What is a Financial Service Provider?
- A Financial Service Provider is an organisation that offers money-related services.
The main financial service providers operating in Ireland are:
- Commercial Banks
- Credit Unions
- Post offices
Commercial Banks
- A commercial bank is a financial institution that serves individuals and businesses.
Commercial banks are often called high street banks, as they have familiar fixtures in our towns and cities.
An outlet of a financial institution is called a branch. For Example, in 2016, Bank of Ireland had 250 branches throughout Ireland.
Examples of Commercial banks are:
- Bank of Ireland
- Allied Irish Bank (AIB)
- Ulster Bank
- KBC
- Barclays Bank Ireland
- Permanent TSB
Services Offered by Commercial Banks
Commercial banks offer their customers a wide range of financial services:
- Current Accounts
- Deposit Accounts
- Savings and investment options
- Foreign currency Exchange
- Online Banking
Current Accounts
- A current account is a non-interest account that allows the account holder to withdraw money at any time.
A current account allows you to do day-to-day transactions. A person wage is usually paid into their current account, household bills are usually paid out of the account. No interest is earned on money in a current account, so it is not a good option for saving money. banks usually apply charges to current account transactions, such as using electronic banking or an overdraft. These fees are usually charged quarterly.
Opening a Current Account
A person who wants to open a current account must fill in an application form. The application form asks for personal details and employment details.
Along with the application form, the following items must be presented to the bank before an account can be opened:
- Proof of Identity (e.g. passport, driving licence)
- Proof of Address (e.g. electricity bill)
When this has been accepted by the bank, the consumer will be given their current account number and a debit card.