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Savings element |
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Savings elementThe cash value which accumulates within a life insurance policy. The premium is applied to give both life cover plus a savings element which is allowed to grow tax deferred until withdrawn.Savings elementUsed in the context of life insurance, the cash value built up in a policy, which equals the amount of premium paid minus the cost of protection. This excess is invested by the insurance company, and the returns are tax-deferred inside the policy.Savings element Similar MatchesMutual Savings BankMutual Savings BankAn institution owned by its depositors, as evidenced by certificates of deposit rather than stock. These institutions are active in long term real estate financing, as opposed to commercial banks, which concentrates more on short term loans. Individual savings accountIndividual savings accountA tax-favoured savings account introduced on 6th April 1999 which replaced PEPs and TESSAs. ISAs are not an investment in their own right. They are a tax-free wrapper in which you can shelter investments.People over the age of 18 living in the UK can invest a maximum of £7,000 per year in each tax year. 16 and 17 year olds can invest up to £3,000 in a mini cash ISA.Investment may be made in three components: equities, cash and life assurance. There are strict limits on how much you can put in each component, and the limits depend in part on whether you use a 'maxi ISA' or a number of mini ISAs.Until 5th April 2004 ISAs benefit from a 10% tax credit on UK equities. Stock and share investments which can be held in an ISA include unit trusts, open ended investment companies (OEICs), investment trusts, ordinary shares, preference shares and fixed interest corporate bonds.PEPs in existence at 6th April 1999 may continue to be held outside an ISA with the same tax advantages. TESSAs in existence at 6th April 1999 are allowed to run their full five year term.Income from ISA investments is tax free and you don't have to report it on your tax return. Capital gains are also exempt from CGT.ISA plans are sold by stockbrokers, IFAs, fund managers, banks and other authorised financial institutions. You can buy a plan and take advice on what to put in it, or you can have a 'self-select' ISA and make your own decisions. National Savings BankNational Savings BankThe savings bank operated by the government's Department of National Savings. The majority of business is carried out through the Post Office. Savings rateSavings ratePersonal savings as a percentage of disposable personal income. Savings accountSavings accountAn account with a bank or financial institution which pays interest on balances held, usually once or twice per year, the amount of interest usually depending on to the amount of money in the account and the 'base rate' of the Bank of England. There is often a notice period required for withdrawals and in most cases the longer the notice period, the higher the interest rate. Further SuggestionsRegistered Retirement Savings Plan (RRSP)mutual savings bank Tax Exempt Special Savings Account Savings deposits National Savings Financing Cost Savings Savings and loan association Savings bond National Savings Stock Register Individual Savings Account Federal Savings and Loan Association savings and loan association Savings Association Insurance Fund (SAIF) Savings bank Bonds Enabling Annual Retirement Savings (BEARS) lifelong individual savings account Mutual savings bank Savings And Loan Association Post Office Savings |
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