IT AND FINANCIAL SERVICES

ASSIGNMENT ONE

WORDS

CONTENTS

SECTION 1

  • IDENTIFYING THE DUNCAN FAMILYS FINANCIAL NEEDS

SECTION 2

  • FINANCIAL PRODUCTS CURRENTLY USED BY THE DUUNCAN FAMILY

SECTION 3

  • RECONMENDED FINANCIAL PRODUCTS AND SERVCIES AND PROVIDER

SECTION 4

  • REFERENCES

SECTION 1: IDENTIFYING THE DUNCAN FAMILES FINANCIAL NEEDS

Mr George Duncan is aged 38 and is married with two children. He works full-time as a company secretary for Leuchars and Panton Ltd, chartered Surveyors.

His wife, Anne Duncan works part-time as a playgroup Leader. Salary unknown.

Mr Duncan’s salary earns £3,500 gross per month; this is paid directly into his current account.

The Duncan family have a fairly straightforward and traditional banking system.

They have one current account with the Royal Bank of Scotland and one savings account with the Dunferlime Building Society. They also have a share portfolio.

The Duncan’s money transmission is purely cash and cheque. They have no outstanding debts from borrowing etc.

With George’s monthly income of £3,500, they have a monthly outgoing of £1,185, which is detail below:

TOTAL                                        1,185

These outgoings are paid by cash or cheque. This leaves £2,135 at their disposal each month.

They also have £65,000 in savings, and a share portfolio.

The Duncan’s need a current account for money transactions etc. and a savings account for their savings. However they would gain more if they changed from there suppliers. Because the Duncan’s seem to manage their finances in a traditional style I believe this should be kept fairly simple and they should stick to high street branches with good access facilities to their money.

As cash or cheque pays for all the transactions the Duncan’s will need a chequebook and debit/switch card with their current account. If they have a switch card it means that they can use this as a method of payment. This is safer than carrying cash and quicker than using a chequebook. If they have telephone and Internet banking they can conveniently keep up to date with their money balance day and night.

     It would be best if the balance of the current account is kept as low as possible, this means they can have more money in savings and gain interest on that money. This would be made easier if they have phone, Internet access to the accounts so money is easily transferred.

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In the near future the Duncan’s are planning to buy a new car, costing £12,000 and make some home improvements, costing £30,000. This is a total of £42,000. The Duncan’s have no borrowing/lending commitments at the moment and this is best left this way. As the interest they would pay on a loan would be greater than the interest gained from keeping money in a savings account.  So I think it is best to take this £42,000 from their savings. The Duncan’s also have a £2,135 spare each month, with which they can rebuild savings. However I have included ...

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