HND个人理财答案

1. Definition: A direct debit is an authorization from a customer to his bank to debit their account on the instruction of a specified payee, i.e. the party due the sum of money.

The difference between standing order and direct debit is that the payer authorizes the payee to instigate the debit to the account. It does this by advising the bank of amount.

Operation: The amounts can be fixed or variable and is a convenient method for paying bills where the amount might be subject to alteration e.g. electricity or gas bills. Written agreement, handle through BACs systems, refund in case of incorrect payment. Some payment is regular or irregular. If the direct debit have question, it will have answer. The payer authorizes the payee to instigate the debit to account. It does this by advising the bank of the amount.

Benefits for both parties:

customer: ①transfer money automatically, they payer will not forget to pay. ②do not need cash or cheque, cash is easy to be lost and cheque is too slowly for the payer. ③it is very convenient and is a cheaper methods. Originator: ①reduce cash handing cost and reduce security risk (counterfeit money). ②funds are transferred quickly, easier and more convenient to receive payment from customer. ③also it has controlling power for payment.

2. Definition: T he individual Saving Accoun t (provided by banks) is an account where interest and gains made on capital is not taxed at source. (Tax free)

Features: available to savers aged 16 or over. When it was issued the first year limit was set at £7,000. There are two components within ISA. ①Cash ISA ②Stocks and shares ISA. Investment in all two components of ISA can be made by placing funds with one provider, known as a “Maxi ISA”. Investments in stocks and shares ISA are also “Maxi ISA”. Investment in the two components but with different providers is known as “Mini ISA”. Interest on ISA accumulates gross, i.e. without any liability to tax. £5,000~£1,000.

3. Fixed Interest Savings Certificates (provided by National Saving Investment) provide savers with a tax-free return and offer guaranteed interest rates over a fixed term.

Features: ①lump sum investments, ②exempt from UK Income Tax and Capital Gains Tax. ③Savings of between £100 and £150,000 can be made in each issue. ④Savers can make withdrawal before the end of the 2 or 5 years term but this will result in a lower rate of return. No interest is paid if cash in during the first year. This is low risk and can have returns.

4. Def inition of Capital and Interest Mortgages: A capital and interest repayment mortgage facility is one that requires the borrower to repay a part of the capital borrowed and in interest payment charged on that capital each time a payment (instalment) is made. Interest is paid more in the beginning, and then capital is more. (Need to provide a term assurance).

Features: ①the title to the property will be returned to the borrower. ②capital and interest mortgages offer no investment opportunities. ③capital and interest can be sure that their loan will be repaid in full at the end of the mortgage term. ⑤the monthly repayment is less certain as this in influenced by the interest rate charged by the lender. (Offer no investment opportunities).

5. Definition: Term assurance polices are the most common and cheapest assurance contracts, and the oldest types of policies in existence. They need to pay for mortgage in case of the worst things happening, so term assurance is needed. ①suit for mortgage in case of the borrower died②the terms can be chose③policies can be arranged in more than one name④payment of benefit will arise on the death of the first party, or if preferred, the last death.

Features:①suit for mortgage in case of the borrower died②the terms can be chose③policies can be arranged in more than one name④payment of benefit will arise on the death of the first party, or if preferred, the last death ⑤the most common and cheapest. The premiums payable of term assurance policies depend on various factors: ①the age of the life assured when applying for the assurance cover②the gender of the life assured③the term of the policy④the level of cover⑤medical history of the life assured⑥the type of policy.

Different types: ①level term②increasing term③decreasing term including mortgage protection polices④convertible term⑤renewable term⑥family income benefit.