Types of Bank Account - Current Accounts

A current account is a transactional account. This means it is used to...

• receive wages, pay everyday expenses and withdraw cash.

• save money for the future,

Money can be paid into a current account in different ways. Identify the 4 correct answers

• over the counter at a bank branch

• electronically, from one account to another

• using a mobile banking app to pay in cash

• using an ATM (only some banks have this facility)

• using a mobile banking app to pay in cheques

Debit cards can normally be used to make contactless payments of up to £30. As a result of Covid-19 the amount has been increased. What is the new amount?

• £50

• £30

• £100

• £60

Digital wallets are apps that allow payments to be made using the different methods stored on the app. Which payment methods can be stored in the digital wallet?

• debit cards and cheque book

• debit cards and cash

• debit cards, credit cards, cash and cheque book

• debit cards, credit cards and customer loyalty cards

Current accounts have 2 methods of making regular payments. These are...

• debit card

• standing order

• cheque book

• direct debit

A standing order is a regular payment of a fixed amount, eg a monthly payment for rent, or to a savings account. The amount can only be changed by the current account holder. True or false?

• True

• False

Select the payments below that a standing order would be used to make.

• rent

• mortgage

• monthly payments to a savings account

A direct debit is a payment where the amount can change from payment to payment, which is requested by the payee's bank. The amount cannot be changed by the payee. True or false?

• True

• False

An overdraft is a way of borrowing money. Identify the 2 correct answers that relate to an arranged overdraft.

• the upper limit is set by the bank

• the overdraft is not arranged in advance

• interest may be charged on a daily basis, weekly or per transaction

• no interest is charged

An overdraft is...

• long-term

• short-term