Banking

Banks play an important role in local and foreign trade. The “high street” banks offer a
variety of services to private customers. The most important types of account offered are
current accounts and deposit accounts. Whereas deposit account is for people who wish to
leave their money in it for a longer period of time and earn interest, a current account is to
enable customers to handle their finances on a day-to-day basis, e.g. to receive their salaries
and make cash withdrawals. Current account holders can make payment by writing cheques,
or transfer money from one account to another. Every month you can receive a bank
statement showing your transactions and the final balance.
Cashless payments are frequently made using plastic cards. Among the most important
of these are debit cards and credit cards. A debit card uses funds from the bank account,
while a credit card uses a credit line that can be paid back later either by the whole amount
owing or in installment, usually with a high interest rate. Plastic cards can be used to make
withdrawals from cash dispensers/ cash point / cash machine (ATM).
You can arrange an overdraft (= a temporary negative balance) for a small fee. If you
have a negative balance, you are “in the red”. In business the phrase “line of credit” is more
common than “overdraft”. A line of credit can be given by a bank or a supplier.
You may need to take out/get a loan from the bank. Note that the bank lends you
money; and you borrow money from the bank. The bank charges you interest on the loan.
The interest rate is usually given as an APR (annual percentage rate) which shows the overall
cost of credit including bank charges as well as interest. You repay the loan in monthly
installments. To buy your own house you need to take out/arrange a special type of long-
term loan called a mortgage.
Banks also offer their customers foreign exchange. The most important services
offered to business customers are to discount bills of exchange, to honour drafts, open /
advise / confirm letters of credit, make and collect payments for business partners, to act as
trustee.

1. Check the meaning of the new words and phrases:

сurrent account – текущий счет
deposit account – накопительный счет
interest – процент
to withdraw money – снимать деньги
to transfer money – перечислять деньги
bank’s transfer – банковский перевод
bank statement – выписка из банка
transaction – транзакция, банковская операция
balance – баланс, остаток
debit card – дебетовая карточка
credit card – кредитная карточка
credit line – кредитная линия
installment – часть, взнос, рассрочка
rate – процент, ставка
cash point/ cash machine / cash dispenser / ATM –
банкомат
overdraft – превышение кредита
loan (to lend/to borrow) – заем
mortgage – ипотека
to discount – дисконтировать
draft/ cheque – чек
foreign exchange – обмен валют
local/foreign currency – местная / иностранная
валюта
currency exchange office – обменный пункт
rate of exchange (exchange rate) – валютный курс /
курс обмена
to honour draft – обналичивать чек
Bill of Exchange – вексель
Letter of Credit – аккредитив
funds – денежные средства
trustee – доверитель