Bank Accounts Learning Objective: To explore how to open a bank account. I can define key terms relating to money and banking. I can decide which type of bank account is most suitable for me. I can understand how to read a bank statement.

Match up the keywords How many of these key banking terms do you know? Match up the keywords on your sheet with the correct definition.

How did you do? Go through the answers as a class.

Bank Accounts Learning Objective: To explore how to open a bank account. I can define key terms relating to money and banking. I can decide which type of bank account is most suitable for me. I can understand how to read a bank statement.

Bank Accounts Why do we use bank accounts? To be able to use cash machines to withdraw money To keep your money in a secure place Ask students to spend 1 minute or so in pairs thinking about why we use bank accounts. Take suggestions and go through reasons on the PPT. There are few disadvantages but there can be issues with banking around identity theft so emphasise the importance of secrecy in banking. To be able to earn interest on your money To be able to buy products on the internet To avoid needing to carry large amounts of cash out with you

Types of Bank Accounts Basic bank account This bank account gives you a cash-point card that lets you get money out of any cash machine that accepts your card. You may also get a debit card to use in shops to buy things. To use either of these cards you’ll need to have enough money in your account. Basic bank accounts usually don’t give you a chequebook or let you go overdrawn. Current account A current account is for day-to-day (current) things like paying in wages, paying bills and taking money out for shopping and going out. A current account usually has all of the features of a basic bank account, plus a cheque book. You may be able to agree an overdraft when you need one, but you’ll be charged for this. You’ll also be charged for unauthorised overdrafts. That is, going overdrawn without the bank agreeing to this beforehand. Savings account A savings account helps you put money aside and prepare for things like Christmas, holidays or an unexpected expense. It’s not for day-to-day expenses. Savings accounts usually pay more interest than a current account. Some savings accounts have limits on how often you can withdraw (take money out) from the account. Post Office account A Post Office card account is a simple account that can only have tax credits and benefits paid into it. You can take cash out free of charge at any Post Office branch. You don’t get a cheque book and you can’t get an overdraft or pay bills through your account. Talk through some of the different types of bank accounts so students have a basic understanding of this. This will help them in their next activity.

Choosing a Bank Account Imagine you are going to open a bank account. You need to choose which type of bank account is most suitable for you. Think about some of the following questions: • Do I want the account for everyday use or to save? • Do I get a cash card or debit card? • How much can I withdraw each day? • Can I arrange an overdraft? • What are the fees? • Can I set up direct debits? (These let you pay regular bills straight from your account) • Can I manage my account online? • Is there a ‘buffer’ if I’m slightly overdrawn? • Is there an opening offer or gift when I open the account? • How much interest can I earn? Ask how many students already have a bank account – what do they know about it? I.e. interest rates etc. Then ask students to read through the different options as to which bank account they would choose to open – check their understanding of words such as interest and overdraft from the beginning of the lesson. Once students have read through the information take a vote from the class as to which account they will be choosing. Discuss their choices.

Bank Accounts Learning Objective: To explore how to open a bank account. I can define key terms relating to money and banking. I can decide which type of bank account is most suitable for me. I can understand how to read a bank statement.

Bank Statements Bank statements are sent to customers by banks. They list all the transactions (money in and out) on their account. They are usually sent monthly in paper form. Many banks encourage customers to view their statement online as well as, or instead of, having paper statements. This is because they are more secure (no paper with your personal details on it floating around), up to date (paper statements usually come out once month) and more environmentally friendly (saves trees)! Explain to students what a bank statement is and why they are sent out to customers.

Bank Statements Explain to students what they will see on their bank statement.

Bank Statements How much money did they start the month with? How much did they earn in wages in June? How much went out of their bank in a standing order? How much money did they take out of a cash machine? How much money did they pay out in Direct Debits? On which date did they have the least amount of money in their account? Hand out the sample bank statement to students. Students need to answer the questions on the board using the sheet in their books.

Bank Statements How much money did they start the month with? = £148.85 How much did they earn in wages in June? = £335.00 How much went out of their bank in a standing order? = £50.00 How much money did they take out of a cash machine? = £70.00 How much money did they pay out in Direct Debits? = £36.34 On which date did they have the least amount of money in their account? = 12th June Hand out the sample bank statement to students. Students need to answer the questions on the board using the sheet in their books.

Bank Accounts Learning Objective: To explore how to open a bank account. I can define key terms relating to money and banking. I can decide which type of bank account is most suitable for me. I can understand how to read a bank statement.

Find the banking terms in the word search! Before you go… Find the banking terms in the word search! If students finish early, ask them to create a quiz about everything they have learnt this lesson on bank accounts and bank statements.