SAVINGS & INVESTMENT OPTIONS - IELTS Listening Answers & Explanations
From IELTS Simulation Tests Academic Listening Test 05 · Part 2 · Questions 11–20
Audio
Questions
Questions 11–13 One Choice
Choose the correct letter, A, B or C.
Questions 14–20 Table Completion
Complete the table below.
Write NO MORE THAN TWO WORDS AND/OR A NUMBER for each answer.
| SAVINGS OPTIONS | |||
|---|---|---|---|
| Savings Account | Minimum balance | Interest Information | Access |
| Internet Account | None | Earn good rate from first dollor. Calculated daily and paid monthly | Via Internet, TXT, telephone. No account or 14 fees |
| Stairs Saver | None—but higher rates for bigger balances | 3 tiers plus 15. Calculated daily and paid monthly | Unlimited withdrawals but better to limit to once a month |
| 16 | None | One interest rate, calculated daily and paid on 17 | Anytime—no penalty for withdrawals |
| INVESTMENT OPTIONS | |||
| Investment Account | Minimum deposit | Interest Information | Access |
| Term Deposit
—safe and 18, low risk |
$1,000 | Calculated daily and paid monthly, quarterly, or at maturity | Only at maturity |
| 19
—longer term but better returns |
$5,000 | Calculated daily and compounded or paid out quarterly | Only at maturity |
| Retirement Fund | a certain percentage of 20 before tax | Different levels of risk and return | At 60 |
Answers & Explanations Summary
| # | Answer | Evidence | Explanation |
|---|---|---|---|
| Q11 | C | the difference is we're a cooperative. We're 100% owned by our customers—people like you—and that means we always put your best interests first | Excerpt/Transcript Explanation: The transcript states that SIS is a cooperative business owned entirely by normal customers like the listener. Answer Explanation: The answer means that SIS is an organization (cooperative) that belongs entirely to regular customers. Reason For Correctness: The correct answer is C because the speaker explains that SIS is a "cooperative" and is "100% owned by our customers—people like you". In this context, "cooperative" matches the word "collective", and "our customers—people like you" matches "ordinary people". Choice B is incorrect because profits do not go to foreign or international corporations. Choice A is incorrect because the text does not state that it is a non-profit organization. |
| Q12 | B | As a co-operative, we work hard to keep our fees competitive and absolutely minimal | Excerpt/Transcript Explanation: The transcript explains that the organization makes a strong effort to keep the costs charged to customers as low as possible. Answer Explanation: The answer means that the State Investment Society (SIS) charges customers very small amounts of money for its services. Reason For Correctness: The correct answer is B because the speaker explicitly states that SIS works hard to keep its fees "competitive and absolutely minimal." The word "minimal" means the smallest possible amount, which directly matches "low fees." Option A is incorrect because fees are not completely nonexistent, and Option C is incorrect because SIS helps its customers avoid fees rather than avoiding paying fees itself. |
| Q13 | A | Secondly, if you maintain certain minimum account balances, you won't have to pay any transaction charges for transferring money between any accounts that have the same customer number, although there may be some service charges that apply such as the establishment of automatic payments | Excerpt/Transcript Explanation: The transcript explains that even when moving money between accounts with the same customer number, you may still have to pay extra fees to set up automatic payments. Answer Explanation: The answer means that customers who have accounts under the same customer number will need to pay a fee when setting up automatic payments. Reason For Correctness: The correct answer is A because the speaker mentions that transferring money between accounts with the same customer number is free of transaction fees if a minimum balance is kept, but service charges still apply for things like setting up automatic payments. Keywords to note: "establishment of automatic payments" corresponds to "setting up automatic payments", and "service charges that apply" means you "will be charged". |
| Q14 | transaction | What's more there are no account or transaction fees | Excerpt/Transcript Explanation: The transcript explains that users of the Internet Account do not have to pay extra money (fees) for having the account or for completing transactions. Answer Explanation: The answer "transaction" refers to actions involving money, such as depositing, withdrawing, or transferring funds. Reason For Correctness: The correct answer is "transaction" because the speaker describes the features of the Internet Account and states that customers do not have to pay any account fees or transaction fees. In the table, the phrase "No account or fees" directly matches this statement. |
| Q15 | bonus interest / bonus | There are three interest tiers or steps plus bonus interest | Excerpt/Transcript Explanation: The transcript explains that the Stairs Saver account provides three standard interest levels plus extra bonus interest. Answer Explanation: The answer refers to extra or added interest money that a customer can earn. Reason For Correctness: The correct answer is "bonus (interest)" because the speaker details the interest structure of the Stairs Saver plan, stating that it has three interest tiers along with bonus interest. |
| Q16 | Simple Saver | With our Simple Saver scheme, access is available anytime and we don't impose penalties for withdrawals. This scheme has one interest rate, no minimum balance and interest is calculated daily and paid annually at the end of the financial year—the 30th of June | Excerpt/Transcript Explanation: The transcript states that under the "Simple Saver" scheme, money can be withdrawn at any time without fees, there is no minimum balance required, and there is one interest rate paid once a year. Answer Explanation: The answer "Simple Saver" is the name of the third savings account plan mentioned in the recording. Reason For Correctness: The correct answer is "Simple Saver" because the speaker introduces this specific savings scheme by describing its key features: you can access your money anytime without withdrawal penalties, it offers one interest rate, and it requires no minimum balance. These points match the row in the table exactly. |
