Topic 4 - Everyday banking Flashcards

1
Q

In relation to a cheque, what information would appear in a current account statement?

A

The cheque number.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

To be acceptable as proof as a person’s address when opening a current account, a utility bill must be:

A

Less than 3 months old, according to the BBA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Who are premier accounts designed for?

A

Wealthy customers, particularly those earning £75,000 or more.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Name the different types of current accounts

A
  • Standard current account
  • packaged account
  • basic bank account
  • student account
  • youth account
  • Joint account
  • premier account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are basic current accounts?

A

Accounts for people who wish to avoid borrowing, such as those on benefits or low incomes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the features of a basic bank account?

A
  • debit or cash card
  • operated free of charge
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are youth accounts?

A

Current accounts for people aged under 18. They do not have overdraft facilities as people need to be over 18 to borrow money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Features of youth accounts

A
  • cash cards
  • standing orders
  • debit cards
  • cheques
  • online banking
  • mobile banking
  • text alerts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are standard current accounts?

A

Accounts for people who pay bills by direct debit, manage their money and borrow money. These offer the full range of current account facilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Feature of standard current accounts

A
  • Cash cards
  • debit cards
  • direct debits
  • standing orders
  • overdrafts
  • cheque books
  • online and mobile banking
  • free of charge
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are student and graduate accounts?

A

Thee are current accounts that come in variations based on needs of students in higher education and recent graduates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Feature of student accounts

A
  • low interest/no interest overdraft
  • discounts on contents and travel insurance policies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are joint accounts?

A

These are current accounts held by two or more people. These suit people who share finances eg married couples.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are packaged current accounts?

A

accounts that offer extra benefits for a monthly fee. This fee varies from £2 - £20.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Features of packaged current accounts

A
  • mobile and travel insurance
  • car breakdown cover
  • discounts in stores and subscriptions for media services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are premier accounts?

A

Current accounts designed for wealthy customers earning a certain level of income of £75,000 and above

17
Q

Features of premier accounts

A
  • personal banker that manages finances
18
Q

What must customers do before opening current accounts?

A
  • give proof of identity and address to prevent money laundering
  • this proof must be separate from one another
19
Q

Name all the things that can be accepted as proof of identity or address.

A
  • utility bill that’s less than 3 months old
  • council tax bill issued in current tax year
  • driving licence issued in the UK
  • passport
  • employer ID card
  • pension
  • medical card
  • HMRC documents
  • insurance certificate less than 12 months old
20
Q

What are the requirements for switching or closing accounts?

A

Nothing. Providers usually offer free switching and closing services at different providers or accounts held at one provider.