...home → Banking & Credit → Banking & Credit 101 → 4 Types Of Bank Accounts Explained Subscribe to news about Banking & Credit 4 Types Of Bank Accounts Explained Share comments There are many types of bank accounts for consumers to choose from and each will be able to provide benefits for his or her circumstances. Ads by Google Open A Demat Account Get a Demat, Savings, Trading & MF All-in-1 Kotak Account. Sign Up! www. KotakSecurities. com Checking Account A checking account offers a quick and convenient way for people to access their money as often as they need. You cannot earn interest with most checking accounts, however. Savings Account A savings account offers a simple, hassle-free way to save money. Banks usually set a minimum balance to open and/or maintain these types of bank accounts. The benefit of a savings account over a checking account is that money in the account accrues interest. The downside is that the number of allowable transfers or withdrawals is limited. Money Market Account A money market account combines the benefits of a checking account and a savings account. You can withdraw funds from the account, and you benefit from a high interest rate. Like other types of bank accounts, money market accounts generally require a minimum balance to open and maintain the account. Some banks limit the number of transfers you can make with a money market account however. Certificate of Deposit (CD) A Certificate of...
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...Bank Deposit Account Lesson 16 Bank Deposit Account You have already learnt that the main banking activities consist of acceptance of deposit from the public for the purpose of lending to businessmen and others who may seek loans. Actually the money deposited in any bank is mostly the saving of the people. As you know, if someone earns money and has regular income, he or she not only spends it for day-to-day expenses but also tries to save a part of the income for future needs. Money may be needed in future for various purposes like medical treatment in case of illness in the family, expenses on account of marriage, or for higher studies of the children, or to celebrate religious festivals, etc. The money saved to meet future needs may be kept at home. But will it be safe at home? It may be stolen. Moreover, the money saved will remain idle at home without any return. So people keep their savings with someone where it will be safe and earn a return. Bank is such a place where money once deposited remains safe and also earns interest. In this lesson, we shall learn about the types of deposit accounts that can be opened in a bank, and also discuss how a savings bank account can be opened and operated. 16.1 Objectives After studying this lesson, you will be able to: classify bank deposit accounts; discuss the steps to be taken for opening a Savings Bank Account; and describe the procedure of operating a Savings Bank Account. 15 Business Studies 16.2 Types of...
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...Report on Muslim Commercial Bank Dedicated To My Parents PREFACE It is the requirement of the MBA course Al-Khair University, Multan that all students of MBA have to spent two months in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That two months period called “Internship Period “, if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of six weeks period in MCB Jhang City Branch. It has enabled me to understand the practical scenario and sharpen our decision making power and utilizing the resources in an effective manner, so that our resources generate maximum profit. In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me. Farhan Raza Table of Contents DESCRIPTION PAGE # Executive Summary 05 History of MCB 08 Head Office ...
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...Theme4. THE COMPONENCE AND FUNCTIONALITY OF ATTRACTED RESOURCES OF A BANK 1. The structure of attracted resources, and their importance for the conducting banking activities; 2. The characteristics and typology of a bank deposit; 3. Non-deposit bank resources: types and means of attracting; 4. Banking resources acquired through the issuance of securities: bank certificates, bills (drafts), long-term bonds; 5. Banking resources acquired on the interbank market; -1- The structure of attracted resources, and their importance for the conducting banking activities; In the world of banking practice, the attracted resources of a bank can be: 1) Deposit - are formed on the initiative of clients who come to deposit money in the banks, 2) Non-deposit: - Resources arising from the issue of equity (bank certificates, bills of exchange, and bond); - Resources purchased from other banks (centralized bank credit (from National Bank) and decentralized (from other commercial banks)); In the total amount of banking resources attracted resources occupy the dominant position. Their share of different banks varies between 85 - 90%. -2- The characteristics and typology of a bank deposit; Deposit – the amount of money placed into a banking institution for safekeeping, through depositing money in a bank account. Deposits are classified according to: * Depositor’s category: 1. Individuals; 2. Legal entities; * The terms of the contract, which stipulates...
