Unit 3 - A2/A3 - Ms Powell

Question 1

What is a Standard Bank Account?

Answer 1

An everyday bank account that is designed to hold the money you spend on a regular basis (either on living costs or household bills)

Question 2

What is a Packaged/Premium Bank Account?

Answer 2

An account that offers access to a number of additional products, services and subscriptions that aren’t usually associated with a current account.

Question 3

What is a Basic Bank Account?

Answer 3

An account that offers a simple range of every day banking services, limited mostly to payments in and out through standing orders and debit card facilities.

Question 4

What is a Student Account

Answer 4

An account designed to help those in further education manage their finance’s and access larger overdrafts at cheap or often free interest levels.

Question 5

What is meant by the term ‘Borrowing’?

Answer 5

A way of finding a purchase now but paying for it over a period of time.

Question 6

What are different types of Borrowing?

Answer 6

• Overdraft
• Personal Loan
• Hire Purchase
• Mortgage
• Credit Card
• Payday Loan

Question 7

What are the different types of Payment Methods?

Answer 7

• Cash
• Debit card
• Credit card
• Cheque
• Electronic transfer
• Direct debit
• Standing order
• Pre-paid cards
• Contactless cards
• Charge cards
• Store cards
• Mobile banking
• Banker’s Automated Clearing Services (BACS) Faster Payments
• Clearing House Automated Payment System (CHAPS).