Banking Products and Services Explained
Banking Products and Services
Current Accounts
A current account is a cash deposit contract between a lender and a customer. The customer deposits money in a bank, and the bank holds the customer’s money, paying a low interest rate. The customer can access the money at any time.
Features of Current Accounts:
- High liquidity: Customers can access their money at any time.
- Access via checks or promissory notes.
- Variety of services offered.
- Low interest paid to the customer.
- No passbook or physical record of transactions.
Savings Accounts
A savings account is a deposit contract between a bank and a customer. The customer deposits money, and the bank pays interest, typically higher than a current account.
Features of Savings Accounts:
- Passbook or savings account book provided to the customer.
- Funds accessible with proper identification.
- No need to present the passbook for every transaction.
- No checkbook functionality.
- Safe deposit box services may be offered.
- Interest earned is subject to income tax.
Types of Savings Accounts:
- Child Savings Account: Designed for minors, offering higher interest rates and exemption from commissions.
- Housing Savings Account: Designed for first-time home buyers or renovations, offering tax advantages and higher interest rates.
Time Deposits
Time deposits are contracts where a customer deposits money for a fixed period, receiving higher interest than current or savings accounts.
Features of Time Deposits:
- Similar opening process to current and savings accounts.
- Transactions recorded in a passbook.
- Passbook is personal and non-transferable.
- Higher interest rates.
- No debit or payment transactions allowed.
- Interest earned is subject to income tax.
Types of Time Deposits:
- Fixed Interest Time Deposit: Deposit of a fixed amount for a fixed term with a predetermined interest rate.
- Payment-in-Kind Time Deposit: Deposit of a fixed amount for a fixed term, with the bank providing an item in advance instead of interest.
Loans
A loan is a contract where a lender provides a borrower with a sum of money, which the borrower repays with interest within a specified timeframe.
Features of Loans:
- Lump-sum payment to the borrower.
- Repayment in installments according to the agreed terms.
Mortgage Loan:
A loan secured by a mortgage on a property, typically the property being financed.
Transfers
A transfer is a banking operation that moves money from one account to another.
Bank Cards
A bank card allows payments at various locations, replacing cash and enabling cash withdrawals from ATMs, subject to fees.
Other Forms of Payment:
- Purse Card: For small purchases.
- Gift Card: Virtual money gift.
- Prepaid Card: Preloaded with a specific amount.
- Affinity Card: Associated with a specific organization or brand.
Stock Exchange
: it is a financial service institution organized as a legal market for the securities trading mibiliarios. Transferable securities are securities issued in mass representing the equity of a company or a debt which the issuer contracts with the owner deltitulo. dceuda Titles: The obligations, bonds, treasury bills or commercial paper are securities representing a debt in favor of entdad possessor station: they are titles that represents part of the capital of a corporation.