Banking started with the bank of merchants of the ancient world. They used to give loans to farmers for their fields and trades. Traders used to take long and short-term loans to increase business goods between two cities. Modern banking practices, fractional reserve banking, and the issue of banknotes.
Merchants started to store their gold with the goldsmiths of Landon, who gave them private vaults. For these people give them a fee for those vaults.
Different countries have different definitions of banks. In English common law who can on the business of banking. It is as follows:
- making current accounts for his customers,
- paying cheque drawn and
- collecting cheques
Types of Banking Products and Services
Credit Card
A credit card is a payment card given to the users. A card like a Goodyear credit card is given by the bank, who grants a line of credit to the cardholder. This card helps them to borrow money for their goods by giving cash in advance. A credit card is made for the people who earn and the balance to be repaid in full each month.
Furthermore, there is another type of credit card, known as a business credit card. These cards are registered on the basis of business companies as they are used only for companies.
Types of Credit Cards
Secured Credit Cards
The secured card this that card that is secured by a deposit account owned by the cardholder. Basically, the cardholder has to deposit 100% and 200% of the total amount of credit. The deposit is in the custody of the credit card issuer.
The deposited amount is used only utilized as an offset when the account is closed. The account might be closed for two reasons like if it is a request of the customer or due to pathetic delinquency.
Balance Transfer Credit Cards
Bad Credit Credit Cards
Saving Account
Everyone wants to secure his/her future in old age. We must be aware of a hard time we could face if we’ll not secure it. It is a good time to step ahead for a better future as the new year approaches.
Furthermore, the Internal Revenue Service has its own rules and regulations for every retirement account. These accounts allow you to save money more because they do not take tax, such as SEP. SEP stands for simplified employee pension.
If the business has employees, they have to meet certain requirements. All employers need to contribute up to 25 percent of their income. If your age is about 55 or more, you can contribute $1,000 more. You are only allowed to withdraw your money from your account to pay medical expenses.
Equality Shares
The most important sources of finance are equality shares. It gives the quality shareholders are to bear all losses or run risks. It is a benefit for a firm to finance Its fixed working capital requirements out of the proceeds of the issue of shares.
Preferences Shares
Preferences shares are appointed to receive a fixed rate of dividend before the dividend is received by the quality shareholders.
Benefits of Preferences Shares
- It does not cause any economic burden on the company
- By the issues of such rates, the rate of equality dividend can be increased
- They have no voting rights
Debentures
Debentured describes as an instrument executed by the company under its indebtedness. There are 11 different types of debentures in any company.
Benefits of Debentures
- BY taking Debentures, it is prudent to raise for long-term finance, because they help to trade on justice.
- Debenture-holders have no voting rights
Loses of Debentures
- The cost of raising capital is very high due to duty id transfer, commission and brokerage, and stamp duty.
- The founding rate of Debentures is higher than that of return on equality capital, it is not justified. The rate on the return of equality share capital will be reduced.
Car Finance
Before leasing care, check your financial condition. It is very important to make sure of your budget. If you have enough money to overcome your expenses.
In addition to this, taking the car on lease means you have to give more money on monthly basis by putting aside your needs.
Copy of your Credit Report
You need to get a free copy of your report from agencies every 12 months.
Need to know about Co-signer
If you don’t have a credit history then you have a co-signer on the lease agreement. The co-signer performs equal responsibility for the contract. The accountant’s history will appear on the credit report. Late payment will cause trouble for you on your credit.
Personal Loans
A personal loan is for individual use. Bank provides these loans without any security but interest loans are usually high because of the absence of collateral. The repayment depends upon the income you earn on a monthly basis. There is a loan approval time when you get it.
Advantages of Personal Loan
- It is unsecured
- It is availed easily
- Available for all-purpose
Personal Loan Disadvantages
- Require credit history
- Interest rates are usually high
- Part payments not allowed
Debit Cards
Lisa is a passionate travelers. She spends 3 months every year visiting different places worldwide. She has visited almost every famous place in the world. She herself is an affiliate blogger
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