Topic 2: Savings and Investment Products Flashcards
What’s the difference between saving and investing?
Savings - The depositor will not lose the money they invested
Investments - they might, sometimes a (much) higher return
OEICs what are they
Open ended investment companies
Managers pool money from many investors and buy shares, bonds, property or cash assets and other investments
What does a stockbroker do
They carry out deals and sales for those who want to buy shares, and give advice or where to invest
What is a bond?
A fixed-term savings account where money is put aside for a fixed amount of time and can’t be touched.
What is the NS&I
National savings and investments
These are the bonds that are available to children or for those over 16 can get income bonds. Backed by the UK government this bond is deemed safer.
What is the final salary pension scheme?
Money paid out based upon the number of years the person has been working for that company.
What is the money purchase scheme?
Employee pays into it whilst they are working there and the employer tops it up.
What is NEST
National employment savings trust
Set up by the government to ensure everyone gets a workplace pension
What is the state pension
Given when men turn 65 and woman 60-65
Based on their NI contributions
What is capital gains tax
Tax on any profit made when someone sells an asset
