Current Accounts Flashcards
What is a Current Account?
An account with a bank or building society that is designed for frequent use.
What is a Standard Current Account?
An account offered to customers a with reasonable credit rating.
Advantages of Standard Current Accounts?
- Free to open account
- Available for all ages
- No charges on credit balances
- Offers a wide range of facilities such as a debit or credit card, cheque book and possibly an overdraft facilitity
- Convenient for receiving regular payments such as wages and making regular withdrawals
Disadvantages of Standard Current Accounts?
- Potential high charges on using an overdraft
- Only offers standard features, there is no additional features
What is a Packaged, Premium Current Account?
An account offered to customers with additional features to a standard account.
Advantages of Packaged, Premium Current Accounts?
- No charges on credit balances
- Offers a wide range of facilities such as a debit or credit card, cheque book and possibly an overdraft facility
- Convenient for receiving regular payments such as wages and making regular withdrawals
- Offers additional features at a packaged price which is cheaper than acquiring them individually such as travel insurance, mobile phone insurance and break down cover
Disadvantages of Packaged, Premium Current Accounts?
- Additional monthly charge
- The package may not offer value for money or offer the needs of the individual account holder
What is a Basic Current Account?
An account offers with limited features offered to customers who have difficulties in opening an account due to poor credit ratings.
Advantages of Basic Current Accounts?
- Free to open account
- Available to customers with a low credit rating
- Provides customers with basic banking facilities such as the ability to pay in and withdraw cash
Disadvantages of Basic Current Accounts?
- Offers limited facilities such as no debit card, cheque book or overdraft facility
What is a Student Current Account?
An account offered to meet the needs of students.
Advantages of Student Current Accounts?
- Free to open account
- Course fees and student loans can be easily handled
- Provides offers to meet the needs of students such as discounts on railways and free fee overdrafts
Disadvantages of Student Current Accounts?
- Only available for students
- Overdraft facilities could encourage a student to overspend
- Changes for overspending are high limited facilities
- High charges once account converts
