Safe and sound

Article Abstract:

United Kingdom investors may wish to avoid the risks involved in investing in the stock market, and they can choose from a variety of investment vehicles. Building society accounts can offer rates of interest of between 7% and 8%. Tax-efficient savings accounts offer tax benefits to investors able to tie up their funds, for 5 years in the case of Tessas. Annuities provide a guaranteed income, but they can lock annuity purchasers into low rates. United Kingdom government securities offer security, tough there is some risk if they are not held to maturity, since prices may be volatile.

Personal Financial Mgmt

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A pussyCAT to comfort investors

Article Abstract:

The United Kingdom government is launching individual savings accounts (Isas) in April 1999, and has announced details of voluntary products for the new savings schemes. The standards relate to charges, access and Terms (CAT) and exclude performance. There are three sets of standards, since Isas include stocks, cash and insurance. Isas that comply with the new regulations may not be suitable for all investors, but they do meet certain standards and do not carry hidden charges. The government will be carrying out an advertising campaign giving details of the standards.

Laws, regulations and rules, Financial services industry, Financial services

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Small is beautiful in the world of Tessas

Article Abstract:

A survey of United Kingdom tax-exempt special savings accounts (Tessas) for the five years to 1998 shows differences in their performance, with smaller Tessas providers giving better deals. The main four retail banks were among the less generous providers. Investors considering Tessas should assess whether interest rates are likely to drop, in which case a fixed-rate Tessa may be preferable. Transfer terms should also be checked in case they make transfers too expensive.

Prices and rates

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