Banking

Personal Banking 101: Checking, Savings, Online Bank Accounts Guide

General banking services are provided by the banks to all the account holders of the bank so that they can manage their finances. They are fulfilling the needs of individuals and providing individual services to people instead of preferring businesses and giving all the more fabulous facilities to these banks. Meeting the primary requirements is the essential purpose of families and individuals to get bank accounts. Therefore, personal banking facilities allow them to live stress-free lives by accessing their bank accounts. Including a diverse and wide range of services and products for meeting the needs of individuals is the primary motive of Personal Banking provided by almost all banks.

Every account holder in the bank has a separate need and demands different services than the other account holder. Therefore, banks need to develop a more advanced personal banking system. The money deposited, the current account balance, the saved money, keeping a check on the amounts, and getting the balance certificates are all the services that are offered in terms of Personal banking. Some Loan facilities are also provided in the benefits of Personal Banking. Term loans and business loans are the essential loans provided in Personal Banking. Even the auto loans are also a part of personal banking. Usually, people ask for more outstanding loans like mortgage loans, and the banks are committed to satisfying the account holders by providing them with these loan services according to their needs and demands. There exist hard and fast rules and policies of the banks to check if the account holders are eligible for the particular service and they are served.

Basics of Banking

Opening an account in your desired bank is the fundamental step. It would help if you choose a bank that offers mobile banking, personal banking, private banking, and retailing. Go through the account opening process and accept the policies, rules, and regulations the banks provide. You require a government-issued ID card for the account opening process. All sorts of personal information, as well as the financial history, is provided to the bank. Initial funding is provided to the bank for the whole process and for keeping your money safe. Once you are an account holder, you can deposit all your money into the bank.

Knowing about the bank’s policies and traditions is the duty you should perform before finalizing a particular bank. This will help you in the future to avoid unwanted circumstances.

What is Personal Banking?

Providing essential financial and legal services to the account holders in the banks is the primary motive of personal banking services in the banks. Private banking refers to the fact that only individuals are provided with the necessary assistance.

The term Retail banking is also used for Personal Banking. Financial assistance products also lie in personal banking, and you can use credit cards and apply for loans. The significant services, including investment banking and wealth management, are also a major part of Personal banking or retail banking.

As an account holder going through personal banking, you must know what responsibilities come on your shoulders. It would help if you cooperated with the bank and the bankers who are dealing with you followed all the rules and regulations of the banks. Your decisions towards a particular bank are about opening an account, depositing the money, owning multiple accounts, withdrawing the money, and getting interest after investing the money.

Importance of Personal Banking

People usually refer to the term personal banking as consumer banking. The solution to all the problems of individuals is creating accounts in the banks for personal banking. Banks provide products that individuals need to become account holders of that particular bank permanently. The word product is a good word. Instead, it is the means of meeting the demands of the account holders. Saving money, checking up on the money, and benefiting from the interest rates are all the primary motives of personal banking services. The diverse array of products offered by the banks to the account holders while dealing with them through personal banking is commendable.

In the category of personal banking, business loans, SBA loans, state loans, and even the business lines of credit are not involved. Personal banking was established to benefit the individuals separately, all on their own. In Personal Banking, there are more saving facilities than spending and making investments and transactions. People save money and also get profit on their money in some rare cases.

Products Provided Through Personal Banking

Use of Credit

You can use credit cards in your banks to get your financial needs fulfilled by the line of credit. These credit cards are used to borrow funds. Following up your market cycle, you can make payments, repay the funds, borrow money, and even pay credit. It all depends on how you want to pay, either partial payment or the whole fund.

Use of Debit Cards

In the case of debit cards, everyone is aware that the debit card has a direct link and attachment to the bank account. The funds are directly paid from your bank account in real-time when anyone swipes this card. Everyday transactions, either big or small, can be done with the use of debit cards and even credit cards can also be used for these daily transactions. One more benefit of using debit cards is to get benefited with additional discounts and exclusive reward points while shopping and making payments.

Mutual Funds of the Bank and the Account Holders

The banks and the account holders do have some mutual funds. The asset management companies of the banks allow the businesses to choose the investors of their own choice based on their money. The investors check up on the financial goals of the account holders, choose any of them, and then start a business with them.

