Essay
Financial Services for Individuals M1 UNIT 1
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Explain the distinctive features of three selected retail banking services that render them suitable for two contrasting customers
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In this assignment I will be explaining the distinctive features of three retail banking services thatrender them suitable for two contrasting customers, which will be a student who has recently
moved to the UK and a young single professional earning £20,000 but saving for a mortgage deposit
on a £150,000 one bedroom flat.
As this student has recently moved to the UK and does not know the banking system here, the
student can use saving account for when the student starts working they will be able to save some of
the money instead of spending all of it, as they just came to the UK. The saving account could also be
there in case of emergencies, the student would have saved money to spend. Santander have a
savings account called regular ESaver where one can gain 3.00% interest when money is saved.
Barclays have an everyday savers account where one can gain 0.25% when money is saved in the
account. Santander will benefit the student more as they will gain more money from the interest
when they save. This will benefit the student because with many saving accounts a debit card is not
given which means it is difficult to access the money and this prevents the student from spending
the money, however they can access it if they really need it.
The student could also use a current as they will be able to spend the money on the account using a
debit card, they will be able to spend the money in stores and online. This account can also be used
with online banking and they will able to track their spending’s, so they do not spend too much and
go into minus. As students are busy, the cash they carry around may get lost, which is why having a
debit card is better as they can always cancel the card if it gets lost. Barclays offer students an
overdraft of up to £3,000, which this student can use for emergencies. Also Barclays give students
the opportunity to get cashback from amazon and apple and other popular retailers and even after
graduating the account can be kept after 3 years including the benefits. Santander offer students a
free 16-25 railcard which will save the student money on rail travel, they also get interest on their
balance and if they take an overdraft they do not have to pay a fee; the overdraft available is up to
£2,000.Also Santander have an international student account where they will gain 3% interest on
their balances up to £500 and they will also get a free deposit of an international cheque each
month and this benefits the student especially if they still have money in the country they came
from.
The student who has recently moved to the UK could also want to take a loan, which they can use to
prepare for living in the UK, such as somewhere to live. As international students have to pay to
study in the UK they could use the loan to pay for it. Santander have no upfront payment on the loan
and the first payment is 30 days after the loan is agreed. The loan Santander offer is from £7,500 to
£20,000, which is enough for the student to pay to study in the UK and survive in the UK until they
get a job and Santander give people the chance of paying the loan back 12 to 60 months. Barclays
offer loans from £7,500 to £15,000 which they say it can be paid back over 2-5 years. Which means
they have a long time before they need to repay completely. They can use this loan for any
emergencies as they just moved to country.
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