Banking in all its form

[fcmoney]

I have done some Banking research and would like to share my research, this is my private job that I done aside of business!

Bank is a business establishment that safeguards money and uses it to make loans and investments. Customers keep their money in banks rather than at home for several reasons. A current account with bank provides an easy way to pay the bills. However, money deposited in many types of bank accounts earns additional money for the depositor. People who deposit money in the bank are actually lending in to the bank that may pay them interest for the use of their funds.

Money deposited in a bank is always safe. Banks safeguard cash in fireproof vaults and are insured against the loss of money in a bank theft. In many countries, the government also insurers bank deposits. This insurance safeguards the customers from losing their money in certain cases where the bank is unable to repay the funds.

A bank is not only the best place to store money but also for gaining profit. Money deposited in a savings account earns interests at specified rates. Many banks also offer a special deposit account for which they issue a document called a certificate deposit. Such a certificate pays a high rate of interest than an ordinary savings account.

People who have money in a bank account can pay bills by simply writing a cheque and dropping it to the bank. A cheque is a safer method of payment. The bank statements provide written proof of the payment made. Money held in deposit accounts can be transferred or withdrawn quite simply, but holders of these accounts do not have chequebooks.

Almost all banks provide credit cards as a means of payment. Customers can pay for their purchase at stores and other establishments by using the cards to charge sums up to an amount determined by the bank. They then write only monthly cheque to the bank to cover all or part of their expenses. The bank directly pays the billers.

Banks also serves the purpose of lending money in the form of loans. The major obligation of a bank is to give depositors their money when they want it. However, no banks stores enough cash on hand to meets the depositors’ claims. Meeting the needs of big amount of people the same day cannot be done by the bank. Such heavy withdrawals called run rarely occurs. Mostly during certain cases, people will wait for a day or a week, as they are confident with their bank.

This is why many banks invest most of their money to loans and for other purposes. Banking is also another form of business. Many banks earn profit by accepting money from their depositors at one rate of interest and lending the funds at higher rate. Banks use some of their income from loans to pay salaries, other expenses like operating the bank and interest on deposits. The rest of the money is considered the profit of the bank.

Today, almost all banks have modernized their cheque-handling facilities with computers. Electronic fund transfer automatically transfers the money from one account to another.

However, today online banking is more prominent. Each bank consists of their own secured site where the passwords and id given to the customers that are safeguarded. Account to account transfer is the easiest way of transaction through online. All other jobs like loans and other insurances provided by the bank is dome through internet with their specified forms, but later has to inform or meet the bank.

Banking has thus changed a lot for an easier and comfortable transaction. People can easily make their transactions and money payments if they have computer and an internet connection.

[Investor]

Good article on banking. People can now live on credit by just maintaining a good credit score. People no longer need to carry cash with them. Plastic money in the form of ATM CARDS, DEBIT CARDS, CREDIT CARDS, and PREPAID CREDIT CARDS is all that people need to solve their requirements on road. However online transactions such as online shopping, sanction of loans, Electronic fund transfers Just need an Internet connection with secured username and password.

[frankrhythm]

Originally Posted by Investor

Good article on banking. People can now live on credit by just maintaining a good credit score. People no longer need to carry cash with them. Plastic money in the form of ATM CARDS, DEBIT CARDS, CREDIT CARDS, and PREPAID CREDIT CARDS is all that people need to solve their requirements on road. However online transactions such as online shopping, sanction of loans, Electronic fund transfers Just need an Internet connection with secured username and password.

yes the most important thing is to have strong user name and password as without that your account can be trace and if it happened then the saving u done will be gone.
this is the worst part for the internet banking and that's why banks were taking steps to solve this..

[money3]

in United States there are a lot of banking Institution that offer the same product and services as competitor but still are in the market so how do they promote they product and services simple by giving something for free and people love free stuff! If one bank give better credit card interest rates than another so many people will go with this bank of course!

[admin]

I know that we here in U.S have a lot of bank but in reality only major bank don't have to compete with each other because for hundredths of years they working to build a branding and people know brand, if people know bank brand they will open a checking or saving account because someone say oh this is good bank you should have account in this bank! but people don't care much why this bank is good they know that is good bank..

[bika]

Originally Posted by admin

I know that we here in U.S have a lot of bank but in reality only major bank don't have to compete with each other because for hundredths of years they working to build a branding and people know brand, if people know bank brand they will open a checking or saving account because someone say oh this is good bank you should have account in this bank! but people don't care much why this bank is good they know that is good bank..

Really? But here in my country people believe the scheam thats why banks are always on race to give new new offer.

[bika]

These day you just cant be happy with the bank with check withdrawl system. You want everything from it, all advanced technology, and scheams too.

[admin]

Lot of people asking to get good " checking account " or the best saving account in in reality bank is not offer perfect account. what people is looking when they open checking or saving account?

- Transaction free- mean withdraw, deposit, check sending
- free online banking- no monthly fee or annual fee!
- Fast great customer services and fast dispute resolution!