current accounts Flashcards
current accounts
type of account offered by banks + building societies for frequent use. where you can store and withdraw money.
types of current accounts
standard current account
packaged premium
basic
student
standard account
the most comment account for people assuming they have an on credit rating
advantages: widely available, range of services, overdraft facility
disadvantages: limited additional benefits, charges on overdraft, cheques, etc can be expensive
features of a standard accounts
can set up direct debits/standing orders, wages can be paid directly to the account, make cash withdrawals, may offer an overdraft limit
packaged premium
offer the same facilities as standard account but bundled with an additional ‘package of services’
advantages: range of services, additional benefits, ease of coordinating different aspects of finance
disadvantages: often charge additional fees, generic rather than tailored to individual needs (travel insurance may be of no benefit)
features of packaged premium
free insurance
break down cover
cash back
basic current account
often aimed at those with a poor credit rating who struggle to open an account
advantages: may be necessary condition for employment, no banking fees
disadvantages: limited services, may attach a stigma
features of a basic current account
customers that are seen as high risk + not offered credit are accepted
can still pay money into the account and make withdrawals as long as there’s specific funds
student current account
current account to meet the needs of students
advantages: often pay less interest, same facilities as standard account, can offer gift cards
disadvantages: access to finance is limited, only higher education students can open an account
features of a student current account
process to pay unit tuition fees
limited overdraft facilities
