Topic 4 - Everyday Banking Flashcards
1
Q
What is a current account used for?
A
- receiving payments
- storing money for short periods of time
- making payments
- accessing cash
2
Q
Types of current accounts
A
- standard current accounts
- packaged accounts
- basic bank accounts
- student accounts
- youth accounts
- premier accounts
3
Q
What are basic bank accounts?
A
- limits possibilities of getting into debt: doesn’t offer overdrafts, cheque books, credit + debit cards
- usually for ppl living on benefits + w low incomes
- operate be cash cards/pre-paid cards
- most offer direct debits + standing orders to pay bills
4
Q
What are youth accounts?
A
- for people <18
- accounts for 16-18yrs + 11-15yrs
- don’t offer overdraft as <18 can’t borrow money
5
Q
Standard current accounts
A
- most common
- offers full range of current account facilities
- usually free
6
Q
Student + graduate accounts
A
- low/no interest overdraft facilities
- attracts students w discounts
7
Q
Interest paid when in credit
A
- some accounts pay interest on credit balances
- conditions to obtain interest:
- keep account in credit
- pay in a certain amount each month
- bank online
8
Q
What are joint accounts?
A
- held by 2 or more ppl
- for ppl shares finances (e.g. married couple)
9
Q
Packaged accounts
A
- offer Xtra benefits: travel insurance, mobile phone insurance, car breakdown cover
- for monthly fee
10
Q
Premier accounts
A
- for wealthy customers: requires certain levels of income e.g. earnings of +/= £75,000, funds to save + invest
- offer Xtra services: personal bankers, dedicated relationship manager, access to premium banking team w 24hr customer service
- benefits: fee-free holiday money, travel insurance for ur family
11
Q
Opening an account
A
- must supply provider w separate proof of identity/address: to prevent money laundering (criminal activity to hide source of their funds)
- proof: original, current
- posted docs. may be photocopies if signed by professional (lawyer, accountant, doctor) if true copies + if they’ve seen original
12
Q
Monitoring transactions
A
- important to monitor accounts to ensure they have sufficient funds to pay transactions
- can use statements to monitor transactions
- cheques appear as the number of the cheque
13
Q
Switching + closing accounts
A
- providers offer free service for customers switching accounts
- don’t need to give a reason for switching
- free to close an account
