A3: Current accounts

Question 1

What is a standard current account?

Answer 1

A normal account offered to customers that have a reasonable credit rating.

Question 2

What is a basic current account?

Answer 2

An account that offers limited features for people with a bad credit rating such as no overdraft and no interest on positive balances.

Question 3

What is a packaged premium current account?

Answer 3

This account is the same as a standard account by holds additional features such as insurance and cash back on some transactions

Question 4

What is a student current account?

Answer 4

An account designed to meet the needs of students, this account also offers an overdraft limit and incentives to join the bank such as paying portions of uni fees.

Question 5

What are the advantages and disadvantages of a standard current account?

Answer 5

Advantages:
No charges on credit balance
Offers a wide range of facilities

Disadvantages:
High charges on overdraft
Limited features

Question 6

What are the advantages and disadvantages of a packaged premium account?

Answer 6

Advantages:
No charges on credit balance
Offers perks

Disadvantages:
Monthly charge
May not suit the needs of the customer

Question 7

What are the advantages and disadvantages of a basic current account?

Answer 7

Advantages:
Available to everyone
Access to basic facilities

Disadvantages:
Limited facilities
No overdraft

Question 8

What are the advantages and disadvantages of a student current account?

Answer 8

Advantages:
Student maintenance loan
Provides bonus offers

Disadvantages:
Overdraft could cause overspending
High interest rates