A3 - Current Accounts

current account

account with a bank or building society that is designed for frequent use. money can be paid or withdrawn on a daily basis without giving notice to the bank

current account uses

account with a bank or building society that is designed for frequent use. money can be paid or withdrawn on a daily basis without giving notice to the bank

current account features

• rate of interest paid on positive balance

• rate of interest charged on negative balance

• overdraft limit

• charges on unauthorised overdraft

• additional incentives

types of current accounts

• standard

• basic

• premium, packaged

• student

standard

provides the user with services such as debit card and facilities to use online banking

packaged/premium

provides the above and a range of additional benefits such as holiday or car insurance

basic

basic banking services allowing the user to save and withdraw money

student

standard current account features plus additional incentives such as discounted travel, railcards etc

current account advantages

• money in a secure place

• can earn interest on your money

• can use cash machine for withdrawals

• can buy products online

• avoid carrying large amounts of cash on person

interest rates

normally refers to the Bank of England base rate. it is their charge for commercial banks’ money borrowed. Government sets the BoE a price inflation target (currently long-term 2%) and it is the BoE’s responsibility to meet this target

types of borrowing

• overdraft

• mortgage

• credit cards

• personal loan

• hire purchase

• payday loans