A bank’s job is to provide customers with financial services that help people to better manage their lives. As technology advances in all aspects of our lives, banks too are taking the opportunity to improve their services and are making advancements to help them stay current and attract customers. Whether you are looking to open your first bank account or have had a checking account for years, it always helps to know the different and key services that a bank can offer you- this will ensure you make the most of your current financial situation. Deciding which bank service is best for you can go a long way in insuring that the bank you choose fits your needs accurately.
Banks typically offer a variety of services to assist individuals in managing their finances. This involves setting up things such as checking accounts, saving accounts, insurance, wealth management and debit and credit cards. Everyone should have access to some form of individual banking and parents can even offer accounts for their children very early on in their lives.
Most banks offer financial services for business owners who need to differentiate between their professional and personal finances. The different types of business banking services include business loans, savings accounts, checking accounts, debit and credit cards. They also offer merchant services such as credit card processing and reporting and cash management services too.
One of the latest ways in which banks help you to manage your finances is online from your computer, mobile phone or tablet and this is something that is becoming more and more important to consumers. Banks will typically offer the following services (there may be some differentiation bank to bank); home loans, business loans, personal loans and home equity loans.
Banks offer some of their customers an overdraft which allows you to borrow money through your current account through an arranged overdraft agreement. These outline how much money you can withdraw up to a certain limit and you will usually have to pay interest rates and fees on what you borrow. Overdrafts have recently come under fire in the news recently due to their sometimes lack of transparency and the fact that they can often charge you more for going into your overdraft than external lenders and payday loan lenders.
What don’t banks provide?
One thing you won’t be able to find on offer from your bank is short term loans. Short term loans are designed to give you an emergency lump cash sum injection instantly and are a popular solution to short term cash flow problems as they are unsecured (in a way that other bank loans are). Short term loans are great for those who need to get a little extra money into their account fast as many lenders are able to transfer money into your account the very same day. Many people have enquired as to whether banks will one day begin to offer payday loans after much consideration and discussion; the overall consensus appears to be that it seems unlikely.