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cash
You and your money
Financial adverts (or more accurately financial promotions) can be the first step in taking out a new savings product, or investing money. If you respond to a direct mailshot or an advert on the Internet - both forms of financial promotions - it might be the only contact you have with the firm before signing up for the product.
So, the Financial Services Authority (FSA) has rules to help prevent you being misled by promotions that promise things they cannot possibly deliver or which present information in an unclear way. This is important as there is a risk that you could end up with a product that is not suitable to your needs.
Here are some questions you should ask yourself when looking at financial promotions:
- Do you know what your money will be invested in? Is it a stock market investment or a deposit?
- Does the product claim to be free, when in fact there are charges?
- Are the quoted headline returns realistic? Check the small print carefully – it may say that those returns only apply under limited circumstances.
- Is it clear what happens if you withdraw your money early? Are there penalties?
- What is the risk to your money? Will you get your original investment back, plus some income? Or is there a risk you'll get back less than you put in?
- Are there any other drawbacks in the small print?
The FSA's website www.fsa.gov.uk/consumer * has some examples of financial adverts that are not all they at first seem. Be on your guard. If you see a promotion that you think is unclear, unfair or misleading, report it to the FSA.
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