1). Current accounts:
Current account (US.Eng checking account) is an account which allows customers to withdraw or take out money. Money in the account does not usually earn a high rate of interest: the bank does not pay much for ‘borrowing’ your money. However, many people also have a saving account or deposit account which pays more interest but has restrictions on when you can withdraw your money.
Banks usually send statements listing recent sums of money going out, called debits, and sums of money coming in, called credits.
Debit cards allow customers to make withdrawals and do other transactions at cash dispensers (UK.Eng; US. Eng: ATM Automated Teller Machine). A credit card, on the other hand, can be used for buying goods and services as well as for borrowing money.
In some countries, banks issue chequebooks and people pay bills with cheques (US. Eng checks). In other countries, however, banks don’t issue chequebooks and people pay bills by bank transfer. These include standing orders, which are used to pay regular fixed sums of money, and direct debits, which are used when the amount and payment date varies.
2). Banking Services:
Banks offer:
- loans: fixed sums of money that are lent for a fixed period, two years for instance.
-overdrafts: they allow customers to withdraw an account-they can have a debt, up to an agreed limit, on which interest is calculated daily.
-mortgages: they allow people to buy a house. These are long-term loans, on which the property acts are collateral or a guarantee for a bank. If the borrower doesn’t repay the mortgage, the bank can repossess the house or flat.
-Banks also exchange foreign currency for travellers, and sells traveller’s cheques (US. Eng: traveler’s check) which are protected against loss or theft.
-They also provide advice about investments and private pension plans: saving money for when you retire from work.
-Banks also sell insurance products to their customers.
3). E-Banking
A method of banking in which the customer conducts transactions electronically via the internet.
It is also known to as online banking, internet banking or web banking, and virtually every banking institution has some form of online banking you can access through a computer or app.
4). Personal banking vs. Business banking
Business banking offers a wide range of features and services that are often necessary for a business to operate.
These services include credit cards, loans, checking account, and savings accounts.
Business banking may also offer other services like cash management, inventory management, and technology solutions to help increase productivity. Whereas, Personal banking focuses on helping individuals reach their financial goals. It offers a selection of personal bank accounts; from which you can choose the one that best suits your needs.
Some banks also offer trust accounts for children. Additionally, some of these banks offer custodial accounts for parents with children who need access to their funds but are not old enough to open their own bank account.
Task 1 and 2 are pieces of homework to be submitted on: 08.12.2025
Exercises:
Task 1: Find words in the lesson with the following meanings
1). What you can earn when you leave your money in the bank.
2).an amount t of money borrowed from a bank for a certain length of time, usually for a specific purpose.
3). something that acts as a security or a guarantee for a debt.
4). An arrangement to withdraw more money from a bank account than you have placed in it.
5). a long-term loan to buy somewhere to live.
6). An arrangement for saving money to give you an income when you stop working.
7). to take back property that has not been completely paid for.
Task 2: Are the following statements true or false?
1). Current accounts pay more interests than savings accounts.
2). There is less risk for a bank with a mortgage than with unsecured loans without collateral.
3). Traveller’ s cheques are safer for tourists than carrying foreign currency.
4). The majority of customers prefer to do their personal banking at the bank.