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Tax Exempt Special Savings Account |
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Tax Exempt Special Savings AccountA five year tax free savings scheme for people aged 18 and over, introduced by the government in January 1991 and operated by banks and building societies, but terminated in 1999.The maximum amount which could be paid into such schemes over the five year life of the TESSA was £9,000 according to the following schedule:1st year, £3,0002nd year, £1,8003rd year, £1,8004th year, £1,8005th year £600TESSAs were discontinued on 5th April 1999 although those taken out before then are allowed to run their full five year term. If you own a TESSA, you can do three things with it when it matures:You can withdraw the interest and capital free of tax, and either spend it or invest it elsewhere.You can move the capital into a 'Matured TESSA Account'. The interest earned in the account after the maturity date will be taxable.You can move the capital (but not the income) into an ISA account where it can continue to grow tax free. It can either be paid into a special Tessa-only ISA account (a TOISA) or it can be paid into a cash only mini ISA. The move has to be made within 6 months of the maturity of the TESSA.Similar MatchesFederal Savings and Loan AssociationFederal Savings and Loan AssociationAn institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. Savings bankSavings bankAn institution that primarily accepts consumer savings deposits and to make home mortgage loans. Savings elementSavings 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 The premium is applied to give both life cover plus a savings element which is allowed to grow tax deferred until withdrawn. Mutual savings bankMutual savings bankIn the US, a savings bank which is owned by its depositors. Mutual savings bankMutual savings bankA state-chartered savings bank which is owned by its depositors and managed by a fiduciary board of trustees. Further SuggestionsMutual Savings BankSavings deposits Financing Cost Savings Savings bond National Savings Stock Register National Savings Bonds Enabling Annual Retirement Savings (BEARS) lifelong individual savings account Registered Retirement Savings Plan (RRSP) savings and loan association National Savings Bank Savings element Savings rate Savings and loan association Savings And Loan Association Savings Association Insurance Fund (SAIF) individual savings account Post Office Savings savings account Individual Savings Account |
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