Different Current Accounts

Question 1

What is a current account?

Answer 1

An account with a bank or building society that is designed for frequent use.

Question 2

The features of a current account will include:
1. The ________________ paid on any positive/ negative balance.
2. ______________ limit.
3. Charges on unauthorised ________________.
4. _____________________.

Answer 2

1. rate of interest
2. Overdraft
3. overdrafts
4. Additional incentives

Question 3

What are the different types of current accounts:
1.
2.
3.
4.

Answer 3

1. Standard.
2. Packaged/ premium.
3. Basic.
4. Student.

Question 4

A standard account is the normal account offered to customers with a _______________________.

Answer 4

reasonable credit rating

Question 5

What are 3 advantages of a standard account?

1. _______________ on credit balances.
2. Offers a wide range of ____________.
3. Convenient for receiving ____________________.

Answer 5

1. No charges
2. facilities
3. regular payments

Question 6

What are 2 disadvantages of a standard account?

1. Potentially high charges on the
   use of an _____________ facility.
2. Has no additional _________.

Answer 6

1. overdraft
2. perks

Question 7

A packaged/ premium account is a standard account with additional features such as:
1.
2.

Answer 7

1. Insurance
2. Credit card protection

Question 8

What are 3 advantages of a packaged/ premium account?

1.______________ on credit balances.
2. Offers a wide range of ____________.
3. Offers __________________ at a packaged price.

Answer 8

No charges
facilities
additional perks

Question 9

What is a disadvantage of a packaged/ premium account?
An additional _________________ is applied.

Answer 9

monthly charge

Question 10

A basic account is an account that offers only ______________________ designed for those customers who may have ____________________.

A basic account will not offer an _______________ and will not pay interest on positive balances.

Answer 10

limited features
poor credit ratings

overdraft

Question 11

What is the main advantage of a basic account?

Answer 11

Easily accessible to customers with a low
credit rating.

Question 12

What are 2 disadvantages of a basic account:
1.
2.

Answer 12

1. No debit card.
2. No overdraft.

Question 13

A student account is the type of account holding an agreed __________________ and _______________ for students to join the bank for a lifetime.

Incentives include free rail cards.

Answer 13

overdraft limit
incentives

Question 14

What are 2 advantages of a student account:
1. Easy to handle _____________ and __________________.
2. ___________________________________.

Answer 14

1. course fees
   student loans
2. Additional incentives

Question 15

What are 2 disadvantages of a student account:
1. ________________ facilities can encourage _________________, but charges for overspending are high.
2.____________________.

Answer 15

1. Overdraft
   overspending
2. Limited facilities