• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

Introduction

Transfer-Encoding: chunked Explain the distinctive features of two selected savings, investment and other ï¬nancial 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 However, this money doesn’t earn any interest but can be withdrawn at any given time with no penalties.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. ...read more.

Middle

Lastly, investing in shares can be unpredictable. Not all companies will guaranteed a good return, some may become bankrupt or make losses which means your investment won?t be worth it. They can also invest in unit trusts. A unit trust is an unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The investment fund is set up under a trust deed. The investor is effectively the beneficiary under the trust. You can buy or sell unit trust units through the fund manager. Their value moves in line with the overall value of the fund, which in turn moves in line with changes to the underlying share prices in the fund. Hopefully the value of your units will rise in line with the underlying share values. But if these perform badly the value of the units could fall. You may also get dividend income or interest distributions from your units, based on the dividends or interest paid by the underlying shares or other investments. Unit trusts can be very beneficial and have many advantages to investing in them. Unit trusts are a very convenient and a low cost way of investing in markets which you otherwise would have found difficult to access. Also the average returns from unit trust companies compare very favorably with returns from more traditional investment products and highly qualified portfolio manager specialists make investment decisions, and manage the unit trusts so you do not have to do it. ...read more.

Conclusion

Life assurance policies pay out a large sum of money to a benefiter when the individual who is assured has died. The need for life assurance protection is found in many different circumstances including family protection, debt protection, tax mitigation and bbusiness protection. Life assurance protection policies fall mainly into 2 categories, whole of life assurance and term assurance. Whole of life assurance is when the payment is payable whenever the death occurs; therefore has no fixed limit. On the other hand, term assurance is only payable if the death occurs before the end of a specified term usually up to 30 years. Post education pre-families will use life assurance to protect their families from their death and are likely to use term assurance as it is cheaper. Established families can also make use of savings, investment and other financial products similar to pre-families. They too will use savings products such as premium bonds and direct savers and Invest in shares and unit trusts. Because in established families, their children may be older, they may their savings and investments to go towards their children?s university funds. They may use the money to pay off their mortgage or buy a new house if they won or saved a lot of money; or maybe family holiday. They will also make use of pensions to ensure they have enough money when they are at a pensionable age. And lastly, they will get life assurance to protect them and their family of death. However, as younger people have less money they are likely to use term assurance. Established families are likely to use whole life assurance to protect them until they die. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Identify and describe a selected case significant stakeholder influence over a business. (P2)

    Marks and Spencer listened to their customers via monitoring their sales levels, the research that they carried out and the feedback that they received directly from their consumers. These things told Marks and Spencer's many things. In 2006 the research that they carried out told Marks and Spencer's that

  2. NETFLIX CUSTOMERS SATISFACTION

    It h?s been suggested, therefore, th?t the firm should ?ctively develop rel?tionships with profit?ble customers ?nd try to end rel?tionships with unprofit?ble customers. T?iloring m?rketing efforts to segments th?t differ in current ?nd/or future profit?bility m?kes ? firm's str?tegy more effective, by identifying profit?bility customer tiers, ?nd offer products ?nd

  1. PEST is a planning tool which is used by a business to evaluate and ...

    91% of adults have brand awareness of Ginsters, this means that mostly adults are aware of Ginsters brands and are more likely to buy some of Ginsters products. Ginsters will need to think about issues to do with elderly people such as many elderly people often have health issues such

  2. For this coursework I will produce a portfolio of work investigating the factors that ...

    These are: "Our Value range offers you our lowest price on the widest range of products, without ever compromising on quality. So you can feed your family within your budget and still trust that they're getting the good food they need."

  1. Business plan. The business that I am going to produce is a personalised logo ...

    Collect information: where are we now? 3.Make plans: how do we meet the objectives ? 4.Monitor progress: how successful are we? Why I need a business plan- A business plan is needed as it provides specific information about your company, it structures the businesses life cycle and shows all of your business associates (bankers, lenders, parteners).

  2. Disneyland and M&S. I am going to investigate customer service in two separate ...

    Canteen and staff rooms o Good promotion prospects o A sympathetic and understanding ear o Fair and on time payments o A desirable benefits package such as high discounts and reasonable holidays A business needs to take into consideration the internal customers needs, wants and expectations and the dire impact on the business if these are not met.

  1. Stakeholders in Sainsburys and the National Trust

    land and Sainsbury?s want to take the opportunity to build a new store. It is proposed that half the 23-acre site next to the treasured Antony House would be used for the supermarket. The National Trust members are outraged as they donate money to the organisation in order to preserve

  2. Describe three retail banking services appropriate to the needs of two contrasting customers.

    want to buy and receive wages or salaries from their part time jobs. They may also use direct debit to pay off bill such as their phone bill. The last product that a teenager or student may use will be an overdraft.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work