A3 - Current Accounts

Question 1

What are the different types of current account?

Answer 1

Standard
Packaged/Premium
Student
Basic

Question 2

Definition of standard account

Answer 2

Normal account for customers with OK credit ratings

Question 3

Advantages of standard account

Answer 3

No charge unless overdrawn
Can receive wages in and pay direct debits out

Question 4

Disadvantages of standard account

Answer 4

No extra benefits
Very low interest on positive balance
Overdraft is expensive

Question 5

Definition of packaged/premium account

Answer 5

The same facilities as a standard account but bundled with an additional “package of services”

Question 6

Advantages of packaged/premium account

Answer 6

Extra features like travel insurance, breakdown cover, cash back on purchases, cheaper overdraft
The perks may be cheaper than buying them separately

Question 7

Disadvantages of packaged/premium account

Answer 7

Monthly charge
It may not be value for money
Customer May have insurance already with other companies

Question 8

Definition of basic account

Answer 8

For customers with a poor credit rating

Question 9

Advantages of basic account

Answer 9

First step to having banking facilities
Can pay in and withdraw cash

Question 10

Disadvantages of basic account

Answer 10

No debit card
No overdraft

Question 11

Definition of student account

Answer 11

Aimed at learners in higher education

Question 12

Advantages of student account

Answer 12

Payment of student load into the account
Pay university tuition fees, accommodation fees out of the account
Debit card, travel discounts, vouchers, interest free overdraft

Question 13

Disadvantages of student account

Answer 13

Expensive if you exceed overdraft limit
Limited banking facilities