Banking started with the bank of merchants of ancient world. They used to give loan to farmers for their fields and trades. Traders used to take long and short term loan 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. Fir this people give them fee for those vaults.
Different countries have different definition of bank. 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
Credit card is a payment card given to the users. The card like Goodyear credit card is given by bank, who grants a line of credit to the cardholder. This card help them to borrow money for their goods by giving cash in advance. 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 business credit card. These card are registered on the base of business companies as they are used only for companies.
Types of Credit Cards
Secured Credit Cards
Secured card this that card which is secured by deposit account owned by cardholder. Basically, the cardholder have to deposit 100% and 200% of the total amount of credit. The deposit is in the custody of credit card issuer.
The deposited amount in used in only utilized as an offset when the account is closed. The account might be closed on two reason 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 want to secure his/her future in old age. We must be aware of the hard time we could face if we’ll not secure it. It is good time to step ahead for better future as new year approaches.
Furthermore, Internal Revenue Service has its own rules and regulations for every retirement account. These accounts allow you to save money more because it 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 if about 55 or more, you can contribute $1,000 more. You are only allowed to withdraw your money form your account to pay medical expanses.
Equality Shares
Most important sources of finance are equality shares. It give the quality shareholders are to bear all losses or run risks. It is 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 are describes as an instrument executed by company under its indebtedness.
Benefits of Debentures
- BY taking Debentures, it is prudent to raise for long term finance, because they help trading on justice.
- Debenture-holders have no voting rights
Loses of Debentures
- Cost of raising capital is very high due to duty id transfer, commission and brokerage and stamp duty.
- Founding rate of Debentures is higher than that of return on equality capital, it is not justified. The rate on return of equality share capital will be reduced.
Car Finance
Before leasing care, check your financial condition. It is very important to make sure your budget. If you have enough money to overcome your expenses.
In addition to this, taking car on lease means you have to give more money on monthly bases by putting aside your needs.
Copy of your Credit Report
You need to get free copy of your report from agencies every 12 months.
Need to know about Co-signer
If you don’t have credit history then you have co-signer on lease agreement. Co-signer perform equal responsibly for the contract. The accountant history will appear on credit report. Late payment will cause trouble for you on your credit.
Personal Loans
Personal loan is for individuals use. Bank provide 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 monthly bases. There is 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