Safeguarding Funds by Savings Account

Personal banking, in particular banks, helps to save money on savings accounts based on the interest rates that you can earn. Earning interest money by saving money in the bank accounts is a great benefit of personal banking. The type of savings Account of the account holder is the greatest concern for earning the interest amount. There is an average amount that should be present in your Account to earn interest income out of it. These savings accounts are beneficial in another way as you can have access to mobile banking and ATM services through these savings accounts.

Current Banking Accounts

The current banking accounts of the account holders are related to personal banking. The frequent transactions that you have to make every other day or more than one time each day can be done through your current Account. The basic reason behind developing the current accounts is to facilitate your financial transactions every now and then.

These accounts are convenient for your everyday use and have made the life of the account holders much easier. According to the bank policies, the current accounts do have the money deposited and withdrawal limits to maintain a balance and for security purposes as well.

Investment Banking is Important

Investing funds to grow the finances lies in investment banking and is an essential part of personal banking. In the investment markets, the term investment banking is of great importance as you can sell and purchase security from these investment markets. Managing your assets and your wealth, you can follow the rules of investment banking.

Types of Personal Banking

Personal Banking includes a wide range of services and options from which you can choose which type of banking you want. Going through all the types of personal banking should be your major concern, and this includes the following basic types of personal banking.

  • Checking the Transaction History and Account History
  • Opening and closing the Account
  • Net banking through Personal Banking
  • Transferring the Funds
  • Billing and Recharging through the Account
  • Transaction Services by Personal Banking
  • Cheque Book Services in Personal Banking

Checking the Transaction History and Account History

The first step of personal banking includes checking out the transactions that you have made from your Account to date and even getting all the data to which accounts you have sent these transactions. The whole account history since the day you got an account in the bank can be checked.

Account history and transaction history are two separate concepts. Account history also includes the money deposited in the Account, the money withdrawn, the interest rates, the invested money, etc. Everything is included, but in the transaction history, the details are only about the transactions made.

Opening and Closing of the Account

The people have the audacity to open more than one Account in the same bank while benefiting from personal banking. The current account, savings accounts, the fun money account, and even the ones for loans can be opened simultaneously.

You can close the already opened accounts in case of any inconvenience. Personal banking is a major help in opening and closing accounts in a particular bank.

Net banking through Personal Banking

Personal banking, when termed as online banking, can then be called net banking. However, being the most adopted way of banking by several individuals makes them more attracted to personal banking. You can also refer to net banking as the individual services provided by the banks, and these individuals can get all the major benefits from the banks as a result of personal banking policies. Net banking is a substitute for personal banking, which allows account holders to access their accounts more effortlessly. Paying bills, managing the accounts, and even getting the loans can now be done through net banking.

Transferring the Funds

Transferring money or specific funds you must pay at any cost can be done by using personal banking. This transfer of funds can be done either to another account of the same bank or another account of another bank. Instant transfers are also supported in such cases. Fund transfer has been a serious task for a longer period, but now you can easily perform all these difficult tasks.

Paying Bills and Recharging through the accounts

Using personal banking services, every single individual can pay his bills and even get their accounts recharged by depositing more money in the Account. Paying bills through personal banking is such an effortless task and a stress-relieving way of paying all sorts of bills, including domestic ones.

Transaction Services by Personal Banking

The money transactions made from the accounts can be done more conveniently. The individuals can even make the smallest transactions. There is a certain limit set for sending and receiving the money, and the amount transacted cannot exceed that limit.

Paying the bills through a credit card is a major advantage. Setting up the facility of auto funding from the Account through debits is such a great service. Customers can now seamlessly pay their bills through these life-saving services. These services are offered by all the major and developed banks of the country.

Cheque Services in Personal Banking

Everyone is aware of the fact that you can withdraw money only from the banks via cheque. The cheque books are provided to the account holders with their names on the cash book. This helps prevent anyone from having access to that particular Account. In case of finishing a chequebook or if someone has lost the chequebook, you can apply for a new chequebook from the bank in the name of the account holder. Chequebooks are such an ease for individuals. You can fill out a cheque for the required amount, go to the bank, and withdraw the money only from your Account.

