BTEC Business - A3

An account with a bank or building society which is designed for frequent use. Money can be paid into and withdrawn without notice. Most people get their wages or cheques paid into it. 

Features: 

- Interest paid on positive balance

- Interest charged on negative balance

- Overdraft limit

- Charges on unauthorised overdraft

- Additional incentives

Offers only limited features and are for people with a bad credit rating.

+ Good for people with low credit rating, an easy first step

- Limited facilities, no overdraft

A normal current account offered to customers with a decent credit rating. Can withdraw and pay money, get debit cards and cheque books.

+ No charges on credit balance, might offer an overdraft, convenient for wages

- High charges on overdraft facility, no additional perks 

It offers additional features to the standard current account, eg. Car insurance. Banks may have additional charges. 

+ No charges on credit balance, offers a chequebook and overdraft, convenient for wages, offers additional perks

- Usually additional monthly charges, package may not meet needs of account holder 

It's designed specifically to meet needs of students. There's an agreed overdraft and often includes incentives.

+ Used for course fees/ student loans, incentives offered, eg. railway card

- Overdraft may cause overpsending, limited facilities, overspending charges are high