A3 - Current Accounts , advantages and disadvantages , features.

Question 1

what is a current account ?

Answer 1

a current account is great for managing your day - to - day money.

you can receive regular payments and you can set up payments.

Question 2

what can you do with a current account ? ( 6 marks )

Answer 2

• pay for things with a debit card.
• write cheques to pay bills and individuals.
• receive payments.
• set up Direct Debits and standing orders to pay your bills.
• transfer money through telephone or online banking services.
• withdraw cash over the counter or through a cash machine.
• check your balance using mobile banking , at a cash machine , over the counter.
• apply for an overdraft allowing you to spend an agreed amount more than you have in your account.
• pay cheques into your account.

Question 3

what are 4 different types of current account ?

Answer 3

Standard.
Packaged Premium.
Basic
Student.

Question 4

what are the features of a standard current account ?

Answer 4

• Normal account offered to customers with a reasonable credit rating.
• It includes standard features such as the ability to pay and withdraw cash.

Question 5

what are the features of a packaged - premium account ?

Answer 5

• offer additional features such as car and house insurance , credit card protection , breakdown cover, and cash back on some transactions.
• may have additional charges

Question 6

what are the features of a Basic account ?

Answer 6

• offers limited features.
• designed for customers who find it difficult to open a bank account due to credit ratings.
• will not offer an overdraft and will not pay interest on positive balances.

Question 7

what are the features of a student account ?

Answer 7

• to meet the needs of higher education students.
• The main difference between a current account and a student account is the overdraft facility.

Question 8

what are the advantages of standard current accounts ?

Answer 8

• quick access to money for day- to - day spending.
• receive payments such as salaries.
• make payments through direct debits and standing orders.
• helps build your credit score.
• protection of your money.

Question 9

what are the disadvantages of standard current accounts

Answer 9

• no interest on deposits.
• high minimum balance requirement
• transaction fees.
• length and confusing paperwork.

Question 10

what are the advantages of a packaged premium current account ?

Answer 10

• cost savings.
• convienent, extra services and banking from one provider.
• additional features.
• better rates.

Question 11

what are the disadvanatges of packaged premium current accounts ?

Answer 11

• paying for benefits an individual migh not use
• has additional charges.

Question 12

what are the advantages of basic current accounts ?

Answer 12

• managing everyday bank needs.
• makes payments easier by setting up direct debits and standing orders.
• accessing cash more easily.
• staying in control for your money.
• keeps your money protected and secure .

Question 13

what are the disadvantages of using a basic current account ?

Answer 13

• no overdraft facility.
• fewer features and rewards.
• no interest earned on money in the account.
• no option for a cheque book.

Question 14

what are the advantages of a student current account ?

Answer 14

• interest free overdraftfacilities.
• free of charge such as a railcard or laptop insurance.
• reduced charges on transactions , transfers and other banking services.
• exclusive deals.

Question 15

what are the disadvantages of using a student current account ?

Answer 15

• interest rates are usually low.
• age restrictions.
• overdraft fees.
• limited accessibility.

Question 16

what is the definition of an overdraft ?

Answer 16

an overdraft is the ability to withdraw money that you do not have from a current account.