Glossary of Terms/Services Needed

1. Cheque Guarantee Card

1. the only ID accepted with cheques.
2. It guarantees that the bank will honour/pay the value of the cheque up to the limit on the card - usually £100.
3. A cheque book cannot be used at all (except for fees and rent) without the card.
4. Often the cheque guarantee card doubles as as debit card.

2. Debit Card

• A debit card allows you to pay for goods in the same way as a creit card BUT
• The money comes from your account (it is debited); if you don't have funds the card will be declined (will not work).
• The debit card usually doubles as a cash card.

3. Cash Card

1. A cash card allows you to withdraw cash from your account (if funds are available) from a cashpoint or ATM machine.
2. It is unwise to withdraw and carry large amounts of cash at one time. Sometimes dishonest people watch cash points to see who has a lot of money to take!

4. Without Cards

Without a cheque card or a cashcard, the only way to obtain cash or purchase goods is by going to your own branch of the bank and cashing a cheque at the counter. This is very inconvenient.

5. PIN Number

• Banks send customers a secret number that they can use to access funds with their card. This is called the Personal Identification Number and known as the PIN.
• You need this number to access cashpoints and to use your credit or debit card.

Never EVER tell anyone or let them see your PIN number, EVEN IF YOU THINK THEY'RE A FRIEND.

6. Direct Debits and Standing Orders

1. Direct debits and standing orders allow organisations (such as the University), individuals (such as landlords) or suppliers (such as electricity suppliers) to take funds from your account with your agreement.
2. To use direct debit (for University fee instalments, for example) you must sign a form for your bank.
3. You can stop direct debits if you need to by contacting your bank.
4. If you do not keep enough funds in your account to pay a direct debit/standing order
   
   i. it will not be paid.
   ii. you will be charged (usually at least £30) as a fine by your bank.

7. Overdraft

Ask what overdraft facilities the bank will allow. If your funds are delayed at any time, will the bank allow withdrawal of money, and up to what amount? Ask before deciding where to open an account.

8. Statements

1. You should receive a statement of your present balance, withdrawals, deposits and transfers at regular intervals, whatever kind of account you have.
2. Retain all statements carefully to prove financial status when renewing a visa/extending leave to remain and in case of queries in the future.
3. Lost statements can be replaced but a charge (approximately £2.50 per sheet, minimum £5) is usually made.

9. Negotiation of foreign cheques

1. If foreign cheques drawn on government, federal or state accounts are to be paid into your account regularly, find out how the bank will handle them.
   1. Collect – the cheque has to be paid by the drawee’s bank before the customer can benefit from it. This takes a minimum of 30 days during which time you may not withdraw funds against these cheques.
   2. Negotiate – a customer can draw funds on the cheque (by special agreement with the bank) before it has been cleared. Some banks will 'negotiate' certain limited types of foreign cheques (e.g. Stafford Loans). This means that funds can be withdrawn more quickly. If however, the cheque is uncleared, the bank may have to debit your account up to 5 weeks later.
   
   
2. Ask before opening an account how the bank will handle such cheques.
   
3. The four major banks have informed us of the following procedures:
   1. Barclays: will negotiate Aid cheques with a negotiation fee of between £4–£60 for each cheque, depending on the amount.
   2. Lloyds-TSB: Cheques should be presented with your passport and a letter from the University, including term-time address in Sheffield and course details. Most such cheques can normally be collected and funds credited two to six weeks later with a minimum charge of £15.00, maximum charge £80.00.
   3. HSBC: would consider negotiating Aid cheques at the bank’s discretion. Will make a £4-£50 negotiation fee for each cheque, depending on the amount.
   4. National Westminster: Majority of [uncleared] cheques would, under normal circumstances, be negotiated, resulting in the student being credited with the funds. This can take up to six weeks. The payment charge by negotiation is between £5.00–£60.00 per cheque. Further information available from website:
   
   

www.natwest.com/

5. Santander: Cheques can be collected or negotiated. Collected cheques must exceed £100 after conversion. The charge is £10 plus any additional correspondent bank charges.
   Negotiated cheques must not exceed £2,500 and the account is credited after 6 working days with a charge of £10.