KEYTERMS TOPIC 7

1. An organisation owned by its customers, who are also its members, rather than by shareholders. (6, 13)
7. National Savings & Investments, a provider that is backed by the Treasury (the government department that manages the UK’s finances). (3)

2. An investment bond taken out by a parent, legal guardian or (great) grandparent for a child under the age of 16. Investing between £25 and £3,000, the investor is guaranteed interest at a fixed rate for five years, after which the Bond matures. (9, 4)
3. A lottery bond, issued by NS&I, entered into a monthly prize draw with tax-free prizes or ‘premiums’. Bonds must be held for a full calendar month after the month in which they were purchased, and retain an equal chance of winning until cashed in. (7, 4)
4. A mutual organisation (that is, owned by its members) that provides a range of financial products to members, eg savings accounts and personal loans. Members of a credit union must share a common bond. (6, 5)
5. An account that pays interest tax-free on cash savings up to a certain level. (4, 3)
6. See savings bonds. (5)
8. The amount a saver gains in interest on their savings. For instance an account paying 0.2% AER offers a lower rate of return than one paying 0.4% AER. (4, 2, 6)
9. A product that allows someone to borrow a fixed amount over a fixed period at a fixed amount of interest. (8, 4)
10. A loan taken out to pay for a property, usually over a long term such as 25 years. (8)

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