A4 Managing Personal Finance - Different types of saving and investment

Question 1

what is saving ?

Answer 1

saving is placing money in a secure place so that it grows in value and can be used in the future.

Question 2

what is investment ?

Answer 2

Investment is a commitment to a business in the hope that is generated a financial reward in the future.

Question 3

what are the 6 different types of saving and investment ?

Answer 3

• Individual savings account .
• deposits and savings account.
• Premium Bonds.
• Bonds and gifts.
• Shares
• Pension.

Question 4

what is an individual savings account ?

Answer 4

this is the type of savings account where the holder is not charged income tax on the interest received.

Question 5

what is a deposit and savings account

Answer 5

these are accounts where interest is paid on the balance and normally the holder needs to give notice before withdrawing funds.