Tax-free savins: the sequel
Article Abstract:
Many UK banks and building societies are now competing fiercely to offer new investment schemes to attract people who invested in a Tessa savings account in 1991. These accounts, which hold 28 billion pounds sterling, are now starting to mature, and investors are able to move their money into a new scheme if they wish. Treasury regulations state that all maturing Tessa accounts must be closed and the capital withdrawn or switched into a conventional taxable account, but investors can also roll over the capital into a second generation Tessa or move it to a Tessa from a different provider.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996
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Banking on the right Tessa
Article Abstract:
Holders of tax exempt special savings accounts (Tessas) which are now maturing may roll over all or part of their capital with the existing provider, or can transfer to a different provider without facing additional charges. They can choose one of the new generation of Tessa accounts, but transferring more than 3,000 pounds sterling requires a certificate of entitlement from the original supplier of the new account is to be tax-free. Tessas are extremely safe, but do not necessarily offer very high yields.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996
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Interest in Tessas wanes
Article Abstract:
Tax-exempt savings accounts, known as Tessas, attracted extensive investment when they were first launched in the UK in 1990. However, they are now becoming less popular, and saw net outflow of 6 billion pounds sterling in the first quarter of 1996, with net inflow of only 500 million pounds sterling in the second quarter of the year. There has been little activity in this sector recently, apart from in accounts which have reached maturity.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996
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