1. Banking Services

2. Overview of Services  Different types of accounts  Loans  Lines of credit  Credit cards  Direct deposit  Money orders and drafts  Night depositories  Overdraft protection  Preauthorized bill payments  Safety deposit boxes  Traveller’s cheques

3. Accounts Transaction Accounts  An account used to deposit money needed for everyday use, such as paying bills, rather than for savings Savings Account  An account where money is put in to accumulate  Not used to pay bills

4. Loans  Many types from small personal loans to million dollar loans to business for a new building  Most important function that a bank provides Interest charged on loans are a major source of income for the bank  Only lend the money if it is likely to be repaid on time  Most common forms: Term loans, student loans, credit cards, lines of credit and mortgages

5. Loans continued… Term Loan  Borrowing money and paying it back at a specified time  Interest rate can be fixed (set for the specific length of the loan) or variable (rate rises and falls with the general interest rate, known as the prime rate)

6. Line of Credit  A form of instant access to credit that has been pre-arranged between you and your financial institution  A one-time pre-approved loan that allows you to borrow up to a certain dollar amount  Only pay interest on the exact amount borrowed  Great for emergencies!

7. Credit Cards  A convenient alternative to writing cheques  VISA and MasterCard are examples  Many cards are available with different features, fees and interest rates  Known as multi-purpose cards since they can be used worldwide

8. Direct Deposit  A service that transfers money from an outside source into an account that you specify  Provides immediate access to money  Used for payroll, government payments such as tax refunds

9. Money Orders  A form of payment, like a cheque, in which the issuing institution guarantees to pay the amount shown on the form to the payee  Also protects the payee in case the money order is lost or stolen  A safe way to send money through the mail  Issued by a bank or Canada Post  Can also purchase in foreign currencies

10. Drafts  Similar to a money order except that they are only issued by financial institutions and are usually for larger dollar amounts  Jut like cash so the recipient has instant access to the money Bank does not place a hold on the money

11. Night Depository  Usually a chute or other facility at the bank  Allows customers to make deposit or drop off paperwork 24/7  Businesses do not have to hold on to large deposits and wait for bank to open Decreases risk of theft  Place deposit in a locked pouch and then place in the chute  Bank employee removes the money from the chute during regular business hours

12. Overdraft Protection  Means you can write a cheque for more money than you have in your account  Bank “lends” the depositor the money so the cheque does not bounce  Bank charges a fee for this service

13. Preauthorized Bill Payments  The process of paying regular monthly bills such as loans, car insurance and utilities automatically from your bank account on specified dates  Must provide written permission Preauthorized Debit  A regular, automatic withdrawal from a bank account  For bills that vary in amount, the business must provide you with notice at least 10 days before payment is due

14. Safety Deposit Boxes  Fireproof, metal boxes at the bank used to store important documents and valuables, jewellery  Rates vary according to the size of the box  Two keys are required The renter’s key and the institution’s key

15. Traveller’s Cheques  Just like cash, but safer  Financial institution requires you to sign them in their presence at the bank  In order to redeem it, you must provide photo identification and sign it in the presence of the business  The signatures must match  Not all businesses accept them