Banking Procedures

Banks & Other Financial Institutions

BANK:

• Owned by shareholders
  
• Limited Liability

 
BUILDING SOCIETY

• Owned by members
  
• Mutual (Members)

Banking Services

Current Account

A ‘working account’ used for day to day transactions

Deposit Account

An account which pays interest and it used for savings

Overdraft

A current account from which a customer may borrow from time to time

Mortgage

An arrangement in which a property is used as a security for borrowing – may be commercial or for an individual

Insurance

Protection for the assets, business, employees or other risks

Leasing

An arrangement whereby the leasee pays the leasor ‘rents’ for use of an asset.

Factoring

Providing Finance against invoices issued to customers

Preparing the Cheques

Check for any technical irregularity:

• Signatures – has the issuer signed the cheque?
  
• Payee – payee name same as the same of the Bank account
  
• Date – Is it out of date?
  
• Words and figures – are the amounts the same?

OTHER BANKING DOCUMENTS & METHODS OF PAYMENT

• Bank Statement
  
• Debit/ Credit Cards
  
• BACS