Chapter 3: Money and Banking Flashcards
Personal Banking
Refers to the services provided by banks to help manage the person’s personal finances.
Current Account
Allows you to lodge and withdraw money at any time. This account is used for day-to-day transactions.
Current Account Services:
ATM, Pay Path, Bank Draft, Cheque, Debit Card, Credit Transfer, Overdraft, Bank Statement.
Automated Teller Machine/ ATM:
Machine used for withdrawing money from current account. Correct card and PIN must be entered.
ATM Services:
Withdraw money (€600), In bank can lodge cheque and money, pay bills, check balance, order bank statement, phone credit.
Debit Card:
When correct PIN entered, allows money to be transferred electronically from the customer’s bank account.
Credit Card:
Like debit card except you pay LATER!
Cheque
Written instruction to a bank to pay a stated sum of money from your bank account to a named account.
Bank Draft
Written document that tells the bank to pay a stated sum of money to a named person. Written by the bank and guaranteed not to bounce as you pay the money in advance.
Credit Transfer (CT)
Allows you to transfer money from your bank account to another person’s bank account.
Complete giro or do it online.
Paypath
Electronic way of transferring an employee’s wages from employer’s account to employee’s account.
Advantages!
Overdraft
Permission to withdraw for more than balance in current account up to a certain limit.
Advantages, disadvantages!
Pay Pal
Safe way to pay for goods online without disclosing credit card or bank details. Money from your account to seller’s account but no exposure of details.
SO
Planned automatic payment to pay a regular fixed amount of money from your bank account to a stated person’s bank account on specific dates/ fixed time.
DD
Planned automatic payment to pay a variable amount of money from your bank account to a stated person’s bank account at any time.
