Term

1 Yr Returns

This is the expected returns of a specific fund listed in percentage terms over a one year period.

5 Yr Returns

This is the expected returns of a specific fund listed in percentage terms over a five year period.

Access code

This is the four digit code sent to the Kaldi customers email as part of the two factor secure login process.

Activity (tab)

The Activity tab is where Kaldi customers can see a consolidated view of their activities within the Kaldi app.

Annual report

An investment funds’ annual report is a document that discloses the fund’s financial condition and operations for the previous year. Providing a detail description of the funds’ performance, objectives,

Arrears

Customers are said to be in arrears when they are behind in fulfilling their obligations with the result that an outstanding loan or payment is unpaid or overdue.

Auto-invest

This is a setting which can be turned on by Kaldi customers to automatically send the money in their savings to their selected investment fund once per month, if the Savings Balance is £20 or more. Only one fund can be selected but the selected investment can be changed at any time. Investments will be processed at 1pm excluding weekends and public holidays and can take up to 48 hours to transfer.

Biometric authentication (Biometrics)

Biometric authentication is a secure and convenient way for Kaldi customers to access the app. It uses unique biological traits, such as a fingerprint or face to verify the customers’ identity, instead of needing to enter an email and password. This means that only the user can access their account, keeping information safe and secure.

Bonds

These are investments where an investor lends money to a company or a government, in exchange for regular interest payments. Unlike stocks, bonds issued by companies give you no ownership rights.

Cash withdrawal

The customer takes cash out of their Kaldi account in the “Savings” balance and directs it to their pre-selected personal bank account.

Direct Debit

The customer transfers money from their external bank account to their Kaldi account, into their “Spending Balance”. The amount may vary.

Discover (tab)

The Discover tab in the app is where Kaldi customers can search through the complete selection of retailers providing discount codes which are available to purchase via the app.

ESG

ESG refers to the three key areas of assessment used to evaluate the sustainability and ethical impact of an investment in a company or business: Environmental, Social, and Governance.

Expired (Kaldi Code)

A Kaldi Code (gift card) that has expired will be moved into the Expired section of the Wallet tab. This happens when a gift card has not been identified to Kaldi as being used and is left in the Active section of the Wallet tab beyond the expiry date determined by the gift card provider. If the gift card expires, the option to redeem it lapses and the retailer keeps the money.

GIA (General Investing Account)

A General Investment Account (GIA) is an account in which a customer can hold investments. There's no limit on how much a customer can invest via a GIA but it doesn’t offer the tax benefits found with ISAs or JISAs.

Investments (Investing Account)

This is the customers’ investing account at our wealthcare provider which will hold all investments made into the range of funds Kaldi makes available. A customer has to complete a full KYC (Know your customer) and Investment Questionnaire in order to open an Investing Account.

Investment Questionnaire

In order to comply with FCA regulations Kaldi requires app customers to complete a suitability assessment before opening an investment account. The questionnaire consists of 5 questions and requires the customer to enter their National Insurance number.

ISA (Individual Savings Account)

ISA stands for Individual Savings Account. ISAs are a tax-efficient way of saving money and investing. Customers can save or invest up to £20,000 each tax year across all ISAs and don't pay any tax on the income or capital gains. Tax treatment depends on personal circumstances and is subject to change in the future.

JISA (Junior Individual Savings Account)

In order to comply with FCA regulations Kaldi requires app customers to complete a suitability assessment before opening an investment account. The questionnaire consists of 5 questions and requires the customer to enter their National Insurance number.

Kaldi Account

This is a Kaldi customer’s personal account within the Kaldi app. Kaldi customers are required to complete the full registration and KYC onboarding as part of the account opening process.

Kaldi Code

This is the mechanism Kaldi uses for delivering retailer discounts to Kaldi customers. It may be a bar code (in store) or a code (on line). They are normally issued by a specific retailer and can be for a fixed sum or an exact amount.

Kaldi customer

Someone who holds a Kaldi account and has completed both the registration and KYC onboarding process.

Key Investor Information Document

The Key Investor Information Document (KIID) is a two-page document that provides key information about investment funds to help investors make informed decisions. The KIID is required by law and includes information such as fund objectives, risk and reward profile, charges, past performance and fund manager status.

