Bank Operations. Saving account. Checking account

Bank Operations

1. Saving account

To open a savings account at a bank a small initial deposit is needed. If you open your account with 500 dollars or more and keep that much at all times, there is no service charge. If you fall below the 500 dollar limit, you will be charged 5 dollars a month.

A bank computer adds all the daily figures and then divides by the number of days in your statement period. That’s called your average daily balance.

When you open an account, you’ll be in touch with your money thanks to a bank machine services. These machines can handle most regular teller transactions. You can make deposits, cash withdrawals, and balance inquiries with your automatic teller card. The machine is at work 24 hours a day, seven days a week.

If, for example, you want to open a savings account with a deposit of 1000 dollars, you are supposed to fill in (A.E. - out) an application. Besides you need to write a deposit ticket for 1000 dollars. After filling in the application you are given a pass-book. Once you place your money in a savings account, interest on the money begins to accrue. The bank will pay you 4 or 5% interest.

2. Checking account

If you want to open a checking account, you are supposed to maintain an average daily balance of 1000 dollars. As long as you keep this average balance you won’t be charged for banking services. Should you fall below the 1000 dollar limit, you would have to pay a service charge of 6 dollars a month, and each of your transactions would be charged separately.

A transaction charge means that you’ll have to pay 25 cents for each check made by you or your spouse and also 25 cents for each cash withdrawal. But you can easily avoid paying these charges by maintaining 1000 dollars or more on your account.

Interest is paid if you average daily balance is over 2500 dollars. Unless you fall below 2500 dollars, you’ll be paid 6.5% interest. The bank credits the interest you’ve earned automatically to your account.

You can order your check books after having filled in (out – A.E.) an application and your deposit ticket.

For getting a credit card you must have an income of 15000 dollars or more. This income must be proved by your last pay stub or a copy of your tax return. As soon as the bank has this information, credit card will be given to you and your wife.

3. Credit cards

Credit cards are accepted by millions of businessmen in the United States and abroad. They can be used at hotels, restaurants, department stores, theatres, airline ticket offices – just about anywhere. They even entitle owners to instant cash. The card holder simply asks a teller to charge a cash advance, or loan, rather than a purchase to his or her account. The transaction is approved by phone and the money handed over almost immediately.

VISA and MASTER CARD are the best-known bank cards. They are also most established, having been first offered to consumers more than 25 years ago. The DISCAVERY CARD is the newest. Consumers have been drawn up to the Discovery Card by attractive discounts up to $150 on certain purchases and an annual rebate 1% of the amount charged against the card.

4. Traveler’s checks

One more possibility of making payments without using your cash and traveler’s checks. Traveler’s checks can provide you a safe and convenient way of traveling with large amounts of money. They come in twenty dollar, fifty dollar and one hundred dollar denominations. Traveler’s checks are insured against loss and theft and are treated as cash by most businesses. You may purchase traveler’s checks at most banks.