Banking
Banking means a system of trading money that involves safeguarding deposits and making funds available for borrowers. In response to the growing need for credit in commerce in the Middle Age, banking developed. The business of providing financial services to consumers and businesses are known as banking.
Some of the basic services that a bank provides include checking account, savings account, loans and cash management services. Checking account, also known as current account can be used to makes payments as well as purchase services and goods. Savings accounts and time deposits are used to save money for future use. Availing the loan services from bank will enable consumers and businesses to purchase goods and services and the basic cash management services enables services such as check cashing and foreign currency exchange.
There are four types of bank that are specialised in offering the basic banking services; they are commercial banks, savings and loan associations, savings banks, and credit unions. The broader definition of banking includes many other financial institutions that are usually not considered as banks but provide one or more of the broadly defined banking services. Such institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts.
Banking has been characterised, largely due to the technological innovations by the increasingly sophisticated provision of banking services plus expansion of consumer credit.
Current Account
Current account, also known as a transactional account in North America and checking
Saving Accounts
Savings accounts are accounts that are maintained by retail financial institutions.
