Chapter 3: Personal Banking

Question 1

Current Account

Answer 1

Allows you to lodge and withdraw money at any time. This account is used for day-to-day transactions.

Question 2

ATM (Automated Teller Machine)

Answer 2

A machine used to withdraw money from a person’s current account. The correct card and PIN (Personal Identification Number) must be entered.

Question 3

ATM Services (5)

Answer 3

1. Withdraw Cash
2. Pay bills
3. Check Account Balance
4. Order bank statement
5. Buy mobile phone credit

Question 4

Debit Card

Answer 4

This allows money to be transferred electronically from the customer’s bank account to the retailer’s bank account. The customer must enter their PIN.

Question 6

Cheque

Answer 6

A written instruction to a bank to pay a stated sum of money from your bank account to a named person.
If there is not enough money in the account of the person who wrote the
cheque, the cheque will “bounce”.

Question 7

Credit Transfer (CT)

Answer 7

Allows you to transfer money from your own bank account to another person’s bank account.
This can be done in the bank branch by completing a giro or online banking.

Question 8

Bank Draft

Answer 8

A written document that tells the bank to pay a stated sum of money to a named person.
it is written by the bank and guaranteed not to bounce as you pay the money in advance.

Question 9

Paypath and the Advantage for an Employer and Employee

Answer 9

Electronic way of transferring an employee’s wages from employer’s bank account to employee’s bank account.
Advantage: Safer for Employer as they do not need to handle large amounts of cash on payday. Also saves Employee time as the money is already in their bank account.

Question 10

Overdraft and the Advantage and Disadvantage of it

Answer 10

This is permission to withdraw money for more than the balance of money in your current account. Only up to a certain limit.
Advantage: Convenient to pay for household items in the short term.
Disadvantage: High Interest is charged.

Question 11

PayPal

Answer 11

Safe way to pay for goods online without disclosing your credit card or bank account details. Transfers money from your account to seller’s account without the seller getting your account details.

Question 12

Standing Order (SO)

Answer 12

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. This is used to pay regular fixed bills. Example: Mortgage.

Question 13

Direct Debit (DD)

Answer 13

A planned automatic payment to pay a variable amount of money from your bank account to a stated person’s account at any time. Good for paying irregular bills where the amount changes every month. Examples: ESB, Vodafone.

Question 14

Bank Statement

Answer 14

This is a document issued by the bank that shows you the money flowing in and out of your current account. These can be paper or electronic statements.

Question 15

Difference Between a Debit Card and a Credit Card

Answer 15

Debit Card: Buy now pay now. The amount is taken instantly from the account holders bank account Example: Visa Debit.
Credit Card: Buy now pay later. Amount due must be paid in full when bill is sent. Example: Mastercard.

Question 17

Online and Mobile Banking

Answer 17

Allows people to access their current account at any time using a computer or mobile device that has internet access.

Question 18

Features of Online and Mobile Banking (5)

Answer 18

1. Access Bank Account details.
2. View account balance.
3. View payments coming in and out of account.
4. Transfer money electronically to other accounts.
5. Set up Standing Orders and Direct Debits.

Question 19

Foreign Exchange

Answer 19

This involves banks converting euro currency into other foreign currencies like sterling, dollar and yen.

Question 20

Exchange Rate

Answer 20

This is the rate at which money of of one country can be changed for the money of another country.

Question 32

Ways to Make a Lodgement (2)

Answer 32

1. Electronic Lodgement (e.g. Paypath, Credit Transfer).

2. Lodgement Slip - Fill in slip in bank and give to cashier.

Question 33

Ways to Make a Withdrawl (7)

Answer 33

1. ATM (up to limit €500-€600).
2. Go into the Bank and complete a withdrawal slip.
3. Debit Card to pay for purchases in shop.
4. Cash Back with Debit Card purchase.
5. Credit Transfer to pay someone else’s account.
6. Writing a Cheque.
7. Direct Debit and Standing Orders.