Current accounts

A current account is a bank or building society account

that is typically accessed on a day to day basis, from
which money may be withdrawn without notice.

The four types of current accounts are: Standard, Basic,

Premium , Student

Standard current account

This is the typical free current account that most

customers receive.

These accounts typically offer the free banking so you

would be entitled to a debit card, cheque book and
sometimes an overdraft limit.

You are able to set up direct debits and standing orders

from these types of accounts, however you get offered
no added extras.

Premium Current Account

These types of current account typically will chare a
monthly fee for use.

Thesee accounts typically offer all the services that you

would expect from the standard current account
however in addition you would be entitled to features
such as travel insurance and mobile insurance

Basic Current Account

These types of current accounts typically will be aimed

at people who could have some form for financial
difficulty.

These accounts are free and offer a reduced level of

features that you would expect from the standard current
account.

Typical features that would not be included in a basic

account are; no interest on balances, no overdraft facility
and no cheque book.

Student Current Account

These types of current account typically will be aimed at

students who are to or studying at university..
These accounts are free and offer all the features of a
standard current account, however they also tend to
offer special rewards for students who open an account,
typical rewards that would be included are student
railcards, cash back bonuses and fee free overdrafts.

Advantages and Disadvantages

Account Advantages Disadvantages

Standard Current ● Available to ● Doesnt offer
Account all age additional features
groups
● Bank charges can be
● Provides expensive.
range of
banking ● Low rate of interest
facilities paid

● Free to
open
account
Premium current ● Improved ● Not all features will
Account customer be used.
service. ● Monthly membership
fee.
● Wide range ● Could stull face bank
 of additional charges
features.

● Improves
rates of
interest paid
Basic Current ● Free to open ● Restricted banking
Account account features.

● Provides ● No overdraft limit.

basic
banking ● No interet paid on
facilities. balance.

● Enables
banking
access to
all.
Student Current ● Free to open ● Only available for
Account an account students.

● Provide ● Low interest paid on

offers and balances.
incentives.
● High charges once
● Reduced account converts.
borrowing
fees.

Different ways customers can communicate with

banks
Branches

One way customers can communicate with banks is

though branches. A branch is a physical place where the
customer will visit to carry out transactions which can
be face to face, for example over the counter
transactions or using computerised facilities, such as
automatic teller machines (ATM).

Advantages:

● Branch Opportunity to build a relationship

developing trust and brand loyalty

● Transactions can be conducted there and then

additional services such as advice can be offered

● Gives the customer a high level of confidence

Disadvantages:

● Need to travel to a branch which is likely to incur

travel costs, e.g. parking or fares for public transport

● Restricted to bank opening hours

● May be long queues plus travel time, making the
process time consuming
Online banking

Online banking means managing your bank accounts

with a computer or mobile device. This includes
transferring funds, depositing checks and paying bills
electronically.

Advantages:

● Available 24/7

● High degree of privacy

● Convenient

Disadvantages:

● Takes time at the beginning to set up or apply for

● Not suitable for cash withdrawals

● Increased risk due to cyber crime

● If just an online account, the facilities may be limited

Telephone Banking

Telephone banking is a service provided by a bank or

other financial institution, that enables customers to
perform over the telephone a range of financial
transactions which do not involve cash or Financial
instruments (such as cheques), without the need to visit
a bank branch or ATM.

Advantages:

● Telephone banking Convenient, especially to

access basic functions such as checking a balance

● No additional charges

● Simple and easy to use

Disadvantages:

● Full access may be limited to set hours

● Call centres and automated telephone systems can

frustrate customers
 ● Higher risk of fraud and identity theft

Mobile banking

Mobile banking is a service provided by a bank or other

financial institution that allows its customers to conduct
financial transactions remotely using a mobile device
such as a smartphone or tablet.

Advantages:

● Convenient

● Available 24/7

● No additional charges

Disadvantages:

● May need to download specific apps to access

mobile banking for a particular bank

● Higher security risk due to increased risk of loss or

theft of mobile devices
● Can be prone to hackers sending texts asking for
bank details
Postal banking

Postal banking, the local post office also serves as a

sort of bank branch. For example, it might provide check
cashing, bill payment processing, and even small loans.

Advantages:

● Traditional method that many customers will feel

comfortable with

● Does not require any additional technology or

devices

Disadvantages:

● Can be slow due to the postal system

● Post can get lost