unit 20 p3 level 2 business
Describe financial products and services appropriate to self.
Features:
Although there are many types of financial product, there are a few features that are common to several of them.
Borrowing- several products enable customers to borrow money these include loans from banks and finance companies, overdrafts, credit cards and mortgages. All loans have specific requirements such as interest to be paid and a timescale to repay the amount borrowed.
Saving/ investing – this is where money is deposited in an account and is available for later withdrawal. Normally interest is paid
Risk – some type of savings, such as company shares, involve the risk that some or even all of the money invested could be lost.
Current accounts:
Current account allows you to receive money and pay bills. It can also help you to save money for special occasions or emergencies.
With a current account you can:
Have your wages, benefits, State Pension or tax credits paid directly into your account.
Pay in sterling cheques for free (you will have to wait four business days before the money is available for you to spend).
Check your balance and withdraw cash from cash machines in the UK.
Set up Direct Debits and standing orders to pay your bills.
Some current accounts may offer:
An overdraft.
Interest on your money.
Other services, for example sending money abroad or cashing foreign cheques (there will often be a charge for these services).
Telephone or internet banking facilities.
Extra features such as insurance (for example travel, life, mobile phone), special offers or extra services (accounts with these features usually have a monthly fee).
Cash withdrawals and balance cheques at Post Office branches.
Saving accounts:
Savings accounts are a good way to build up a cash sum. You may be saving for a specific reason (for example a holiday or a new car), or you might want to consider building up an emergency fund so you have some money to draw on in a crisis (for
Features:
Although there are many types of financial product, there are a few features that are common to several of them.
Borrowing- several products enable customers to borrow money these include loans from banks and finance companies, overdrafts, credit cards and mortgages. All loans have specific requirements such as interest to be paid and a timescale to repay the amount borrowed.
Saving/ investing – this is where money is deposited in an account and is available for later withdrawal. Normally interest is paid
Risk – some type of savings, such as company shares, involve the risk that some or even all of the money invested could be lost.
Current accounts:
Current account allows you to receive money and pay bills. It can also help you to save money for special occasions or emergencies.
With a current account you can:
Have your wages, benefits, State Pension or tax credits paid directly into your account.
Pay in sterling cheques for free (you will have to wait four business days before the money is available for you to spend).
Check your balance and withdraw cash from cash machines in the UK.
Set up Direct Debits and standing orders to pay your bills.
Some current accounts may offer:
An overdraft.
Interest on your money.
Other services, for example sending money abroad or cashing foreign cheques (there will often be a charge for these services).
Telephone or internet banking facilities.
Extra features such as insurance (for example travel, life, mobile phone), special offers or extra services (accounts with these features usually have a monthly fee).
Cash withdrawals and balance cheques at Post Office branches.
Saving accounts:
Savings accounts are a good way to build up a cash sum. You may be saving for a specific reason (for example a holiday or a new car), or you might want to consider building up an emergency fund so you have some money to draw on in a crisis (for