money & banking 2

Money & Banking 2Money & Banking 2

Cheques• Current account holders can use it to

make payments.• Written permission to a bank to pay

someone a certain amount of money.

• Safe• Record (Stubb)

Cheque Guarantee Card

• Given to creditworthy customers.• Guarantees payment of cheque up

to €130• Identity card.

Bank Draft• If you don’t have a cheque book• You can buy a cheque from the

bank• Safe• Record

Standing Order (SO)• Current account customers• Give permission to a

company• To withdraw a fixed sum• On a fixed date• Eg. Insurance premium

Direct Debit (DD)• Current account holder• Instructs the bank• To pay a variable amount to a company.• Time may vary also• Eg. ESB bill

Bank GiroCredit Transfer (CT)

• Don’t need a current account• Can transfer money to another

persons account• Fill out form and pay a fee

Paypath• Paying wages directly into an employees bank account• Safer• Quicker• Reduces impulse buying

Plastic Cards• Make payment without using cash

or cheques• Visa, Access, Master Card, ATM, Smart Card

Postal/Money Order• A written statement from one post

office to another asking it to pay a certain sum to a named person

• Pay a small fee• Safe

Registered Letter• Pay post office a small fee• Letter will only be given to person

to whom it is addressed• That person must sign for letter• Very safe

How might you pay the following?

• Telephone bill• Birthday present to USA• Cash payment by post• Life assurance premium• College fees• Weekly shopping• Petrol