Personal Banking and Commercial Banks © Annie Patton

The Role of The Bank Current Accounts Deposit Accounts Payment Services- e.g. Direct Debit ATM Machines Loans Internet Banking Night Safes Foreign Exchange

Name some of the banks in Navan and around Ireland that you are familiar with?

How Banks Operate Banks normally talk about two types of interest, that they give people with money in the bank and that they charge people who have loans from them So banks borrow from savers and give them a lower rate of interest, than they charge those who have taken out loans from them This is how they make some of their profits

How Banks Operate Takes in savings Gives out loans Will charge a higher rate of interest on the loans they give out

Opening a Bank Account You must complete an application Form Provide Proof of Identity- ID and Address Get a reference from somebody known to the bank- usually this will be another account holder/school Provide a sample signature http://youtu.be/v6uBhcP9ne4

Two Types of Account Current account: You are given a cheque book and can withdraw money from the hole in the wall, however you get no interest. There is normally a charge for each transaction, and you may be entitled to an overdraft Deposit account: This is a savings account. You get interest on money saved, and you pay DIRT on your savings. There is no cheque book, debit card and you cannot use the hole in wall

Lodging Money to a Current Account Name and Address of Account Holder Account Number Amount being lodged Signature of Person lodging the money Date of Lodgement

Lodging Money in a current account

Withdrawing from Current Account Cheque ATM Machine Chip and Pin (including cash back at till) Direct Debits and Standing Orders transfer money from your account automatically to pay bills Filling a withdrawal slip in a bank

Cheques The person, who writes the cheque is the Drawer The person, to whom the cheque is written to is called the Payee The bank that the drawer has their account in is called the Drawee

Filling in a Cheque

Bank Overdrafts One cannot withdraw or write cheques for more than they have in their accounts unless they have special permission to do so called an Overdraft Special permission has to be sought to get this privilege

Night Safes Can deposit cheques and lodgements after hours The door is located on the outside and the customer has a key to a shoot that they open and deposit money The bank clerk gets the money the next day

ATM Most banks now allow one to withdraw money 24 hours per day 365 days per year, using a machine placed outside the building The machine is known as an ATM (Automatic Teller Machine)

24 Hour Banking

Foreign Exchange Exchanging currencies in a bank There is a ‘we buy, we sell’ rate that the bank operates We will be doing examples of these in the Economics section