Citizens Advice financial capability

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Citizens Advice financial capability

Activity: protecting your savings

AIC 20-A N Provide the client(s) with a set of the savings product cards and the features cards, from the handouts. As usual, this can be done individually or in groups of varying size. Ask them to match each savings product card with the correct features card.

Give out the Savings products handout to check the answers and answer any questions.

Top tips

 Make sure when you cut out the features cards that you only cut out the

boxes on the handout and don’t include the name of the product.

 You should emphasise that some types of saving, such as rainy day or

emergency money, should be kept very safe and be available instantly when they are needed.

 Other types can be planned in advance, like home improvements or

holidays. These can be kept in notice or fixed term accounts where there will be less temptation to dip into the money early.

 Not every possible type of savings account is described here, only the

simpler ones most suited to very short term saving. If you are asked about other types of accounts like ISAs or for detailed information on the

products then you can point the learners towards the Citizens Advice website.

If this was useful, why not try:

 Saving – the best places to save

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Citizens Advice financial capability

Matching game cards to copy and cut out

Credit Union account

Instant access savings account

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Citizens Advice financial capability

Supermarket savings stamps

Fixed term bond

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Citizens Advice financial capability

 Usually pays a lower rate of interest which may change

over time

 May come with a cash card

 Available from banks and building societies

 Often need to save a large amount to open this type of account

 May not allow withdrawal of savings prior to maturity

 May pay a bonus

 Doesn't pay interest. Pays a dividend once a year

 Can use your savings as security for a loan

 Savings are protected under the Financial Services Compensation Scheme (FSCS)

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Citizens Advice financial capability

 Have to tell the company in advance if you want to

withdraw money and then wait a fixed time

 If you want your money straight away you will lose the interest payment or bonus

 May pay a bonus

 Savings are usually NOT protected in case the company goes bust

 If you lose the card with your stamps on it you may lose all of your savings

 Can only spend your savings in certain shops

 Can make payments out by direct debit and standing order

 Usually comes with a cash card and debit card

 Available from banks and building societies and some credit unions

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Citizens Advice financial capability

Savings products

Product

Features

Instant Access Savings Account

 Savings are protected by the Financial Services

Compensation Scheme (FSCS), regulated by the Financial Conduct Authority (FCA).

 Usually pays a lower rate of interest which may

change over time.

 Can withdraw money at any time but may be

limited to small amounts.

 May come with a cash card.

 Available from banks and building societies.

 Can be opened with as little as £1.

Notice Account

 Usually pays a higher rate of interest which may

change over time.

 Have to tell the company if you want to withdraw

money and then wait a fixed time.

 If you want your money straight away you will lose

the interest payment or bonus.

 May pay a bonus.

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Citizens Advice financial capability

Product

Features

Supermarket savings stamps

 Savings are usually NOT protected in case the

company goes bust.

 Savings are not regulated by the Financial

Conduct Authority (FCA) so it may difficult to make complaints.

 Can save as much or as little as you like.

 If you lose the card with your stamps on it you

may lose all of your savings.

 Can only spend your savings in certain shops.

 Often cannot spend your savings until December.

Fixed term bond

 Many bonds do not allow withdrawal of savings

prior to maturity.

 May pay a bonus.

 Usually pays a higher rate of interest which does

not change over time.

 Available from banks and building societies.

 Often need to save a large amount to open this

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Citizens Advice financial capability

Product

Features

Current account

Compensation Scheme (FSCS).

 Usually pays a very low rate of interest which may

change over time.

 Can make payments out by direct debit and

standing order.

 Usually comes with a cash card and debit card.

 Available from banks and building societies and

some credit unions.

Credit Union account

 Doesn't pay interest. Pays a dividend once a

year. Savers must have a 'common bond' with other people saving with the same company, for example living or working in the same area.

 Can use your savings as security for a loan.

Compensation Scheme (FSCS).

 Can withdraw money at any time but may be

limited to small amounts.

 May be able to open several linked accounts for

different purposes, for example a Christmas account and a holiday account, etc.