Annie Patton Personal Banking and Commercial Banks The Role of The Bank Opening a Bank Account Current Accounts Deposit Accounts ATM Machines Loans Internet Banking Night Safes Foreign Exchange ID: 765966
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© Annie Patton Personal Banking and Commercial Banks
The Role of The Bank Opening a Bank AccountCurrent Accounts Deposit Accounts ATM Machines Loans Internet Banking Night Safes Foreign Exchange
How Banks Operate Banks normally talk about two types of interest, that they give people with money in the bank and that they charge people who have loans from them So banks borrow from savers and give them a lower rate of interest, than they charge those who have taken out loans from them This is how they make some of their profits
How Banks Operate Takes in savings Gives out loans Will charge a higher rate of interest on the loans they give out
Opening a Bank Account You must complete an application Form Provide Proof of Identity- ID and AddressGet a reference from somebody known to the bank- usually this will be another account holder/schoolJob Title- Employed/Unemployed Provide a sample signature http://youtu.be/v6uBhcP9ne4
CNM School Bank Each student in CNM will have the option of opening their very own bank account n school this year!
Two Types of Account Current account (DAY-DAY): This is your day-day account, where you can get paid wages electronically (PAYPATH), and use for spending with Debit Cards, cheques, ATM transactions etc.. Deposit account (SAVINGS): This is a savings account. You get interest on money saved, and you pay DIRT on your savings. There is no cheque book, debit card and you cannot use the hole in wall
Withdrawing from Current Account Cheque ATM MachineChip and Pin (including cash back at till)Direct Debits and Standing Orders transfer money from your account automatically to pay bills Filling a withdrawal slip in a bank
Cheques The person, who writes the cheque is the DrawerThe person to whom the cheque is written to is called the Payee The bank that the drawer has their account in is called the Drawee
Bank Overdrafts One cannot withdraw or write cheques for more than they have in their accounts unless they have special permission to do so called an Overdraft Special permission has to be sought to get this privilege
Night Safes Can deposit cheques and lodgements after hoursThe door is located on the outside and the customer has a key to a shoot that they open and deposit money The bank clerk gets the money the next day
ATM Most banks now allow one to withdraw money 24 hours per day 365 days per year, using a machine placed outside the building The machine is known as an ATM (Automated Teller Machine)You can also pay bills electronically, buy phone credit, order statements etc..
24 Hour Banking Monitor accounts Search payment historyCredit TransfersGet online bank statementsSet up standing orders and direct debits
Foreign Exchange Exchanging currencies in a bank There is a ‘we buy, we sell’ rate that the bank operates