6. Direct Investments: Cash and fixed - interest securities Flashcards
x4 Main Asset Classes
- Cash
- Property
- Equities e.g shares
- Fixed securities e.g gilts
Capital
Capital is cash that is deposited
Used to generate wealth rather then direct purchases
Why do people choose deposit based Investment?
- Security of capital
2. Convinience
Direct Saver
Term: No
Tax: Taxable
Limits: £1-2M
Info: Min age 16
Investment account
Term: None
Tax: Taxable on gross
Limits: £20-£1M
Info: Min age 16 investment can be made by someone else
Income Bonds
Term: None
Tax: Taxable on G
Limits: £500-£1 M
Info: Min 16
Direct ISA
Term: None
Tax: No
Limits: £1-£20,000
Info: Min 16 only UK
Premium Bonds
Term: None
Tax: No
Limits: £25-£50,000
Info: Mn 16, on behalf, monthly prizes
Junior ISA
Term: None
Tax: No
Limits: £1-£9,000
Info: Min 16-18 No access
Guaranteed Income Bonds
Term: 1+3 years
Tax: Taxed
Limits: £500,£10,000
Info: 16+
Guaranteed Growth Bonds
Term: 1+3 Years
Tax: yes
Limits: £500-£10,000
Info: Fixed rate
NSI
National Savings and Investments
Services backed by the government
Offshore accounts
Investment medium based outside UK
High risk
Not protected by Government
redemption date
Date Government must redeem by paying back original value
Coupon
Interest payable 2x a year which is taxable
