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BANKING PRODUCTS AND SERVICES - Coggle Diagram
BANKING PRODUCTS AND SERVICES
The modern bank performs the following functions: thrift, credit, payment, cash management, underwriting, investment/ planning, brokerage, insurance and trust.
Types of accounts
Deposit accounts
Transaction accounts
Funds in a transaction account can be accessed without notice to the bank or withdrawn at any time without penalty.
This kind of an account is a current.
Include non-interest earning checking accounts and interest earning checking accounts.
Savings accounts
An example of savings accounts is a time deposit account (such as a Certificate of Deposit [CDs]).
Time deposits always have the exact maturity date.
Interest is paid on the deposit balance after the maturity date or when specified in the account contract.
The presence of an early withdrawal penalty is a key element of time deposit accounts.
Ways in which you can borrow money
to get a loan
Consumer loans
Include installment credit and mortgage loans
Business loans
Are primarily classified into three categories: short term, long term, and a line of credit.
A line of credit is essentially a preapproved credit limit against which the business borrows.
In a closed-end line of credit, the business borrows and repays the funds within a certain time limit.
In an open-end line of credit, the business can borrow any amount up to the approved limit, make repayments, and borrow again up to the limit.
to overdraw
Is likely to set a limit to the size of the overdraft and may stipulate the date by which the account is back in credit.
Bank charges interest on the overdrawn amount.
Banks also make loans of reserves to other banks through the federal funds market and to securities dealers through repurchase agreements.
Payment system
Check clearing
Electronic banking services include remote terminal transactions, telephone transactions, and other electronic transactions such as those conducted via the Internet.
Remote terminals
ATM
POS
Another banking services
Safe deposit box
Cash management
Bank trust divisions