CHAPTER 3: BANKING SERVICES (CHEQUE (TYPES OF CHEQUE (PARTS OF CHEQUE…
CHAPTER 3: BANKING SERVICES
TYPES OF BANK
COMMERCIAL BANKS -the institutions commonly thought of as banks.
RETAIL BANKS - mutual saving banks, savings and loans, and credit unions.
CENTRAL BANKS - goverment's banker
TYPES OF ACCOUNT
CURRENT ACCOUNT -personal or business purposes. Account holder can use cheques as a way to make payments.
SAVINGS ACCOUNT - save or deposit money into an account and receive certain interest with no stated maturity.
ELECTRONIC FUNDS TRANSFER SYSTEM(EFTS) - most important and most widely used technology in retail banking.
AUTOMATIC TELLER MACHINE(ATM) - save costs in terms of time and energy. Easy and convenient to use.
ELECTRONIC FUNDS TRANSFER AT POINT OF SALES SYSTEM (EFTPOS) - used widely through debit cards.
manages your finances from home, work or from just about anywhere in the world.
TYPES OF CHEQUE
PARTS OF CHEQUE
ELEMENTS OF A CHEQUE
DO AND DON'T
your banking institutions will decline to pay a cheque because a few reasons.
OPEN CHEQUE - called OPEN when it is possible to get cash over the counter at the bank.
CROSSED CHEQUE - a cheque can be crossed by drawing two transverse parallel lines across the cheque, with or without the writing ACCOUNT PAYEE or NOT NEGOTIABLE.
BEARER CHEQUE - which is payable to any person who presents it.
ORDER CHEQUE - which is payable to a particular person.
DRAWER - person who signed the check
DRAWEE - the bank
PAYEE - benefiaciary
Is a convenient payment mode as it can be readily used for making purchase at merchant outlets