Banks: A Comprehensive Guide for Beginners

Functions and Roles of Banks

Banks are crucial intermediary financial institutions in the economy. Their primary function is to accept deposits from individuals and businesses and then lend those funds to support investment, business, and consumption. In addition, banks offer many other services such as money transfers, payments, account management, card issuance, and investment in securities.

Common Types of Banks

Commercial Banks:

These are the most common type of bank, providing most banking services to individuals and businesses. Examples include Citibank, Bank of America, Chase.

Investment Banks:

Specialize in providing financial services to large corporations, including investment advice, fund management, and bond issuance.

Development Banks:

Focus on supporting socio-economic development, often with government participation.

Opening a Bank Account: Making the Right Choice

Choosing a bank: Consider service fees, savings interest rates, branch network, and mobile app convenience.

Account type: Checking account, savings account, payroll account… Each account type has different features and advantages.

Required documents: ID card/passport, proof of address, additional documents may be required depending on the account type.

Common Banking Services

Deposit Services:

Savings, term deposits, online savings… Interest rates and deposit terms vary depending on the bank and deposit type.

Loan Services:

Consumer loans, mortgage loans, business loans… Interest rates and loan conditions depend on the bank and the customer’s financial capacity.

Payment Services:

Wire transfers, bill payments, debit cards, credit cards… The convenience of these services is constantly improving thanks to technology.

Security and Information Protection

Protecting personal information: Do not disclose passwords, OTP codes, or card information to others. Update personal information when changes occur.

Detecting fraud: Regularly monitor transactions on your account. Immediately notify the bank if you detect unusual activity.

Choosing a reputable bank: Choose banks with a good reputation, licensed to operate, and with a robust security system.

Conclusion

Understanding banks is essential in modern life. This article provides basic information to help you feel more confident in using banking services. Learn more from reputable sources and choose services that meet your needs.