So you think you know about Savings and Investments!

No. of Questions= 10

1. 

How much tax do higher rate taxpayers pay in total on bank interest?

a)

30%.

b)

35%.

c)

40%.

d)

45%.

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2. 

Which of the following is essential for a savings policy to meet the qualifying rules?

a)

Minimum initial term of 7.5 years

b)

Monthly premium collection

c)

Term of ten years or more

d)

A single premium investment

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3. 

Which of the following investments are issued by the Government?

a)

Equities

b)

Gilts

c)

Bonds

d)

Futures

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4. 

All of the following can offer income free of tax EXCEPT ONE. Which one?

a)

Personal Equity Plans

b)

National Savings Certificates

c)

Unit Trusts

d)

Cash ISA

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5. 

"A company whose sole business consists of buying, selling and holding shares." This is a definition of:

a)

an investment trust

b)

a market maker

c)

a member firm

d)

TEP Trader

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6. 

What is an annuity?

a)

An amount payable every year

b)

A type of life assurance contract

c)

A pension

d)

A term assurance

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7. 

What is the income tax position on a purchased life annuity?

a)

The annuity income is tax free

b)

The whole annuity income is assessable to Income Tax at Basic Rate

c)

The interest element is assessable to Income Tax at 22% only with the capital content being subject to capital gains tax.

d)

The interest element is assessable to Income Tax with the capital content being tax free.

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8. 

How much can an individual contribute to a maxi ISA in 2004/05?

a)

£5,000

b)

£3,000

c)

£7,000

d)

£10,000

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9. 

What is the maximum amount that can be withdrawn each day from a National Savings easy access account via a Post Office or cashpoint?

a)

£100

b)

£250

c)

£300

d)

£350

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10. 

The sum assured is payable under endowment assurance:

a)

only on maturity

b)

only on death within the specified term

c)

on death whenever that occurs

d)

on death within the specified term, or on maturity

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REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.