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Banking Products and Services - Coggle Diagram
Banking Products and Services
The modern bank performs the thrift, credit, payment, cash management, underwriting, investment/ planning, brokerage, insurance and trust.
BANK ACCOUNTS
Deposits is account with credit balances held with the bank
Major categories of deposit accounts in the USA
transaction accounts
Funds in a transaction account can be accessed without notice to the bank or withdrawn at any time without penalty.
is a current one
most common use for individuals
Normally transaction accounts include non-interest earning checking accounts and interest earning checking accounts.
savings accounts
An example of savings accounts is a time deposit account
There are presence of an early withdrawal penalty.
Always have the exact maturity date that is disclosed in advance and agreed to by both parties
Interest is paid after the maturity date or when specified in the account contract
GRANTING CREDITS
Two ways to borrow
Overdraw
to spend more money than you have in your current account
limit may be set
may have date, when credit has to be back
To get a Loan
it will be a fixed sum immediately available for a fixed period of time.
classification
.
business
consumer
other banks
terms
long
line of credit
short
security
secured
unsecured
ELECTRONIC BANKING
It allows for instantaneous transfers of funds to almost anywhere in the world.
include
Telephone transactions
Other electronic transactions such as those conducted via
the Internet
Remote terminal transactions
are simply machines that allow customers to access accounts without the personal assistance of a bank employee
A popular types
an automated teller machine (ATM)
a point-of-sale (POS) terminal
A SAFE DEPOSIT BOX
Customers rent metal boxes that are stored in a vault in the bank, where they typically store valuable papers and small objects, such as family heirlooms.
CASH MANAGEMENT
It helps to keep funds working, speed up the payment receipt process and improve profitability.
TRUST TRANSACTIONS
act as agents for corporations and other businesses in a host of different ways
OTHER FUNCTIONS, THAT MAKE BANKS AKIN TO FINANCIAL SUPERMARKETS.
Making foreign exchange transactions, providing traveller’s cheques, issuing credit and debit cards, private banking for high net worth individuals, providing retirement plans