Aids To Trade That Support Commerce: Banking: Banking Services (Copy)
Cheat Sheet: 5.2.1 Banking Services
Accounts
| Type | Features | Example Use |
|---|---|---|
| Current Account | Day-to-day transactions, cheque book, overdraft possible | Business paying suppliers |
| Deposit/Savings Account | Earns interest, limited withdrawals | Individual saving for future |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Customer Services
| Service | Features | Example Use |
|---|---|---|
| ATM | 24/7 cash withdrawal/deposits | Student withdrawing pocket money |
| Night Safe | Secure deposit after hours | Retailer depositing cash late |
| Foreign Currency | Exchange services | Traveler buying dollars |
| Financial Advice | Guidance on investments/loans | Business planning expansion |
| Telephone Banking | Account services via phone | Paying bills without visiting bank |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Payment Methods
| Method | Features | Example Use |
|---|---|---|
| Cash | Instant, physical money | Buying groceries |
| Cheque | Written order to bank | Paying rent |
| Credit Card | Buy now, pay later, interest if unpaid | Online shopping |
| Debit Card | Direct payment from account | Restaurant bill |
| Store Card | Linked to one retailer, credit facility | Buying clothes on store credit |
| Credit Transfer | Transfer between accounts | Employer paying salaries |
| Standing Order | Fixed payment instruction | Monthly rent |
| Direct Debit | Variable payment authorised | Utility bills |
| Electronic Transfer | Online/mobile transfers | Paying freelancer abroad |
| Documentary Credit (Letter of Credit) | Bank guarantees exporter’s payment | Importer buying machinery |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Sources of Finance
| Source | Features | Example Use |
|---|---|---|
| Loan | Fixed amount, repaid with interest | Business buying equipment |
| Overdraft | Withdraw more than balance | Covering short-term cash needs |
| Mortgage | Long-term loan for property | Buying a factory |
| Hire Purchase | Pay in instalments while using item | Buying machinery |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Appropriateness of Banking Services
| Situation | Best Service |
|---|---|
| Individual saving for education | Deposit account |
| Business paying supplier abroad | Letter of credit |
| Shop needing short-term funds | Overdraft |
| Company buying factory | Mortgage |
| Person needing daily access | Current account |
| Retailer depositing daily cash late | Night safe |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course