Type of Current Account

Question 1

What are the different Types of Current Accounts?

Answer 1

Standard
Packaged, Premium
Basic
Student

Question 2

Advantages and Disadvantages of Standard

Answer 2

No charges on credit balances - Offers the holder a wide range of facilities including a cheque book, debit/cash card and possibly an overdraft facility - Convenient for receiving regular payments.

Potentially high charges on the use of an overdraft facility - Standard features only, i.e. no additional perks

Question 3

Advantages and Disadvantages of Packaged, Premium

Answer 3

No charges on credit balances - Offers the holder a wide range of facilities including a cheque book, debit/cash card and possibly an overdraft facility - Convenient for receiving regular payments, e.g. wages and making regular withdrawals - Offers the holder additional perks at a packaged price cheaper than acquiring them individually (standard additional features include things such as holiday/travel insurance, break down cover and phone protection)

Additional monthly charge is frequently applied - The package offered may not offer value for money or meet the needs of the individual account holder

Question 4

Advantages and Disadvantages of Basic

Answer 4

Available to customers with a low credit rating - Offers an easy first step for individuals to gain access to basic baking facilities.

Limited Facilities

Question 5

Advantages and Disadvantages of Student

Answer 5

Course fees and student loan can be easily handled - Bonuses offered are designed to meet the needs of learners.

Overdraft facilities could encourage overspending - Charges for overspending are high - Limited facilities.