Enterprise and Employability
- Created by: Tomide Oduwole
- Created on: 24-04-14 11:05
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Personal Finance
1) Basic accounts:
- Offer a convenient way to keep money you need for everyday use
- You can arrange to have wages, state pension and also cheques or cash paid in free of charge
- Direct debits- set up to pay regular bills automatically from your account
- Only withdraw up to the amount of money in the account
- A cashcard is used to automate teller machines, commonly unknown as ATMs. Some offer a debit care to pay for items with and also can get 'cashback' at retailers
- Basic accounts don't give out chequebooks.
Interest or Annual Equivalent Rate (AER):
- Quoted on basic bank account sand current accounts for when your balance is in credit
- Shows the amount of interest you will earn over the course of a year and takes into consideration how often the interest is paid and what effect compounding will have
- Allows you to compare how much you will earn on an account where interest is paid monthly with one where interest is paided annually (yearly)
2) Current account
- Offer a convenient place to keep money you need for everyday use
- For example: pay bills such as electricty, water and telephone)
- Offers more than the basic account
Types of Current accounts
- Cheque book
- Cheque guarantee care- makes cheque more widely acceptable as form of…
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