How to write a high-quality financial report
Posted October 29, 2018 05:00:33The Financial Services Association (FSA) is a leading advocate for low-cost, high-return, high return products, including a range of products designed to reduce the risk of a financial catastrophe.
The FSA has been calling for more research on the benefits of low-fee, low-interest savings accounts and more research into the impact of these products on financial outcomes.
A new report by the Financial Services Advisory Group (FSAG), which advises the government on how to deliver the high-impact, high returns financial services, has found that low-risk, high fee savings accounts (LRFAs) have been shown to reduce stress and improve outcomes for Australians.
“While there is a need for research on these products, there is also a lack of research on their impact on the financial system,” FSAG director Paul Cappello said.
“The government has a responsibility to act now and ensure that these products are supported, not only by their government sponsorship but by a range and variety of government funding streams.”
For example, the Commonwealth Government could fund a range on LRFAs that includes the Low-Income Savings Account (LISA), the Low Income Guarantee Payment (LIIGP), the Newstart Scheme (NSQ) and other financial instruments.
“Low-cost savings accounts offer savings options that can be used on an ongoing basis to save for emergencies, such as paying off student debts or paying for childcare.
In addition, the accounts can provide a cushion of capital that can help cushion any financial shocks to a household, reducing the impact on consumption.
A number of financial products can be built on the model, with a range offering a range at different rates, for example:Low-fee savings accounts: a low-rate savings account that is managed by a bank and provides a fixed interest rate for a fixed amount of time (typically six months).
A range of low rate savings accounts are available: Low-cost credit accounts that are usually not linked to a specific bank account and can be open for any period.
Low-rate, low interest savings accounts that provide a fixed rate of interest, but a lower rate of returns, but have no interest.
This can be set at a fixed annual interest rate, or at a variable rate of return, but they can vary depending on the amount and the circumstances of the financial transaction.
Low interest savings account can be available to low-income households with low incomes.
A low- and moderate-cost variable-rate LRFA.
Low and moderate interest savings Accounts: a variable-interest account with no fixed interest rates.
Loan-to-value (LTV) accounts: an account with a fixed variable interest rate.
Low risk, high reward accounts: accounts with no interest and low returns but low risk of losses.
A range that offer low risk, higher rewards to low and moderate income earners.
A variable rate LRFAM, which provides low-and moderate-rate interest rates, but with no guarantee of interest.
Low Risk, High Reward Accounts: low risk and high rewards accounts, but low returns and low risk.
A limited number of low and medium-risk LRFAS, with low risk but high rewards.
The report also found that the FSA’s advice on financial product research was clear, “there is a lot of research that needs to be done on these kinds of products to make sure they are supported and not just a marketing gimmick.””
We also believe that they are likely to have adverse impact on consumer welfare, including the likelihood that they will lead to a reduction in investment in goods and services, lower economic activity and lower disposable income,” it added.FSAG also recommended that the Government review and improve the current regime for the sale of low cost savings accounts.”
We are concerned that the current scheme is not being used to ensure the products are effectively being used, or are being made available to all Australians,” Mr Cappellos said.