We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byMelvin Blind
Modified over 2 years ago
TYPES OF BANK ACCOUNTS
DEFINITION a bank account is a monetary account with a banking institution recording the balance of money for a customer they can have a positive/credit balance where the bank holds money on behalf of the customer or a negative/debit balance where the customer owes the bank some money banks send statements of account to their clients to inform them about the state of their account ©Lenka Lexová
I. DEPOSIT ACCOUNT the bank holds money on behalf of the account holder some banks charge a fee for this service, others pay the client interest on the deposited funds the account holder holds rights to the deposit the withdrawal of money depends on the terms and conditions of the account and the bank ©Lenka Lexová
TYPES OF DEPOSIT ACCOUNTSchecking account money market account savings account term deposit long term deposits short term deposits ©Lenka Lexová
a) CHECKING ACCOUNT held at a bank or other financial institution in order to provide quick access to funds money is available on demand bank does not offer interest it is not suitable for saving money customer can withdraw money any time and in what amount he wants depending on the funds ©Lenka Lexová
b) MONEY MARKET ACCOUNThas a relatively high rate of interest when the client needs to withdraw money short notice or no notice is needed typically used in the USA ©Lenka Lexová
c) SAVINGS ACCOUNT an account which is maintained by a bankcannot be used directly as money is suitable for saving money some savings accounts require funds to be kept on deposit for a minimum length of time all financial transactions are listed in a passbook or a bank statement to withdraw money you have to give notice to the bank in advance bank pays interest rate to the client ©Lenka Lexová
d) TERM DEPOSITS cannot be withdrawn for a certain term or period of time when the term is over, money can be withdrawn or held for another term the longer the term, the better the interest to withdraw some money it is necessary to give notice to the bank long-term deposits – have higher interest short-term deposits – have lower interest ©Lenka Lexová
II. CURRENT ACCOUNT is an account which enables to withdraw many any time in various ways (electronic payment, money order, ATM) all financial transactions are listed in a bank statement or a passbook on the credit side there are deposits, salaries, incomes of the account holder on the debit side there are payments, money transfers, regular payments (for rent, electricity) do not have high interest ©Lenka Lexová
CURRENT ACCOUNT PAYMENTScash money (banknotes) cheque and money order (a paper promise to pay) giro (funds transfer, direct deposit) direct debit (pre-authorized debit) standing order (automatic funds transfer) debit or credit card (cashless direct payment at a store or merchant) SWIFT - International account to account transfer ©Lenka Lexová
ACCESS TO CURRENT ACCOUNTSbranch networks – allow the clients to receive a wide offer of banking and financial services cash machines (ATM) – automated machines which are used to withdraw cash and check account balances Internet banking – clients can use the bank's secure website to look at balances and statements, perform transactions and payments telephone banking – a call centre or automated service, provided on a 24 hour basis mail banking ©Lenka Lexová
BANK OVERDRAFT occurs when withdrawals from a bank account exceed the available balance this gives the account a negative balance and the bank is providing credit banks also offer overdraft facility – it is credit limit on which bank and client agree on the opening of the account if the amount overdrawn is within this authorised overdraft, then interest is normally charged at the agreed rate ©Lenka Lexová
CURRENT ACCOUNT COSTS banks charge a fee for doing financial transactions per item or on a monthly basis youths, students, senior citizens or high-valued customers do not pay fees for basic financial transactions in some countries, transaction fees do not exist, but extremely high lending rates are the norm ©Lenka Lexová
Bank Accounts. Deposit Account: Deposit Account: An account at a banking institution which allows the account holder to deposit money into or withdraw.
Banking Math 10 Essentials. Banking Transactions A bank is an financial institution which deals with cash, domestic and foreign, receives and stores deposits.
Banks and their products VOŠ – 3. ročník – 2. semestr.
Checking Account. Key Terms Check Online and smartphone banking Deposit/credit Automated Teller Machines (ATMs) Debit Overdrawn Balance/reconcile Overdraft.
Objectives Explain the various electronic banking methods. Identify characteristics of checking accounts. Compare checking accounts at various financial.
