Main Banking Services

1. Unit 2 Main Banking Services Facilitator Support Materials for Main Banking Services

2. Unit Aim • The aim of this unit is to introduce learners to the main services provided by retail banks and the methods by which these services are provided. This unit is 20 Guided Learning Hours

3. Unit Description • The unit seeks to deliver to learners knowledge of the nature and purpose of the most commonly found banking services. Those covered in this unit are: • Current Accounts with the different versions of money transfer services that are available including card based services • Interest Bearing Accounts (often referred to as ‘deposit accounts’) • Lending services, divided into account based lending (overdrafts and loan accounts, including bridging loans), non- account based lending (instalment loans, structured lending products including mortgage products and card lending)

4. Unit Description Continued • Other services including safe custody, insurance (and assurance), share dealing services, unit trusts and travel services • The knowledge gained in this unit will be an appropriate introduction to many of the later units in this qualification. Learners will be able to describe the services offered by banks in the wider banking context.

5. Learning Outcome 1: Know the purpose of current accounts Amplification of the Learning Outcome: Money Transfer: purpose; operation, over counter transactions, use of cheque books, use of payment cards; credit balances; debit balances; automated payments Access: over the counter; cheques; card transactions; internet banking; telephone banking

6. Assessment Criteria for Learning Outcome 1 Assessment Criteria: 1.1 Describe the nature of the current account Open discussion with Learners 1.2 Describe how a current account is able to operate whilst in debit and credit Open discussion with Learners

7. Assessment Criteria for Learning Outcome 1 Continued • 1.3 Describe how current accounts are used • Open discussion with Learners • 1.4 Describe the purpose of the money transfer facilities that are available to the holder of a current account • Open discussion with Learners

8. Learning Outcome 2: Know the purpose of Interest Bearing accounts Amplification of the Learning Outcome: Purposes: safety; growth Use/Operation: deposits; interest income Types: short term; long-term

9. Assessment Criteria for Learning Outcome 2 Assessment Criteria: 2.1 Describe the purpose and use of interest bearing accounts Open discussion with Learners 2.2 Differentiate an interest bearing account’s use and purpose from a current account Open discussion with Learners

10. Assessment Criteria for Learning Outcome 2 Continued • 2.3 Describe the different types of interest bearing accounts • Open discussion with Learners • 2.4 Describe the pricing policy of a bank for different types of interest bearing accounts • Open discussion with Learners

11. Learning Outcome 3: Understand the purpose of lending services Amplification of the Learning Outcome: Lending Services: overdrafts; loan accounts; structured personal loans (instalment loans); mortgages; card based lending

12. Assessment Criteria for Learning Outcome 3 Assessment Criteria: 3.1 Describe the purpose of lending services offered by banks Open discussion with Learners 3.2 Differentiate between different lending services offered by banks Open discussion with Learners

13. Assessment Criteria for Learning Outcome 3 Continued • 3.3 Compare the pricing of lending services in terms of cost to the customer • Open discussion with Learners • 3.4 Identify appropriate lending services for customers in given situations • Open discussion with Learners

14. Learning Outcome 4: Know the purpose of other services that are currently offered by retail banks Amplification of the Learning Outcome: Other Services: safe custody; insurance and assurance; share dealing services and advice; unit trusts and travel services

15. Assessment Criteria for Learning Outcome 4 Assessment Criteria: • 4.1 Describe the nature of safe custody services offered by banks • Open discussion with Learners • 4.2 Describe the nature of insurance and assurance products offered by banks • Open discussion with Learners

16. Assessment Criteria for Learning Outcome 4 Continued • 4.3 Describe the nature of share dealing and advice services offered by banks • Open discussion with Learners • 4.4 Describe the nature of unit trusts offered by banks • Open discussion with Learners • 4.5 Describe the nature of travel services offered by banks • Open discussion with Learners

17. Appropriate Books Retail Banking, Book One (England and Wales) Banking Operations (CIOBS) Retail bank advertising materials

18. Appropriate websites All websites of retail banks www.bankofengland.co.uk www.bba.org.uk/bba/jsp/polopoly.jsp;jsessionid=az3XEMccp www.fsa.gov.uk www.hm-treasury.gov.uk www.projects.exeter.ac.uk/RDavies/arian/origins.html