right welcome to this video on current accounts so the first thing you need to know is what a current account actually is it's a bank account used for day-to-day banking and there are four types of current account so the first account is a standard account the second account is a basic account the third account is a premium package account and the fourth is a student account so the first one we're going to look at is a standard account so the advantages of the standard account are no charges on credit balances there's a range of facilities so you have a debit card overdraft checkbook although checkbooks are very rarely used nowadays um it's convenient for receiving wages and withdrawing your money a disadvantage of a standard account is there's potentially high charges on overdraft facilities um and it's just standard features so there's no additional perks with a standard account which is in top corner like an hsbc account so you're probably thinking what's the difference between a basic account and a standard account so if you look at the disadvantages they're very limited facilities in terms of there's no debit card sometimes um There's no overdraft facility. It's generally an account for somebody who hasn't really got a very good credit rating or good credit background. However there are some advantages.
So the advantages are it's available to customers with a low credit rating so you can still have some banking facilities even though you've got a low credit rating. It's an easy first step for banking and you have the ability to pay in and withdraw cash. So you've got some facilities there.
Student account. So if there's any students watching, university students in particular, this is the type of account that possibly you would benefit from having. So the advantages are it's easy for course fees and loans to be paid into and handled.
Obviously they're expecting that as a bank with it being a student account. There's added extras. designed to meet the needs of the students so a lot of time you'll get a rail card a food card discounts at certain clothes stores so they get they're giving you perks to try and get you to open account with them and disadvantage however are overdraft facilities so it could encourage you to overspend so if you're at university you've got an overdraft or one or two thousand pound you weren't thinking of going out but you might just go out if you've got that kind of cash available and charges for overspending are high and there is still some limited facilities compared to a premium account which we're going to go on to now so premium slash package account and the advantages of those are there's no charges on credit balances there's a range of facilities just like your standard account you get a debit card you get an overdraft a checkbook They're convenient for receiving wages and withdrawing money similar to a standard account however unlike a standard account you get additional perks so travel insurance breakdown cover phone insurance disadvantages however are there's an additional monthly charge so you might have seen these accounts so for like six pound a month you can open one of these accounts and you'll get all these Extra facilities.
This month of charge may not be valuable money for you if you're not going to use the additional perks. So for example if you're not traveling abroad you won't need the travel insurance. If you haven't got a car you don't need the breakdown cover.
The likelihood is you're going to have a mobile phone however if you've already got mobile phone insurance or possible contents insurance you might not even need that. So to pay £6 a month for an account where you don't use the additional perks would be in my eyes a waste of money as you could just open a standard account for free which wouldn't cost you the additional charges hope this has given you a good insight into different types of accounts that you could possibly open thanks for watching see you next time