types of current accounts - A

Question 1

features of a current account

Answer 1

• rate of interest paid on positive balance
• rate of interest paid on negative balance
• overdraft limit
• charges on unauthorised overdrafts
• additional incentives

Question 2

standard

Answer 2

normal account offered to those with a reasonable credit rating, ability to pay, cheque book, debit card, overdraft limit and interest charges on +/- balances.

Question 3

packaged/premium

Answer 3

additional features compared to standard accounts, such as insurances, however there may be additional charges for these accounts so its vital to check if it is a good deal or not

Question 4

basic

Answer 4

limited features, does not offer an overdraft and does not pay interest on + balances, designed for those with a poor credit rating

Question 5

student

Answer 5

designed specifically to meet the needs of students, an agreed overdraft, additional perks such as a railway card, banks are keen to attract students as they often stick with banks for life