Types Of Financial Services Provided By Banks
Banks provide many economic services to customers. The economic services they provide are also known as Financial Services. Well, the banks provide many types of Financial Services such as credit cards, insurance, personal finance, accountancy and much more. So, in this article, I am going to explain different types of economic services provided by banks in details.
1) Current Accounts: One of the most popular Financial Services offered by the banks in a country. People open current accounts to settle short-term financial needs. A current account holder can make day-to-day payment with his current account. Now with the development of Internet banking, the users can make payments such as utility bills, transfer money into other accounts, buy items online, invoice financing, payroll services, and much more. Also, with the debit card; the user can make payments in stores and withdraw money at ATMs. Business owners open current accounts to fulfill their business’s financial needs (business credit cards, business overdraft.) It’s the 21st century, so you don’t always have to visit the bank to open the current account. You can easily do it online without any hassle. In summary, Online Banking is one of the high-quality Financial Services offered by the banks today.
2) Savings accounts: It’s a sort of traditional Financial Service offered by the banks over the past decades. People who save money for long-term use open savings accounts to save their money (children retirement plan and for buying a house.) Anyway, you can accumulate funds in a saving account for short-term uses such as parties, holidays, weddings, and so on. A saving account holder can experience many benefits from the account such as Visa debit card, online transfer/payments, small loans, etc. Again, Internet Banking has revolutionized the traditional savings account in many ways today.
3) Overdraft facilities: Another useful Financial Service provided by local banks to customers. The bank provides a short-term credit fund for a charge. Anyway, the banks consider many factors before giving the overdraft limit. You can apply and know your overdraft limit online today.
4) Insurance facilities: Another common Financial Service offered by local banks to their customers. Well, financial institutions are there who are established as insurance experts. These financial companies don’t offer services such as current account and Visa debit cards. Insurance services offered by banks include home insurance, car insurance, life insurance, natural disaster coverage, fire/burglary, travel insurance, payment protection and health insurance.
5) Mortgage Facilities/home loans: People who can’t afford to pay the full amount at once for a home or a vehicle apply for mortgages/loans. It’s a secure loan where the customer can repay the amount on a monthly basis.
6) Pensions Schemes: It’s a Financial Service offered by the banks for a stress-free retirement. You pay a small amount each month, and upon your retirement; you get a bigger chunk. It’s a sort of long-term saving option offered by the banks. If you are earning a fixed salary, it’s a thing to consider for a secure retirement.
Some final words: Banks offer many Financial Services with many benefits for customers. Internet banking has revolutionized Financial Services in many ways. Financial institutions such as banks contribute to a great extent for economic growth of a country.