Key Terms, Definitions and Summary

  • A financial Service provider is an organisation that offers money-related services.
  • The main financial service providers in Ireland are commercial banks, credit unions and An Post.
  • A commercial bank is a financial institution that serves individuals and businesses.
  • A current account is a non-interest account that allows the account holder to withdraw money at any time.
  • A debit card allows an account holder to withdraw cash from an ATM or to transfer money electronically from their account.
  • A cheque is a written instruction to the bank to pay an amount of money to the person named on the cheque.
  • A standing order is an instruction to the bank to pay a fixed amount from an account at regular intervals. 
  • A direct debit is an agreement between bank and account holder that allows a variable amount to be taken from an account to pay a bill.
  • A bank draft is a payment on behalf of the account holder that is guaranteed by the bank.
  • An overdraft is permission to withdraw more money from a current account than is in the account up to an agreed limit.
  • A credit card gives the holder the option to borrow funds to pay for goods and services up to an agreed limit.
  • Foreign currency exchange is a service that allows customers to change their euro into another currency.
  • The exchange rate is the quantity of a foreign currency given in exchange for one euro.
  •  To change the euro into a foreign currency, multiply the euro amount by the 'we sell' rate.
  • To change foreign currency into euro, divide the foreign currency by the 'we buy' rate.
  • Online banking is the management of finances using the internet.
  • A credit union is a not-for-profit financial service provider that is owned by its members.
  • An Post is a state-sponsored body that offers postal services and financial products.
  • The Central Bank of Ireland is responsible for looking after the interests of financial service providers in Ireland.