What are the 5 Most Important Banking Services?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The 5 most important banking services 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 that provides various financial services to its customers. They are an important part of the individual and national economy, so it is very important to be aware of their functions and services.
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5 Most Important Banking Services
A bank provides 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. Therefore, knowing the 5 most important banking services is important to understand how banks contribute to the economy of a country:
- Overdraft Services: These services allow customers to withdraw more money than is deposited in their accounts. Banks also charge interest on these withdrawals.
- Advance Loans and Mortgages: Banks are essentially businesses, which is why they give short-term and long-term loans to their customers to increase their profits, on which they charge interest. It meets the needs of both them as well as their customer.
- Wealth Management: Banks provide various services to their customers to maintain and improve their wealth. They provide investment advice, portfolio advice, etc.
- Providing Debit Cards and Credit Cards: Banks offer credit cards and debit cards to improve the purchasing power of customers and their access to money.
- Checking and Savings Account: Banks offer different types of accounts to their customers in which they can save their money according to their specific use and purpose.
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