Ch 8- Finanicial Services Flashcards
Financial institution
Provides financial services for its customers eg savings
Types
Commercial banks
Credit union
Post office
Building society
Services
Current and deposits accounts
Loans
Online banking
Foreign currency exchange
Commercial bank
A bank that offers financial services to the public and to businesses
Advantage of commercial banks
Great range of services
Online banking
Disadvantages
High interest
Charges fees
Bank account
For saving Money where interest is earned
Types of bank accounts
Deposit- used for saving. Money is lodged and interest is earned. Safer. Interest is added. Less temptation to spend
Current- used for day to day living. Statement is received showing all transactions
Money out of account
Withdrawal
Money into account
Lodgements
Requirements for opening a bank account
Proof of identity
Proof of address
Ppsn
Lodging money
Over counter
Paypath
Social welfare.
Any 3rd party
Withdrawing money
ATM Credit card Withdrawal slip Credit transfer Direct debit Standing order Cheque
ATM
Automated teller machine
Withdraw and lodge money
Check balance
Order bank statement
Pin
Personal identification number
4 digit number that’s unique to your card
Debit card
Used by current account holders to pay for goods
Card is swiped and type in PIN
Money is automatically withdrawn form account
Contactless payments
Used to pay for items under €30
Doesn’t require pin
Direct debit
Current account holders give permsion to a business to withdraw variable amounts form account
Time also Varys
Eg ESB bill
Standing order
Instructs the bank to pay a fixed sum on a fixed date to a business
Eg mortgage repayments
Credit transfer
Transferring money to another account
Cheques
Used to make payment
Drawer
Person who write the cheque
Drawee
The bank
Payee
Who the cheque is going to
