Date Posted: 12/4/2012 2:38:56 AM
Posted By: Saucer Membership Level: Gold Total Points: 4885
There are three different types of accounts from which customers choose the most suitable account for their needs.They include:1. Savings accounts.2. Fixed deposits accounts.3. Current accounts.1. Savings accounts.It is suitable for small savers. A smaller amount is required to open a savings account than a fixed deposit account. Withdrawal through the ATM can be done as many times as possible but with a weekly maximum limit. The interest earned is usually lower. It is a running account and a pass book is given to account holders.2. Fixed deposits accounts.Large amounts of money are required to open them. Withdrawals can only be made after an agreed period of timd. The interest earned is higher and the deposits may be used as collateral or security for a loan. A certificate of deposit is issued.3. Current accounts.Current account holders are issued with cheques to enable them make payments without using cash. Other services offered by commercial banks.1. Standing order: this is a written instruction from the customer to his bank to make regular payments to a person or an institution until the arrangement is cancelled.2. Credit transfer: this is where a person intending to pay many people prepares a list of names of people to be paid and draws one cheque to the bank, who will take the responsibility of making sure that each payee receives the amount due to him.3. Bank drafts: in case a supplier or an organisation is not willing to accept a personal cheque for fear of it being dishonoured, a bank draft is used.4. Traveller's cheque: these make it very convenient and safe for travellers to travel without having to carry money.5. Credit cards: most banks issue credit cards to their customers who request them. These cards enable the holder to get goods and services on credit.
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