Savings and Investments

A Savings account is sometimes called a deposit account

• False

• True

ISA stands for

• International Savings Account

• Incredible Savings Account

• Individual Shares Account

• Individual Savings Account

Which options best describe a Premium Bond (tick all that apply)

• National Savings and Investments issue Premium bonds

• Your money is secure and earns interest whilst it's being invested

• Your investment is entered into a monthly draw where you could win from £25-1 Million tax free!

• You can cash in your premium bond for the same amount as you invested.

I think Premium bonds are a good investment?

• Yes (I like the idea of winning money)

• No (I'd like to invest my money where it would earn interest)

Shares - tick all that apply

• You do not own part of the company

• If the business does well then you would get a dividend/bonus payment each year.

• Share values can go up or down meaning that you can lose money if you're not careful

• Can be called stocks and also equity

Bonds and Gilts tick all that apply

• An investor can loan money to a bank or a corporation/business in return for interest payments

• An investor would get back the money they invested when their bond matures.

• Government bonds give more interest than corporate bonds

• The term 'Gilts' refers to the certificates having fancy edges in the past.

What is an overdraft?

• The bank lets you borrow extra money through your current account.

• Overdrafts are loans from a credit card company

Credit card, click all that apply

• You can get a credit card when you are 16

• The Credit card issuer will send you a bill each month and tell you what the minimum payment is that you can make

• It's a good idea to pay off your credit card bill each month so you don't pay interest

• Credit cards really help people to save

Do you think credit cards are a good idea?

• Yes, if they're used sensibly and paid off as quickly as possible

• No, I think they encourage people to spend beyond what they can afford

A type of loan that people tend to get when they're desperate for money before they get paid. They have really high interest rates. This type of loan is called a ? loan (one word)