General
Services
Just as with traditional banks and building
societies, private banks offer an extensive selection of
general services for individual banking needs. These services
are essentially the same as those offered by regular banks.
Some of these services include savings accounts, current
accounts, loans, credit and debit cards, and overdraft facilities:
• Savings Account
Savings accounts attract a high rate of interest
on the current balance in return for allowing the bank
to use this money
for loans to other people.
This account is specifically
designed to encourage saving: access to the money held
in savings accounts is generally
restricted. There is normally no option for writing
a cheque against your savings account or drawing from
it directly by using a debit or credit card.
• Current Account
The most common form of personal bank account,
a current account allows easy access to money deposited
into
the account, through
cheque books, debit card access, over-the-counter
transactions, or direct debit authorisations.
• Cheque Account
This is a specific account that allows the
account holder to write cheques against the deposited
funds. Cheque
books are
now commonly assigned to normal current accounts,
but it is still possible to get a specific cheque account
if you
require
one.
• 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.
• 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. |
