Personal Bankng Flashcards
Current Account
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
What does Atm stand for?
Automated Teller Machine
ATM
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.
ATM Services:
Withdraw Cash Pay bills Check Account Balance Order bank statement Buy mobile phone credit
Debit Card
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
Debit card
Buy now pay now
Example: Visa debit
Credit card
Buy now pay later
Example: Mastercard
Cheque
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.
Credit Transfer (CT)
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
Bank Draft
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.
Paypath
Electronic way of transferring an employee’s wages from employer’s bank account to employee’s bank account.
Advantage for Employer of Paypath
Safer for Employer as they do not need to handle large amounts of cash on payday.
Advantage for Employee of paypath
Saves Employee time as the money is already in their bank account
Overdraft
This is permission to withdraw
money for more than the balance of money
in your current account. Only up to a
certain limit.
Advantages of Overdraft
Convenient to pay for household items in the short term
Disadvantages of overdraft
High Interest is charged
Pay Pal
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.
Standing Order (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
This is used to pay regular fixed bills
Example: Mortgage
Direct Debit (DD)
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
Bank Statement
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
Lodgement
this involves putting money into a bank account
How to withdraw
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
Online and Mobile Banking
allows people to access their current account at any time using a computer or mobile device that has internet access.
Features of Online and Mobile Banking
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
Foreign Exchange
this involves banks converting euro currency into other foreign currencies like sterling, dollar and yen.
Exchange Rate
this is the rate at which money of of one country can be changed for the money of another country.