Savings And Investments

Question 1

Individual savings account (ISA)

Answer 1

Allows you to save without paying tax on interest or profits you earn. Limit on amount you can put into an ISA each year

Question 2

Deposit and savings account

Answer 2

Easy access savings acciunt allows instant access to savings (interest is taxable)

Fixed deposit account pays set amount of interest over time. Not allowed to make withdrawls during this time

Question 3

Premium bonds

Answer 3

Chaance to win tax free cash at the end of the month. Savings are secure however no return on money unless you win (government lottery)

Question 4

Bonds and gilts

Answer 4

Fixed interest securities issued by companies / government. Pay investors regular interest over time IF they are able to pay the interest

Question 5

Shares

Answer 5

(Equities) give investors part ownership of a company. Shareholders receive payments, per share based on business performance

Question 6

Pensions

Answer 6

Long term saving schemes to help save for retirement. Workplace pensions put a % of employees pay into pension scheme