Money and Banking II
Services Offered by Financial Agencies
Money transmission facilities
Saving facilitie
Foreign exchange facilities
Money Transmission
Cheque
Transferring of money from one person to another
A person with a current/cheque account can pay by cheque
Safe
There is a record
Bank Draft
A form of cheque which a bank draws on itself
Can be used by both customers and non-customers
100% safe
There is a record
Standing Order
A person with a current account can instruct the bank or building society to take a fixed sum of money from their account and pay it to someone else on a fixed date
The current account holder need not worry about paying bills as this will be done automatically
Direct Debit
Like a standing order but the amount may differ and the date is decided on buy the account holder
Its used to pay bills and one of items
Bank Giro
Also known as a credit trransfer
Allows a person to transfer money to the accounts of a number of people or business
The person paying the money has to complete a bank giro form for each payment and pay the bank in full
You need to know the name and address of the person you are paying and their bank and account numbe
Plastic Cards
Saving Facilities
Banks, building societies, credit unions and An Post provide many different and secure ways of saving.
Index Linked National Instalment
A savings scheme which the State guarantees a minimum return after five years
The return will be equal to the rate of inflation for the period
You must save a fixed amount of money for 12 months
Savings Bonds
Guarantees minimum returns after three years
National Savings Certificates
Guarantee minimum returns after five years
Interest on Savings
Simple interest - interest calculated on the original sum borrowed
Compound annual interest (CAR) - interest is calculated on the original sum plus the interest earned to date
Tax on Savings
Deposit Interest Retention Tax (DIRT)
Tax must be paid on all savings
Handed to the government by the saving agency