The Nasdaq fell almost 80% after the dot-com bubble burst in 2000.

See also: Index

National InsuranceUK

A tax on earnings that builds your right to the State Pension.

In plain English:A tax on your earnings that also builds up your right to the State Pension and some benefits.

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Employees pay 8% between £12,570 and £50,270 a year and 2% above. Employers pay 15% above £5,000.

The self-employed pay their own classes. People over State Pension age stop paying it on earnings.

For example: On a £30,000 salary, an employee pays 8% on the £17,430 above £12,570, which is £1,394.40 a year.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Income Tax & National Insurance, in One PlaceCalculator: Take-Home Pay

National Insurance numberUK

Your personal reference number for tax and National Insurance.

In plain English:A personal number that stays with you for life and makes sure your tax and National Insurance are recorded properly.

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You usually get it just before you turn 16. Keep it safe, as it can be used for fraud.

It doesn't change if you move or change name.

For example: Someone starting their first job gives their employer their National Insurance number.

National Insurance recordUK

The record of years that count towards your State Pension.

In plain English:A record of each year you've paid or been credited with National Insurance. Enough full years get you a full State Pension.

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Gaps can sometimes be filled by paying voluntary contributions. Credits can be given for things like caring or claiming benefits.

You usually need a number of qualifying years for any State Pension.

For example: Someone checks their record online and sees a gap from a year abroad, which they can fill.

Article inside Foliopeak: The State Pension, and Your National Insurance Record

National Living WageUK

The legal minimum hourly pay for most adults.

In plain English:The lowest hourly pay the law allows employers to pay most adult workers. It usually goes up every April.

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It's for workers aged 21 and over.

It rises each April. Employers paying less must pay back the difference.

Report underpayment to ACAS or HMRC.

For example: An employer pays someone below the national living wage. HMRC makes them pay the shortfall and a fine.

NAV (net asset value)

What everything a fund holds is worth, less its debts.

In plain English:The total value of everything a fund owns, minus its debts. Divided by its shares, it shows what each share is really worth.

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NAV stands for net asset value. For investment trusts, the share price can be above or below NAV.

Funds such as OEICs trade at their NAV.

For example: A fund holds £100 million of investments and has 50 million units. Its NAV is £2 per unit.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

Negative equity

Owing more on your mortgage than your home is worth.

In plain English:When your home is worth less than what you still owe on your mortgage. It can make it hard to sell or remortgage.

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Many people in negative equity can stay put and keep paying. Some lenders offer special deals for moving.

For example: Owe £210,000 on a home now worth £200,000 and you're in £10,000 of negative equity.

Article inside Foliopeak: What Pensions and Property Mean in Your Net Worth

Negative interest rates

A central bank charging banks to hold their money, to push them to lend.

In plain English:A central bank charges banks for keeping money with it, to push them to lend more instead. Ordinary savers in the UK haven't been charged.

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Some banks charged businesses for large deposits.

The Bank of England never used them, though it considered it in 2020.

For example: In 2014 the European Central Bank started charging banks to hold their money, and many savings rates fell close to zero.

See also: Bank Rate

Negligible value claimUK

Telling HMRC shares you own are now worth almost nothing, so you can use the loss.

In plain English:If shares you own become almost worthless, like when a company goes bust, you can tell HMRC and use the loss to cut tax on other gains.

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You can date the claim back up to two tax years if the asset was worthless then.

It's often used for shares in companies that have failed.

For example: Someone's shares in a failed startup are worthless. They make a negligible value claim to use the loss against a gain.

Article inside Foliopeak: Using Capital Losses to Cut Capital Gains Tax

NEST (National Employment Savings Trust)UK

The workplace pension the government set up for auto-enrolment.

In plain English:A workplace pension set up by the government so every employer has one they can use for auto-enrolment. It's run not for profit.

MoreLess about NEST (National Employment Savings Trust)

NEST stands for National Employment Savings Trust. Its charges are low.

It's run on a not-for-profit basis.

For example: A small business with two staff uses NEST for their workplace pension.

