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savings and investment products - Coggle Diagram
savings and investment products
isas
Tax free savings accounts.
Benefits:tax-free interest,flexible,various types to suit different needs
Drawbacks:annual contribution limits,may not offer the highest interest rates
government gilt
Debt securities issued by the gov.
Drawbacks:low interest rates,may not offer high returns
Benefits:low risk,fixed interest rate,easy to trade
shares
Ownership in a company.
Drawbacks:high risk,value can fluctuate greatly
Benefits:potential for high returns,diversification
deposit and savings account
Bank accounts for saving money.
Drawbacks:low interest rate,may require min balance
Benefits:easy access to funds,insured by gov,interest earned.
pensions
Retirement savings plan.
Benefits:tax relief on contributions,investment growth,income in retirement
Drawbacks:limited access to funds,may not offer high returns,complex rules
corporate bonds
Debt securities issued by corporations.
Benefits:higher interest rates than gov bonds,diversification
Drawbacks:higher risk of default than gov bonds,may require large investment
premium bonds
Lottery based savings scheme.
Benefits:chance to win tax free prizes,no risk of losing money
Drawback:no guaranteed interest,chance of not winning