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Identifying and describing the main financial service needs for a student starting at university

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Introduction

UNIT 14 FINANCIAL SERVICES Produced By A.Akil IDENTIFYING AND DESCRIBING THE MAIN FINANCIAL SERVICE NEEDS FOR A STUDENT STARTING AT UNIVERSITY One of the most important steps in life as a student is when starting University. A lot of investigating, research, planning and organising is needed to achieve the best option, including financial needs. Here is a list on what the student may need. > Currents Accounts > Savings Account > Credit Card > Student Loan > Overdraft Facilities > Parental Contribution > Contents (chattels) insurance Current Accounts There are a variety of banks and building societies that offer current accounts, but not all are specifically for students. The Halifax Student Current account offers all the benefits of a Halifax Current Account, but with special overdraft terms. During the first year with Halifax, the students can apply at any branch for an interest free overdraft of up to �750, increasing to �1,000 in the second year and �1,250 in the third. They give a credit interest of 3.00% gross on the account without the need to make a monthly credit of �1.000 to benefit from the full interest as a normal current account holder. A minimum of �50 is required to open the account. If you pay �1,000 or more into your Current Account per month* If you pay less than �1,000 a month into your Current Account per month 3.04% AER (3% gross) interest on your full balance 0.25% AER / gross interest on balances up to �500 and 1.76% AER (1.75% gross) over �500 8.9% EAR interest charged on arranged overdrafts of over �100 18.9% EAR interest charged on arranged overdrafts over �100 NO authorised overdraft fee �5 per month fee if you use more than �100 of your authorised overdraft A dedicated transfer team to do the hard work for you and keep you informed every step of the way. ...read more.

Middle

�40 TV LICENCE �9 �9 �9 �9 �9 �9 INSURANCE �15 �15 �15 �15 �15 �15 FOOD �125 �125 �125 �125 �125 �125 CLOTHES �150 �200 �150 �200 �200 �200 SOCIALISING �200 �200 �200 �200 �200 �200 HAIR + BEAUTY �35 �10 �35 �10 �10 �35 BOOKS �20 / �20 / / �20 TUITION FEES �75 �75 �75 �75 �75 �75 TOTAL �884 �889 �884 �889 �889 �884 INCOME STUDENT LOAN �200 �200 �200 �200 �200 �200 PART TIME JOB �300 �300 �300 �300 �300 �300 SHORT FALL �334 �339 �334 �339 �339 �334 TOTAL EXPENDITURE �884 �839 �834 �839 �839 �834 My Recommendations for a person starting university. For a person starting university, I would recommend they use Nat west as they have special accounts for students that offer those tax-free overdrafts and tax-free loans. All the other banks i.e. Halifax and Barclays etc, offer students accounts as well but its not all tax-free. I think that students need a credit card but only if they have a part time job to help to pay for it with a limit of �500-�1,000, so that they can't get into to much debt if they don't make the repayments. Nat west loans are designed to help a student meet its living expenses during the time you are in higher education. You will have to pay the loan back, with interest, after you graduate, but as the interest is linked to inflation this is still one of the cheapest ways of borrowing money. Another reason I think Nat west are good for students is when you finish your graduation they will help you look for a job and help you any way possible. With the overdraft facility I am going to choose Nat west again because you can agree a limit with any Nat west Branch how much overdraft you want based on your salary and account history. ...read more.

Conclusion

Developing long-term relationships with suppliers is better than chasing the lowest cost by continually changing. EFPOS systems - scanning or bar code reading information on goods directly from suppliers as goods are sold. Major retailers now work directly form suppliers on issues such as quality standards and environmental policies. Financial Service Regulations Supply of Goods & Service Act 1982 This act would protect faulty services. This basically implies that the supplier of a financial service will carry it out with reasonable skill and care and within a reasonable time. Consumer Credit Act 1974 This act protects credit purchases. For example Pre-contract information must not mislead, the format and content of the form of agreement are specified, debtors are entitled to a copy of the agreement, and a debtor may cancel the agreement within 5 days (subject to conditions). Trades Description Act 1968 &1972 This act protects false or misleading descriptions. Financial services providers must nit knowingly or recklessly make any false or misleading statements concerning the supply of financial services. N.B Prosecution must prove that a statement was made intentionally. Trades Description Act 1968 &1972 This act also protects display of prices. It protects against misleading indications regarding the price (interest rates, fees, charges etc) of services and facilities. Fair Trading Act 1973 This act protects the business practices against the consumers interest, Examples of protection under the act would be protects against monopolies. Restrictive Trade Practices Act 1978 This act also protects the business practices against the consumer's interest, it makes it unlawful for two or more independent financial service providers to fix prices in a way which restricts competition. Competition Act 1980 This act also protects the business practices against the consumer's interest, and it protects against anti-competitive practices. Financial Services Act 1986 This act protects financial services. It supervises all UK financial service providers, provides information to aid consumers to manage their financial affairs more effectively, they secure protection from consumers (E.G. ICS Investors Compensation Scheme) and it also contributes to reducing financial crime (e.g. money, laundering). ...read more.

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