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Financial Institution- Banks (1) (Commercial Bank (Deposits & Savings,…

- - - - saving account
    - - Current account
        
        easier to pay people money
        
        more flexible; receive lower i/r
        
        more transactional services
    - - fixed deposits
        account
        
        receive higher i/r than saving acc
        
        :red_cross: take out money to use
        after period ends
  - - - Current account
      - can write a cheque > than
        the balance in current account
        balance
    - - secure loan
        
        :check:backup by assets
        
        lower i/r is charged
      - Term loans
        
        repayable -> agreed term; periodic instalment
        -> principal + interest
      - Unsecure loan
        
        :red_cross:backup by assets
        
        higher I/r is charged
      - fixed rate loan
        
        the i/r is fixed throughout
        the loan repayment
        
        < risk incurred
        
        :check: risk adverse
      - Variable rate loan
        
        lower than market I/r initially
        
        follow market i/r after
        initial period ends
        
        :check: risk taker
        
        risk incurred
  - - - cheque service
      - treasury service
        
        buying & selling
        currency
      - telegraphic service
      - online transfer service
      - Credit card