Current Accounts

Question 1

What is a current account

Answer 1

Type of account offered by banks/building societies for frequent use including deposits/withdrawals

Question 2

What are the 4 types of current account

Answer 2

Standard
Packaged/Premium
Basic
Student

Question 3

State one important feature of a current account

Answer 3

Funds can be accessed immediately

Question 4

What is a standard current account

Answer 4

The most common account for individuals with an ok credit rating

Question 5

What are the features of a standard current account

Answer 5

Widely offered by high streets /online banks
Range of services but limited additional perks
Customers can easily switch between banks to try and secure best deals

Question 6

Advantages of a standard current account

Answer 6

Widely available
Overdrafts
Range of services

Question 7

Disadvantages of a standard current account

Answer 7

Limited additional benefits

Charges on overdrafts/bounced cheques etc can be high

Question 8

Services offered by a standard current account

Answer 8

Direct debits/standing orders
Cheque books and debit cards
Cash payments in/withdrawals
Overdraft limit
Pays/charges interest depending on if the balance is positive or negative

Question 9

What is a packaged/premium current account

Answer 9

Similar to a standard current account but comes with added extra perks(e.g car breakdown cover)

Question 10

Features of a packaged/premium current account

Answer 10

Additional benefits such as insurance, card protection, cash back, discounts and mobile phone cover(package will very from bank to bank)
Services offered are the same as standard current account

Question 11

Advantages of packaged/premium current account

Answer 11

Range of services
Additional benefits
Ease of coordinating different aspects of personal finance

Question 12

Disadvantages of packaged/premium current account

Answer 12

Charged for additional fees

Generic rather than tailored to personal needs

Question 13

What is a basic current account

Answer 13

Type of current account with limited features designed for high risk customers who struggle to open accounts due to low credit rating

Question 14

Features of a basic current account

Answer 14

Only offers some of the standard current account features
Can still pay money into the account and make cash withdrawals
No overdraft or credit card

Question 15

Advantages of a basic current account

Answer 15

Opportunity to open an account for those with low credit rating
Bank account may be necessary for employment or for rented accommodation so it gives people the chance to apply

Question 16

Disadvantages of a basic current account

Answer 16

Limited services

May cause embarassment

Question 17

What is a student current account

Answer 17

Type of current account designed to meet specific needs of students

Question 18

Features of a student current account

Answer 18

Processes required to pay uni tuition fees
Standing orders for accommodation
Limited overdraft facilities
Incentives to join that bank
Direct payment of student loan into the account

Question 19

Advantages of a student current account

Answer 19

Tailored to meet the needs of students
Additional perks specific to students e.g free rail cards
Understands the timing of student cash flows

Question 20

Disadvantages of student current account

Answer 20

Unusable after graduation(need to transfer)

Charges on overdrafts/bounced cheques etc can be high

Question 21

Services offered by student current accounts

Answer 21

Direct debits and standing orders
Cheque book and debit card
Cash payments in/withdrawals
Limited overdraft