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BANKING PRODUCTS AND SERVICES - Coggle Diagram
BANKING PRODUCTS AND SERVICES
The major categories of deposit accounts
Savings accounts
If customer of bank who has opened a saving account also has a current account regular payments into a deposit account can be made through a standing order to the bank who will automatically transfer the adreed amount according to your instructions.
Time deposit account (such as a Certificate of Deposit) which always have the exact maturity date that always disclosed in advance and agreed to by both parties.
Transaction accounts
non-interest earning checking accounts: demand deposits
interest earning checking account: negotiable orders of frequently known as interest checking or gold checking normally pay interest but the interest rate on NOW accounts is usually relatively low when compared to savings accounts.
Loans
Business loans
Long-term business loans are made for a term longer than one year and may be used for purposes such as expanding a business or purchasing equipment.
Short-term business loans typically have a term of less than one year and may be used for purposes such as purchasing inventory or for a seasonal need.
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.
Customer loans
Installment credit
Mortgage loans
Other services
Electronic banking services
Remote terminals are simply machines that allow customers to access accounts without the personal assistance of a bank employee.
Automated teller machines (ATMs) allow customers to conduct a variety of transactions on their accounts, such as withdrawals, deposits, loan and credit card payments, and balance and account history inquiries.
Point-of-sale (POS) terminal is located at a merchant, and the customer uses the terminal to authorize a transfer of funds from his or her deposit account directly to the merchant’s bank account.
Safe deposit box