A3 - current accounts

Question 1

what are the 4 types of current accounts

Answer 1

standard
basic
student
package/premium

Question 2

standard current account

Answer 2

features:
- optional overdraft
- £500 withdrawal a day
- £5 monthly fee
qualify:
- £800 paid each month
- over 18
- UK resident
who:
- young adults
- employed
advantage:
+ cashback rewards
disadvantage:
- additional cost
- lower withdrawal amount

Question 3

basic current account

Answer 3

features:
- £500 withdrawal a day
- no monthly fee
- optional overdraft
qualify:
- over 18
- UK phone number
who:
- low/no credit rating
- 1st bank account
- previous bankruptcy
advantages:
+ flexible
+ no fee monthly
disadvantages:
- lower withdrawal
- lower interest
- no rewards

Question 4

premium/package current account

Answer 4

features:
- £2000 withdrawal a day
- no monthly fee
qualify:
- income over £75,000
- not in full education
- UK number
- over 18
who:
- company/business
- have significant investments
advantages:
+ rewards
+ higher payment limit
disadvantages:
- harder to qualify

Question 5

student current account

Answer 5

features:
- no hidden charges
- interest free overdraft = 1st term (£500), 1st year (£1000), 2nd year + (£1500)
qualify:
- over 18
- lived in UK 3 yrs +
- use as main account
- full time studying as undergrad in UK
who:
- students
advantages:
+ interest free overdraft
+ no hidden charges
+ rewards (subscription to text books)
disadvantage:
- small non guarenteed overdraft