Savings

Question 1

Different ways to save?

Answer 1

• ISAs, Cash and Stock Share.
• Deposits and savings accounts
• Premium bonds
• Bonds and gifts
• Shares
• Pensions

Question 2

What is a cash ISA?

Answer 2

A savings account where interest is paid tax free.

Question 3

What is a stock and shares ISA?

Answer 3

Funds are invested in shares or bonds, and any profits that are earned are tax-free.

Question 4

What is a Deposit and savings account?

Answer 4

An easy access savings account allows you instant access to your savings.

Question 5

What is a Premium bond?

Answer 5

Premium bonds do not pay interest, instead savers are given a chance to win a tax free prize every month.

Question 6

What are bonds and gilts?

Answer 6

Fixed interest securities issued by companies and the government. They pay investors regular interest over a set period of time.

Question 7

What are shares?

Answer 7

They give partners part ownership of a business. Based on their number of shares, they receive money based on profits.

Question 8

What are Pensions?

Answer 8

Pensions are long term saving schemes, set to help you have a saved amount for pension.