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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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