You’re new to banking and you would like to get the most out of your first transaction. You would like to achieve this by making the least amount of mistakes while also undergoing a smooth process. It may look easy, but banking isn’t just all about withdrawal and deposits–there are many other factors that you may encounter along the way. Here are just some of the few terms that you may come across. Knowing each may help you avoid any hassle within your transactions and enable you to have a positive experience all throughout:
This is definitely one of the most common terms that you would get used to. This refers to the act of storing your money in the bank, classified into accounts such as a checking or savings. Depending on the type of your choice, an interest would accumulate on your account, adding a certain percentage on your savings annually, as long as you wouldn’t take the money which you had deposited for a certain period of time.
Annual Percentage Yield
This one determines how much you get paid by the bank for depositing money. This refers to the amount of interest the bank pays on your deposit account, as long as you would leave your cash within that particular account for a certain period or timeframe.
This is the exact opposite of deposit, in the sense that it is the act of taking money from your account. While a savings account would motivate you not to withdraw money for a certain period due to the annual percentage yield, a checking account allows you to freely withdraw anytime you wish.
Automated Teller Machine
Commonly abbreviated as ATM, this machine handles banking transactions. These transactions include (but on some occasions are not limited to) making deposits, withdrawing money, transferring funds between accounts, and providing you with your account balance. The advent of technology also allows you to pay your bills via the ATM as well (depending on the bank or branch).
This refers to the amount of money in your account that can be accessed for immediate use. Take note that this is different from your current balance, in the sense that it does not have any pending debits, while the latter is the amount of money in your account at the beginning of the day excluding any pending deposits or withdrawals.
With the proper knowledge of banking terms and procedures, you finally decide to open an account; however, you still haven’t chosen which bank to apply for. Well, worry no more. If you’re a resident of Bacoor, Cavite, then the Cebuana Lhuillier Rural Bank is your one-stop spot for opening your own savings account. All transactions are real time, erasing all the hassles that you may experience in other establishments. So what are you waiting for? Visit the Cebuana Lhuillier Rural Bank now!