How Do I Sign Mississippi Banking Form

How do i industry sign banking mississippi form online

welcome to cfi's banking products and services course to begin your career as a financial analyst you'll need to have a solid understanding of the products offered at any bank knowing this will allow you to explore the careers that interest you the most in this course we'll identify the products and services offered by banks to consumers and retail clients next we'll explore the products and services offered by banks to businesses and corporations of all sizes for both consumer and banking for businesses we'll explain the fee structures of banks and how they make money from each product or service we'll then take a deeper dive and investigate the product and service offerings and groups within investment banks and their associated fees our overall goal of this course is to build your knowledge of the various products and services offered by retail private business commercial and corporate banks as well as by investment banks this understanding will help to prepare you for a career in banking in whichever sector you may choose so now let's get started there are three different categories of products and services within retail banking they include payments and deposits credits and investment products and services before we get started there is one overriding note to make most if not all retail banks offer online banking services this was covered in the introduction to banking course virtually all of the products and services that we cover in this lesson can be and are offered through online banking now let's look at the products and services for each category starting with payments and deposit products a transactional account is a type of demand deposit account known as a checking account in some parts of the world and a current account in others it's a bank account that retail banks make available to their customers for the purpose of securely and quickly providing frequent access to funds on demand they are the accounts that customers will typically use to pay regular everyday expenses for example rent and utilities groceries and other store purchases these are accounts that traditionally use checks as a form of payment however with the move to online banking they also include electronic funds transfer and the use of debit cards which we'll cover in a later session usually the customer deposits their regularly earned income into this type of account first for example their paychecks and then they pay their living expenses through this account these accounts are very convenient for customers and don't normally earn interest however there are some that will offer a nominal interest rate or other rewards on these accounts as a marketing inducement in order to attract more customers further most banks will offer no fee accounts provided a minimum amount is kept in the account otherwise a monthly service fee is charged to maintain the account the bank will charge a service fee on the account in order to cover the cost of the bank to maintain it yet at the same time a customer often won't earn interest this may seem counterintuitive however these accounts are convenience accounts to the customer to allow them to have a method of paying for their goods or services in a very convenient way online through physical checks or through debit cards from the bank's perspective checking accounts are seen as a stable source of low-cost funding for short-term loans as there will always be an average amount of deposit funds held in these accounts that the bank will use to make their loans we'll cover loan products a little later in this lesson further banks know that where a customer opens a checking account with them the customer is more likely to stay with them longer term and use other products the bank offers such as savings accounts credit cards loans and other products will be covering in this lesson in banking we call this the customer share of wallet and it's where the revenue is really earned by a bank in fact research has shown that where a bank has active checking accounts those accounts will earn four times more revenue than in banks that don't savings accounts are demand deposit accounts used by customers who may not have an immediate need for their funds but who want to ensure they have quick accessibility in case their financial situation changes these accounts offer a range of interest rates however the rates are typically lower than what a customer could get if they were to deposit their funds into some sort of a longer fixed term deposit product much like current or checking accounts savings accounts offer a stable source of funding for the bank's short-term lending products in fact many retail banks will compete for these deposits through offering incentives such as a high rate of interest for a limited amount of time or another financial reward like cash for opening an account and for maintaining a minimum balance for a specified length of time longer term deposits are products that offer a certain interest rate for a fixed period of time where a customer may have excess funds that they won't need access to for example perhaps they want to save money for a trip or a car a house or to attend college or university or perhaps even to retire they may choose to deposit their savings into a fixed deposit product of a specified term that can be anywhere from 30 days to 5 years or perhaps even 10. these products have many different names depending on what country you're in term deposits time deposits fixed deposits certificates of deposits and general investment certificates are most common the general rule of thumb is that the longer the term the higher the rate of interest that will be paid and so a term deposit of 30 days will earn a much lower rate of interest than say a term deposit of 5 years however that's the general rule of thumb there are other drivers to the interest rate a bank will pay if you took the introduction to banking course you'll recall the concept of asset liability matching simply put a bank will try to match the terms of the loans it makes with the terms of the deposits it has so if a bank is making a lot of loans with three-year repayment terms it may offer a higher rate of interest on three-year term deposits to attract those deposits once it has the deposits it needs it will lower the rate back down as i'm sure you can see by now a bank that has a strong deposit network with current accounts savings accounts and term deposits is one with a solid source of funding for its loans however deposits also help the bank fund other areas of its business for example they're used to drive their own investment portfolio as there's a regulatory capital reserve requirement where the bank isn't allowed to lend 100 percent of what it has on deposit deposits are also used to fund new client acquisition where targeted campaigns are run let's now move to credit products starting with the various types of payment cards a retail bank may offer bank cards also called debit cards are directly linked to the customer's checking account and sometimes to a savings account as well a customer with a bank card can go to an automated teller machine or atm also known as an automated banking machine or abm and withdraw cash from their account where the atm is within the bank's own network the customer can also make deposits into their account through the machine most banks will waive fees for using atms that are within their network however if a customer goes to an atm outside of that network there is often a fee charged for that service