Bank accounts (Pre iG S1)

What is the purpose of a current account?

• To take out loans

• To earn high interest on positive balances

• To manage day to day finances

• To save money for the short term

What are standing orders in a bank account?

• Lists of recent transactions that the bank sends to you

• Payments made from your account to another account on a regular basis

• Instructions given to your bank to allow certain companies to take money from your account

• Physical bank card used to pay for something instead of cash

What is the purpose of an overdraft in a current account?

• To temporarily allow you to spend more than you have in your account

• To pay for something instead of using cash

• To earn high interest on positive balances

• To make regular payments to other accounts

What is the main purpose of a savings account?

• To take out loans

• To avoid high interest on negative balances

• To put money away that you do not expect to need in the short term

• To manage day to day finances

What are instant-access savings accounts?

• Accounts that do not charge any fees

• Accounts that offer high interest rates

• Accounts that require a notice period before withdrawing money

• Accounts that allow you to take your money out whenever you want it

What are interest rates in savings accounts used for?

• To encourage account holders to keep money in their accounts

• To charge customers for borrowing money

• To pay bills for customers

• To make loans to customers

What is the difference between fixed and variable interest rates on loans?

• Fixed interest rates are only for short term loans, while variable interest rates are for long term loans

• Fixed interest rates are only offered to certain customers, while variable interest rates are for everyone

• Fixed interest rates are higher than variable interest rates

• Fixed interest rates do not change over the life of the loan, while variable interest rates can go up or down each month

What is the purpose of a credit score?

• To determine the amount of money in a bank account

• To calculate the interest rates on loans

• To assess the creditworthiness of an individual

• To track the spending habits of a person

How can you improve your credit score?

• By using credit cards frequently

• By making late payments on bills

• By paying bills on time and keeping credit card balances low

• By bribing the credit score company

What is the purpose of a debit card?

• To earn high interest on positive balances

• To make regular payments to other accounts

• To temporarily allow you to spend more than you have in your account

• To pay for something instead of using cash