Topic 4 - Everyday banking Flashcards
In relation to a cheque, what information would appear in a current account statement?
The cheque number.
To be acceptable as proof as a person’s address when opening a current account, a utility bill must be:
Less than 3 months old, according to the BBA
Who are premier accounts designed for?
Wealthy customers, particularly those earning £75,000 or more.
Name the different types of current accounts
- Standard current account
- packaged account
- basic bank account
- student account
- youth account
- Joint account
- premier account
What are basic current accounts?
Accounts for people who wish to avoid borrowing, such as those on benefits or low incomes.
What are the features of a basic bank account?
- debit or cash card
- operated free of charge
What are youth accounts?
Current accounts for people aged under 18. They do not have overdraft facilities as people need to be over 18 to borrow money
Features of youth accounts
- cash cards
- standing orders
- debit cards
- cheques
- online banking
- mobile banking
- text alerts
What are standard current accounts?
Accounts for people who pay bills by direct debit, manage their money and borrow money. These offer the full range of current account facilities
Feature of standard current accounts
- Cash cards
- debit cards
- direct debits
- standing orders
- overdrafts
- cheque books
- online and mobile banking
- free of charge
What are student and graduate accounts?
Thee are current accounts that come in variations based on needs of students in higher education and recent graduates
Feature of student accounts
- low interest/no interest overdraft
- discounts on contents and travel insurance policies
What are joint accounts?
These are current accounts held by two or more people. These suit people who share finances eg married couples.
What are packaged current accounts?
accounts that offer extra benefits for a monthly fee. This fee varies from £2 - £20.
Features of packaged current accounts
- mobile and travel insurance
- car breakdown cover
- discounts in stores and subscriptions for media services