Explain the distinctive features of two selected savings, investment and other nancial services that render them suitable for two contrasting customers.

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Explain the distinctive features of two selected savings, investment and other financial services that render them suitable for two contrasting customers.

My manager has requested that I produce a detailed report explaining the distinctive features of two selected savings, investment and other financial services that render them suitable for two contrasting customers.                                        

Post education pre-families 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. With premium bonds you can win anything from £25 to £1million of tax free cash; the odds being 26,000 to 1. Premium bonds can give the saver prizes from £25 to £1 million of tax free cash. However, this money doesn’t earn any interest but can be withdrawn at any given time with no penalties. You can enter online or on the phone if you are 16 or over and can invest anything from £100 to £50,000. People ages 17 to 22 will invest in premium bonds to try win extra money without having to pay any taxes. Premium bonds are suitable to savers who want the chance every month to win £1million and other tax-free prizes, have £100 more to invest, want 100% security for their money and want to make the most of tax-free investment opportunities. They however are not for savers who want regular income, are looking for guaranteed returns, are concerned about inflation eroding their savings and want to buy them for a gift, unless for their child or grandchild. Premium bonds are suitable for post education pre-families because they may not have a lot of money and this is a secure way of having the chance to win a large sum of money; if they want their money back they can.

Post education pre-families will also use a direct saver.  A direct saver is a deposit account 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 Similar to Premium Bonds and ISA’s the money can be withdrawn with no penalties and can be made anyone over 16 on the phone or online.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. A direct saver is suitable for savers who want to manage their account online or by phone and have easy access to their savings. They are not for savers who prefer to use an account at a branch or by post, want a fixed rate of interest, need a regular income on their savings and want an account for a child. A direct saver is good for pre-families because they are able to use the interest and phones which makes using this saver very each for them to use. Unlike premium bonds you can earn interest on the money to put in to save which is guaranteed whereas premium bonds are not guaranteed, they can also withdraw their money whenever they want so its 100% secure.  

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Pre-families can also make use of investment products. They can buy shares in various companies. Shares are a unit of ownership interest in a corporation or financial assets. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of . People can buy existing shares which are already being traded on a stock market or new shares when a company first sells them to raise money for its ...

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