Essay
Financial Services for Individuals P4 UNIT 1
- Course
- Institution
Describe three savings products appropriate to meet the financial needs of two contrasting customers
[Show more]
Seller
Follow
rebecca-distinction
Reviews received
Content preview
I will be describing three savings products to meet the financial needs of two contrasting customerswhich will be a student who has recently moved to the UK and a married couple who want to move
into their first house and they need a larger second hand car.
There’s is an ISA called help to buy and this allows people who want to buy their first home save
money for it. This will benefit the couple who want to move into their first house. This ISA will allow
the couple to save up to £200 per month and there is not tax on the interest they will need to pay
which means they will pay less interest which means they will have more to save for their house.
Some banks will also allow them to receive a UK government bonus of 25% of their saved balance
which means the more they save the more the government will give them and this means the money
they receive they could add to their savings and have more money to buy their house and the
maximum of the bonus they could receive is £3,000 and this is good as they will not need to save for
long before they are able to buy their house. They will instant access to the money when they have
saved enough to buy their house. This ISA is could for the couple because they can save money and
have it protected so they do not spend it unnecessarily. In the first month they can save £1000 so
they can have a lot in the savings to begin with. They will also receive up to 2% AER on balances up
to £12,000 , which means the interest they receive from the bank they can add it to the savings for
their house.
There’s an online bonus saver account which can only be managed online and this benefits the
married couple because they will be able to see and manage the account online, as the wife just
started working and they have a child, the couple may not have time to be going to the bank. With
the online bonus saver, they have instant access for when they need to buy their second hand car.
They will also earn 0.25% AER which can be added to the savings for the second hand car. Even if
they make a withdrawal in an emergency they will receive 10% AER. This saver is good for the couple
because anywhere they are they can manage the account and this account also gives bonus interest
when they do not make an withdrawal and this influence the couple to save and not make
withdrawals as they know they will get a bonus.
There’s a fixed rate saver bond, this is very good for the couple because when they choose a fixed
rate to deposit they have to deposit , which will allow them to manage their finances correctly as
they will need to make sure they have money for that deposit for the term of 3 months or 3 years.
This account allows them to deposit between £2,000 and £1,000,000 which means they can save for
the car and the house together and earn a high interest of 0.70% AER. This account does not allow
early withdrawals and this will benefit the couple as they will not make unnecessary expenditure. As
they will be saving for the house and car they will earn a high interest with they can save. As the wife
is back in to work and has a wage they will be able to choose a fixed amount which they can afford to
pay.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller rebecca-distinction. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now