8928455
Description
Mind Map by lucy blackman, updated more than 1 year ago
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Created by lucy blackman
over 7 years ago
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TOPIC 1 - 1.8 Financial products
and services
- opportunities are offered to an individual to maintain sustainable personal finances for example full range of financial
products and services available from banks, building societies and other financial services providers, such as credit
unions and friendly societies
- CURRENT ACCOUNTS
- Banks and building societies are the
main providers of current accounts,
which allow for the safe storage of
money
- holders of current accounts can make payments using
- cheques
- direct debits
- telephone banking
- mobile banking
- standing orders
- debit cards
- internet banking
- internet banking
- debit cards
- standing orders
- mobile banking
- telephone banking
- direct debits
- cheques
- Banks and building societies are the
main providers of current accounts,
which allow for the safe storage of
money
- SAVINGS ACCOUNTS
- customers are effectively lending money to that financial
institution, which the institution can then use to fund loans,
overdrafts and credit cards to other customers.
- regular (monthly) savings accounts
- notice savings accounts
- fixed-term, fixed-interest savings bonds or deposit accounts
- credit union savings accounts
- National Savings and Investments
- National Savings and Investments
- credit union savings accounts
- fixed-term, fixed-interest savings bonds or deposit accounts
- notice savings accounts
- customers are effectively lending money to that financial
institution, which the institution can then use to fund loans,
overdrafts and credit cards to other customers.
- BORROWING PRODUCTS
- If borrowing is unplanned and the borrower fails to
consider whether they will be able to afford to pay the
regular monthly payments then n borrowing can lead to
problems that might damage the sustainability of the
individual’s finances.
- The main products that allow people to borrow money
- overdrafts
- personal loans
- credit cards
- store cards
- mortgages
- mortgages
- store cards
- credit cards
- personal loans
- overdrafts
- If borrowing is unplanned and the borrower fails to
consider whether they will be able to afford to pay the
regular monthly payments then n borrowing can lead to
problems that might damage the sustainability of the
individual’s finances.
- INSURANCE
- General insurance – usually short term), this insurance is
designed to protect: − your home, your car and your
income and health
- Life insurance – also called life
assurance, this pays out a sum of
money when someone dies
- Income protection insurance provides a monthly income
to replace salary or wages if you are unable to work as a
result of illness or disability
- General insurance – usually short term), this insurance is
designed to protect: − your home, your car and your
income and health
- PENSIONS
- People save in pension schemes throughout their
working lives so that they will have an income in their
retirement
- state pension
- occupational pensions
- personal pension plans
- stakeholder pensions
- the National Employment Savings Trust
- the National Employment Savings Trust
- stakeholder pensions
- personal pension plans
- occupational pensions
- People save in pension schemes throughout their
working lives so that they will have an income in their
retirement
- INVESTMENTS
- People put money into investment products because of
their potential to achieve very high returns. But the
promise of high returns is balanced by the increased risk
of losing some or all of the money invested.
- People put money into investment products because of
their potential to achieve very high returns. But the
promise of high returns is balanced by the increased risk
of losing some or all of the money invested.
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