Topic 4 everyday Banking. - Coggle Diagram
Topic 4 everyday Banking.
Choosing a current account
young people/Adults use current accounts for different financial needs, such as young people for purchasing goods and services and adults for storing and borrowing money.
Different types of current accounts.
packaged> charge fees but offer additional benefits such as, travel insurance, mobile insurance, car breakdown and discounts in stores/ media
Basic bank account> offer debit cards/ cash cards however no overdraft cheque books.
standard> offers full range of payment, debit card and cheque books
Youth accounts> for people age 16 to 18
Student accounts> often with a interest fee overdrafts. can help students manage money independently and prepare for adulthood.
Premium> for the wealthy, offer additional benefits such as personal baking and banking products. Can only be used with an steady income of £75,000.
Opening an account.
money laundering is when you hide your source of income/funds
if these regulationes are not passed the FCA (financial conduct authority) can place heavy fines on that person/ business.
before a person opens an account is it vital that they provide some proof of identity and address to prevent money laundering, such as drugs.
according to the BBA( british bankers association. These are the current things that can be accepted due to proof of identity.
Passport, car license, gas, electricity, water or phone bills, medical card, insurance certificates
it is important that financial holders view and monitor their transactions to be able to see if they have the sufficient amount of funds to pay for something, to avoid debt or going into their overdraft.
Bacs helps process several different electronic payments E.G BGC bank giro credit.
Direct debit (DDR, DD OR BD)
Direct credit ( DC)