Citizens Advice financial capability

Transcription

1 B1 Banking Quiz Have a go at these questions. 1. You have to put the date on a cheque. 2. Your date of birth is a safe number to use as a PIN. 3. A cash card is the same as a debit card. 4. Which of the following card payment types is the nearest equivalent to paying by cash? Store card / Credit card / Debit card 5. When a cheque is paid in to an account, you can take the money out straight away. 6. A bank statement always gives you the right picture of your bank account. 7. On a bank statement ATM means you have taken cash out from a cash machine. 8. Banks are allowed to charge for their services.

2 B2 What can a bank account do for me? Try matching the definitions Overdraft A plastic card that allows you to spend money in your account (or overdraft). Instant Access A written instruction from you to your bank to pay out a single sum of money. Online Banking Ordering your bank to make a regular payment from your account. Standing Order Charges the bank adds to your account if you do not make your repayments on time. Direct Debit A plastic card that lets you spend money that the bank will loan you, but you have to make regular payments. Debit Card Being able to access your account over the internet. Credit Card The ability to access your money straightaway. Chequebook Allowing a company to collect payments from your account. Late Payment Fees The bank lets you spend more money than you have in your account, up to a fixed limit.

3 Definitions what can a bank account do for me? Overdraft The bank lets you spend more money than you have in your account, up to a fixed limit. Instant access The ability to access your money straightaway. Online banking Being able to access your account over the internet. Standing Order Ordering your bank to make a regular payment from your account. Direct Debit Allowing a company to collect payments from your account. Debit Card A plastic card that allows you to spend money in your account (or overdraft). Credit Card A plastic card that lets you spend money that the bank will loan you, but you have to make regular payments. Chequebook A written instruction from you to your bank to pay out a single sum of money. Late Payment Fees Charges the bank adds to your account if you do not make your repayments on time.

4 B3 Which is which? Here is a list of cards. Match a description to each card. Tick the cards that come with bank accounts. Debit Card Loaded with money to spend. Store card Use to take money out from cash machines. Credit card Takes money straight out of your account when you use it to pay. Cash card Use to buy goods on credit. Get a monthly bill. Pre-payment card Use to buy goods on credit. Can only use in particular shops.

5 B4 Using PINS Most people have a Personal Identification Number (PIN) for their cash card or debit card. A PIN is four numbers. All keypads have the same layout Having a PIN written down can be risky. Can you think of any ways to help remember a PIN? Make a note of your ideas:

6 B5 Sample statement Ms T Mint City Bank 26 Main Street City CC1 2DA Sheet 005 Account Number Date Details Paid out Paid in Balance 01-Jun-11 Balance brought forward Jun-11 DD Swift electricity Jun-11 CR DWP Jun-11 ATM CityBank, Main St Jun-11 SWT Co-op Main St Jun-11 ATM CityBank, High Rd Jun-11 DD Natural Gas Jun-11 Balance carried forward 18.16

7 B6 Facts about Credit Unions Many credit unions now offer their products online. There are now about 500 credit unions in the UK. They can often help those who can t get access to ordinary bank products. Most credit unions offer loans of smaller amounts, from 50 to 3000, which most high-street banks won t do. They're a much cheaper alternative to payday loans and some credit unions can even get cash to you the same day. Approximately 40 unions around the UK offer a prepaid card service. All money in savings with credit unions has exactly the same protection as normal savings accounts. Their loan rates are higher than the cheapest credit cards or loans, but much cheaper than payday or doorstep loans. Saving accounts tend to be ultra-flexible, allowing you to save large or small amounts weekly, monthly or whenever you can. Life savings insurance is included with most savings accounts, at no extra cost. Most credit unions will charge you for a current account to cover costs. The charge should be no more than 1.50 a week. The credit union account does not charge fees for paying late or making an error. You won't get an overdraft or a chequebook. Unlike high-street banks, you don t have the option to switch account in 7 days; a credit union can take up to a month to switch you out. To find a credit union near you, search online. Use ABCUL's Find Your Credit Union website, or you can call ABCUL on

8 B7 What else will help? As well as being online, what else will make the change in benefits smoother for me? Having cheaper bills Understanding how to budget Knowing where to get the cheapest gas and electricity Using my bank account to set up automated payments Having some knowledge of things like payslips Tips to save money on everyday things Tips to make more money from everyday things