Benefits of Personal Banking to the Individuals

Getting Loans from The Banks

It is easier for individuals to get loans from banks in personal banking rather than business loans. Getting eligible to get a loan to buy your dream house or a dream car is much easier. These developed banks, which are concerned with fulfilling your needs, can help. A crucial part of personal banking services is providing loans to individuals and families. There is a diverse category for the loans. Home loans, business loans, auto loans. Bank loans have proved to be such a positive point for all bank account holders.

Having a complete control over the money

Through personal banking, every individual has proper control over his money lying in the bank and makes interests out of it. Effectively managing the financing by making your own decisions and making transactions according to your own will is a great benefit you get from personal banking. Being eligible to focus and keep a check on every single step is a huge approach.

Insurance Policies of the Banks

Most banks have separate insurance policies to serve their individual account holders, who usually follow personal banking policies. A long list of insurance programs are offered, and the individual can choose any of them based on the needs of the account holder. He can even get insurance of more than one type to get benefits in the best way possible. All types of insurance services are offered by the banks to the account holders including,

Ø General insurance is the basic insurance in which insurance is provided in cases of losses like property loss. The property means house, auto factory, and shop insurance.

Ø Moreover, health insurance is provided, which means you can have free health checkups via bank as long as you are an account holder of the particular bank.

Ø The major insurance policy offered by the banks is Life insurance. It is a life-long insurance offered to individuals which includes certain necessary plans like health plans, wealth plans, and even retirement plans as well.

Being Ready for the Unexpected Costs and Prices

Personal banking allows you to manage the finances and the tools that are easier to handle when you have proper info related to your finances and accounts in a particular bank. In any sort of inconvenience, like a disaster strike, a sudden loss in the family business, or some family issues, you can manage the Account properly and make better decisions due to all the knowledge you already have about the count and the bank products.

Spend and Save Money in an Organized Manner

Spending and saving money in an organized manner is an ability that cannot be achieved without having proper knowledge and introduction to the account balance and finances in a particular account. You can become super experienced in effective budgeting while managing your Account through your bank. Personal banking helps to build roots for you to follow a managed way of saving and spending. Meeting your goals by saving money, buying essential products by spending the money, and then getting profit out of your money are all the basic skills you will learn over time through personal banking.

Establishing an account to check on the payments and the deposited money to manage the expenses is the first step to effective budgeting.

Getting an account to keep the money for your extra activities like spending, shopping, and dining will separate the extracurricular expenses from the one you are saving for the business and proper use. You can call this Account a fun account or a fun bank for you and your family.

Getting an account to get the interest on the saved money is a separate way of getting benefits from the bank accounts. This must be your saving account, and making monthly contributions to these accounts are necessary to grow the Account. Meeting your bigger goals and achieving more success, this savings account is going to help you in the near future.

Producing Extra Money by Gaining More Experience

Becoming more aware of the knowledge about personal banking, getting more experience, and making extra money by taking crucial steps are necessary. Producing the extra money by being able to handle the financing decisions is the biggest achievement in the personal banking era. In such cases, banks use your money to invest in certain businesses, and when the businesses make a profit out of this money, they return your money with some interest; therefore, making money through personal banking is not that difficult.

Getting Rewards from the Accounts

Receiving awards from particular accounts is a bonus point in personal banking. These rewards are offered by selective accounts, and the reward amount varies from bank to bank. Besides money, the banks can offer gifts and travel offers to their permanent and older account holders who have been with them for years.

Saving More Time

Due to the net banking facility. Managing the accounts and its finances has become much more painless and effortless. More time gets saved when you perform all the actions and transactions online through net banking, and therefore, you can save your time. The time that you have to spend in the bank while waiting for your turn can be saved as you can utilize that time for your own productive work

Card Protection Policies

In case a particular account holder has lost his credit card or debit card, he can simply tell the bank about his issue, go through some basic steps, and then apply for new cards and block the previous ones so no one can misuse them. All these steps can be done with the proper cooperation of the banks and their staff.

Important Points to Ponder in Case of Personal Banking

Log out from the net banking account is necessary for security purposes. Making it a habit to log out is a major precaution to avoid unwanted situations and losses.

Protecting the Passwords and Codes

Securing the Consumer ID and Password is the responsibility of the individual and the banks as well. It is a two-sided relationship, and both parties must respect each other’s privacy policies.

