Banking : Services provided by the Financial Institutions

 

The economic services provided by the bank are known as Financial services to a wide range of business entities including Insurance companies, Credit card companies, Credit Unions companies, and many more enterprises. Banking provides a number of various different types of financial services to the personal customers. The services which banks offer to the customers are as follows :

Current Accounts : Current accounts are also called as Business bank accounts which are one of the frequently used accounts which are mainly used for settlement of short-term financial needs. It enables the services like handling pay in and pay out on day to day basis. For example – Daily pay in and pay out of Business transactions, loans for business, Invoice for finance, Funds transfer to accounts, withdrawal of cash using ATM etc. Apart from this bank also provides the online services  of fund transfers, cash transactions, overdraft facility to smoothen the business financial needs.

Saving Accounts : Saving accounts are mainly suitable for the Building society, Unions, or an Individual used for accumulating the funds for both short term financial needs like holidays, weddings, parties etc. and long term financial needs like saving for buying house, children retirement plan etc. Saving account holder get the facilities like : Cash transfers, Online transactions, Small Business loan, Cheques, Debit and Credit cards withdrawals to smoothly manage one’s needs.

Overdraft Facilities : Bank Overdraft means Bank provide short term credit funds to smoothen out the cash flow for the Business needs. An Individual or a business can get in touch with the  bank representative to know the overdraft limit that is permitted to one’s account. One can borrow up to the permitted amount for which bank charges the Interest on the Overdrawn funds.

Financial and Investment Services : Investment services provided by the bank offers comparatively better returns than the high yield saving accounts like Fixed deposits and Certain Investment options can offer high rate of returns with the increasing level of risk. Banks also provide the custody services for safe keeping and dealing in world’s securities linked with the customers portfolio and various other investment facilities to assist the clients investment needs.

Foreign Exchange Facilities : Many large banks provide the foreign exchange services to the customers around the world. The Foreign Exchange services consists of the currency exchange, wire transfer where the customer can exchange the different currency notes where customers can pay or transfer funds to the customers located outside the countries, remittance services where the migrant employees can transfer money to their home country.

Insurance Facilities : Bank facilitates insurance for their customers to cover their risk by merely paying the small amount as a part of premium. An Insurance covers the risks of one’s assets, health etc. Some common Insurance provided by the banks are :

Car Insurance : Covers the cost of repair, damages or replacement for theft.

Home Insurance : Covers loss due to damage by the natural calamities or fire.

Health Insurance : Covers the medical or hospital expenses coverage in case of sick or accident.

Travel Insurance : Covers the damage of luggage, delayed or cancelled flights, loss or theft of money and illness or injury during the travelling.

Mortgage Facilities : This type of services provided by the bank to the customers like loans for purchasing assets against of the security. It is also termed as secured loans where the customers can repay the loan amount in monthly installments over the respective years like, purchasing car, purchasing property etc.

Pension Schemes : Bank offers pension plans towards the retirement investment where  one can contribute a small amount on monthly basis and after the retirement one will get chunk of large money post retirement as a retirement funds. Pension schemes are usually the long term saving plans offered by the banks. Usually the retirement planners go for these schemes once they start earning good salary and banks encourage people to commence pension scheme so that they can enjoy same standard of living post retirement.

Online Banking Facilities :  One of the most important type of financial services provided by the banks in modern days is Online Banking services to the customers so that they can have an easy and safe reach to their products and services. Online banking is very convenient medium of banking which saves a lot of time and money of the customers. Customers can do number of things during online banking such as Check balances, Statements, Pay bills, Transfer money and many more.