1. The variety of banking services
Banking and Financial Services

2. “Copyright and Terms of Service
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Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency;
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3. Categories of Banking Services
* May vary from bank to bank, but these are common services offered
Retail, also referred to as “Personal”
Corporate, business, or commercial
Investment
Wealth Management
Many banking services exist and are offered by banks and other financial institutions, which is why they may be categorized differently from each other. They generally are considered retail or personal banking, business or commercial banking, investment services, and wealth management.
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4. Banking Services - Retail
Personal
Checking
Savings
Lending
Other Services
Banking Service Options
Retail, or personal, banking services include, but are not limited to, checking accounts, savings accounts, lending, and other services. There are several options that institutions use to offer these services to customers.
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5. Checking Accounts Types: Free checking Money market Express
Maintain a low or zero minimum balance
Student accounts
Money market
Interest earned on an average balance
Limited withdrawal or checking privileges
Express
If you prefer online banking or ATMs
May be a fee to use the drive-through
Lifeline-used mainly by lower-income customers
Banks offer many types of different checking accounts depending upon the needs of the customer. Free checking is suited for students and those people who may only be able to maintain a low minimum balance. Money market accounts benefit customers with a higher balance but who may not need to write many checks. Express-type accounts are for people who would rather bank online or using an ATM and may be charged a fee to use the drive-through teller. Some banks have a lifeline account for lower-income customers.
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6. Checking Accounts (continued)
Fees
Overdraft
Monthly maintenance
Debit cards
Check ordering
Other considerations of checking accounts include various fees such as overdraft and monthly maintenance fees, the use of debit cards, and whether or not checks will be ordered for the account.
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7. Savings (Deposit) Accounts
Basic
Low interest rate
Low, if any, minimum balance
Money Market
Higher interest rate
Higher required balance
Limited withdrawal privileges
CDs (Certificates of Deposit)
Fixed interest rate, depends upon length of time specified
Penalty if funds withdrawn early
Various savings, or deposit, accounts are offered by banks as well. Basic savings usually provides a low, if any, interest rate and a low minimum balance requirement. Money market accounts offer higher interest rate due to the higher balance, but limited withdrawal privileges. Certificates of Deposit, CDs, offer a fixed interest rate based on the length of time committed, but charge a penalty if the money is withdrawn early.
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8. Lending Mortgage Auto Student Unsecured vs. secured New loan
Home equity
refinance
Auto
Student
Unsecured vs. secured
Unsecured=personal loans with no collateral and higher interest rate
Secured=collateral such as home, car, electronics and lower interest rate
Lending services include loans for a new home, refinancing, or home improvements, auto loans, student loans. They are classified as either secured or non-secured. Secured has collateral which can be taken in the event of non-payment. Unsecured loans have no collateral which usually results in a higher interest rate.
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9. Other Services Investments Wealth Management Insurance Credit Cards
IRAs (Individual Retirement Accounts)
Stocks, bonds, mutual funds
Wealth Management
Customers with assets generally more than $1 million
Bank can make decisions on behalf of the customer or the Customer can make decisions
Insurance
Credit Cards
Compare rates
Reward programs
Other services include investments, wealth management, insurance, credit cards, and trust services.
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10. Other Services (continued)
Trust Services
Estate planning – how assets are handled after a customer’s death
Trust account administration – an officer of a financial institution can be appointed administrator
Retirement planning – 401(k), IRA
Safe-deposit boxes
Trust services are usually for estate planning and retirement planning. An employee of the financial institution can be appointed as the trustee and the institution can charge fees for trustee services. Safe-deposit boxes are also provided at many commercial banks, in several sizes and for different prices.
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11. Banking Service Options
Physical location
Online
24/7 access
Mobile
Download app
Photo (substitute) check feature
ATM
Withdraw
Deposit
Balance
Banking services can be accessed and offered in a number of ways. Today, aside from the physical location, services and accounts can be accessed online through a computer, mobile as in phones or tablets, and through ATMs.
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12. Banking Services - Commercial
Raising Capital
Investing
Risk Management
International
Payroll
In addition to personal banking services, there are also corporate, or business/commercial, services. These services include ways to raise capital, investing, risk management, international services, and payroll.
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13. Raising Capital Commercial loans Real estate
SBA (Small Business Administration) loans
Interim Financing-construction loans
Capital can be raised for projects such as real estate investing and construction loan financing. In addition, businesses can make loans for different purposes, and smaller businesses can obtain financing through SBA loans.
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14. Investing Investing in securities Corporate Retirement plans
Managing corporate portfolios
Goal of maximizing profit
Corporate Retirement plans
Offering investment allocation options for a company’s employees
Managing funds
Financial institutions can provide investment services for businesses such as managing corporate investment portfolios and corporate retirement plans.
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15. Risk Management Types of risk: Insurance:
Credit- the potential for borrower non-payment
Market (economy)- possible instability
Investment- possibility of loss of money
Liquidity- difficulty of converting to cash
Fraud- possibility of being deceived
Insurance:
Policies for employees
Life, accident, health
Warranties and extended service contracts
Risk management is an area within an institution that monitors types of business risk that exist which can affect interest rates and products/services that are offered to the business. Common risks examined are credit, market, investment, liquidity, and fraud risk. Another part of risk management is offering types of insurance for employees. These may include life, accident, and health insurance as well as warranties and extended service contracts for products.
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16. International
Foreign currency exchange-buying and selling foreign currency to make a profit on exchange rates
Trade services-buying and selling foreign or domestic stocks, bonds, and commodities
Banks and financial institutions also provide international services such as buying and selling foreign currency as well as stocks, bonds, and other commodities.
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