Making Transactions Through Cards

Being a consumer of personal banking, you must be more conscious while making transactions through credit cards and debit cards. Make sure no one sees you while you enter your PIN, and ensure you get the card out of the machine after swiping.

Variations in the Services of Banks

There exist variations from bank to bank in customer services. All of the banks do not offer the same step-by-step services. Rather some of them may skip in one bank but are necessary in others and you must follow the regulations.

Each bank offers exclusive services and products to the consumer in bank retailing.

Online or Mobile banking

The biggest innovation in personal banking is mobile banking, which makes life easier and quicker. Making a
decision on your personal device and having access to your own Account to keep a check on it is such a sigh of relief.

Generating Incomes Through Retail Banking

Retail banking is an interesting concept to go through. It is exactly the other name of personal banking. The banks work on the principles of retail banking. The money you deposited in the bank can be given as a loan to other individuals and businesses. They invest the loan money in their company to make a profit out of this money and then return your money with a low-interest rate. This retail banking helps in security purposes as your money is secured in this way and can even be returned with more profit.

Everyone wonders about how the banks get the income. They charge interest rates according to their own will and keep the interest to earn money and make a profit. Banks provide more appealing services to their clients to attract a higher ratio of individuals for retail banking or personal banking and hence can make progress. The consumers can either avail of the local branch services or contact the main branch for the more elaborated version of the basic services.

Difference between Personal Banking and Corporate Banking

Corporate banking is a different concept than retail banking or personal banking. Not the common public and individuals can have access to corporate banking services. These services are only offered to the bigger corporate bodies, including the developing companies. These two concepts are completely different, as retail banking is for individuals and the general public, while corporate banking is business-oriented only.

The sources of making a profit, the investments, and even the transactions everything in both cases are completely different. The use of debit cards and credit cards is also convenient only for those who are involved in retail banking concepts.

Expended Services Provided in the Personal Banking

Personal banking offers a series of greater and smaller services that benefit you. The benefits are occasionally provided as long as you have your Account in that particular Account. The expanded services provided in personal or Retail banking involve the following things.

Services like private banking, investments, brokerage accounts, and retirement planning offered by the bank are promising initiatives to support the clients.

Strategies for Personal Banking

Financial planning is necessary to grow your finances, to keep the money secure, and to save more and more money. For this financial planning, you have to build up and try out different useful strategies that will help you grow your finances and the income that you make out of these finances.

Knowing the Income and Managing the Budget

After paying all sorts of taxes and the main expenses, you have to estimate the amount that you bring home. This estimation will enable you to analyze whether you are going to have a personal banking account in the bank or not. The pay you bring home needs to be saved in the bank, which is the basic manner of every family.

You must set up a budget for your home so that you can save enough finance to fulfill your dreams in the near future. Creating a framework to budget the income that comes to you would help to save more money as all the fields in which you are spending money will be segregated, and there are more chances to save more money this way.

Planning for the Future

Planning for your future dreams, the fundamental needs and fulfilling every single desire of your kids requires standard planning for the income you get after paying the taxes.

Buying Insurance Facilities

Buying insurance policies that are offered for your sake is another way of securing a better future. Facilities like health insurance, life insurance, and business insurance provide a sigh of relief as they secure a good future for everyone.

Private Banking

Private banking provides the facility of customization and personalizing of bank services and bank products. These personalized services have high net worth along with the facility of wealth management. Wealth management is considered basic for account holders who are trying to adapt to private banking from personal banking.

The tax services and insurance policies all lie in the category of private banking. Particular departments of governments and highly developed banks offer private banking services to their most experienced clients. Making investments, maintaining a portfolio, giving security to the wealth of the client, and protecting all the private information is the responsibility of the bank.

Advantages of Private Banking

Private Banking leaves you with many more benefits that are super beneficial to you individually and to your business as well. The basic concept of private banking is to keep all the information between the client and the bank confidential. No one can leak any sort of information. Otherwise, it will be against the law. Moreover, discounted prices are offered to the permanent clients of private banking, and they can even customize the prices of the products they buy. The bank gets the benefit of setting up its assets, and the fees of the bank also get adjusted accordingly. You can do one-stop shopping in private banking, and even the employees are super dedicated while working or personal banking.

