A.4 Managing Personal Finance Flashcards
1
Q
Individual Savings Account (ISA)
A
In an ISA the income earned is exempt from tax
2
Q
Deposit Savings Account
A
An account held with a bank or building society where interest is paid on a positive balance.
3
Q
Premium Bond
A
A government incentive for individuals to save. Bonds are sold by the Nation Savings & Investment Bank. Each month bonds are entered into a prize draw to win up to £1 million
4
Q
Bonds and Gifts
A
Individuals or companies lend money to the government in return for an IOU. A fixed rate of interest is paid on the loan and the initial sum repaid in full at a set point.
