A bank’s job is to provide customers with financial services that help people better manage their lives. As technology advances and competition increases, banks are offering different types of services to stay current and attract customers.
Different Types of Services | Bank Accounts:
- 1. Individual Banking
- Banks typically offer a variety of services to assist individuals in managing their finances, including:
- ●Savings accounts
- These deposits accounts are one of the most popular deposits for individual accounts. These accounts not only provide cheque facility but also have lot of flexibility for deposits and withdrawal of funds from the account. Most of the banks have rules for the maximum number of withdrawals in a period and the maximum amount of withdrawal, but hardly any bank enforces these.Although Public Sector Banks still pay only 4% to 3.5%rate of interest, some private banks like Kotak Bank ,Bandhan Bank and Yes Bank pay between 6% and 7% on such deposits.
- ●Recurring Deposit Accounts
- These are popularly known as RD accounts and are special kind of Term Deposits and are suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month. Normally, such deposits earn interest on the amount already deposited (through monthly installments) at the same rates as are applicable for Fixed Deposits / Term Deposits. These are best if you wish to create a fund for your child's education or marriage of your daughter or buy a car without loans or save for the future.
- ●Fixed Deposit Accounts
- All Banks in India (including SBI, PNB, BoB, BoI, Canara Bank, ICICI Bank, Yes Bank etc.) offer fixed deposits schemes with a wide range of tenures for periods from 7 days to 10 years. These are also popularly known as FD accounts.The rate of interest for Fixed Deposits differs from bank to bank (unlike earlier when the same were regulated by RBI and all banks used to have the same interest rate structure. The present trends indicate that private sector and foreign banks offer higher rate of interest.
- ●Debit & credit cards
- A debit card (also known as a bank card or check card) is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user's bank account when performing a transaction.
Acredit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges
- 2. Business Banking
- Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:
- ●Business loans
- Each business is unique and hence have specific requisites. Business loan plans offered by various banks and financial institutions across the country are customizable and customer satisfaction centric to offer business owners with a wide array of financing alternatives.
- ●Current accounts
- Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. Most of the current account are opened in the names of firm / company accounts. Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. No interest is paid by banks on these accounts. On the other hand, banks charges certain service charges, on such accounts.
- ●Merchant services (credit card processing, reconciliation and reporting, check collection)
- A merchant account is a type of bank account that allows businesses to accept payments in multiple ways, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions.
- ●Cash management (payroll services, deposit services, etc.)
- Cash management refers to a broad area of finance involving the collection, handling, and usage of cash. It involves assessing market liquidity, cash flow, and investments.
- 3. Digital Banking
- The ability to manage your finances online from your computer, tablet, or smartphone is becoming more and more important to consumers. Banks will typically offer digital banking services that include:
- ●Online, mobile, and tablet banking
- Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet.
- ●Mobile check deposit
- Mobile Check Deposit is a feature that provides you the convenience of depositing checks on your schedule, without needing to visit a branch or an ATM. All you need is a smartphone or a tablet with the Santander Personal Banking Mobile App.
- ●Text alerts
- Text Alerts make it easier to stay in control of your bank accounts and help prevent fraud. You select the alerts you need and we’ll send texts to your mobile phone, so you’ll always know what’s happening with your money.
- An e-Statement is an electronic version of your statement of bank transaction that you can view and print right from
- ●Online bill pay
- Electronic bill payment is a feature of online, mobile and telephone banking, similar in its effect to a giro, allowing a customer of a financial institution to transfer money from their transaction or credit card account to a creditor or vendor such as a public utility, department store or an individual to be credited against a specific account.
- 4. Loans
- Loans are a common banking service offered, and they come in all shapes and sizes. Some common types of loans that banks provide include:
- ●Personal loans
- Personal loans work similarly to other types of loans. You borrow a certain amount of money from a bank or lender so that you can pay for the things you need to. You will have an agreement with the lender to pay back your loan, usually in monthly repayments.
- ●Home loans
- Home Loan is offered to individuals who wish to purchase or construct a house.
- ●Business loans
- A business loan is a loan specifically intended for business purposes.Business loans can be availed for a variety of purposes including covering everyday operational costs and cash flows, purchase of machinery and inventory, and assistance in business expansion.