Lesson: BANKING (B2-C1)

2. Terms and Conditions

a. Share your knowledge by responding to these questions:

  • What are the usual penalties from your bank if an account goes overdrawn (so that the balance is below zero)?
  • Which banks in your country offer the best rates on a savings account? (For example, do any of them offer 5% per annum?)
  • Is it better to set up a savings account with a fixed or variable interest rate, in your opinion?
  • What are the possible ways to make a deposit into an account at your bank? (For example, can you deposit cash via an ATM or do you have to go to the staff?)
  • If you find out that someone you don’t know has been making withdrawals (removing money) from your account, what can you do?

b. How important is it to read the terms and conditions before opening a new bank account? What specific things are the most important to look for?

c. Here are some terms and conditions you might read in ‘small print’ from the bank. Which are favourable conditions (good news for you as a customer) and which are unfavourable?

  • (i) You will pay 0% interest on an overdraft up to a maximum of $500.
  • (ii) Using your interest-free overdraft will incur a flat fee of $35 for every month in which your account is overdrawn.
  • (iii) If the account is overdrawn by more than $500, up to a maximum of $750, a grace period of 5 days will apply before interest becomes payable.
  • (iv) For every calendar month in which you deposit $1500 or more into your checking account, you will receive 1.05% gross interest.
  • (v) Up to 3 withdrawals are permitted per calendar year without the interest rate on your savings account being affected. If a fourth withdrawal is made, the interest rate drops to 0%.

d. How do the conditions in part c. differ from your own bank’s terms and conditions?

e. Match the verbs on the left with the nouns on the right to make natural phrases.

makean account
opena fee
withdrawan overdraft
deposita deposit
usea withdrawal
set upmoney
(Note that some words on the left match with 2 words on the right, and some words on the right match with 2 on the left.)

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