Retirement Planning

Retirement planning is also an expanded service in the personal banking era. Retirement planning is done for the time when the account holder will retire from his job, and still, he wants to manage his finances in the bank. Lesser income of the retired account holder will be provided to the bank, but still, the bank will secure the finances of that account holder. The banks provide a complete plan to the retired person about how they can manage their accounts and finances even after retirement.

Surveys Related to Personal Banking

Banking has done surveys to know about the general public’s concept and review the banking services. After these surveys, they have come to know that more people want mobile banking and also prefer private banking. Using mobile apps to perform the activities is way more effortless for them, and they can easily manage the financing through private banking while using mobile apps.

Even the public gets the benefit of applying for a mortgage through these apps, and therefore, they find it more attractive and appealing to it.

Certificates of Deposit OR CD

Certificate of Deposit or CD is the better means of saving your finances. A more elaborated and developed method to reduce money spending and get more interest rates on your saved money. The CD is another way of building up your Account transitional and is very similar to traditional bank accounts. A few changes happened, and then they started calling this modern way of banking The certificate of deposit in which you have the audacity to deposit the amount of your will.

The CD is the most famous saving Vehicle in the bank around the world as it is not conventional. It has a modified vision and a modern idea behind its development. CD usually lies under the policies of personal banking in all the traditional banks.

How does the CD work?

When choosing a CD account in the bank, you must be prepared that your money will be locked in the bank for a certain period of time, and you cannot get it back as long as the period is over. The CD is a sort of savings account and has a very low risk. You can undoubtedly deposit more and more money in this savings account to get benefits.

Types of CD in Personal Banking

In personal banking, there are various types of CDs that are offered by the bank. These include the following basic types, which are more usual than the others.

Ø High Yield CD’s in Banking

Ø Online Banking CD’s

Ø Traditional Banking CD’s

High Yield CDs in Banking

The high-yield CD policies in banking offer the highest amount of interest rates with a customized amount of deposited money. The more money you deposit in the Account for a more extended period, the more interest you will get in return for the deposited money. Online financial banks and institutions are more likely to offer high-yield CDs.

There is quite a lot of competition between the banking unions and the credit unions. The traditional banks are also a part of this competition as these banks try to get better daily.

Online Banking CD’s

Compared to traditional CDs, online CDs offer lesser fees and high interest rates and are more convenient than being physically present at the union or the bank. These online banks are more secure and offer higher interest rates to be more popular and accepted by the individuals who are going to be a part of the personal banking through their banks.

Traditional Banking CD’s

Traditional banks offer certificates of deposit accounts. You can get multiple accounts in the same bank, and like the checking account, these CD accounts are a sort of savings account. The traditional CDs leave you with the facility to deal with the bank, and the managers face to face to get more clarity of every aspect. Taking advantage of personalized customer support is more clearly possible when you choose the traditional Banking CDs. Choosing the banks for traditional CDs is way more accessible and more convenient as you already have to deal with the bank’s people in the case of your other accounts.

Which People are more interested in Personal Banking Services?

The general public and more common people are more into personal banking for their personal benefit. The adult individuals trying to grow their financial status, the students, and the retired people are more concerned with this type of personal banking. The residents of the country are more involved than the nonresidents. Banks also offer private banking along with personal banking for the sake of people to get more benefits with the major help of these banks.

Does there exist any polarity between Personal and Commercial Banking?

Personal banking is similar to retail banking, and every single service and product provided in retail or personal banking is completely for separate individuals. These are the individuals who are working separately to make a profit out of their finances. Commercial banking is a term similar to corporate banking, and it provides products to more prominent companies and businesses as loans and investments.

Which banks offer retail banking or personal banking services?

The most famous and developed banks that offer the facility of personal and private banking are the following.

Ø S. Bank

Ø The Bank of America

These banks provide all the essential services and consumer-related products for their benefit and provide the facilities of checking accounts, savings accounts, and even much more. These banks also provide the receipts or the certificates of the money deposited or withdrawn from the Account.

How to find the best Personal Banking Services?

Finding the banks that offer the best personal banking services is quite a difficult task. To open a new account in a bank, you must go through all the policies and services offered by the bank to its clients and then become an account holder in that bank after enough pondering. Personal banking services obtained from any bank are crucial for your financial needs.

