Type of current accounts Flashcards
What is a standard account
An account that provides full day to day banking facilities
List the features of a standard account
You receive a debit card
Can make purchases online
Can set a pre arranged overdraft
Give 2 advantages of a standard account
No charges on credit
Offers a wide range of banking facilities
Give 2 disadvantages of a standard account
high interest on overdrafts
Only standard features included
What is a packaged/premium account
This account has a monthly fee in return for additional benefits such as breakdown cover, cashback on purchases, home insurance and payment protection
Give 2 advantages of a packaged/premium account
Often cheaper than buying additional benefits
No charges on credit
Give 2 disadvantages of a packaged/premium account
additional benefits are only worthwhile if they meet customer needs
Monthly charges
What is a basic account
mainly used by people who have a poor credit
It has limited facilities and no overdraft available.
Give 2 advantages of a basic account
Available to those with low credit ratings
Easy to access basic banking features
Give 2 disadvantages of a basic account
It has limited facilities
No overdraft available
Takes time to progress to a standard account
What is a student account
An account designed to benefit students. Especially useful for students attending university as they provide interest free overdrafts, rail cards and discounts off eating out.
Give 2 advantages of a student account
Low deposits required
Benefits can be useful
Give 2 disadvantages of a student account
Can encourage overspending
Low interest
