Financial Services

Financial Services

Financial institution: Provides financial services to its customers, → storing money, managing payments and providing loans.

Commercial bank: Bank that offers financial services to the general public and to businesses.

→AIB, Bank of Ireland, Permanent TSB, Ulster Bank

• Current accounts
• Deposit accounts
• Bill payment & money transmission services
• Internet & telephone banking
• Credit cards
• Foreign exchange services
• Loans

Types of bank accounts

Current account: Day to Day spending Deposit / Savings account: To Save money

What is a current account:

Day to day banking needs

• Receive your income
• Pay for goods and services
• Pay bills and transfer money to other people

Lodge: Leave money or a valuable item is a safe place.

Required when opening a current / deposit account:

• Photographic proof of identity → passport, driving licence
• Proof of address → recent utility bill
• PPSN number, provided to all citizens by government (Personal Public Service Number)

---

Financial Services

Lodging money into an account:

• Over the counter
• Self-service machine
• By an employer transferring wages → paypath
• Online banking (third party transferring money electronically from their account to the account holder's)

ATM:

Automated Teller Machine Current account holders are given an ATM card and a pin.

PIN:

Most over the counter or machine bank transactions require a personal identification number.

Debit Card:

Allows consumers to pay for goods & services w/out using cash. Once the payment is approved, the money is electronically transferred from the cardholder's current account to the retailer's account.

• Contactless payments: Pay for items under €30 without having to use your pin no.

DIRECT DEBIT(DD):

Current account holder gives permission to another person or business to request the withdrawal of VARIABLE amounts from a current account. It is used in situations where the amount to be paid and/or the payment date are likely to change.

STANDING ORDER(SO):

An instruction given to a financial institution to pay a fixed amount to a person or organisation on a regular date.

CREDIT TRANSFER(CT):

Once-off instruction from a current account holder to their bank to transfer an amount of money to another account (someone else's). A credit transfer can be made by phone, on paper or over the internet.

---

Financial Services

CHEQUES: Written instruction from an account holder to their bank to pay a specific amount of money to a named person or business.

BANK DRAFT: Similar to a cheque cut it is written on a bank's own account rather than a customer's account. The customer must have sufficient funds in their bank account that the bank can make an immediate transfer into its own account and write the draft.

Bank Statement: A Current account holder will receive this from their bank on a regular basis. May be on paper or electronically.

Internet & Telephone Banking Access their accounts 24/7/365. Issues a registration number and personal access code (PAC)

Phishing: Tricking somebody into giving you their password are bank details.

Deposit Account Way of saving, safe or secure & earns interest

Credit cards

• Buy now, pay later ➾ Visa & Mastercard
• Issues a bill / Statement to the customer at the end of each month - check against ACB
• CVC-Card verification code - back of card.

---

Financial Services

Credit card interest

Give a figure on the statement for the minimum amount due, which is the amount that covers that month's interest & small fraction of the amount owing.

Charge Cards

Similar to a credit card but the account must be settled when the statement arrives.

Foreign exchange

Exchange rate: Price at which a currency can be exchanged for another

€ to $: multiply by the bank "sell" rate $ to €: divide by the bank "buy" rate