Savings And Investments

Question 1

Isa

Answer 1

Individual savings account
+ tax is not charged on interest earned allowing the saver to keep all rewards for savings
- notice is often required to make withdrawals and agreement may be a limit on set amount of removals
Annual limit that can be placed in a isa

Question 2

Deposit and savings account

Answer 2

+interests is earned on positive balance
Accounts sometimes require regular deposits (forces saver to follow a plan)
- interest earned is taxed
Percentage rate of all interest is likely to be lower then interest to be paid on borrowing

Question 3

Premium bonds