Cataluña financial intutions


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Cataluña financial intutions

  2. 2. Savings accounts<br /><ul><li>Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money (for example, by writing a check). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and therefore often does not incur a reserve requirement freeing up cash from the bank's vault to be lent out with interest.
  3. 3. Withdrawals from a savings account are occasionally costly and are sometimes much higher and more time-consuming than the same financial transaction being performed on a demand (current) account. However, most savings accounts do not limit withdrawals, unlike certificates of deposit. In the United States, violations of Regulation D often involve a service charge, or even a downgrade of the account to a checking account. With online accounts, the main penalty is the time required for the Automated Clearing House to transfer funds from the online account to a "brick and mortar" bank where it can be easily accessed. During the period between when funds are withdrawn from the online bank and transferred to the local bank, no interest is earned.</li></li></ul><li><ul><li>A transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a checking account is very liquid, and can be withdrawn using checks, automated cash machines and electronic debits, among other methods.  
  4. 4. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include business accounts, student accounts and joint accounts along with many other types of accounts which offer similar features.
  5. 5. In exchange for the liquidity, checking accounts typically do not offer a high interest rate, but if held at a chartered banking institution will be FDIC guaranteed up to $100,000 per individual depositor. 
  6. 6. A checking account may also be called a "demand account" or "transactional account". </li></ul>CHECKING ACCOUNTS<br />
  7. 7. <ul><li>A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front.
  8. 8. Mortgages are also known as "liens against property" or "claims on property".
  9. 9. In a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a claim on the house should the home buyer default on paying the mortgage. In the case of a foreclosure, the bank may evict the home's tenants and sell the house, using the income from the sale to clear the mortgage debt.</li></ul>MORTGAGES<br />
  10. 10. <ul><li>A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.
  11. 11. A few general guidelines for interest rates are:</li></ul>A larger principal should receive a higher interest rate, but may not.<br />A longer term will usually receive a higher interest rate, except in the case of an inverted yield curve (i.e. preceding a recession)<br />Smaller institutions tend to offer higher interest rates than larger ones.<br />Personal CD accounts generally receive higher interest rates than business CD accounts.<br />Banks and credit unions that are not insured by the FDIC or NCUA generally offer higher interest rates.<br />CERTIFICATES OF DEPOSIT<br />