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5:09, 10 December 2017

What is Banking and Common Concepts of Banking

Banking is a single kind of trading in income that safeguards deposits as properly as makes money obtainable to borrowers. You can also term it as a financial institution which is engaged in cash transactions like withdrawals and deposits. There are clients involved who get interest on their deposits parked with the bank.

There are various kinds of accounts in every and each bank. Distinct banks have various sorts of accounts or deposits.

It could be either Savings Account or Present Account or Fixed Deposit Account or Recurring Deposit. Apart from this, there are other varieties of accounts like Foreign Currency Accounts or FCNR Accounts, Nostro Accounts, Loan Accounts and so on.

Savings Account is opened by an person or far more than a single individual. It could be a single account or joint account. Interest is paid on the income deposited in their account.

Existing Accounts are usually operated by individuals obtaining their own company or by corporate. It is generally operated for company purposes.

Fixed Deposit Accounts are opened for a particular period of time. Interest is paid for that certain period of time. For example, a buyer might deposit 1000 dollars and request that the same may be kept for 1 year period. So for this 1 year period, interest is paid by the Bank. The deposit could be either ordinary fixed deposit or cumulative fixed deposit.

In case of ordinary fixed deposits, interest is credited to the account whereas for cumulative sorts, interest gets added to the principal amount.

In case of Recurring Deposits, a specific quantity needs to be deposited with the bank on a month-to-month basis for a distinct period of time and interest is paid for that period. Interest gets added to the principal quantity.

Apart from interest getting paid by banks to consumers, banks also lend income to buyers for either personal purposes or for commercial purposes or for buying properties. This depends on the customer requirements as well as their credibility or monetary condition. Interest is charged on the amount offered to the client based on the agreement created.

Apart from lending, clients can also hold their valuables like ornaments in bank lockers. Banks provide this facility to their buyers and a specific amount is charged for the same.

There are several other facilities provided by banks to customers like withdrawing cash through Any Time Machine (ATM’s), supplying credit cards or debit cards, International Cards for purchasing and so on.

Customer’s income is appropriately taken care of by these financial institutions and clients can really well program their future if they invest correctly.

Iyer has a number of years of experience functioning for a Multinational Bank. This blog has articles related to finance. There are a lot of information about Forex MegaDroid which 1 needs to study and it is 1 of the very best performing robot.

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