Common Bank Services

Loans
Banks provide loans in exchange for promises of repayment and certain guarantees. For instance, since a car loan will be secured against the car you buy, it may be easier to get a car loan than a personal loan which does not require collateral. This is because if you default on your payments, the bank can repossess the car and sell it to reclaim the outstanding portion of your debt.

Mortgages
Mortgages are a type of bank loan secured against the purchased property. The amount of money you can borrow for a mortgage is calculated according to the incomes of the people signing for the loan.

Overdrafts
This is an agreed permanent loan associated with your current account. You can draw on it directly for a set interest rate. The amount is applied directly to your current account and is considered as deposited funds.

Debit Cards
Debit cards allow you to access funds in your current account so that you can shop in stores that accept card purchases, as well as pay for things online or over the phone. Debit cards also let you withdraw cash from an Automatic Teller Machine.

There are 2 types of debit card:

Solo
Generally given to people under the age of 16, they only provide a very limited range of services, as well as a maximum purchase limit.

Delta & Switch
These type of debit cards allow access to a wider range of financial services, allowing you to make electronic purchases at stores, online, via mail order or over the phone. Delta & Switch cards are more flexible than Solo cards as they do not have purchase limits, the maximum is the amount of funds in your current account.

Credit Cards
A credit card agreement is a fixed loan provided to you at an above average interest rate. It is immediately available partially or in whole through the use of the associated credit card. The bank pays any purchases made with the credit card, and in return you are required to pay the outstanding balance on the credit card or an agreed monthly minimum repayment.

Cash advances are commonly also available. Although convenient, the cash advance portion of your outstanding credit card bill will be charged at an even higher interest rate than the purchase of goods or services.

Business Banking
Many banks also offer services specifically for businesses, particularly small business, such as asset purchase loans, small business loans, or invoice finance.