A Look at the Types of Money Services Available

A Look at the Types of Money Services Available - image

 

Whether we want to admit it or not, money is the oil which lubricates the world around us. Its presence is felt ubiquitously and it is not going away any time soon. While it is always possible to carry around a bit of cash, there are numerous money and financial services which can make life much easier. What are some of the main categories and what does each entail? If you are hoping to make an informed decision or should you wish to manage your finances more efficiently, the answers to these questions will certainly prove to be quite useful. Let's now take a closer look.

 

Loans

Very few of us can afford to pay for a new car or home with out-of-pocket cash. This is one of the main reasons why loans represent one of the oldest money services in existence. The principle behind such a programme is rather simple. The borrower will provide a down payment as well as some form of collateral. In return, the lender (such as a bank or a building society) will approve the loan. Loans are normally distributed in a lump sum and naturally, they will need to be paid back. Interest is tacked on to the principle so in effect, the lending institutions turn a small profit.

 

Bank Accounts

Most of us own some type of bank account. These electronic wonders allow us to withdraw money from a cash point, to pay bills and to purchase items with the swipe of a plastic debit card. There are numerous types of bank accounts to choose from. Some of the most popular and useful include:

  • Savings accounts
  • ISA accounts
  • Debit accounts
  • Checking accounts
  • High-yield savings accounts

Each of these is associated with its own benefits and drawbacks, so it is always wise to perform a fair amount of research in advance.

 

Credit Cards

Owning a credit cards is one of the rights of passage associated with adulthood in these modern times. As we are provided with a virtual line of credit, it is possible to purchase items and to pay expenses in an instant. Credit cards are also much more convenient than cash due to the fact that if the happen to become lost or stolen, they can be cancelled with a single phone call. Interestingly enough, credit cards can be used to boost an existing credit score. This is important if you are trying to extricate yourself from a financial rut.

 

Electronic Money Transfers

Thanks to the presence of the Internet, it is likewise possible to send and receive money in an instant. This is due in large part to transfer services such as Moneygram, PayPal and Skrill. The transfers are normally associated with low commissions and some individuals are now utilising these accounts as a secondary bank account. Other benefits include high-grade encryption, free transfers between select parties and instantaneous access to customer support solutions if you happen to encounter a question or a problem.