Types Of Current Accounts

Question 1

2 advantages of a standard account

Answer 1

There are no banking fees involved. This means that the account holder will not need to pay a monthly fee to maintain the current account.
-can setup direct debits/standing orders, allowing you to pay bills

Question 2

2 disadvantages of a standard account

Answer 2

High interest on overdrafts
Only standard features included

Question 3

2 advantages of a packaged, premium account

Answer 3

Packaged benefits such as travel insurance or discounts on goods and services
Cash back on household bills paid by direct debit

Question 4

2 disadvantages of packaged, premium accounts

Answer 4

Monthly fee to maintain the current account
Account holder may not use some of the benefits provided such as travel insurance

Question 5

2 advantages of a basic account

Answer 5

No banking fees involved. This means the account holder does not need to pay a monthly fee to maintain the account.
Facility to setup direct debits to pay bills

Question 6

2 disadvantages of a basic account

Answer 6

No overdraft facilities - must ensure you have sufficient funds to cover your expenses
Takes time to progress to a standard account

Question 7

2 advantages of a student account

Answer 7

May offer free gift card or travel discounts
Interest-free overdraft up to a certain limit, may allow you to cover any unexpected bills

Question 8

2 disadvantages of a student account

Answer 8

Interest is high if you go past the limit in the overdraft facility
Overdrafts can encourage overspending which can lead to unnecessary debt