Personal Banking
1). Current accounts:
Current account (US.Eng checking account) is an account which allows customers
to withdraw or take out money. Money in the account does not usually earn a
high rate of interest: the bank does not pay much for ‘borrowing’ your money.
However, many people also have a saving account or deposit account which
pays more interest but has restrictions on when you can withdraw your money.
Banks usually send statements listing
recent sums of money going out, called debits, and sums of money
coming in, called credits.
Debit cards allow customers to make withdrawals and do
other transactions at cash dispensers (UK.Eng; US. Eng: ATM Automated Teller
Machine). A credit card, on the other hand, can be used for buying goods
and services as well as for borrowing money.
In some countries, banks issue chequebooks
and people pay bills with cheques (US. Eng checks). In other countries,
however, banks don’t issue chequebooks and people pay bills by bank
transfer. These include standing orders, which are used to pay
regular fixed sums of money, and direct debits, which are used when the
amount and payment date varies.
2). Banking Services:
Banks offer:
- loans: fixed sums of money that
are lent for a fixed period, two years for instance.
-overdrafts: they allow customers
to withdraw an account-they can have a debt, up to an agreed limit, on which
interest is calculated daily.
-mortgages: they allow people to buy a house. These
are long-term loans, on which the property acts are collateral or a
guarantee for a bank. If the borrower doesn’t repay the mortgage, the
bank can repossess the house or flat.
-Banks also exchange foreign currency
for travellers, and sells traveller’s cheques (US. Eng: traveler’s check) which
are protected against loss or theft.
-They also provide advice about investments
and private pension plans: saving money for when you retire from work.
-Banks also sell insurance products to
their customers.
3). E-Banking
It is also known to as online banking,
internet banking or web banking, and virtually every banking institution has
some form of
online banking you can access through a computer or app.
4). Personal banking vs. Business
banking
Business banking offers a wide range of features and
services that are often necessary for a business to operate.
These services include credit cards,
loans, checking account, and savings accounts.
Business banking may also offer other services like cash
management, inventory management, and technology solutions to help increase
productivity. Whereas, Personal banking focuses on helping individuals
reach their financial goals. It offers a selection of personal bank accounts;
from which you can choose the one that best suits your needs.
Some banks also offer trust accounts for
children. Additionally, some of these banks offer custodial accounts for
parents with children who need access to their funds but are not old enough to
open their own bank account.
Exercises:
Task 1: Find words in the lesson with the
following meanings
1. 1). What
you can earn when you leave your money in the bank.
2. 2).an
amount t of money borrowed from a bank for a certain length of time, usually
for a specific purpose.
3. 3).
something that acts as a security or a guarantee for a debt.
4. 4). An
arrangement to withdraw more money from a bank account than you have placed in
it.
5. 5). a
long-term loan to buy somewhere to live.
6. 6). An
arrangement for saving money to give you an income when you stop working.
7. 7). to
take back property that has not been completely paid for.
Task 2: Are the following statements true or
false?
1). Current accounts pay more interests
than savings accounts.
2). There is less risk for a bank with a
mortgage than with unsecured loans without collateral.
3). Traveller’ s cheques are safer for
tourists than carrying foreign currency.
4). The majority of customers prefer to do
their personal banking at the bank.
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