Fio Asm

1.2 The suitable of these products for different people

Financial institution | Products | Advantages | Disadvantages |

Bank | Saving account-Fixed term saving account-ISABank in UK is protect by central bank-Interest rate of ISAPremier rates: 1.60% AERAdvance rates: 1.50% AEROther current account rate: 1.40% AER-Interest rate of fixed term saving account for saving more than £250 in 5 years is 2.00%AER-To maintain a minimum balance in other to avoid fees (£50 per month) on saving account. There is at least £250 as requirement to keep the account in good standingAccount holders can access the money, but there are penalty if account holder withdraw money early | * Low risk * High liquidity | -Low return-Minimum balance requirement |

Building society | * Saving account * ISA (quite similar to bank products) * BondsThe rate offer are slightly higher than bank interestThe fund are tax differed the benefits and any other earning you may get under the policy is free of tax, unless in care of employees – scheme insurances where in benefits are treated as regular taxable income | Low riskHigh liquidity | -Low return-Minimum balance requirement |

National saving | -Premium bonds-Cash ISA+)National saving is guaranteed by HH Treasury (1)+)Before the end of investment period, the fund should not be withdrawed because the interest rate increase toward the end of certificate’s life (2) maximum +) The amount of allowed: Interest money is £35,760 tax free: It can be invested in tax free products guaranteed by government (3)+) Interest rate of ISA (4): 1.5% AER+)Premium bonds: annual prize fund interest rate: 1.3% | -Low risk (1)-Tax free (3) | -Low return (2)-Low liquidity(4) |

1.3. Analysis the suitability of these products for different people

The definition of risk/return trade-off theory: The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with low potential returns, whereas high...