A3 Flashcards
What is a current account?
An account with a bank or a building society designed for frequent use
When is a current account used?
Regular deposits
Withdrawals
What is a overdraft?
It is the ability to withdraw money that you do not have for a current account.
What is an authorised overdraft?
It is when the bank has given you permission to go overdrawn up to a certain amount
What is an unauthorised overdraft?
It is when the bank has not given you permission to go overdrawn
What are the 4 types of current account?
Standard
Premium/packaged
Basic
Student
What are the advantages of a standard current account?
- No charges/fees paid on credit balances
- Features include : internet banking, cheque book, debit card and overdraft facilities
Convenient for receiving wage payments and making regular payments
What are the disadvantages of a standard current account?
- High charges for using the overdraft facility
- No additional perks
What are the advantages of a premium current account?
- No charges/fees paid on credit balances
- Features include : internet banking, cheque book, debit card and overdraft facilities
- Convenient for receiving wage payments and making regular payments
- Includes additional perks
What are the disadvantages of a premium current account?
- An additional monthly charge is applied to these accounts
- The package on offer may not meet the needs of the account holder
What are the advantages of a basic current account?
- The account is offered to people with a low credit score
- Features include : a cash card for ATMs
- This account is suitable for receiving wage payments and making regular payments
What are the disadvantages of a basic current account?
- There are limited facilities offered such as no debit card or overdraft facilities
- These accounts will lock if they don’t have a positive bank balance
What are the advantages of a student current account?
- Course fees and student loans can be managed easily through internet banking
- The perks are designed to meet the needs of learners such as discounts on travel
What are the disadvantages of a student current account?
- Overdrafts can encourage overspending
- Banks charges/fees for overdrafts are high
- Limited facilities offered
What is an ATM?
These are machines that dispense money, tell you how much your balance is in your account and allows you to change passwords
What is a direct debit?
A direct debit is giving a company permission to take money out of your account.
What is a standing order?
A standing order is telling the bank to take money out of your account to pay someone else.
What are bank charges?
These are charges banks make for administering peoples account and charges for overdrafts.
What is internet banking?
The ability to ‘bank’ online
