Banking Services

Banking Services Tutorial

From the last tutorial you learned that banks offers the following services.

Just for the sake of you knowing them, I listed them again.

Credit Cards

Merchants Accounts

Check Cards

Debit Cards

ATM Card

Wire Transfer

Electronic Transfer

Notary Public

Certified Checks

Cashier’s Checks

Overdraft Protection

Banking Services Explained

A credit card is a plastic card you use to make

purchases and the bank that issues the card will

bill you for the purchases along with interest.

Read this to learn more about credit cards.

Check Cards are not credit cards and should not be confused with one. Read here to learn more about check cards.

Debit Cards are not credit cards and can be obtained once you open up a bank account. You can use your debit card to make purchases or withdraw funds from your banking account.

ATM Card can be used at automated teller machines to withdraw funds from your account.

Wire Transfer is a method in which money can be transferred electronically from one person to another.

How do banks make money from offering Wire Transfer?

Anytime banks see an opportunity to make more money from consumers they will. They will offer as many services they can to help out. So offering wire transferring is just another way they make money.There’s a fee for the service, but you will have to check with your bank to learn the fee.

Electronic Transfer is the process of transferring money from one person to another by electronic means. (same as Wire Transfer)

Notary Public is a licensed individual from the state that they reside in and they have the authority to witness and notarize signatures. Although there are many other functions a notary performs, at a bank I think they mostly witness and notarize papers and documents.

How do banks make money from notarizing documents?

Like I said before, banks are in the business to make a profit and they do charge a fee to notarize documents. However some banks are known to not charge a fee to notarize some documents for those that have a banking account with them. But make sure you check your bank to see if they charge fees to you if you are a customer.

Certified Checks are used in the place of cash. In order to get a certified check from the bank, you must have the available funds at that time in the bank to do so. When a bank gives you a certified bank, they are certifying that the funds have already been set aside to cover the amount of the check.

How do banks make money from offering Certified Checks?

Banks do charge a fee to give you a certified check. Fees vary from bank to bank so you will have to check with your bank to get the fee.

Cashier’s Checks are another kind of guaranteed check system. When you want to get a cashier’s check from your bank, you must have enough money in your banking account to cover the check or you must make a deposit to cover the amount of the cashier’s check. Either way your bank will set those funds aside for you to cover the full amount of the check which in turn safe guard it from bouncing.

How do banks make money from offering Cashier’s Checks?

Again I will state that all banks are out to make financial gain in all of their business transactions so therefore they do charge a fee to give you a certified check. Fees vary from bank to bank so you will have to check with your bank to get the fee.

Money Orders are similar to cash in that the amount of money that is given to the bank will be given back in the form of a money order for the same amount of money.

How do banks make a profit from money orders?

Banks make a profit from money orders by charging a fee. You must check with your bank to determine the fee for a money order.

Overdraft Protection is what you get from the bank in case you have insufficient funds in the bank to cover what you withdrew or for writing a bad check. Having a overdrawn bank account can be very costly and this services can help you with this situation.

How do banks make money from offering Overdraft Protection?

Although you might find some banks that offer this service free, most will charge you a monthly fee for it. Check with your bank to find out the fee for overdraft protection.

Next Go to Step 2 >> Banking Account Tutorial

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