Chapter 8~Commercial Banks Flashcards
Savings/deposit account?
An account for customers who want to save money. Interest is paid each year on the amount saved
Current account?
An account for customers who want to pay bills and other expenses on a regular basis
DIRT?
Deposit interest retention tax. This is the interest paid on interest earned on savings
ATM?
Automated teller machine
Lodgement?
Putting money into your savings or current account
Withdrawal?
Taking money from you savings or current account
E.g ~ by using withdrawal slip, ATM, cheque
PIN?
Personal identification number
24 hour banking?
Telephone and Internet banking which allows customers to carry out a range of banking services 24 hours a day, 365 days a year
Night safe?
A metal drawer located in the wall of most bank branches. They are used by consumers who need to lodge large amounts of cash when the bank is closed. useful for pub owners, late night shops
IBAN?
International bank account number. An internationally agreed means of identifying bank accounts internationally
4 commercial banks in Ireland
- AIB~Allied Irish banks
- Bank of Ireland
- Ulster bank
- Permanent TSB
2 advantages of a savings/deposit account
- receive interest on savings each year
* convenient way of saving money
How does the DIRT system work?
- The amount of DIRT payable on interest is calculated by the bank or financial institution
- This is automatically deducted from the interest payable on each account before the interest is added to a persons account
- The amount deducted is then sent to the tax office
3 advantages of a current account
- customers can use a cheque or laser card to pay for goods and services, which is safer and more convenient than having to pay cash
- you can have your wages paid directly into you current account (paypath)
- costumers can apply for a bank overdraft
3 differences between a current account and a deposit account
- no interest earned on current account, interest earned on deposit account
- overdraft facility with current account, No overdraft facility on deposit account
- cheque facility with current account, no cheque with deposit account