What are the 5 Most Important Banking Services?

By Ruchika|Updated : August 11th, 2022

It is important to understand 5 most important banking services which are Checking and savings accounts, wealth management, advancing loans and mortgages, overdraft services and providing Credit and Debit Cards. A bank is defined as an institution which offers various financial services to its customers. They are an important part of the personal and national economy hence, being aware of their functions and services is very crucial.

5 Most Important Banking Services

A bank offers various services to its customers which in turn contributes to the overall economy of the country. However, not all services may be relevant to everyone. Hence, knowing the 5 most important banking services is important to understand how banks contribute to the economy of a country.

  1. Overdraft Services - These services allow customers to withdraw more money than they have deposited in their accounts. Banks also charge interest on these withdrawals. 
  2. Advancing Loans and Mortgages - Banks are essentially businesses which is why to enhance their profits they advance short-term and long-term loans to their customers on which they charge interest. This fulfils both their as well as their customer's needs.
  3. Wealth Management - Banks offer various services for their customers to retain and improve their wealth. They offer investment advice, portfolio advice, etc. 
  4. Providing Debit Cards and Credit Cards - Banks offer credit cards and debit cards to improve customers' purchasing power and access to their money.
  5. Checking and Savings Account - Banks offer their customers various types of accounts in which they can save their money as per their specific use and purpose.

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FAQs

  • The following are the 5 important services offered by a bank to its customers, checking and savings accounts, advancing loans and mortgages, wealth management, overdraft services and providing Credit and Debit Cards.

  • A bank offers many services to its customers, however, the most important services are applicable to all are checking and savings accounts, loans and mortgages services, wealth management services, overdraft services and providing Credit and Debit Cards.

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