Current Accounts

Question 1

What is a credit card ?

Answer 1

Credit card - pay back money within the month else you pay back with interest

Question 2

What is a debit card ?

Answer 2

Debit card - can have an arranged over draft with the bank , have to have the money in your bank account , the money is taken from your account immediately

Question 3

Who can have a current account ?

Answer 3

Any uk resident over 16 can have a current account but some services aren’t available till 18

Question 4

What are the 4 types of current accounts ?

Answer 4

-standard
-student
-basic
-packaged premium

Question 5

What are advantages of a standard current account ?

Answer 5

-contactless debit card
-mobile banking app
-overdraft facility available
-its free to set up
-range of facilities available
-convenient for receiving wages , withdrawing money

Question 6

What are the disadvantages of a standard current account ?

Answer 6

-high charges on the overdraft
-no additional perks

Question 7

What is a student account ?

Answer 7

A student account is aimed at learners in higher education to help them manage their finances , it has limited facilities

Question 8

Advantages of a student current account ?

Answer 8

-interest free overdraft up to a certain limit
-debit card
-some accounts offer a free gift card and travel discounts helpful for students

Question 9

Disadvantages of a student current account ?

Answer 9

-if you go over the overdraft limit the interest can be very high
-features are only available to students in further education , once they leave changes back to a student account
-limited facilities

Question 10

What is a basic current account ?

Answer 10

-aimed at customers with a poor credit rating , it is similar to a standard account but with no overdraft facilities

Question 11

What are advantages of basic current accounts ?

Answer 11

-available to those with low credit scores
-have the ability to pay in and withdraw cash
-gives individuals the ability to set up direct debits

Question 12

What are the disadvantages of basic current accounts ?

Answer 12

-limited facilities
-no overdraft facility

Question 13

What are packaged ,premium current accounts ?

Answer 13

Premium , current accounts are similar to standard accounts but offers additional features for a monthly fee

Question 14

Advantages of packaged , premium current accounts ?

Answer 14

-gives benefits such as travel insurance
-cash back on household bills paid by direct debit

Question 15

Disadvantages of packed , premium current accounts ?

Answer 15

-additionally monthly charge
-some of the benefits provided may not be required or used by the account holder so customer paying for useless benefits