NZQA Assessment Support Material

NZQA Assessment Support Material Unit standard 28097 Title Evaluate and select personal banking products and services in relation to personal financial needs Level 2 Credits 3 Version 1 Student guidelines How you will be assessed You will be assessed on how well you: Describe six banking product/services for two different banks for a given scenario. Compare the costs and benefits, fees and charges and access mechanisms and security of the options available. Select preferred banking products/services options and provide an evaluation of why these suit the personal financial needs for the scenario. Provide an evaluation that includes a justification for the selection of the bank products/services. A W A R D O F G R A D E S For award with Achieved, you must: describe and compare six banking products and services in relation to costs and benefits, fees and charges, access mechanisms and security; select products and services that are suited to personal financial needs. For award with Merit, you must provide an evaluation that includes: a detailed comparison of the banking services and products; give reasons why selected products and services are preferred by making links to personal financial needs. 28097 version 1 ASM version 1 Page 1 of 16

A W A R D O F G R A D E S For award with Excellence, you must provide an evaluation that includes: a comprehensive comparison of the banking services and products; a justification for selection of the preferred banking products and services in terms of their suitability to personal financial needs. C O N D I T I O N S O F A S S E S S M E N T This is an open book assessment. You can use class materials and independent research to complete this assessment. Answers must be in your own words. Your assessor will provide you with information regarding timeframes for this assessment. 28097 version 1 ASM version 1 Page 2 of 16

Scenario Read the following scenario: The Davies family migrates to New Zealand Don, his wife, Yvonne, and their three children Callum (14), Isabelle (12) and Angus (9) have migrated to New Zealand from the United Kingdom. Both parents have jobs to come to in New Zealand. They are careful with their money and are keen to make sure they get products with features which suit them from the bank. They dislike debt and pay off debt as fast as possible. However, they make most of their purchases using their credit cards, rather than by cash. In the UK, they owned their own home, which they have now sold. They intend to buy their own home in New Zealand within the next year and are looking to spend $500,000. They will need to borrow $150,000. The family want to see as much of New Zealand as possible before travelling around the Pacific. They need to set up a full range of banking products and services for their new life here. Their main banking needs are to: Have somewhere to deposit their money from the sale of their house in the UK. Set up a loan facility to buy a house. Have ready access to funds for day to day activities. Join KiwiSaver when they start work. Have contents insurance (and once they purchase a house, home insurance). They do a lot of on-line shopping. 28097 version 1 ASM version 1 Page 3 of 16

Task Use the following tables to: a) Identify six (6) personal banking products/services that would be suitable for the Davies family. Banking products/services may include: transactional accounts savings accounts loans, mortgages overdrafts term investments credit/debit cards bill payments insurance transfers specialised advice. b) Describe and compare options from two (2) registered banks for each product/service in relation to costs and benefits, fees and charges, access mechanisms and security. Registered banks are listed on the Reserve Bank of New Zealand s website (www.rbnz.govt.nz). c) For each product/service select the preferred bank option in terms of personal financial needs for the Davies family. Give reasons for the selection and justify why this product/service is more suitable than the other option for the Davies family. 28097 version 1 ASM version 1 Page 4 of 16

P r o d u c t / S e r v i c e # 1 name product/service here F e a t u r e s Bank 1: name Bank 2: name C o s t s B e n e f i t s F e e s a n d C h a r g e s A c c e s s M e c h a n i s m s S e c u r i t y 28097 version 1 ASM version 1 Page 5 of 16

C o m p a r i s o n P r e f e r r e d b a n k, r e a s o n s f o r s e l e c t i o n a n d j u s t i f i c a t i o n o f s u i t a b i l i t y t o p e r s o n a l f i n a n c i a l n e e d s 28097 version 1 ASM version 1 Page 6 of 16

C o m p a r i s o n P r e f e r r e d b a n k, r e a s o n s f o r s e l e c t i o n a n d j u s t i f i c a t i o n o f s u i t a b i l i t y t o p e r s o n a l f i n a n c i a l needs 28097 version 1 ASM version 1 Page 14 of 16