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...and lenders are better off than they would have been without financial institutions and market intermediaries. Thus, these financial institutions, such as banks, have a positive role in financing and investment which is a multidimensional process involving the complexity of many interrelated and interdependent factors of diversified nature. It is difficult to assess the contribution of each factor independently. The key to successful banking lays in the ability of balance many activities simultaneously. The bank must maintain a healthy growth rate, while at the same time it must take action to minimize the risks it faces. The bank must also maintain enough cash on hand to meet obligations. All of these are related to sound performance of a bank. Evaluating Bank Performance, examines the basic risk and return features of commercial banks. The financial performance evaluation demonstrates the strengths and weaknesses of bank performance over time. The Trust Bank Ltd. has a responsibility to ensure efficient and effective banking operation in a sound manner. The study will look at the amount of liquidity that TBL has available to meet any reasonable demands that might have to meet, how it manages general banking, Credit department and Foreign exchange Operation, what is the position in terms of profitability and how the bank...
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...What are Banks? Banks are the largest lending institutions through out the globe; the basic purpose of banks is to secure money of the people/organizations and to lend the money to the people/organizations as a creditor/lender. When they start returning money back to the bank either at once or in portions take interest on it. This interest is the prime source of the banks profit; interest is also known as “Usury”. The History of Banks The history of banks is old, but it is not exactly in that form which today we have, as we developed the way of banking and other related features are also changed. Initially people store money in the royal palaces and temples, at that time there were no concept of money they secure their grains and other commodities into it, the reason behind this they feel that these places are very secure and the chance of robbery or theft is very less as compare to secure in there own houses. Banking Today Today banks are playing very essential role in our country economy as well as in global economy; they are giving loans to the organization and individuals, trying to make humans life easier and developed. Without bank we cannot even think to live, for example how do you feel if someone says that I have one million or ten million dollar save in my cupboard locker, obviously you can laugh over the person wisdom? Now banks are providing greater facilities and constantly improving their standards day by day, Stronger security, locker facilities (where...
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...ANALYSIS REPORT OF NATIONAL BANK OF PAKISTAN JINNAH UNIVERSITY FOR WOMEN GROUP MEMBER’S NAME: SAMREEN LODHI SHAHZADI NEELOFER SAHAR KHAN HIRA SHAHID KHAN CLASS: BBA IV SUBJECT: COMMERCIAL BANKING SUBMITTED TO: MRS, ADIYA QURESHI Acckknnoowwlleeddggeemmeenntt We thank Allah for guiding us through the phases of compiling this report and helping us out in all the difficulties. We would like to take this opportunity to thank MRS, ADIYA QURESHI our teacher for the course of “COMMERCIAL BANKING” at JINNAH UNIVERSITY FOR WOMEN, for her valuable support and encouragement, which she has offered. This report is a joint effort of all the group members SAHAR KHAN, SHAHZADI NEELOFER, HIRA SHAHID KHAN and our group leader SAMREEN LODHI and we could not have been made possible without the immense help and cooperation of our family members. Without their support and the amount of time that they gave us, this report would not have existed. Thanks a lot. EXXEECCUUTTIIVVEE S UUMMmmAARRYY To interpret our skills and educational knowledge of Finance we make report on National Bank of Pakistan. The objective of this report was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with practical experience working in an organization and study the system of National Bank of Pakistan. There are many possible improvements, which we can make positive changes in the system. The report summarizes the National bank of Pakistan with its working divided...
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...1. Why banks are called financial intermediaries? When you have money they can act as your agent for using or protecting that money. What are financial intermediaries? Is a financial institution ( such as a bank, credit union, finance company , insurance company, stock exchange, brokerage company) which acts as the middleman between those who want to lend and those who want to borrow. Examples of other intermediaries? Depositary Intermediaries are those that get funds from the public and use them to finance their business. Non depositary Intermediaries are those that do not take or hold deposits. 2. What types of banks are there? How do they differ from each other? Commercial bank; one of the big distinctions between commercial banks and other depository institutions is that commercial banks are owned by stockholders who expect a profit on their investments. Savings and Loans Associations; they receive most of their deposits from individuals. Charted by either state or federal governments, these institutions grew by focusing on real-estate lending for people. Mutual Savings Bank; receive deposits primarily from individuals and concentrate also on private real- estate mortgages. Mutual savings bank or owned by depositors as well. These state charted banks are sometimes granted greater powers with regard to assets and liabilities than S&Ls but usually not as much as those of commercial banks. Credit Unions; are also owned by depositors, but there are a couple of key differences...
