Different Types of Banking Services | Bank Accounts

The chief duties of a bank are to offer financial services to the people that assist them in managing their finance. As the competition has increased over the years and the technology has upgraded, the banking sector has started offering various types of banking services to its customers to fit into the diversifying needs of modern day users.

Types of banking services

Banking services are just the financial services that are offered by a financial services or a bank. The most common banking services are:

Individual banking: It is also known as personal banking. These services are provided by the financial institution or banks to individuals or retail consumers instead of dealing with businesses, institutions, and intermediaries. Individual banking or personal banking services include checking accounts, savings accounts, wealth management, insurance, debit cards and credit cards, etc.

Business banking: Business banking arises when a division or a bank starts dealing with businesses only. Banks or financial institutions offer business banking services to the business owners who want financial services for their professional needs. Various type of business banking services include business loans, savings accounts, checking accounts, credit cards and debit cards, merchant services such as reconciliation and reporting, check collection, credit card processing, etc, cash management services such as deposit services, payroll services, and many more.

Digital or online banking: Digitalization is just the moving online of financial institution or banks. It is also termed as internet banking. These services are offered by bank to enable their users to manage and operate their bank account on their smartphones, tablets, or laptop. Internet banking services include online, mobile, or tablet banking, e-statement services, online bill pay, text alerts, mobile check deposit, and many more.

Loans: Loans services are one of the most common services offered by a bank or a financial institution. They are basically offered in a customer tailored ways. Different types of loans services are home loans, personal loans, home equity lines of credit, business loans, home equity loans and many more.

Types of bank accounts

There are different types of bank accounts for users to fulfill their different needs. The common bank accounts are:

Savings account: Savings accounts are usually the primary official bank account. They regulate a pattern of savings. Savings account work excellent in case of saving the emergency cash. Opening up of a savings account also depicts the starting of the user’s financial relationship with the bank. Savings account is best for parking extra cash or savings.

Checking accounts: Checking account is a basic account that allows the user to make withdrawals, pay bills, and deposit checks. As the paper checks are losing fame, the banks now offer debit card or check card facility to its customers. Some banks even offer online banking facilities to its user via checking accounts. Checking accounts are suitable for the person who keep a small amount of balance along with depositing cash or paychecks and want to enjoy the convenience of debit cards.

Money market accounts: Money market accounts include qualities of both checking as well as savings account and earn more interest than both. For those, who want to put in place their larger amount of funds of savings, money market accounts are the best choice. These accounts usually generate higher interest rates and this means that the cash parked in money market account is not allowed to remain idle.

Certificate of Deposit (CD): A CD permits the customer to earn more interest rates. But it does not let you to access your funds before the maturity date which means that you can keep your deposits up to a fixed amount of time. Certificate of deposit is best preferred when you have money that you don’t want to spend in anytime soon, this allows you to earn more from that money by depositing it for a while.

Retirement accounts: Retirement accounts generally provide many tax advantages. You are allowed to neglect the income tax on interest earned from CD or savings account. But at a later date, one may have to pay the amount. But keeping your money away from taxes is beneficial over the long time. Retirement accounts are very beneficial when it comes to saving for your future. As they generally allow avoiding the tax burden, it is helpful in saving the money and it might output larger amount of money.

My name is Anthony Lanson and I am a Financial consultant for one of the most trusted Relius International Bank. In my day to day life I help clients with everyday banking, lending, investments and basic commercial banking needs. Stay updated with us