BANK ACCOUNTS

There are two reasons for using bank accounts: convenience and safety in money use provided by a current account (US: checking account) at a bank; and small but regular interest that is provided by a deposit account (US: savings account) if you want to save your money for a long period of time.

The checking account is an account for receiving money from other people (wages and salaries paid into the account or different amounts of money received from the customers). It is money that a customer deposits in order to use that money to write checks, so it is the account for paying your bills, rent, subscriptions and other expenses. If you keep your money in your checking account you can go shopping without having to carry cash around with you. When you want to make a payment you simply fill in the amount on a check and hand it together with your check card to the cashier in the shop.

A checking account holder can use all banking services: send money abroad, buy and sell stocks, place standing orders or authorize direct debits, and of course, to apply for an overdraft or other loans. Checking account is called demand deposit, that is a customer can withdraw the money without waiting for any time.

The savings account is the account for money that you do not need for day-to-­day expenses and want to save it and to receive some interest. When you open your savings account you receive a passbook or savings book. Every deposit or withdrawal is entered into it by a teller. So you have a complete written record of all transactions with your account. The interest that your money earns is also recorded.

Any money put into your savings account begins earning interest from the day it was deposited. The interest rate can vary from time to time according to the market rate. You can pay money into your savings account at any branch of the bank.

There is a variety of a deposit account – time deposit (or certificate of deposit – CD) which allows customers to deposit larger amounts of money for a definite fixed term and earns a higher rate of interest. If you withdraw your money beforehand you will lose your interest rate.

Savings account is free of charge; it earns interest to its holder, so that makes it profitable for customers.

But checking accountcharges different fees for bookkeeping of the account, service charges for different transactions. Every month a checking account holder receives a monthly statement telling him exactly what has been debited or credited to his account.

There are new accounts – NOW and Super NOW accounts that offer their customers all the convenience of a checking account with the income advantages of a savings account.

Vocabulary:

convenience – зручність

current account (US: checking account) – поточний рахунок

deposit account (US: savings account) – депозитний рахунок

wages – зарплата працівника (погодинна, потижнева, за одиницю товару)

salary – зарплата службовця (фіксований щомісячний оклад)

subscriptions – абонентська плата

cash – готівка

standing order – постійне платіжне доручення

direct debit – списання у безакцептному порядку, пряме зняття грошей (дебатування) з рахунку покупця постачальниками

demand deposit – вклад до запитання, безстроковий вклад

day-to-­day expenses – щоденні витрати

to withdraw (withdrew; withdrawn) – знімати гроші з рахунку

free of charge – безкоштовний

fee – плата

statement – звіт

NOW (negotiable order of withdrawal) account – рахунок ОНВК (рахунок з обіговим наказом про вилучення коштів)

Questions:

1. What are the reasons for using bank accounts?

2. How do we call an account for receiving money from other people? What are its peculiarities?

3. What is the savings account? How do people make use of it?

4. What variety of deposit account do you know?

5. What new accounts do you know? How do they differ from other accounts?

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