TLDR;
This video provides an overview of the different types of current accounts available in the UK. It covers standard accounts, basic accounts, premium/packaged accounts, and student accounts, outlining the advantages and disadvantages of each to help viewers make informed decisions about which account best suits their needs.
- Standard accounts offer a range of facilities but may have high overdraft charges.
- Basic accounts are for those with low credit ratings, offering limited facilities.
- Student accounts provide benefits tailored to students, like railcards and overdrafts, but can encourage overspending.
- Premium accounts come with added perks like travel insurance for a monthly fee, which may not be worthwhile for everyone.
Standard Account [0:40]
Standard accounts come with several advantages, including no charges on credit balances and a range of facilities such as a debit card, overdraft, and chequebook. They are convenient for receiving wages and withdrawing money. However, a disadvantage is the potential for high charges on overdraft facilities. Standard accounts offer standard features without additional perks.
Basic Account [1:20]
Basic accounts are more limited than standard accounts, often with no debit card or overdraft facility. These accounts are generally for individuals with a low credit rating or poor credit history. The advantages include availability to customers with a low credit rating, providing some banking facilities, and serving as an easy first step into banking. Basic accounts allow users to pay in and withdraw cash.
Student Account [2:08]
Student accounts are designed for university students and offer advantages such as easy handling of course fees and loans. They often include added extras tailored to student needs, such as railcards, food cards, and discounts at certain clothing stores. A disadvantage is that overdraft facilities can encourage overspending, and charges for overspending can be high. Student accounts may still have limited facilities compared to premium accounts.
Premium / Packaged Account [3:15]
Premium or packaged accounts offer no charges on credit balances and a range of facilities similar to standard accounts, including a debit card, overdraft, and chequebook. Unlike standard accounts, they come with additional perks such as travel insurance, breakdown cover, and phone insurance. However, there is an additional monthly charge for these accounts. This monthly charge may not be valuable if the additional perks are not used. For example, travel insurance is unnecessary for those not travelling abroad, and breakdown cover is useless without a car.