Net pay arrangementUK

A way of giving pension tax relief by paying in before tax.

In plain English:Your employer takes your pension payments out of your pay before tax, so you get tax relief straight away. Very low earners can miss out on relief this way.

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People earning below the income tax threshold can miss out on relief under it, unlike with relief at source.

The scheme decides which method it uses, not you.

For example: Someone's pension payment is taken from their pay before tax, so they get tax relief at their top rate with nothing to claim.

Article inside Foliopeak: How Pension Tax Relief Works

Net worth

Everything you own minus everything you owe.

In plain English:Add up everything you own, like savings, pensions and your home, then take away everything you owe, like your mortgage and loans.

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Tracking it over time shows progress. It doesn't show how much you can easily spend.

For example: A £300,000 home and £40,000 of savings, less a £200,000 mortgage, gives a net worth of £140,000.

Article inside Foliopeak: Setting a Goal, and Tracking the Route to ItCalculator: Net Worth by Age

New Style Employment and Support AllowanceUK

A benefit for people too ill to work who have paid enough National Insurance.

In plain English:A benefit for people who can't work because of illness or disability, based on the National Insurance they've paid, not their savings.

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It's paid for up to a year if you can work in some way, or longer if your illness is severe.

You'll need fit notes and an assessment.

For example: A self-employed builder injured at work claims New Style ESA, which isn't affected by his partner's income.

New Style Jobseeker's AllowanceUK

A benefit for job seekers who have paid enough National Insurance.

In plain English:A benefit for people looking for work, based on the National Insurance they've paid in recent years, not on savings or a partner's income.

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It's paid for up to 182 days.

You must look for work and keep to an agreement. Payments can stop if you don't.

For example: Someone made redundant with savings claims New Style JSA, which doesn't look at their savings.

Figures checked 27 September 2026. Source: gov.uk (opens in a new tab)

NFT (non-fungible token)

A digital token that records who owns something, often digital art.

In plain English:A digital certificate on a blockchain that says who owns a particular item, often digital art. Most have lost almost all their value.

MoreLess about NFT (non-fungible token)

NFT stands for non-fungible token. Owning one doesn't usually give copyright in the artwork.

Many were sold in 2021 at high prices and later became nearly worthless.

For example: Someone buys a digital image NFT for £5,000 in 2021. Two years later, no one will pay more than £50 for it.

NHS continuing healthcareApplies in England, Wales, Northern IrelandEnglandWalesN. Ireland

Care paid for in full by the NHS for people with serious health needs.

In plain English:If your health needs are serious and complex, the NHS may pay for all your care, including a care home. You need to be assessed.

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An assessment checks needs across areas like mobility and breathing. Decisions can be challenged.

In Wales and Northern Ireland, rules are similar. Scotland has a different system.

For example: Someone with complex medical needs after a stroke is assessed and gets their care home fees paid in full by the NHS.

Nikkei 225

The best-known index of the Japanese stock market.

In plain English:A list of two hundred and twenty-five big Japanese companies, used to show how Japanese shares are doing.

MoreLess about Nikkei 225

Japan's market peaked in 1989 and took over 30 years to return to that level.

The Topix is a wider index weighted by size.

For example: The Nikkei 225 passed its 1989 high in 2024 for the first time in 34 years.

See also: Index

Nil-rate bandUK

The part of an estate free of Inheritance Tax.

In plain English:The amount someone can leave when they die without any Inheritance Tax. A husband, wife or civil partner can pass on any they didn't use.

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It's £325,000.

It's been frozen at the same level for years. The residence nil-rate band can add to it for a home passed to children.

For example: A married couple can pass on up to £650,000 with this band alone, because one partner's unused band passes to the other.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Inheritance Tax Basics

No-claims discount

A cheaper insurance price for each year you don't claim.

In plain English:Each year you don't claim on your car insurance, you get money off. Making a claim can lose some or all of it.

MoreLess about No-claims discount

It usually builds up to a maximum after several years. It can be transferred between insurers.

