1. Financial products & services Helen Kellaway

2. Agenda Brief introduction Why is money important? Who offers banking? How banks ‘sell’ A flavour of some bank products Q& A

3. INTRODUCTION BTEC HND in Business & Finance Completed HSBC Bank Management Training Programme BA Hons Degree in Business Studies

4. Who have I provided financial services to? Well known footballers Politicians Big business names TV presenters Newspaper editors Just about anyone!

6. It is all about the money!

7. It takes a lot of time and effort to earn money and all businesses want you to spend it with them! So you need to be careful to choose products and services which give you best value.

8. Question…. On average, how much does it cost to bring up a dog in the UK over its full lifetime?

9. http://www.thisismoney.co.uk/money/bills/article-2042014/http://www.thisismoney.co.uk/money/bills/article-2042014/How-does-cost-dog-cat.html

10. Question.. How much does it cost to bring up a child in the UK?

11. http://www.guardian.co.uk/money/2011/feb/24/cost-of-raising-child

12. Good News!

13. More than 1 in 4 of You will live to over 100 years old! Source: http://www.thisismoney.co.uk/money/pensions/article-2037230/Starting-job- Dont-expect-state-pension-youre-72-experts-warn.html

14. More good news!

15. You are young, smart attractive and have no debt at the moment – a very good place to start!

16. Who offers Banking?

17. HSBC NATWEST CO-OPERATIVE LLOYDS TSB BARCLAYS TESCO NATIONWIDE SANTANDER FIRST DIRECT RBS HALIFAX VIRGIN M&S POST OFFICE EGG YORKSHIRE ……

18. More competition brings more choice

19. * HANDOUT * MARKETING MIX, CUSTOMER RELATIONSHIP MANAGEMENT, FAMILY LIFECYCLES AND SEGMENTATION

20. 1.What is the ‘bank base rate?’ 2.What is ‘APR’ 3.Name 3 types of borrowing 4.How does a ‘credit card’ work? 5.What is a ‘pension?’ 6.What is an ‘ISA?’ 7.What is ‘life assurance?’ 8.What is ‘public liability?’

21. ‘the Bank Base Rate!’ The Bank of England is the central bank of the UK. Its senior bosses meet once a month to decide at what rate it is prepared to lend money to financial institutions The UK Bank Base Rate is at a record low of 0.5%

23. Banks use the Bank Base Rate as a benchmark to decide their prices…

24. Banks use the Bank Base Rate as a benchmark to decide their prices… How much they buy their money at

25. Banks use the Bank Base Rate as a Benchmark to decide their prices… How much they buy their money at How much they sell their money for

26. Example : take £100 A bank might pay a customer 0.1% interest = £1 Then lend it to another customer at 19% on an overdraft = £19 £18 profit – not bad!

27. APR = Annual Percentage Rate AER = Annual Effective Rate

28. APR = Annual Percentage Rate (for borrowing) AER = Annual Effective Rate (for saving) To make comparisons

29. Types of borrowing

30. Typical borrowing Mortgage3% Secured Loan 4% Hire purchase / car finance 5% Personal Loan 8% Overdraft 18% Credit Card 19% Mail order 24% Store cards 25% Mobile phone contracts 25% Payday loans 300% Pawn broker 300% Loan sharks 3,000%

31. Credit cards: buy now, pay next month. If you don’t pay it off in full, you will get charged a high rate of interest, which will trigger ‘compound’ interest.

32. Compound Interest: Borrowed £100 Plus Interest charged£ 19 Balance you now owe£119 Pay back only 5% £ 5 NEW TOTAL BALANCE£114

33. Compound Interest: Balance carried forward £114 Plus Interest charged£ 22 Balance you now owe£136 Pay back only 5% £ 6 NEW TOTAL BALANCE£130

34. Compound Interest: Balance carried forward £114 Plus Interest charged£ 22 Balance you now owe£136 Pay back only 5% £ 6 NEW TOTAL BALANCE£130 and so it goes on………

35. A Pension is a long-term savings plan for your retirement. The funds are invested on your Behalf to hopefully increase in value Only 50% of the population have a pension savings plan

36. INDIVIDUAL SAVINGS ACCOUNT A cash ISA allows you to keep all the Interest you earn on your savings without having to give any tax to the government. But you can only put in around £5,400 a year into one.

37. If you pay a certain amount each month into a life assurance product, your family will receive a large cash sum if you die!

38. If you pay a certain amount each month into a life assurance product, your family will receive a large cash sum if you die. Many adults are worth more if they are dead than alive!

39. Businesses have to think about products too, e.g. Public Liability.

40. Businesses have to think about products too, e.g. Public Liability. Businesses should protect themselves against customers or members of the public suing them for damages

41. Any questions?

42. Thanks for having me