For private investigators who specialize in financial investigations, it is important to have a solid understanding of banking and financial products and services. Following is an explanation of various banking and financial products:
List of Products and Services
ATM stands for Automated Teller Machine. An ATM card is a physical plastic card that allows the holder to withdraw cash from ATM machines. An ATM card can also be used for other purposes. It can be used to lookup account information, make deposits and transfer money between accounts.
A bond is a type of fixed income investment. With bonds, investors loan money to an entity, such as a local government or corporation, in return for interest.
Certificate of Deposit (CD)
A certificate of deposit, commonly known as a CD, is a savings type of investment with a fixed maturity and a specific interest rate. CD’s are issued in any amount.
With a checking account, physical paper checks or electronic checks are used to withdraw money from a bank account. Checks may be used for a variety of financial purposes such as: to pay bills, purchase products and services, send money to other people, and many other common uses.
Bank checks can also be used to transfer money to accounts at other financial institutions. Bank checking accounts provide quick, convenient, and frequent access to the money in the bank account.
Typically, deposits can be made into the checking account as often as you choose and may be withdrawn at any time. Most financial institutions allow you to withdraw or deposit funds at an automated teller machine (ATM) or to pay for purchases at stores with an ATM or Debit card.
A credit card is one of the most common of the banking and financial products and services. A credit card is a small plastic card that can be used to purchase good and services on credit. Banks and financial services companies charge interest on the unpaid credit card balance.
A debit card is a plastic or metal card that is used to make purchases. The card is linked to a checking, savings or investment account. When a purchase is made, funds are withdrawn from the account electronically.
Insurance provides financial protection against events that could cause a loss. The insured person makes regular premium payments. In the event of a loss, the insurance company reimburses the insured for the loss.
Interest Bearing Checking Accounts
Some checking accounts pay interest; others do not. A regular checking account, which is also called a demand deposit account – does not pay interest, whereas a negotiable order of withdrawal (NOW) account does.
Financial Institutions may impose fees on checking accounts, besides a charge for the checks you order. Fees vary among institutions. Some institutions charge a maintenance or flat monthly fee regardless of the balance in your account.
Other institutions charge a monthly fee if the minimum balance in your account drops below a certain amount any day during the month or if the average balance for the month drops below the specified amount. Some charge a fee for every transaction, such as for each check you write or for each withdrawal you make at an ATM. Many institutions impose a combination of these fees.
Although a checking account that pays interest may appear more attractive than one that does not, it is important to look at fees for both types of checking accounts. Many bank checking accounts that pay interest charge higher fees than regular checking accounts, so you could end up paying more in fees than you earn in interest.
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A derivative is a type of investment contract that gets its value from the performance of an underlying entity.
Home Equity Loans
Individual Retirement Account (IRA)
Money Market Account
Real Estate Investment Trust (REIT)
Traveler’s Cheques –
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