P3
In this information sheet, I will be explaining different types of financial product and services young people are likely to uses.

Current accounts
Is an account for day to day use that has money which can be used to pay for items or services directly from your bank account. You can deposit and withdraw money from the bank. Usually this is free as the money is paid in by your employer from your job unless you agree to overdraft which can cost interest. A benefit of using current accounts is that your money is safely kept safe in you account instead of in your wallet which is safer in case it’s stolen or lost. Money can be put into the bank account by cash, cheque or electronic transfer. Money can be withdrawn from a ATM, local branch, debit card, cash back or writing a cheque. Keeping money on your account can help to pay for unexpected purchases. An example of currents accounts is the Halifax Reward Current Account a benefit of this account is that its simple overdraft fees and £5.00 reward each month if £1000 paid in to account. The main features of the account includes visa debit card to pay for goods, 24/7 online and telephone banking and support and access to cash machines and branches all around the country and aboard. An planned overdraft of up to £1,999.99 has a charge of £1.00 daily fee but between £2,000 to £2,999.99 includes a fee of £ 2.00 daily above this is a £3.00 daily charge. If you makes a unplanned overdraft the for any amount the daily fee is £5.00.

Savings account
Savings account is deposit account held in a bank where a customer can save keep money in a account usually it is for a long term bases. In addition, the bank also pays a small amount of interest to savers. The benefit of using a savings account is that higher the saved money the higher the interest rate. Interest is usually paid annually directly to the account by the bank. You can lose your interest if you take out the money regularly. An example of savings accounts available in the market includes the NatWest e-ISA account this account allows you get tax free interest which mean that interest payable is exempt from UK income tax. The AER Annual Equivalent Rate is the rate of interest a saver will receive over a year assuming the cash is left in the account for the full year for NatWest this is 1.75% if the balance is between £0-£9,999. The account is a online account.

Insurance protection
Insurance is a way of avoiding hardship if a disaster happens. Insurance protection is when you take out a insurance from the following building, car, travel, home content, health, pet, breakdown, life and income protection. The aim of taking insurance is if something awful happens, you are covered by the insurance companies they will put you back in the financial position you were in before the event. The payments made to insurance companies are usually made monthly or yearly.

Life assurance
Life assurance is a policy you take out to guarantee a payment for your family. This policy is different to insurance as you insure your life in case you die before a certain date. They is usually a charge for setting up the necessary things for the assurance. The policy will pay out but if you survive beyond the nominated date the company will not pay nothing to your dependants.

Mortgage
Mortgage is a type of loan you usually take from a bank to purchase a house or flat. Before you buy the property you pay a small deposit then pay monthly payments. A mortgage is a secured loan as the you starts running the risk of losing your home if you don’t pay. When choosing a lender the key factor is interest rates. The amount of deposit required and the interest rate depends on the amount of money borrowing and for how long. A common term to pay off a loan is 25Years as the years go on the interest rate lowers down. A