• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13

Financial Products and Providers

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. In this assignment I am opening a tuck shop in the school grounds and ...

    As you can see on Break - even chart 3 - 6 you can see dramatic changes in the break - even points and this can seriously cause a lot of damage as in financial mainly in debt. It is very important to produce a Break - Even Chart because it is a forecast of the business.

  2. Financial Services

    on loans, overdrafts insurances from different banks, and compared them in order to provide my customers with the best possible advice. I have also visited the Tescos website and other websites that are relevant, to find out more information on benefits risks, and costs.

  1. This paper discusses the statement 'in a politically charged rulemaking environment, conceptual frameworks has ...

    In 1975, the Accounting Standards Committee (ASC) developed a discussion paper- The Corporate Report, with emphasis placed in the discussion paper on greater disclosure, including statements of 'future prospects' and 'corporate objectives'. Also, the publication of the Sandilands Report drew attention away from The Corporate Report to the contribution of both documents to 'the fundamental problem of measurement of profit'.

  2. Complete Report on Askari Commercial Bank

    Miscellaneous Products * Demand Draft * Telegraph transfer * Pay Order * Pay Slip * Online Banking * Internet Banking * Rupee Traveler cheque * Foreign Traveler Cheque * Foreign TT * Askari Master Credit Card * Askari Debit Card DEPARTMENTS OF ACBL There are three main departments in ACBL Bahawalpur.

  1. The Purpose of Keeping Accurate Accounts

    Competitors - will be interested in the financial information which can be freely obtained if PLC so the competitors can stay one-step ahead. Other information maybe published in the press, looking at activities of competitors to think ahead. Suppliers - concerned about the businesses ability to pay for materials or services.

  2. What does Finance involve.

    5 years, I have to pay back the full �17,000 plus the additional 10% interest rate. - 10% of �17,000 = �1,700 This means that I will have to pay back the original amount of �17,000 and an additional �1,700 so in total I will be paying back �17,000 +

  1. The concept of financial statement

    A business may use one method, another may use another. As far as consistency concept is concerned, once a business has selected a method, it should use this method consistently for all assets in that class and for all accounting periods.

  2. What are the major risks that financial intermediaries face and how do they manage ...

    were forced to declare bankruptcy due the inappropriate actions as they themselves played as financial intermediaries. To take Barings bank as an example a trader with the name of Nick Leeson was able to use large cash reserves which the bank held which belonged to the banks depositors, to implicate

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work