Unit 3-current accounts (A3)

Question 1

what is standard current accounts?

Answer 1

A current account also known as debit account, is the main account that include majority of people possess.

Question 2

Functions of standard accounts

Answer 2

paying bills

having your wage

benefits being paid into it

sending money through standing orders

Question 3

Advantages of student account

Answer 3

-course fees and loans can be easily handled

-added extras are designed to meet the needs of students

Question 4

Disadvantages of student accounts

Answer 4

-overdraft facilities could encourage overspending

-charges for overspending are high

-limited facilities

Question 5

what is Premium/packaged accounts

Answer 5

where you receive additional benefits for monthly fee including;

-insurance such as holiday, gadget and health
-breakdown cover
-cashback

Question 6

Advantages of premium/packaged accounts?

Answer 6

-no charges on credit balances

-range of facilities (debit cards, overdraft ,cheque book)

-convenient for receiving wages and withdrawing money

-additional perks (travel insurance, breakdown cover, phone insurance)

Question 7

Disadvantage of premium /package account?

Answer 7

-additional monthly charge

-may not provide value for money for certain individuals

Question 8

What is basic account?

Answer 8

a basic account has limited features and is mainly designed for individuals with poor credit ratings.

Question 9

Features of basic account

Answer 9

-no borrowing is allowed in any form

-some banks do not provide debit cards with these accounts

Question 10

Advantages of a basic account ?

Answer 10

-available to customers with a low credit rating

-easy step for banking

-ability to pay in and withdraw cash

Question 11

Disadvantages of basic accounts?

Answer 11

-limited facilities

-no debit card

-overdraft facility

Question 12

Advantages of standard accounts

Answer 12

-no charges on credit balance

-range of abilities (debit card,overdraft,cheque book)

-convienient for recieving wages and withdrawing money

Question 13

Disadvantages of standard account

Answer 13

-potentially high charges on overdraft

-standard features no additional perks

Question 13

What are student accounts?

Answer 13

university students are offered student accounts which have a variety of benefits;

large overdraft

railcards

cashback on purchases

discounts