module two Flashcards
Personal customers
use banks for own use, can be in own name or joint, includes children and teenagers
Sole traders
self-employed and starts own business using separate business account
Partnerships
two or more people working for a business for profit
Limited companies
separate legal identities
Community groups
group of people sharing a common interest, banks offer accounts provided it’s a voluntary, non-profit organisation
Trustees
holds and administers property or assets for benefit of a third party. Most banks offer trust accounts for trustees.
Vulnerable customers
Someone whose more likely to be harmed particularly when a firm isn’t acting with appropriate levels of care
Financial inclusion
access to useful n affordable products/services
Financial capability
The knowledge and skills help us make more informed and effective decisions ability to manage money
Current accounts
helps customer manage money on a daily basis.
Personal loans
interest charged on amount borrowed which can be either variable or fixed
Unsecured personal loans
agreement between customer and lender. Legal right to take their money back if the customers unable to make their payments. Affects credit history.
Secured personal loan
borrowing money using their assets as security meaning if customers unable to pay lender can possess the asset. Usually lower interest rates
Repayment
paying off capital n interest. In the early years monthly payments will mainly go towards paying off the interest
Interest only
only paying off interest and having to pay full capital at end with evidence needed of how they’re going to repay.