KYC

Stands for “Know Your Customer” and refers to the process of onboarding a new Kaldi customer, to confirm their identity and approve their eligibility to hold a Kaldi account.

Linked accounts

Linked accounts enable a Kaldi customer to direct all their cashback and round ups, from purchases made using Kaldi, straight to another Kaldi customer at the point of purchase. A Kaldi customer may benefit from up to five linked accounts.

Maintaining the account

The account provider operates the account for use by the Kaldi customer.

Monthly savings target

This is the target savings amount that a Kaldi customer can use as a monthly guideline when trying to achieve their savings goal by the savings target date. The indicated monthly amount will depend on which illustration of funds return is used.

Pending (transactions)

When an investment transaction (either buying or selling) is pending it refers to the short delay which may occur because trading happens once a day at 1pm. Trades received after 1pm will not be executed until the next trading day.  Because of the time lapse between a transaction instruction being received and executed the final transaction value will likely differ slightly from the amount originally shown. As the money will have been committed following a request it will no longer show in the original balance (whether it is the investment or cash balance). In order to ensure that this money does not temporarily vanish, Kaldi shows this sum as being in a pending state on the Investments tab.

Purchase verification

A Kaldi customer can add an extra layer of security to their spending by enabling purchase verification. When spending over a specified amount Kaldi will ask for confirmation of the purchase by verifying the Kaldi customer, either through their password or biometrics.

Receiving money from outside Kaldi

Money is sent to the customer’s Kaldi account from an account outside Kaldi.

Refusing a payment due to lack of funds

The account provider refuses a payment or purchase of a “Kaldi Code” from the Kaldi customer’s account because there is not enough money in it (or it would take the customer into a negative balance).

Risk

A risk rating in investing is a measure of investment volatility and is usually represented on a scale with higher numbers indicating higher volatility. For example, on a scale of 1 to 7. 

Round ups

When a Kaldi customer purchases a Kaldi Code they have the option to set a round up to the nearest pound and transfer the resultant incremental funds directly into their Savings balance.

Savings (balance)

The Savings balance can be found on the homepage tab and is where all the cashback and round ups get transferred. It is also the way to move money from the Spending balance into Investments.

Savings Goal

This is set up during account onboarding to enable the Kaldi budgeting tools to track a customer’s progress. A Kaldi customer can select from several different savings goal categories and personalise their goal by choosing a name for it, plus an overall savings target figure and target date.

Sending money within Kaldi

The account provider transfers money, on the instruction of the customer, from the customer’s account to another Kaldi account.

Sell an investment

In the investments section of the Kaldi app customers can sell investments which they have previously made. Trading happens once a day at 1pm. Trades received after 1:00pm will be executed on the following trading day. Customers can choose whether the proceeds of an investment sale go into a different investment within the app or into their Savings balance. Remember it is possible to sell investments at any time and investments are not locked in.

Shares

Shares represent units of ownership in a corporation or financial asset issued to investors who exchange money in return for these units, the ‘share price’.

Spending Balance

There is a running total of the Spending Balance on the home screen and a breakdown of transactions can be found on the Activity tab. The Spending Balance is what is available to spend in a shop or online at that particular moment.

Standing Order

The customer makes regular transfers of a fixed amount of money from the customer’s bank account to their Kaldi account.

Time horizon

An investment fund's time horizon gives an indication of that fund’s suitability in terms of the potential investor’s intended investment time frame. The time horizon can be short, medium, or long-term, or it can be specific if it's associated with a stated maturity.

Total fees

The total fees can be found on each of the fund pages. This figure is the combined annual percentage for both the fund management fees and Kaldi’s platform fees.

Typo alert

This is a setting that can be turned on to trigger an alert at the point of purchasing a Kaldi Code. The customer will need to retype the full amount before confirming the purchase above the limit that has been selected.

Wallet

This is the tab where a Kaldi customer can find all their purchased Kaldi Codes. There are three sections to the page; Active, Used and Expired. Active codes are still available. Used codes have been identified by the customer as having been used in full. Expired codes have not been identified as used but have passed the expiry date provided by the retailer.