Rasi

Question 1

ISA

Answer 1

+ higher interest rates
+ earn interest
+ tax efficient

• notice on making withdrawals
• limit on amount of withdrawals
• limit to annual amount out in

Question 2

Deposit and saving

Answer 2

+ interest earned
+ regular deposits help follow saving plan

• interest earned is taxed
• interest on saving is lower than interest on borrowing

Question 3

Premium bonds - government organisation

Answer 3

Cash prizes

+ winnings could be more than earned in interest
+ easily withdrawn

• no guaranteed return
• inflation can cause low returns

Question 4

Bonds and gilts

Answer 4

Fixed interest securities

Bonds are issued by companies

Gilts issued by government

Investors earn regular interest

Question 5

Financial conduct authority

Answer 5

Regulate actions of financial service providers

Funded by financial provider membership fees

Question 6

Financial ombudsmen service

Answer 6

Represents the consumer in disputes with financial service providers

Funded by institutions and when action takes place against a provider

Question 7

Financial service compensation scheme

Answer 7

Pays compensation to a consumer if the provider can’t

Protect savers in banks and building societies up to £5000

Question 8

Office of fair trading

Answer 8

Regulates all markets

Encourage fair practices and competition between financial institutions