Bank Accounts

Question 1

What is a standard account?

Answer 1

This is the typical free current account that most customers receive.

Question 2

Positives and negatives of standard account

Answer 2

Positives
- Entitled to a debit card, cheque book, sometimes an overdraft limit

Negative
- You are able to set up direct debits however they are no added extras.

Question 3

What is a premium account?

Answer 3

This account offers additional features to a standard account, for example car and house insurance, credit card protection, breakdown cover and cash back on certain transactions.

Question 4

Positive and negative of premium account

Answer 4

Positives
- Offers the holder additional perks at a packaged price cheaper than acquiring them individually.

Negatives
- Additional monthly charge is frequently applied.

Question 5

What is a basic account?

Answer 5

Limited version of a standard account for people with a poor credit rating. Does not pay out overdraft and does not pay interest on positive balances.

Question 6

Positives and negatives of basic account

Answer 6

Positive
- Available to customers with a low credit rating

Negative
- Limited facilities, e.g no debit card or overdraft facility

Question 7

What is a student account?

Answer 7

Designed specifically to meet the needs of learners. Features include an agreed overdraft limit and incentives to join the bank, for example free rail cards or cash.

Question 8

Positives and negatives of student account

Answer 8

Positive
- Course fees and student loans can be easily handled

Negative
- Overdraft facilities could encourage overspending