Savings And Investments

Question 1

What is an individual savings account (ISA)

Answer 1

Has tax-free payments.
There is a limit to how much you can put into an ISA.
Can only have 1 active ISA at a time.

Question 2

What’s a deposit and savings account?

Answer 2

Put money into the account so the sum can grow due to interest

Question 3

What are premium bonds?

Answer 3

Issued by national savings and investments. Entered into a monthly draw where you can win between £25 to £1 million tax-free.

Question 4

What are shares?

Answer 4

Part ownership of a business.
Revieve payments called dividends.
Value of shares can go up and down.

Question 5

What are bonds?

Answer 5

Issued by corporations to raise money.
Giving the issuer a loan.
They will agree to pay you back with interest as well.

Question 6

What are gilts?

Answer 6

Government bonds in the UK know as gilts.
Very low risk and low return.