Current account advantages and disadvantages

Question 1

Standard current account benefits

Answer 1

-No charges on credit balances
-Offers the wide range of banking facilities required

Question 2

Standard current account drawbacks

Answer 2

-Possibility of high interest charges on overdrafts
-Standard features only and no additional benefits are available

Question 3

Packaged, Premium current account Benefits

Answer 3

-It is often cheaper than buying all the additional benefits separately
-No charges on credit balances

Question 4

Packaged, Premium current accounts drawbacks

Answer 4

-The value of the incentives on offer is only worthwhile if they meet the needs of the customer and are used
-Additional monthly charges are often applied

Question 5

Basic current account benefits

Answer 5

-Available to customers with low credit rating
-Offers an easy first step to gaining access to basic banking features e.g. paying in and withdrawing money

Question 6

Basic current account drawbacks

Answer 6

-Limited facilities can prove an inconvenience e.g. no debit card
-May take time to improve credit rating in order to progress to a standard account

Question 7

Student current account benefits

Answer 7

-Low deposits required - in some cases paying in a student loan is sufficient
-Incentives and freebies can be particularly useful e.g. free railcards

Question 8

Student current account drawbacks

Answer 8

-Low interest on credit balances compared with a standard current account
-Overdraft facilities could encourage overspending