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Business banking is an important assist to business. Fund which is the basis of every business exercise is provided by banks. Banks are hence regarded as important spokes in the wheels of commerce. A bank may be understood to be an school which offers in money. Banks draw excess money from those who are not utilizing it at the time and offer to those who are in a situation to use it for effective purposes. Banker is not just a money lender. He lends what he has loaned from other people. There are about three main varieties of accounts which a person can open up with a bank, particularly, fixed deposit, financial savings bank deposit and current balances. Fixed deposit accounts A customer can deposit his money having a bank for a repaired period. This type of account is referred to as Fixed Deposit Account. The time in fixed deposit accounts usually is different from three months to five years. The amount transferred cannot be pulled before the expiration of the set period. The bank normally enables as better rate of interest on fixed deposit. The interest rates increases together with the period of deposit. Protecting Bank Account A saving bank profile provides minimal withdrawal premises and carries a reasonable rate of interest on deposits. Fascination is made it possible for the cost savings bank account about the lowest credit rating balance stored in a particular 30 days. Current Profile An existing account might be defined as running accounts between a banker and a customer. Consumers can deposit money into or take away money from a recent account every time they like. There are actually no constraints to the number of however, subject and withdrawals to the minimum credit balance to be kept as per the rules of the bank. If the credit balance in a current account is not allowed to fall below a prescribed figure, as a rule no interest is allowed on a current account an exception however is sometimes made. In order to open a current account one has to fill in a prescribed application form. The bank usually insists on such person of business enterprise being introduced by an existing customer of the bank or other reputed businessman. It will proceed with opening of the account if the bank is satisfied with the introductory references. The specimen signatures of the client are usually taken or pasted on separate cards which are alphabetically filed for ready referenced to verify the signatures whenever the need arises. If society or club wishes to open an account, it must submit a copy of its certificate of registration, a copy of its bye laws, a copy of the resolution of the managing committee for the opening of the account, and the specimen signatures of the person who will operate the account. In the case of a partnership the application for the opening of the bank account is accompanied by a copy of the partnership deed. The advantages of opening an account with the bank are: 1. The money remains with the bank safe custody. Therefore, the risk of keeping large sums of money in the office is avoided. 2. The bank collects on behalf of the customers the amount of all cheques, bills of exchange. Deposited in the bank. 3. The bank collects on behalf of the customer dividend on shares, interest on debentures. It also makes payment on behalf of the customer the premium on life insurance. 4. The bank allows interest on a certain rate on cash placed in its keeping. 5. The bank allows the customer to overdraw his account, and thus renders financial help to the customer. 6. Valuables, deeds, securities, can also be deposited with the bank for safe custody. 7. The payments by the merchants to the creditors are greatly facilitated as these are made by means of cheques. Also the cheques serve as an evidence of payment in case of disputes. The old practice was to give to the current account holders a pass book, which is a copy of customers account in the ledger of the bank. The modern practice, however, is to send to the customer at the end of each month a bank return which is a copy of the customer's account with the bank for the relative month. Pay in slip book These slips have perforated counterfoils. The customer who intends to deposit the money into the bank has to fill up the pay in slip and hand over to the cashier along with the money. The clerk stamps and signs the counterfoil which is evidence of the deposit. Cheque Book. When a trader wants to discharge his debts he signs a written order on his bank authorizing the bank to pay a certain sum of money-to his creditor. The order is known as 'chcque'. A cheque may be defined as an unconditional order drawn upon a specified banker, signed by the maker, directing the banker to pay on demand a certain sum of money only to the order of a person or to the bearer of the instrument. It ensures itself that the cheque is in order, before the bank makes payment on the cheque. The bank must verify the signature of the drawer. The bank ensures that amount written in words tallies with the amount written in figures. If it does not the bank is at liberty to refuse payment of the cheque. There should not be any material alteration on the cheque. All material alterations must be initialed by the drawer. The bank will also see that the customer has sufficient funds out of which the payment of the cheque is to be made. That it will make the payment if the bank is satisfied about all these points it is only. For more info visit us at: metrosafe.co.uk/metrosafe/.
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