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...practical knowledge. To invent something new by proper investigation or discussion of a known and unknown matter and to make a right decision by the knowledge is the main theme of internship. So, internship is standard method taken for searching knowledge i.e. it is the combination of theoretical and practical knowledge 2. Objectives of the study The main purpose of this study is to investigate and observe into the loan disbursement and recovery of Sonali Bank Limited, Sopura Branch, Rajshahi and to provide some suggestions to improve its performance. However, followings are some of the specific objectives of the study: ❖ To know general banking activities performed by the bank. ❖ To find out the comparative position of the bank. ❖ To identify various loans, advances and credit provided by the bank. ❖ To know the amount of disbursement and recovery of the bank. ❖ To know what are the vouchers and documents are used. ❖ To know the vouching and accounting system of the bank....
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...of money one should have detailed knowledge of the schemes. Following are the main means of investment: Bank Bank is an organised institution which deals with money matters. A person can deposit his savings in the bank and can with-draw when he requires it. Bank pays inter at a fixed rate on the deposits. There are two main functions of a bank: (i) Deposits the money of people (ii) Gives back the demanded money cheque, draft, etc. Advantages of bank account Following are the advantages of a bank account: 1. There is no possibility of theft of t money kept in a bank. 2. Bank pays interest on deposits where the money kept at home fetches no interest. 3. A person spends economically in ord to deposit maximum amount in the bar 4. One can avail the facility of bank lock by having a bank account. Valuables jewellery, share certificates, other important documents, etc. can be kept safe in the locker. 5. Transaction of money from different places is possible through bank. 6. Small amount deposited at regular intervals becomes a considerable amount after sometime. This money can be invested in business, etc. Depositing money in a bank There are three main types of bank]' accounts for depositing money: 1. Fixed Deposit Account 2. Savings Account 3. Current Account 1. Fixed Deposit Account It is also known as 'Term Account'. Here the money is deposited for a fixed period of time. This period is normally varies from 15 days to 5 years...
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...PO: Define Inventory Organization Parameters 3 AP: Define Financial Options 4 AP: Define Expense Report Templates 6 AP: Define Payables Options 7 AP: Define Banks 10 AP: Define New AP Signing Limits 13 AP: Define Tax Codes 14 AP: Define Tax Groups 15 AP: Define Tax Reporting Entities 16 OIE: Define iExpense Policies 17 Enable Expense Allocations 17 Set Up Required Expense Fields 18 Define Receipt Notification Rule Set 19 Assign Receipt Notification Rule Set 20 Define Mileage Rate Schedule 21 SA: Set OIE Profile Options 23 AR: Define AR System Options 24 AR: Open Accounting Periods (Required) 28 AR: Define AutoAccounting 29 AR: Define Transaction Types 32 AR: Define Transaction Sources 33 AR: Define Remittance Banks 34 AR: Define Receivables Activities 35 AR: Define Receipt Classes and Payment...
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...i Internship Report On NCC BANK LTD. Foreign Exchange Branch, Dhaka. Title: Overall Banking system of National Credit & Commerce Bank Ltd:An Evaluation. Prepared By Wahida Shirin Zhimly ID No : 103-11-1657 Department of Business Administration Daffodil International University, Dhaka. “ ©Daffodil International University “ ii Dated: 27.05.2014 Professor Dr. Zakir Hossain Dean. Daffodil International University Dhanmondi, Dhaka. Sub: Submission of Internship Report Dear Sir, I have the pleasure to inform you that I accomplished my internship program at the National Credit and Commerce Bank limited, Dhaka. I tried my best to know about the company by observing its activities. This report, which I would like to submit to you for your evaluation, is a discussion of my observation. I sincerely believe and hope that you will find this study very interesting, informative and enlightening (gan dan kora) and will help future researchers for extended research in this field. I beg your kind excuse for the unintentional error that may take place in the report in spite of my best efforts. I hope that you would be kind enough to receive this report and bless me hearty. Thanking you Yours truly, Wahida Shirin Zhimly ID No : 103-11-1657 Department of Business Administration Daffodil International University, Dhaka. “ ©Daffodil International University “ iii CERTIFICATE OF SUPERVISOR This is to certify that the report entitled “Overall Banking System of National...
