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Describe three savings products appropriate to meet the nancial needs of two contrasting customers.

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Introduction

Transfer-Encoding: chunked Describe three savings products appropriate to meet the ï¬nancial needs of two contrasting customers. I have just finished my fifth week of training at The Co-operative Bank. My manager wants me to get an overview of savings products offered by The Co-operative Bank. As a task I am requested to select three savings products that will be used by two different customers. Teenagers and students will make use of savings products to save for things such as university fees, driving lessons or a car. They could make use of Premium Bonds, Direct ISA or a savings account. Teenagers and students will make use of Premium Bonds as a means of saving. Premium Bonds are a government security that offers no interest or capital gain but is entered in regular draws for cash prizes. Premium bonds can give the saver prizes from £25 to £1 million of tax free cash. ...read more.

Middle

ISA’s may be more useful for teenagers and students as they may want to be earning interest rather than hoping they win something from a Premium Bond. Lastly, teenagers and students will use saving accounts. A savings account is a deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Similar to Premium Bonds and ISA’s the money can be withdrawn with no penalties and can be made anyone over 16 on the phone or online. However, the interest that is earned in a savings account which currently is 1.10% is taxable. Anything from £1 to £2million can be saved in the savings account per person. Teenagers and students may make use of savings accounts because they may want to save for things like university and they can earn interest whilst saving. Another customers such as young families will make use of Children Bonds, Income Bonds or Investment Accounts. ...read more.

Conclusion

In Income Bonds interest of 1.25% is earned every month unlike other saving products but is also taxable. Anyone 16 and over can have Income Bonds that £500 to £1million can be saved online, through post or on the phone. Young families will use income bonds if they want to obtain interest monthly instead of every year. The last product young families may use is an Investment Account. An Investment Account held at a financial facility for the purpose of a long term investment for capital preservation, growth or fixed income. Investment accounts earn a low amount of interest of 0.75% and is taxable but it can be withdrawn at any time with no penalty. £20 to £1million can be saved through the post by anyone 16 and over. Young families may make use of an Investment Account if they prefer it over more modern accounts over the internet or phone. I now have vast knowledge on the savings products that The Cooperative bank have to offer people of all ages. ...read more.

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