Banking products - 15 Mints Seminar Notes

Banking products - 15 Mints Seminar Notes

 

At its m safely keep your money. But beyond the basics, banks usually offe a wide range of products and services designed to make managing your money a bit easier basic level, a bank is a place

From car loans to credit cards, there are plenty of banking services you may need at different stages of life.

Why should I put my money in a bank?

• Keeping large sums of money at home can be risky.
  
• Even though the odds may be small, there’s always the chance of loss, theft or even a natural disaster.
• Dealing with cash for everyday expenses can be a bit cumbersome.
  
• Besides that, a bank account allows you to track your expenses in a single place, which can be helpful if you’re monitoring a budget o simplify the process (as opposed to buying stamps and mailing checks).
  

Ways to bank

Branches:

• A bank branch is a brick and mortar location where your banking can be done in person.
• You may want to rent a safety deposit box to store valuables or important documents.

 

Online and mobile banking: 

Many banks allow you to manage your money from a computer or smartphone—and lots of customers have embraced these options. 

In 2017, about half of U.S. adults with bank accounts accessed them with a mobile phone. 

Some online banking and mobile apps allow you to bank from almost anywhere on your own schedule. With 24/7 access, you can do everything from managing multiple accounts to paying bills to transferring money. 

Round-the-clock access also helps some people stay organized. If balancing your checkbooks on Sunday evenings suits you, no problem. 

 

Consumer and corporate banking:

• Also known as retail banking or personal banking, it’s the division of a bank that serves the general public.
• Also known as business banking, this division of a bank generally serves a wide range of clients, including small businesses, mid-sized businesses and large conglomerates that may have billions in sales and offices nationwide.

 

Credit unions:

• Many people wonder how a credit union differs from a retail bank.
•  In general, credit unions offer the same services as a bank, such as checking accounts and personal loans.
• You’ll likely have to be a member of a group to use a credit union and its services, but this is easier than it sounds.
• Some credit unions simply require you to live in a certain town or city.
• One thing to keep in mind about credit unions is that they may be smaller than many banks.
• The FDIC does not insure credit unions, however, the National Credit Union Administration (NCUA) offers the same type of protection to federally chartered credit unions.

 

Online-only banking

• While most banks today offer online services, there are also banks that exist solely online.
  With lower operating expenses, those savings can often be passed along to customers in the form of lower monthly fees or higher interest rates on savings accounts.
  

 

Telephone banking:

Simply call a phone number and speak to a bank employee to do things like check your balance, transfer money, pay bills or handle other banking needs.
 

Banking products and services

Checking account: 

• This popular type of account allows you to store and manage the money you use for everyday spending.  
• You can also get cash from an ATM or branch using your debit card and PIN, a unique password you choose to protect your account. 

Savings account:

• A savings account can help you separate the money you want to save from the money you need to spend.
• For many, it’s an easier way to work toward a goal, like saving for home improvements or building an emergency fund. 
• Most savings accounts can automatically move money from your checking account into your savings account each month, so you don’t even have to think about doing it yourself.
  

Certificate of Deposit:

• A CD is a type of bank account where you agree to keep your money in the account for a certain amount of time, from as little as 6 months to as long as 5 years.

Debit card:

• With a debit card, you can pay for everyday expenses with just a swipe (and usually your PIN).

 

Credit card:

• A credit card lets you pay for items with a line of credit.

• But remember that different credit cards charge different rates of interest, so it’s important to know what you’re agreeing to (so you don’t end up paying too much in the long run).
• One way to avoid paying interest is to pay your bill in full each month.

ATM:

• An automated teller machine (ATM) is an electronic bank that allows you to complete basic transactions without a branch or teller. You’ll just need your debit card and secure PIN. Some ATMs also allow deposits of cash or checks.
  

 

FDIC:

• You can use its Banking tool to see if your bank is a member and to look up the maximum limit of deposited funds that are insured.

 

Deposit:

• Anytime you put money into your account, you’re making a deposit.
• You can usually deposit checks or cash at a bank, ATM or even on your mobile phone.

 

Withdrawal:

• Anytime you take money out of your account, you’re making a withdrawal. Just like with deposits, you can take out funds at a bank branch or ATM.
• When you write a check, wire money or use your debit card, the money is withdrawn automatically from your account.
  

 

Fees:

• When it comes to different types of banking products, fees can vary widely.
• The more you know about what banks have to offer, the easier it may be to make a plan that works best for your lifestyle and personal financial goals.

Presented by

Kousalya

Banking Student 

Magme School of Banking