The Common Services Banks
Offer...
Loans
Banks provide loans in exchange for promises of repayment and certain
guarantees. For instance, since a car loan will be secured against
the car you buy, it may be easier to get a car loan than a personal
loan which does not require collateral. This is because if you
default on your payments, the bank can repossess the car and sell
it to reclaim the outstanding portion of your debt.
Mortgages
Mortgages are a type of bank loan secured against the purchased
property. The amount of money you can borrow for a mortgage
is calculated according
to the incomes of the people signing for the loan.
Overdrafts
This is an agreed permanent loan associated with your current
account. You can draw on it directly for a set interest rate.
The amount
is applied directly to your current account and is considered
as deposited
funds.
Debit Cards
Debit cards allow you to access funds in your current account
so that you can shop in stores that accept card purchases,
as well
as pay for things online or over the phone. Debit cards also
let you
withdraw cash from an Automatic Teller
Machine.
There are 2 types of debit card:
Solo
Generally given to people under the age of 16, they only provide
a very limited range of services, as well as a maximum
purchase limit.
Delta & Switch
These type of debit cards allow access to a wider range
of financial services, allowing you to make electronic
purchases
at stores,
online, via mail order or over the phone. Delta & Switch
cards are more flexible than Solo cards as they
do not have purchase limits, the
maximum is the amount of funds in your current
account.
Credit Cards
A credit card agreement is a fixed loan provided
to you at an above average interest rate. It
is immediately available
partially
or
in whole through the use of the associated
credit card. The
bank pays
any purchases made with the credit card, and
in return you are required to pay the outstanding
balance on
the credit
card or
an agreed monthly
minimum repayment.
Cash advances are commonly
also available. Although convenient, the cash advance portion
of your
outstanding credit card
bill will be
charged at an even higher interest rate than
the purchase of goods or services.
Business
Banking
Many banks also offer services specifically
for businesses, particularly small business,
such
as asset purchase
loans, small business
loans, or invoice finance.
