Personal Bankng

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.

Lodge: putting money into a bank account
Withdraw: taking money out of bank account

Question 2

What does Atm stand for?

Answer 2

Automated Teller Machine

Question 3

ATM

Answer 3

a machine used to withdraw money 
from a person’s current account. 
The correct card and PIN (Personal 
Identification Number) must be entered.
The machine reads the card chip and the 
customer enters their secret PIN. This is to 
prevent a stolen card from being used.

Question 4

ATM Services:

Answer 4

Withdraw Cash
Pay bills
Check Account Balance
Order bank statement
Buy mobile phone credit

Question 5

Debit Card

Answer 5

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.
The amount is taken instantly from the
Customer’s bank account. If there is not
enough money in the bank account the card will be declined.
Advantage: Safe and Convenient way to pay for goods

Question 6

Debit card

Answer 6

Buy now pay now

Example: Visa debit

Question 7

Credit card

Answer 7

Buy now pay later

Example: Mastercard

Question 8

Cheque

Answer 8

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”.

This means that the payment cannot be made.

Question 9

Credit Transfer (CT)

Answer 9

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 10

Bank Draft

Answer 10

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.

It is a common way to pay for expensive items like cars and houses.

Question 11

Paypath

Answer 11

Electronic way of transferring an employee’s wages from employer’s bank account to employee’s bank account.

Question 12

Advantage for Employer of Paypath

Answer 12

Safer for Employer as they do not need to handle large amounts of cash on payday.

Question 13

Advantage for Employee of paypath

Answer 13

Saves Employee time as the money is already in their bank account

Question 14

Overdraft

Answer 14

This is permission to withdraw
money for more than the balance of money
in your current account. Only up to a
certain limit.

Question 15

Advantages of Overdraft

Answer 15

Convenient to pay for household items in the short term

Question 16

Disadvantages of overdraft

Answer 16

High Interest is charged

Question 17

Pay Pal

Answer 17

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 18

Standing Order (SO):

Answer 18

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 19

Direct Debit (DD)

Answer 19

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 20

Bank Statement

Answer 20

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 21

Lodgement

Answer 21

this involves putting money into a bank account

Question 22

How to withdraw

Answer 22

ATM with card and valid PIN (up to limit €500-€600)

Go into the Bank and complete a withdrawal slip

Debit Card to pay for purchases in shop

Cash Back with Debit Card purchase

Credit Transfer to pay someone else’s account

Writing a Cheque

Direct Debit and Standing Orders

Question 23

Online and Mobile Banking

Answer 23

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

Question 24

Features of Online and Mobile Banking

Answer 24

Access Bank Account details

View account balance

View payments coming in and out of account

Transfer money electronically to other accounts

Set up Standing Orders and Direct Debits

Question 25

Foreign Exchange

Answer 25

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

Question 26

Exchange Rate

Answer 26

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