FINANCIAL LITERACY AND BANKING

Sources of funds in banks A commercial bank is a financial institution that helps community members open checking and savings accounts and manage money market accounts. However, as the name implies, a commercial bank also has a broader, business-oriented focus. Most commercial banks offer business loans and trade financing in addition to the more traditional deposit, withdrawal and transfer services. With such a diverse business profile, the sources of funds in commercial banks are varied. THERE ARE FOLLOWING SOURCES OF FUNDS e.g.-  1)Saving deposits  2)Reserve Fund  3) Shareholders Capital  4) Retained Earnings Savings Deposits Deposits remain the main source of funds for a commercial bank. The money collected can go toward paying on interest-bearing accounts, completing customer withdrawals and other transactions. As of February 19, 2018, the total amount of savings deposits held at commercial banks and other banking institutions in the U.S. totale...

Modes of Operating Bank account: Modes of Operation The primary relationship between the bank and its customer is that of a debtor-creditor, various other relationships also arise out of the other functions performed by bank. Banks deals with different types of customers such as Individuals, companies, partnership firm, club, trusts, co-operative society etc. Banks are required to ascertain the capacity to contract of the persons opening bank accounts and also adhere to various legal provisions that apply to various categories of customers in the matter of opening and operation of the bank account. In this article, we will discuss about different types of customer and their mode of operation of accounts. Different Types of Account their Mode of Operation §   Single §   Jointly §   Jointly or Survivor §   Either or Survivor §   Former or Survivor §   Anyone or Survivor §   Joint accounts with Special Instructions § ...

PROCEDURE OF CLOSING BANK ACCOUNT Opening a New Account If you plan to move your money to a different bank, open an account there before you close the current one. Transfer some money into this account but leave enough in the account you plan on closing to cover any outstanding checks or scheduled payments that have yet to process. You can go to the bank to withdraw the money, or use an electronic transfer. Recurring Automated Payments and Income Cancel any automatic payments you have set up on your accounts, and transfer these to your new account. Wait for one billing cycle to ensure that payments have been successfully transferred to the new account before you proceed with completely closing the old one.   If you receive automatic payments to your account , such as from your employer or Social Security, contact the payers and provide your new account details. Check your new account for your next payment when it is due, to ensure the transition has been succe...

Procedure for opening bank account ? 7 Steps To Open Bank Account Post: Shekhar Kishan. Date: 05/05/2018 Open Bank Account In 7 Simple Steps - Banking ↓ Today Banks have emerged as important financial institutions. Banks provide a safe environment and helps us manage our financial transactions. To avail professional banking service it is mandatory for every individual to open a bank account. Opening a bank account is not a difficult task. It takes only seven easy steps to open a bank account. This article will help you understand these seven simple steps or procedure to open a bank account . 1. Decide the Type of Bank Account you want to Open There are several types of bank accounts such as Saving Account , Recurring Account, Fixed Deposit Account and Current Account. So a decision regarding the type of account to be opened must be taken. 2. Approach any Bank of choice & meet its Bank Officer Once the type of account is decided, the pers...

PRODUCT OFFERED BY BANK A bank’s job is to provide customers with financial services that help people better manage their lives . As technology advances and competition increases, banks are offering different types of services  to stay current and attract customers. Whether you are opening your first bank account or have managed a checking account for years, it helps to know the different types of banking services available. This ensures you get the most out of your current financial institution. Deciding which services are most important can lead you to the bank that best fits your needs. Different Types of Services | Bank Accounts Individual Banking —Banks typically offer a variety of services to assist individuals in managing their finances, including: ·    Checking accounts ·    Savings accounts ·    Debit & credit cards ·    Insurance* ·    Wealth management Business Banking— Most ban...