1. Topic 4 : Know the features of a current account

2. After completing this topic, you will be able to :  define a “current account”;  explain what is meant by “sort code” and “account number”;  list the usual items that you will get when you open a current account and explain the features of each.

3. Current Account  It is a type of bank account  It lets you take money out to pay for different things  You are usually given a debit card and a cheque book  You may be given an overdraft facility

4. Sort Codes and Account Numbers  Sort Codes identify the bank the account is with. It relates to the specific branch you opened your account with.  Account numbers are unique to you. Everyone has a different account number. Anything to do with your account will have the number on it.

5. Sort Codes  Sometimes called “sorting codes”  Unique to the branch where you have your account ○ Think of it as the “address” of the branch.  It is a six digit number ○ It takes the form xx-xx-xx (for example 83-27-09)  You can tell which bank the sort code relates to by looking at the first two digits.

6. Account Numbers  Unique number for each account  Important to use it carefully ○ Don’t want to put money into someone else’s account!  Find your account number by looking at your statement or chequebook

7. Activity 5A Look at this cheque State the sort code and account number

8. Activity 5A Answers

9. Cash Cards  Plastic cards used to take cash out, either in a branch or an ATM  Cannot be used in shops

10. Debit Cards  Used to make payments in shops  Most are “Chip and Pin”  Inserted into the reader ○ You are asked to enter your Personal Idenfitication Number (PIN)  Once correct, the bank is asked to pay money to the shop from your account  Can also be used at an ATM

11. Chequebooks  Used to make payments to other people  Written instruction  Fewer used due to plastic cards  Some shops no longer accept them  Best way to send money securely by post

12. Activity 5B Complete the worksheet

13. Activity 5B Answers

14. Statements  A list of all the transactions on your account ○All deposits and withdrawals.  Statements are usually sent to you monthly.  Online banking – you may be sent an email to tell you to view your statement online ○Saves paper  Can get mini statements from ATMs  Always check the statement for incorrect transactions

15. Overdrafts  A way of borrowing – you can spend more than you have in your account.  The bank will agree the amount ○Called the “overdraft limit” ○Using the limit is called an arranged overdraft  You may be charged a fee for using it  You may use your overdraft to buy something using your debit card, and the money is taken before your wages are paid in.

16. Unauthorised Overdrafts  Borrowing without the bank’s permission  If you write a cheque or use your card for more than you have or are allowed by the bank, you will be charged a fee.

17. Review Questions

18. Answers to Review Questions