Perks of the Personal Banking Facilities

The personal banking facilities that a person owns from his bank boost the confidence and the financial status of the account holder. The bank provides enough confidence that the account holder can contact customer support anytime he feels a minor inconvenience. Getting help from the workers of the bank is the basic right of the account holder to solve their issues and major problems. The moment the customer feels it pleasant to contact customer support is the sign you have built up a pleasant relationship with your bank. In such cases, the banks also provide extra rewards to the account holders when both parties cooperate well. You can even open special accounts like a fun account or another particular account, which will be for kids specifically.

Involving your Own Interests in Personal Banking

You must put in some effort while the banks do the financial planning for you. Your own input will make it more acceptable for you. In this way, you can even add your own points and interests to the policies that the banks set for personal banking or private banking.

Settling for less should never be an option on your list. It’s your right to get your required basic services from the banks. You need to fulfill your specific needs, and the banks will do their best to perform their duties and serve their clients just as promised.

In terms of personal banking, quality service is provided by the banks like the U.S. Bank and the Bank of America. These banks are such reputed banks in the U.S. and quality customer service is always promised by them. You even need to contact the most local bank, situated somewhere near your house. They will provide you with all the basic details related to Personal and Private banking, along with the retailing facilities.

Paying the Monthly Maintenance Fee

The account holders owe a maintenance fee to the bank, which they have to pay occasionally. The bank takes this money as a fee to maintain your finances, balance the accounts, and save up your money. The banks also provide you some profit as interest on your money when a certain period of time has passed. This maintenance fee is essential to pay for the account holders, and they must fulfill their responsibility properly.

Maintenance fee is the right of every bank or sector, no matter what object they are working on. You owe them the basic fee to keep your money safe and secure and manage it as best as possible. Moreover, paying this fee will not have any effect on your finances as you will get more amount than this fee in the name of interest on your deposited money.

The Job of a Personal Banker

The workers who work in the retail branches of the banks and the credit unions are personal bankers and are dedicated to serving the people involved in personal banking. Personal bankers are directed to assist personal and private banking customers who need support to manage their finances and financial issues. Comparing the duties of investment bankers and personal bankers, investment bankers deal with investment and business people. On the other hand, personal bankers are more likely to deal with the general public and the customers who visit the bank daily for casual issues and problems.

The personal banker helps in opening the accounts, handles the new and existing customers, and they are bound to sell the investment products. Providing and deciding about the loans, doing the retirement planning, and the college planning of the individuals. The bankers have quite a hectic job and have to work at least from 9 A.M. to 5 P.M. The salaries of the bankers are fair and pleasant, and that is the reason they are always ready to work for many hours. Satisfying the bank’s customers is their first and foremost duty, which they have to fulfill with responsibility at any cost. These bankers are the major source of having a positive impression of the bank on the customers, and they help a lot in gaining more and more customers with their positive behavior.

The Bottom Line

Consumer banking, personal banking, or retail banking are all similar terms that refer to individual services offered by the bank to the customers. Having different accounts in the bank through personal banking in the name of checking accounts, savings accounts, and many more can make your finances more managed and secure. Even if you are out of the city and are going through some major inconvenience, you can visit another branch of the same bank to get the issue resolved, and it will prove to be helpful for you for sure. Going through the bank’s history in your required subject would be great to know about the experiences and the services of the bank personally.

Investing in banking is a basic step to get the money secured. The banks provide a great plus point as you can earn from time to time in the name of interest from your bank, and besides the professional things, this is cool.

While choosing a bank for personal banking, you must finalize the one that offers more facilities than the competitors. A range of bank accounts are offered to you by your traditional and local accounts. Rewards provided to you on your invested money are an appealing approach to attracting more and more customers to a particular bank. Your trusted bank will help you at unexpected costs and hazards when you find it almost impossible to deal with a financial crisis. You can apply for loans, get the interest on your money, and more. Managing financing efficiently is the basic goal and purpose of being an account holder, and you need dire support from the bank to achieve your desired management of finances.

The banking sector has already been trying to develop for years now and they have such a massive positive shift in terms of facilities and technologies which will be very beneficial in every aspect.

Henry Jack

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Henry Jack

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