faqs.org » Abstracts Index » Abstracts » Business

The beauty parade

Article Abstract:

United Kingdom tax exempt special savings accounts (Tessas) may offer fixed rates, which are easy to compare. Variable rate Tessas are more difficult to assess, since rates can change. Small banks and building societies tend to offer better rates than the main UK banks, and the Bank of Scotland and Clydesdale Bank also offer poor rates. Savers who forecast a drop in interest rates are likely to prefer fixed rate Tessas, and those who may need access to their funds early are better advised to use variable rate Tessas.

---

The fat lady sings

Article Abstract:

United Kingdom tax exempt special savings accounts (Tessas) were launched in 1991 and are offered by most building societies and banks. Individual savings accounts (Isas) will replace Tessas, though existing Tessas can run their five-year course. Tessas accounts offer tax-free returns that tend to be better than rates offered for ordinary accounts. There is a limit of 9,000 for the five years and only one Tessa can be held by each investor. The capital can be reinvested in a new Tessa for an additional five years.

---

Some parts © 2012 Advameg, Inc.