Topic 6

Question 1

Santander savings accounts

Answer 1

• everyday saver account-0.01% gross AER, minimum deposit of £1, unlimited deposits and withdrawals, instant access
• eSaver account-0.05% gross AER for first 12 months, minimums deposit of £1, unlimited deposits and withdrawals
• eISA-0.05% AER variable,balance of £1 to gain interest starting with a minimum opening balance of £500,withdrawals permitted
• Easy ISA-tax free 0.1% AER for balances over £40,000, 0.01% on balances over £1, minimum deposit of £1
• one year fixed-rate bond-0.15% gross/AER, minimu’ of £500 to deposit, no additional deposits, withdrawals or account closures permitted, 123 account holders earn 0.2% gross/AER

Question 2

Project Rainbow

Answer 2

• RBS was to dispose of more than 300 of its branches and some other interests including some insurance brands such as Churchill
• parliamentary commission on Banking Standards argued it should be split into a ‘bad bank’ which would be state lender and the ‘good bank’ would be sold into the private sector

Question 3

Project Verde

Answer 3

• name given to Lloyds Banking Group’s plan to sell off branches as required by the EU
• after a proposed sale to the co op group collapsed, LBG converted 631 of its former banks into a deprédate bank called TSB
• comprise all of the Lloyds branches in Scotland and all the Cheltenham & Gloucester branches
• government sold a 6% stake in the LBG in 2013 easing £3.2bb for the public purse and reducing its holding to 33%
• by may 2017, government had sold its remaining LBG shares