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Financial Products and Providers

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Introduction

The financial products Current accounts and deposit accounts A current account gives the customer instant access to his or her account. Most current accounts provide customers with a wide range of services for example the cheques as well as other services offered by the financial provider. A cheque which states the amount of money and the customers signature which is drawn by the banker to pay a certain amount of money to a specific person also known as the bearer. A cheque is an unconditional method of payment which depends on certain conditions which have to be met. The cheques must be written on with a pen, which the ink must be black and brown and must be signed by person paying the money. The only way the money will be paid is when it is has been presented to a bank. The sum of money must be presented in words on the cheque must be paid out to someone. The current account holder may even have a card mostly known as a cheque guarantee card. The cards guarantee certain amounts of money. Many of the cheque guarantee card can be used as a debit card to buy goods and services. For example a customer is in a retail shop the customer gives the cheque guarantee card to the employee on the till to swipe the card through the electronic funds transfer terminal. The card only can be used once the pin is typed in which the customer has. Then the transaction is complete. These particular cards can get the customer cash back form retail stores when products have been purchased and can be used at the ATM's to get capital out, therefore making it much easier then carrying cash around. ...read more.

Middle

There are different types of mortgages available, which are the following: * Pension mortgage - this mortgage works as the basis that the pension provides tax free cash when retired. At the end of the mortgage term the loan is paid out of a tax fee lump sum of cash. * Repayment mortgages -meaning the customer pays of all the interest and capital at the end of the term * Individual savings account (ISA) mortgage - this mortgage works as the same as the endowment mortgage but is an individual savings account as the loan repayments. The individual may face a shortfall if the investment performs badly. Saving facilities Most people save capital for a number of reasons. Such as an investment for the future, for example buying a new motorbike or a car in the future or going on away on holiday. A number of financial providers offer different amounts of opportunities for the customer save up to meet their particular needs. These services depend upon: * The age and the time of life * Access to there funds * The amount they wish to save Credit facilities When given a credit card there is always a limit which can be drawn out and spent. With a credit card goods and services can be bought and the card can be used at most retail outlets. Credit cards aren't joined with the bank accounts. The individual customer of the financial institution signs a copy of a receipt or just enters the pin which is used to access the card to make transactions but the card has to be put in the card machine before that can happen. ...read more.

Conclusion

should: * Keep records of the advice given to the customer on the specific dates and the reasons given for the advice. * Know the customers so advice can be offered related to the personal financial circumstances * Give the best quality advice available to the customer so that the appropriate services are recommended for the customer * Explain all the risks which are involved so they are aware of all the risks which could arise When considering a package for a customers. This helps evaluate the success of how well the financial providers are meeting the needs of the customers. One of the biggest thing has to be taken in to account is that the customer must understand the information. Status and size of business Different sizes of businesses affect the organisations access to the different banking services. Large businesses or organisations are able to borrow more capital at better interest rates compared with small organisations because they are seen as a lower risk, however smaller organisations are seen to be at a higher risk. Ease of use Many times financial and banking services can be very hard to use so customers needs have to be met. A package has to be created with services you recommend. Value for money Financial service providers have to sell their products at a competitive price. Financial providers seem to offer better deals and get more customers. When recommendations are being made the main considerations are that, would the customer be willing to pay and if there is any other competitive prices form competitors, such as Barclay's current account and HSBC current account, therefore the consumer will select the most appropriate to them, which will meet their personal and business needs. Unit 7 Financial Products and Providers ...read more.

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