FINANCIAL INVESTMENT OPPORTUNITIES-Mishal kamran.docx

Building societies financial institution owned by his

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Building societies : Financial Institution owned by his members as a shared organization which gives mortgage lends along with banking and finance related services. Members include those who have savings account and mortgage and each have their own certain rights. They are different from banks because they are owned and run for the sake of their shareholders. They don't have any outside shareholders. This allows them to run on lower costs, offer lower mortgages and offer better rates of interests and services than their competitors. Mortgage loans : A mortgage is a debt tool, secured by the collateral of a specified real estate property that the borrower is obliged to pay within a certain period of time with a set of payments. Mortgage is used by individuals and businesses to make big real estate purchases without paying the entire the whole amount of purchase up front.
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The borrowers pay the loan over a number of years with interest until they finally own the property. The borrower pays fixed amount throughout the time period of mortgaged with fixed interest rate which is called fixed-rate mortgage. The mortgage where interest is not fixed and varies according to the market interest rates is called adjustable-rate mortgage (ARM). It appears less costly as the base rate is lower than market and could go up or down accordingly. National Savings and Investments (NS&I) Investing in premium bonds is very upfront. At the investment of every £1, you purchase a unique bond number which buys you a chance of winning in a monthly prize draw. Your money is 100% secure in NS&I premium bonds as we are backed by HM treasury. Your winning is safe from any kind of tax and you are entitled to withdraw it anytime you want. Direct Saver is an easy to manage savings account. You can put as much money you want and withdraw it anytime without any additional charges. An interest is gained daily and added to your account annually. The interest earned by your money is paid to you every month and your capital is 100% secure as NS&I is backed by HM treasury. The current interest rate determines how much you receive. The interest rate may vary but capital amount is not affected. Investment Account allows you to pay money and take it out whenever you want. The interest is gained every day and added to your account on 1 January every year. The interest rate is variable. SUITABILITY OF THE PRODUCTS When deciding what type of investment to go for, a good-for-all approach just doesn't work. An investment product that works for everyone just doesn't exist. Everyone have their own risk profiles and personal circumstances so they need to decide individually and carefully determining the investment approach which suits them.
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So higher the risk taken higher will be the potential return he'll receive for taking the bigger risk.
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