| Q17 | the thirtieth / thirtieth / 30th of June / 30th June / 30 June / June 30 / June 30th | This scheme has one interest rate, no minimum balance and interest is calculated daily and paid annually at the end of the financial year—the 30th of June | Excerpt/Transcript Explanation: The transcript states that for this savings scheme, the interest earned is given to the customer once a year on the 30th of June. Answer Explanation: The answer is the date "30th of June" (or "30 June" / "June 30"), which is when interest is paid for the Simple Saver account. Reason For Correctness: The correct answer is "30th of June" (or "June 30") because the speaker explains the interest payment details for the Simple Saver scheme. In the table, the column asks when the interest is paid ("paid on [blank]"). The speaker specifies that the interest is calculated daily and paid at the end of the financial year on "the 30th of June". |
| Q18 | secure | Starting with the safest the most secure, low risk option is a basic Term Deposit, starting with a minimum deposit of $1,000 |
Excerpt/Transcript Explanation: The transcript states that a basic Term Deposit is the safest, most secure, and low-risk investment choice. Answer Explanation: The answer "secure" means safe, protected, and free from risk or loss. Reason For Correctness: The correct answer is "secure" because the speaker introduces the Term Deposit as the safest, "most secure", and "low risk" investment option. The table asks to complete the description "safe and [input], low risk", matching the exact word from the recording. |
| Q19 | Bonds | Bonds are generally a longer commitment but they may bring better rewards in the future. There is a minimum deposit of $5,000 and interest is calculated daily. You may choose to have interest compounded quarterly or paid out quarterly. And, of course, you'll have access to your money when your Bond reaches maturity | Excerpt/Transcript Explanation: The transcript explains that the investment option with a $5,000 deposit, quarterly interest options, maturity-only access, and longer-term commitment is called "Bonds". Answer Explanation: The answer refers to "Bonds", which is a type of investment account requiring a longer time commitment and offering higher returns. Reason For Correctness: The correct answer is "Bonds" because the speaker introduces them as a longer commitment that brings better rewards (returns), requiring a minimum deposit of $5,000, with interest compounded or paid out quarterly, and funds accessible at maturity. |
| Q20 | income | There is no minimum deposit but the good news is that you can choose to contribute a certain percentage of your income before tax is paid on it | Excerpt/Transcript Explanation: The transcript explains that there is no smallest amount required to start this account, but you can choose to save a portion of the money you earn from work (your income) before paying tax on it. Answer Explanation: The answer "income" means the money a person earns from their job or work. Reason For Correctness: The correct answer is "income" because the speaker discusses the Retirement Fund option and explains how much money you can deposit. The speaker says you can choose to put in "a certain percentage of your income before tax". Therefore, "income" fits directly into the blank before "before tax". |
Transcript
Welcome to the information line of the State Investment Society. Why would you choose to put your money into an investment society and not a bank? Well, SIS offers everything you'd expect from a bank but the difference is we're a cooperative. We're 100% owned by our customers—people like you—and that means we always put your best interests first. You won't see our profits going into large foreign-owned finance corporations. No, you'll see them coming back to you and your local community.
As a co-operative, we work hard to keep our fees competitive and absolutely minimal. Even better, we can advise you about ways to avoid fees. Here are some suggestions: firstly, we recommend you carry out as much of your personal banking as possible with us. We won't charge account fees unless your account becomes inactive for some reason. See? No unnecessary fees. Secondly, if you maintain certain minimum account balances, you won't have to pay any transaction charges for transferring money between any accounts that have the same customer number, although there may be some service charges that apply such as the establishment of automatic payments. So, how can we help you?
Let's look first at Savings Options. We can give you three options. Our Internet Account earns you interest from your very first dollar deposited. You don't have to maintain a minimum balance and you earn a good interest rate from the start. Interest calculated daily and paid into your account monthly. You always have immediate access to you money by using the Internet, Text, or Telephone banking. What's more there are no account or transaction fees.
With our Stairs Saver scheme, the more you save the higher interest you earn. Again, there is no minimum balance but as your balance grows, you'll earn higher interest rates. There are three interest tiers or steps plus bonus interest. Interest is calculated daily and paid monthly. Now, what about access to your money? You are free to make as many withdrawals as you like but if you restrict them to one a month and your balance increases over that month, then you'll earn that bonus interest.
With our Simple Saver scheme, access is available anytime and we don't impose penalties for withdrawals. This scheme has one interest rate, no minimum balance and interest is calculated daily and paid annually at the end of the financial year—the 30th of June. So, you can see that savings accounts are ideal if you're starting from scratch. Do you know you can open a savings account with as little as ten dollars? They're usually the best choice for short-term financial goals.
For the longer term we recommend some kind of investment account. Let's take a look at our investment options. Starting with the safest...the most secure, low risk option is a basic Term Deposit, starting with a minimum deposit of $1,000. Interest is calculated daily but you can choose whether to have it paid out monthly, quarterly or at maturity. What we recommend, if you really want to see money grow, is having interest compounded quarterly. You'll only get access to your funds when your Term Deposit matures so be sure to think carefully about the amount of time before you lock it away—it could be anything from 6 months to 5 years.
Bonds are generally a longer commitment but they may bring better rewards in the future. There is a minimum deposit of $5,000 and interest is calculated daily. You may choose to have interest compounded quarterly or paid out quarterly. And, of course, you'll have access to your money when your Bond reaches maturity.
Looking really long term, there is our Retirement Fund which is of course a savings plan for retirement. There is no minimum deposit but the good news is that you can choose to contribute a certain percentage of your income before tax is paid on it. As for interest, well, you choose a particular type of fund, which has a different level of return depending on the level of risk. And access? Well, not before you turn 60 years old. As I said, it's a retirement scheme.