BTEC Level 3 Business Unit 3 Section A

Cash Notes and coins in a wide range of denominations Debit card Issued by banks with payments for goods and services being deducted directly from a current account 00:38 01:44 Credit card Issued by financial institutions to delay payments for goods and services Cheque A written order to a bank to make a specific payment for a specific amount of money into a persons account from another account Electronic transfer Payment transferred directly from one account to another using the internet Direct debit An automated monthly payment which can change eg. bills Standing order An automated monthly payment which stays the same eg. gym membership Pre paid card Money is uploaded onto a card and then transactions are withdrawn from the amount afterwards Contactless card Cards with an embedded chip and antenna that enable customers to wave their card over the payment device without using a PIN number Store card Issued by a retail outlet to delay payments for goods and services within a specific store Mobile banking The ability to carry out financial transactions using a mobile phone or app BACS faster payment A system where the transfer of payments happens within three days 00:02 01:44 CHAPS A system where the transfer of payments happens within one day Standard current acount An account with full baking facilities such as a debit card, overdraft and easy access to your money Premium current account An account with an annual charge in return for offering extra incentives or benefits such as discounted insurance or a free overdraft Basic current account An account typically held by someone with a poor credit history, with limited facilities Student current account An account designed to assist young people to become prudent with personal finances, usually with free overdraft facilities Overdraft Allows an individual to withdraw money from an account which they do not currently have Hire purchase Allows the person to have use of an item immediately but pay in instalements until they own it Personal loan Borrowing a sum of money and repaying with interest Mortgage A long term loan, usually to fund the purchase of assets such as housing Payday loan A short term source of finance with very high borrowing rates which are issued each month ISA A tax free savings account Premium bonds A way of investing money with no interest, but with a prize draw for money each month Bonds and gilts Lending money to businesses or governments in return for interest payments Shares Buying a small percentage of a business in return for dividends Pensions Long term saving plans where the individual makes monthly contributions to use upon retirement Car insurance Insurance covering theft and accidents involving motor vehicles Home and contents insurance Insurance covering the physical building and the items of value within it from damage or theft or fire Travel insurance Insurance protecting an individual against illness or cancellations on holiday Pet insurance Insurance covering against the value of pet medical bills or other expenses Health insurance Insurance covering personal medical expenses and possible private medical treatment in the UK