CUSTOMER CHEQUING ACCOUNTS

Current Account (CA): A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure. Customers can use a debit card or cheques to make purchases or pay bills. Accounts may have different options or packages to help waive certain monthly service fees. To determine the most economical choice, compare the benefits of different checking packages with the services you actually need. This account was introduced by the Goldsmiths of England. Due to advantages of this account almost all the commercial banks open this account as the part of their functions. This account is suitable for businessmen who are very often in need of money for making payments. In this account the customer is authorized to deposit or withdraw money any time in or from the bank. The bank does not pay any interest, rather it charge from the depositors its services which are called "Incidental Charges or Service Charges". The cheque book is issued to the customer and can be withdraw money any time. Savings Account (SA): A savings account allows you to accumulate interest on funds youve saved for future needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Interest calculations are done on balance as per the product features i.e. Daily Closing Balance, Minimum or Average Balance. Savings accounts vary by monthly service fees, interest rates, method used to calculate interest, and minimum opening deposit. Understanding the accounts terms and benefits will allow for a more informed decision on the account best suited for your needs. Following the examples of Saving Accounts product having different features; Product Saving Gold Minimum Balance Slab Interest Rate Calc Balance Profit Payment Freq Monthly Other Features
Free Cheque Book - No Free ATM - No

PKR 50,000 Upto 500K Above 500k - Upto 10M Above 10M - Upto 50M Above 50M - Upto 100M Above 100M Minimum Balance Slab

7.00% Average 7.25% 7.50% 7.75% 8.00% Interest Rate Calc Balance

Product Saving Platinum

0.00 Upto 500K Above 500k - Upto 10M Above 10M - Upto 50M Above 50M - Upto 100M Above 100M

6.00% Minimum 6.25% 6.50% 6.75% 7.00%

Profit Payment Freq Half Yearly

Other Features
Free Cheque Book Yes Free ATM Yes

Running Finance Accounts(RF) Running finance is the finance offerings by financial institutions/bank against securities/collateral. It works under the working capital finance. Specifically, the running finance is a credit facility established for a specific time limit at variable interest rates. The running finance is implemented by means of

allowing the over-draft facility on account and the corresponding amount is determined by the repaying capacity of the borrower. Its a Chequing Account and customers can avail transactional facilities from various channels like in Current or Saving Accounts. Overdraft is one sort of offering credit by the account providers, in that withdrawals are permitted exceeding available balance of the bank account. It is nothing but an over-drawing leading to a negative balance. For enjoying overdraft facility, there should be some agreement or approval in advance with the account provider. Generally, the over-draft facility is offered by the banks for some maximum amount and the same is required to be returned to them (in the respective account) within some specified time limit.

CUSTOMER NON CHEQUING ACCOUNTS

Non Chequing Accounts (NCA): A non chequing account is the account in which cheque book is not issued like accounts opened for collection of funds, for disbursement and repayment of loan etc. These accounts are generally linked to main customer account and are opened for specific reasons. Term Deposit (TD): Term deposits, or TDs, allow you to invest your money at a set interest rate for a pre-set period of time. TDs often have higher interest rates than traditional savings accounts because the money you deposit is tied up for the life of the certificate which can range from a few months to several years. Be sure you do not need to draw on those funds before you open a TD, as early withdrawals may have financial penalties. No cheque book / ATM card is issued against TD and funds can only be withdrawn at maturity or at request for pre-maturity subject to penalties.