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... Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts. Al-Wadeah Accounts Mudaraba AccountsAl-Wadeah Accounts Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-wadeah. The Bank commits to refund money deposited in these Accounts on the demand of customers. On the other hand the Bank takes permission from customers that the Bank may utilize their money. Customers may operate these Accounts as their desires. No profit is disbursed in these Accounts and depositors do not bear any loss Mudaraba Accounts In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. On behalf of depositors, the Bank invests their deposited money and distributes minimum 65% of investment-income earned through deployment of Mudaraba funds among Mudaraba depositors after the closing of the year. * Al-Wadeah Current Account (AWCA) * Mudaraba Savings Account (MSA) * Mudaraba Term Deposit Account (MTDR) * Mudaraba Special Notice Account (MSNA) * Mudaraba Hajj Savings Account (MHSA) * Mudaraba Special Savings (Pension) Account (MSSA) * Mudaraba Savings Bond (MSB) * Mudaraba Monthly Profit Deposit Account (MMPDA) * Mudaraba Muhor Savings Account (MMSA) * Mudaraba Waqf Cash Deposit Account (MWCDA) * Mudaraba NRB Savings Bond (MNSB) Account * Mudaraba Foreign Currency Deposit Account (MFCD) * Students Mudaraba Savings Account (SMSA) * Mudaraba Farmers Savings Account (MFSA) ...
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...Common Types of Investments There are several ways to invest your hard earned dollars. The key to finding the best type of account you want to invest in is to be educated to the types of investment accounts available and advantages and disadvantages of each. It may take some time to find the right type of account, but, with the right information, the best decision can be made. I used the Regions bank website to investigate four common types of investment accounts: checking accounts, money market accounts, passbook savings accounts, and certificates of deposits. Although rates may differ between banks, I will also use the rates as typical examples of the type of interest that can earned from each of these accounts. With the information I find, I will decide which would be the best choice to invest $1,000. Checking accounts are common accounts that most people have and use daily. While some have monthly fees, most banks offer some type of free checking as long as the account meets certain criteria. Regions offers a checking account that has an $8 monthly fee, which will be waived if the account meets one of the following criteria: direct deposit, 15 electronic transactions per month, or a $1,000 average monthly balance. Some other advantage of this type of account is the convenience of having your funds available immediately, low risk, and you can use online banking. You would either be able to withdraw by going into the bank, or use the free ATM/debit card that is...
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...when a bank customer uses their debit or credit card when withdrawing funds from their account. The use case actors in this scenario are the bank itself and the customer. As a pre-verified condition, the following has already been introduced or pre-existing already within the bank location: a network connection within the bank and to the ATM, an ATM on-site and cash available for withdrawals from the ATM. * In this use case, the ATM withdrawal is consistent with that of data flow and customer selected options, similar to the process of a flow chart. This particular use case scenario, the following events are completed to withdraw funds from an ATM account: (Step 1) The use case begins when a customer inserts their debit/credit card into the ATM. (Step 2) After use case is initialized, the ATM network must validate the customer by requesting for card PIN. (Step 3) Various options are presented for the customer including balance, transfer, withdrawal, fast cash, etc. As part of this use case scenario, the customer wants a withdrawal transaction from the ATM. (Step 4) Customer selects “Withdrawal” from the available accounts shown on ATM display. (Step 7) ATM displays the amount a customer may withdraw with pre-determined amounts ($10, $20, $30, etc.) or “Other” option for customer to request a specific amount not displayed on screen. (Step 8) Debit/Credit card number, customer account, card PIN, selected cash amount and selected bank account type information are sent to bank requesting...
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