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    Bank-Account - Presentation

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    shahverdyanarevik1
    The document discusses bank accounts, including what a bank account is, the types of bank accounts, and how to open a bank account in Armenia. It defines a bank account, explains the differences between bank accounts and holding cash, and covers basic and term bank account types as well as account opening requirements in Armenia.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Bank-Account - Presentation

    Uploaded by

    shahverdyanarevik1
    42 views24 pages
    The document discusses bank accounts, including what a bank account is, the types of bank accounts, and how to open a bank account in Armenia. It defines a bank account, explains the differences between bank accounts and holding cash, and covers basic and term bank account types as well as account opening requirements in Armenia.

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    Bank-Account -Presentation

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    The document discusses bank accounts, including what a bank account is, the types of bank accounts, and how to open a bank account in Armenia. It defines a bank account, explains the differences between bank accounts and holding cash, and covers basic and term bank account types as well as account opening requirements in Armenia.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views24 pages

    Bank-Account - Presentation

    Uploaded by

    shahverdyanarevik1
    The document discusses bank accounts, including what a bank account is, the types of bank accounts, and how to open a bank account in Armenia. It defines a bank account, explains the differences between bank accounts and holding cash, and covers basic and term bank account types as well as account opening requirements in Armenia.

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    © All Rights Reserved
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    You are on page 1of 24

    13 September 2022

    Bank Account

    Mariam Ter-Sahakyan
    1
    WHAT IS BANK
    ACCOUNT

    2
    WHAT IS BANK ACCOUNT

    A bank account is a financial account maintained by a


    financial institution for a customer. A bank account
    represents the funds that a customer has entrusted to the
    financial institution and from which the customer can make
    withdrawals.

    According to the Armenian legislation Bank Accounts can


    be offered only in Commercial Banks.

    3
    Why you need bank account

    1. You pay automated (utilities, rent, tuition,….)


    2. Getting payments automatically (salary, transfers …)
    3. A planning tool – money in one place  easy to look after
    4. Build up you banking history  easier access to credit, mortgage

    4
    Bank Account and Payment card
    Bank account  bases for many types of financial instruments!
    Deposits, payments cards, transfers, loans, etc.

    Payment card
    It’s optional, you can use
    your Laptop without a mouse
    too, but with it it’s more
    convenient

    Bank Account
    The base of all your banking
    operations

    5
    Bank Account vs. Cash
    VS.
    + Certain guarantees to protect your
    + Ready access to your funds in case
    money
    of immediate needs
    + Complete control over money
    + Independency from ATMs, POS
    + Transferring funds to or from other terminals
    accounts
    - Unlimited accessibility of funds
    + Online and mobile access interrupts you to resist the
    + Interest income temptation of spending extra cash
    + Easy tool for monitoring/controlling - Inflation devalue your money
    personal cash flows and budget - Risk of robberies
    - Monthly/Annual/Extra (“excess - Physical damages
    activity”, other banks ATMs) fees
    - Impossibility to use your money
    - Absence of ATMs in any place you abroad without conversion
    want, limited access to your money

    6
    WHAT IS BANK
    ACCOUNT

    7
    Types of Bank Account

    Purpose  Day-to-day financial needs


    Saving
    Saving with extra earning

    Term  Demand
    On maturity (short, medium, long – term)
    Liquidity  Unlimited access
    Limited access before maturity
    Interest  Zero to high
    Fees  More services more fees, minimum balance
    Added  Cash in/out, checks, automated payments,
    services Attached to Cards, investments, …

    8
    Types of Bank Account - USA
    Basic Account  No frills, for basic day-to-day financial needs
    (checking/current) Pay in/out, free, no interest
    Checks available
    Savings account  Designed to help to save, discipline
    Low % Added services
    Short-term Added interest
    Added fees
    Money Market Deposit  Highest %, Min balance Less liquid
    Account (MMDAs) Banks take money and invest in Longer term
    short term debt (Tbills ..)
    Limited checks
    Certificate of Deposit  Long term, for X years, 3-6 years ususally
    (CDs) Highest %,
    No access until maturity
    Individual Retirement  Savings for retirement
    Accounts (IRAs) The highest % in the long time, the least access to your
    money in short term
    9
    Bank Account in
    Armenia

    10
    Opening a Bank Account In Armenia

    > 14 years old


    “Mono Currency”
    “Multi Currency”
    Dram, US Dollar, Euro, Ruble,
    Suisse Franc, Pound sterling,
    Canadian Dollar, Japan Yen,
    Australian Dollar, • Passport and Public
    UAE Dirham ․․․ (in any case service number
    the interests are paid in AMD)• Or ID card
    11
    Some offers in Armenian Market
    Types of bank account
    Basic/current, demand
    Term/savings

    Personal account - Administered only by the account holder (or with license)
    Joint account - The transactions may be made on the agreement of the all or
    one (two) of co-signer
    Account in the name of a third person - Available for the service of time
    deposit accounts originated in the name of a third person
    Special purpose account - For example, an account in the name of a minor
    under age 14

    12
    Price of bank account
    In general free
    May be  minimum balance
    Annual Percentage Yield (APY)  interest, which a person
    will receive against a 1,000 dram deposit in 365 day, based
    on application of annual simple percentage rate,
    percentage compounding and payment frequency.

     Banks must disclose APY before contract


    Compare prices at www.abcfinance.am/finhelper
    13
    Regulation
    Money on bank account is your ownership!!!
    You can always withdraw you money regardless of the type,
    difference is penalties (Civil Code of Armenia, Chapter 50)

    Regulated by:
    • Contract btw Bank and You  READ IT BEFORE SIGNING!!!
    • Civil Code of Armenia, Chapter 50
    • Law on Attracting Deposits
    • Law on Guarantee of remuneration of banking deposits of physical
    persons
    • …

    14
    It is GUARANTEED
    •Bank accounts guaranty according to the Law on
    "Guarantee of remuneration of banking deposits of
    physical persons“
    AMD 10 000 000
    other Currency  AMD 5 000 000

    15
    Your Rights

    • Data Protection - Strong regulation about bank account information


    security  never exposed to third parties
    • Bank is obliged to provide with information:
    • Before contract  oral and written, information bulletin
    • During contract  monthly statement
    • After contract  written, about closure
    Complaints if any misbehave by bank
    • to bank, Financial System Mediator, CBA, court
    • Banks MUST disclose all information
    • Official web site
    • Place of operation
    • Other

    16
    Financial TIPS

    17
    How to monitor your bank account

    •Statement from your bank


    • Via email
    • Hard copy by post
    • Hard copy visiting bank
    • Online access (mobile/internet banking)
    • Via phone (telebanking)
    • Banks are obliged to provide statements at least on a monthly
    basis via your chosen channel for free.

    18
    While choosing compare:
    Fees
    Profitability (APY)
    Liquidity (demand/term)
    Service
    Suitability to you needs!
    Read Contracts Carefully Before Signing!
    Take your copy!

    After choosing a Bank Account:


    Keep your contract, statements organized and safe
    Compare your bills with your statements
    19
    Summing up

    20
    SUMMARIZING

    Bank Account vs. Cash


    Bank Account vs. Payment card
    Bank Account Types: Checking account, Savings account,
    Deposit Accounts, Retirement Accounts
    How to open a Bank Account in Armenia
    Bank Account Security

    21
    PRACTICING

    22
    In groups:

    TASK 1
    • Choose 1 bank
    • Find what bank accounts are provided, compare with basic types
    • MAKE COMPARATIVE: pros and cons of bank account FOR YOU
    PERSONALLY.

    23
    24

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