Electronic banking

Electronic banking. Many banks have modernized their check-handling facilities with computers and other electronic equipment.

What happens to bank deposits?

After people deposit money, a bank lends it to businesses and other borrowers and collects interest. The bank uses this in­come to pay its expenses and pay interest to its depositors. This system, called electronic funds transfers(EFT), automatically transfers money from one account to another. EFT includes three types of facilities: (1) auto­mated teller machines, (2) automated clearinghouses, and (3) point-of-sale terminals.

Automated teller machines are computer terminals that have been established at banks, airports, shopping centers, and other locations. A customer inserts a spe­cial card into machine and uses the keyboard to enter a personal identification code. People can use the machine to make bank deposits, transfer funds between a savings and a checking account, and withdraw limited amounts of cash. Automated teller machines enable people to do their banking at any hour of the day or night, seven days a week.

Automated clearinghouses are computer centers for the automatic deposit of regular income and the auto­matic payment of many bills. An employer, instead of is­suing paychecks, directs the computer to credit an em­ployee's account with the person's pay. People can also have money for insurance premiums, mortgage install­ments, and other regular payments transferred from their bank accounts to the billers' accounts.

Point-of-sale terminalsare computer terminals that operate in retail stores. To pay for a purchase, a cus­tomer gives the clerk an identification card called a debitcard,which the clerk puts into the terminal. Within seconds, the system transfers the amount of the pur­chase from the customer's bank account to the store's account.

Other services. Many banks provide trust services, which include the establishment and management of trust funds. A trust fund consists of money, securities, or other property managed by one person or group for the benefit of another. Banks also offer individual retirement accounts (IRA's), which let interest on savings for retire­ment remain free of taxation until withdrawn from the account. Banks rent safe-deposit boxes, providing peo­ple with a secure place for important papers and other valuable items. In addition, banks sell traveler's checks I and money orders, and many offer investment and busi­ness counseling to their customers.

Words and word combinations you may need:

check-handling-обработка чеков customer- клиент

insert- вставлять location-помещение

insurance - страхование keyboard-клавиатура

facilities-оборудование retirement-уход на пенсию

ad­vanced-передовой taxation- налогообложение

eliminate -устранять transfer - передача

in­come - доход free -свободный

teller machine –банковский автомат property -имущество

clearinghouse-расчетная палата trust-кредит

point-of-sale terminals- кассовый терминал paycheck –платежный чек

valuable-ценный

Дата добавления: 2014-10-22