Question

List 2 types of common investment products / accounts offered by retail banks in BC. Explain their purpose and features.

Answer 1

A retail bank is a bank that offers banking services to individuals and small businesses, as opposed to one dealing with large corporations and financial institutions.

Typical retail banking services offered by banks Include

* Transactional accounts

*Saving accounts

*Credit cards

*Mortgages

*Debit cards and etc..

In US retail bank services also include more specialised accounts such as : Sweep accounts

: Money market accounts

: Individual retirement accounts.

A savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange.

Features:

1) Interest rates

2) Bonus incentives

3) Promotional interest rate

4) Minimum opening deposit

Mortgages are used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

Features:

1) Low fess

2) Split interest rate

3) Flexible repay

4) Loan portability