@ Current Accounts

Question 1

Name the Four Current Accounts

Answer 1

• Standard Account
• Packaged, Premium Account
• Basic Account
• Student Account

Question 2

Ad of Standard Account

Answer 2

• Convenient for receiving regular payments e.g wages and regular withdrawals
• No charges on credit balances

Question 3

Dis of Standard Account

Answer 3

• Potentially high charges on the use of overdraft facility

- Standard features only and no additional benefits are available

Question 4

Ad of Packaged, Premium Account

Answer 4

• Often cheaper than buying all the additional benefits separately
• No charges on credit balances

Question 5

Dis of Packaged, Premium Account

Answer 5

• Additional monthly charge is frequently applied

- The value of incentives on offer is only worthwhile if they meet the needs of the customer and are used

Question 6

Ad of Basic Account

Answer 6

• Available to customers with a low credit rating

- Offers an easy first step to gaining access to basic banking features e.g. paying in and withdrawing money

Question 7

Dis of Basic Account

Answer 7

• Limited facilities can prove an inconvenience e.g overdraft facility and some no debit cards
• May take time to improve credit rating in order to progress to a standard account

Question 8

Ad of Student Account

Answer 8

• Course fees and loans can be easily handled

- Incentives and freebies can be particularly useful e.g free rail cards

Question 9

Dis of Student Account

Answer 9

• Overdraft facilities could encourage overspending

- Low interest on credit balances compared with a standard current account

Question 10

Basic Account

Answer 10

This account offers limited features and would be typically held by a person with no credit history in the UK or a poor credit history

Question 11

Student Account

Answer 11

These are designed to assist young people and students to become prudent with their personal finances

Question 12

Packaged, Premium Account

Answer 12

This account has an annual fee or additional charge in return for offering extra incentives.

Question 13

Standard Account

Answer 13

This type of account provides full day-to-day banking facilities.

Question 14

Features of Standard Account

Answer 14

• No banking fees

- Facility to set up direct debits/ standing orders to pay bills

Question 15

Features of Basic Account

Answer 15

• Debit Card
  (mabye)

- No banking fees

Question 16

Features of Packaged, Premium Account

Answer 16

• Special rates of interest on overdrafts

- Cash back on household bills paid by direct debit

Question 17

Features of Student Account

Answer 17

• Interest-free overdraft up to a certain limit, if you go over the limit, the interest can be very high
• Debit card

Question 18

Current Account Definition

Answer 18

An account used for everyday spending