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Money and Banking (II)

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by

Miss Cummins

on 6 October 2015

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Transcript of Money and Banking (II)

Services Offered by Financial Agencies
Money Transmission Factilities
Money Transmission
Saving facilities
Banks, building societies, credit unions and an post
Secure
Recieve interest
Depends on the
amount of money and length of time

Bigger amount + long length of time = higher interest.
Three secure saving schemes
1. Index Linked National Instalment Savings

2. Saving bonds

3. National Saving Certificates
Interest on savings
Money and Banking (II)
Saving Facilities
Foreign Exchange Facilities
Transferring of money from one person to another
Cash
Cheque
Current account holder
Very safe - record of payment

Chp 13 - full details next week
Today we will :
Revise over Forms of Money

Look at services offered by financial agencies

Discuss money in transmission
Bank draft
Form of a cheque which bank draws on itself
Used by both customers and non-customers
100% safe
There is a record of payment
Standing Order (SO)
Current account holder -
instrust
bank/building society to take a
fixed
sum of money from their account and pay to someone else on a
fixed date
Direct Debit (DD)
Similar to
standing order

However :
1. The amount may vary
2. Date decided by person/organisation
recieving
the money

Used to pay club membership fees/electricity bills/telephone bills
Short quiz - Work on your own !
5 mins
Then swap with person beside you for correction
Confusion on credit and debit cards
Watch video and be prepared to explain what you have learned
Bank Giro
A.k.a
a Credit Transfer (CT)
No worries about paying bills - all done automatically
This allows a person to transfer money to a number of people or businesses

Person paying the money has to complete a bank giro form for each payment and pay the bank in full amounts
Bank Giro
In order to complete a bank giro you need to:
Know the persons name and address
Bank Account numbers
Bank Giro
Used by businesses who electronically pay their workers' wage
This method of paying wages is called 'Paypath'
Saves worker queing to buy a cheque
Plastic Cards
ATM Cards
Credit cards
Laser cards
Now we will complete a crossword !
Building societies and Credit unions normally require a person to have saved with them before applying for a loan.
An Post offers
three secure saving schemes
which are not subject to
Deposit Interest Retention Tax (DIRT).
Index Linked National Instalment Savings
State guarantees a minimum return after five years

This will at least equal to the rate of inflation for that period

You must save a fixed sum each month for 12 months
Workers can join a
group scheme
and request their employers to deduct money every week and send it to An Post (non-statutory deduction).
Saving Bonds
Minimum return after three years
Short term
National Saving Certificate
Minimum return after five years
Simple interest
Compound Annual Interest (CAR)
Simple interest
- calulated on the orginal sum borrowed
Compound annual interest (CAR)
- calulated on the orginal sum PLUS the interest earned to date
Tax on Savings
Deposit Interest Retention Tax
D
eposit
I
nterest
R
etention
T
ax
Tax must be paid on all interest earned on deposit accounts at 20%.

It is retained by financial agency and handed on to the government.

Hence the name given -
DIRT
.
Interest
8% of €1,000
€80
Less

DIRT
20% of €80
€16
Interest after paying DIRT
€64
Foreign Exchange
Many countries are now using Euro - less foreign exchange.

Debit and credit cards.
Full transcript