Protecting it doesn't stop your price rising after a claim.

For example: After five years without a claim, someone's car insurance is much cheaper than when they started.

Nominee account

The usual way a platform holds your investments for you.

In plain English:Your platform holds your shares in its name for you. They still belong to you and are kept apart from the platform's own money.

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You're still the beneficial owner, with rights to dividends. Voting may need to be arranged through the platform.

It makes buying and selling quicker and cheaper.

For example: Someone's shares are held in a platform's nominee account. When the platform fails, the shares are moved to another provider.

Article inside Foliopeak: What Actually Protects Your Money

Non-dom (non-domiciled)UK

Old tax rules for UK residents whose permanent home was abroad.

In plain English:Old rules that let some people living in the UK, whose real home was abroad, avoid UK tax on foreign income. They've been replaced.

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These rules were scrapped in April 2025.

Some people still have tax rules from the old system for older money.

The new rules focus on how long you've lived in the UK.

For example: Before April 2025, a wealthy person born abroad could pay no UK tax on overseas income they didn't bring to the UK.

Article inside Foliopeak: Overseas Property and Shares

Non-resident surchargeApplies in England, Northern IrelandEnglandN. Ireland

Extra stamp duty for home buyers who don't live in the UK.

In plain English:If you buy a home in England or Northern Ireland and don't live in the UK, you pay extra stamp duty on top.

MoreLess about Non-resident surcharge

It doesn't apply in Scotland or Wales, which have their own property taxes.

If you become resident later, you may be able to claim it back.

For example: A buyer living in Dubai buys a London flat and pays the non-resident surcharge on top of normal Stamp Duty.

Non-voting shares

Shares that get dividends but no vote.

In plain English:Shares that get dividends but no vote at company meetings, so owners can raise money without giving up control.

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They can be used in family companies to pass on income without control.

Dividends on them must follow the company's rules.

For example: A family business gives non-voting shares to the children, so they get dividends but the parents keep control.

Article inside Foliopeak: Types of Shares: Ordinary, Preference, and A, B and C Shares

Normal minimum pension ageUK

The earliest age you can usually take your private pension.

In plain English:The earliest age you can usually start taking money from a personal or workplace pension. It's going up.

MoreLess about Normal minimum pension age

It's 55, rising to 57 on 6 April 2028.

Some people have a protected lower age, from older scheme rules. Pensions offering access earlier are often scams.

For example: Someone plans to take money from their personal pension at the minimum age, checking whether the rise affects them.

Article inside Foliopeak: Pensions: SIPPs, Workplace Pensions, and SSAS

Notice account

A savings account where you must give notice before taking money out.

In plain English:A savings account where you must tell the bank a set number of days before you take money out. It often pays more than easy access.

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Common notice periods are 30, 60 or 90 days. Some let you take money early with a penalty.

Rates can still change during the notice period.

For example: Someone with a 90-day notice account gives notice in January and gets their money in April.

Article inside Foliopeak: Savings Accounts: Comparing Them Properly

NPV and IRR

Two ways to judge an investment from the cash it should bring in.

In plain English:Two ways to judge whether an investment is worth it, by looking at the cash it should bring in over time and what that's worth today.

MoreLess about NPV and IRR

They're used by businesses to compare projects. A higher IRR usually means a better investment.

Both rely on estimates of future cash.

For example: A business spends £100,000 on a machine expected to bring in £30,000 a year for five years. Its IRR is about 15%.

See also: Discounted cash flow (DCF)

NS&I (National Savings and Investments)UK

The government-backed savings provider behind Premium Bonds.

In plain English:National Savings and Investments, a savings bank backed by the government. It runs Premium Bonds, and all your money with it is fully safe.

MoreLess about NS&I (National Savings and Investments)

NS&I stands for National Savings and Investments. It offers savings, bonds and Premium Bonds.

Rates are not always the best on the market.

For example: Someone with a large sum keeps some at NS&I because all of it is backed by the government.

Article inside Foliopeak: Premium Bonds