A business makes payments for what it buys, In return it receives payments for goods it sells or services it provides.
Chapter 4 Accounting for Deposits Department Ibrahim Sammour.
Section 2 17 Chapter Financial Services & Electronic Banking.
1.7.2.G2 Electronic Banking Trivia G2 © Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic.
Banking Basics Deposit Accounts Created By: Laura Kinchen.
Checking account – An account held at a bank, credit union, or other financial institution in which account owners deposit funds. Account owners have the.
Financial Institution Frenzy G1 © Family Economics & Financial Education – April 2006 – Get Ready To Take Charge of Your Finances – Financial Institution.
Banking products and operations. withdrawal A withdrawal in a bank / withdraw money = to take money out of a bank account.
Checking account - an account held at a bank, credit union or other financial institution in which account owners deposit funds. Account owners have the.
Financial Services & Electronic Banking Ch PoB 2011.
Chapter 3 Accounting for Current Accounts Department
GOALS BUSINESS MATH© Thomson/South-WesternLesson 3.2Slide 1 3.2Electronic Banking Record electronic banking transactions Find account balance when banking.
Chapter 3, Section 3 ELECTRONIC BANKING.
Chapter © 2010 South-Western, Cengage Learning Checking Accounts and Banking Services Banking Services and Fees 9.
Read to Learn Discuss the different types of checking accounts and how they work. Discuss other services and offerings that banks provide checking account.
Bank On It Personal Finance Unit. Why Learn About Banking?
Bank On It 1. 2 Purpose Bank On It : Is an overview of banking services. Will help you build a positive relationship with banks, thrifts, and credit unions.
Prepare a deposit slip Record entries in a check register
Chapter 14. Banking Do Now What do you think banks will be like in 15 years?
1.7.2.G1 © Family Economics & Financial Education – Revised May 2009 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge.
3. 18 Methods of making and receiving payments Methods of making and receiving payments Banks and bank accounts All businesses have bank accounts.
17-2 Financial Services and Electronic Banking. Types of financial services Savings services Financial institutions accept money for safekeeping. A broad.
Depository Institution Discovery G1 © Take Charge Today – Revised April 2006– Depository Institution Discovery – Slide 2 Funded by a grant from.
Choosing and Balancing a Checking Account Personal Finance.
1.7.2.G1 © Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take.
Banking © 2016 albert-learning.com Banking. © 2016 albert-learning.com Vocabulary Mortgage: A mortgage is a security interest in real property held.
1.7.2.G1 Electronic/Online Banking & Bill Pay Take Charge of Your Finances.
Two types of banks – for profit bank and credit unions Credit unions are local and member owned – not for profit – limited sometimes in services
How to Manage Your Cash › Daily Cash Needs Lunch, movies, gas, or paying for other activities Carry cash Go to an ATM Credit Card Know pros.
Chapter 10 Banking.
Intro to Banking and Credit Two basic types of accounts 1.Savings – savings accounts pay interest on the money in the account. This is because the bank.
DEBIT CARD, CREDIT CARD & SMART CARD
Chapter 12 BANKING PROCEDURES AND SERVICES. Learning Objectives Explain the difference between different types of financial institutions Learn the.
Checking Account & Debit Card Simulation Understanding Checking Accounts and Debit Card Transactions.
Checking Accounts Chapter 9. Basics Check: ▫Written order to bank to pay the amount stated to the person or business named on it. Demand deposit: ▫Money.
What Are the Functions of ATM Machines?
Bank & Insurance Ms. Cichon Rosholt High School. Financial Institutions Commercial Bank: Financial institution that offers a wide variety of banking services.
Deposit Accounts. Two Categories: Transaction deposits An account that allows transactions to occur at any time and in any number. AKA demand deposits.
1.2.2.G1 © Take Charge Today – Revised May 2010 – Electronic Banking Bonanza – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School.
EFTPOS and credit card payments Rachel Garcia Line 4 Due:14 th November Business Admin Michael Barry.
What does overdraft mean? An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation.
© 2017 SlidePlayer.com Inc. All rights reserved.