| | Banking : Introduction | 
|
|
Most people keep their money in bank accounts. It is safer and more convenient to store money in a bank than in cash, especially if a large amount of money is involved. If you keep money in a bank you can also earn extra money, called interest, for doing so.
This table lists some of the common tasks that people carry out using their bank accounts :
| Task | Details |
| Withdraw and Deposit Money | People need to be able to take cash out of their bank accounts to pay for goods that they purchase. They also need to pay in money that they have received such as wages or presents. Cash can be withdrawn and deposited at a counter within a bank. It can also be withdrawn from Automatic Teller Machines (ATMs) outside banks. |
| Pay for Purchases and Services | It is inconvenient and potentially unsafe for a person to carry enough cash to pay for very expensive items. Therefore banks offer alternative payments methods which do not involve the use of cash. Purchases can be paid for using a Debit or Credit Card or by Cheque. |
| Make Regular Payments | Most people have to make some payments on a regular basis. For example a mortgage might have to be paid every month and an electricity bill might need to be paid every three months. Bank customers can have these bills paid automatically using a direct debit or standing order. |
| Accept Payments | People usually receive regular payments of some kind. Most employees receive wages on a regular basis and these are usually paid directly into the employee's bank account by the company he works for. Payments like this can be carried out using the Bankers Automated Credit Systems (BACS). |
| Check Account | A customer will often want to check the balance of his bank account to see how much money is available to spend. He may also want to see what payments and receipts have occurred recently. This can be checked immediately on an ATM. Additionally a customer will recieve a regular printed list of transactions on his account as a statement. |
A large bank may have several million customers, each of whom could have two or three accounts. A bank will therefore have a lot of information to process and so all banks use computerised information systems to manage customer accounts.
GCSE ICT Companion 04 - (C) P Meakin 2004