Financial Products and Providers

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The financial products

  1. 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.  

Deposit accounts are known as saving account, which is offered by financial service providers to give the customer a form of saving their money. Some of these accounts can be opened with a minimum of one pound. For example Barclay's offers an account, which is called E-savings account: this is a savings account that gives you frequent access to your savings, therefore you can access your balance on-line and you don’t need to use the phone or visit the branch. And you can manage all your savings online. And it is only costs £1 to open the account. The savings rates are variable they are from 4.62% AER / 4.54% gross pa.

The customer who makes fewer withdrawals out of this account gets more interest as a reward by different financial providers. Many financial providers have divided up deposit accounts into more accounts but the difference is the financial providers have given them attractive names and have targeted them to different customer groups and have added services and benefits to the different deposit accounts. They have created these accounts to meet the needs of different customers. Many saving accounts tend to be different to each other  however they all have the following features:

  • There is no age limit so this account can be opened by old and young people.
  • Paying in book to show a record of all the transactions made
  • Individuals of the financial providers can invest money in small or large amounts into their accounts. Most of the banks will offer advice, which suits the customer best. Many customers change their saving accounts depending on the options the customer has available from the financial provider and their circumstances and needs for different services.

Customers will have access to their funds depending on the account the customer has with the financial provider at a several of days notice. The different types of deposit accounts may include the following:

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  • Young saver accounts offer young people with the chance to save with the financial provider  and receive interest and a variety of different banking services
  • Customers who retain large amounts of money over a small period of time with a deposit account. The customer will have a higher rate deposit account.
  • Term deposit account have higher rates of interest over a certain amount of time such as a year or even six months with no access to the deposit made

Pensions and investments

Most organisations offer their employees some sort of income when they retired, which ...

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