Professional Documents
Culture Documents
A bank accepts money from the people in the form of deposits which
are usually repayable on demand or after the expiry of a fixed period.
It gives safety to the deposits of its customers. It also acts as a
custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it
for different purposes.
A bank should always add the word "bank" to its name to enable
people to know that it is a bank and that it is dealing in money.
Different types of business banking services include:
Business loans.
Checking accounts.
Savings accounts.
Debit and credit cards.
Merchant services (credit card processing, reconciliation and
reporting, check collection)
Cash management (payroll services, deposit services, etc.
Retirement Accounts
Mortgages
Alternative Investments – such as mutual funds and other securities
Financial Management
Safe Deposit (a box inside a vault in a bank to keep important
papers or valuables) services
Various types of consumer loans
LandBank Products and Services
Bagong Bayani ATM Account
Card-based type of Savings Account intended primarily for Overseas
Filipinos. Opening amount is only Php 100.00 with zero maintaining
balance.
Issued in two forms: generic and personal. The generic card is issued by
LBP Overseas Officers and other ORG designated personnel upon
application while the personal cards are issued by LANDBANK branches
with the account holder’s name embossed in the card.
Earned Interest (net) = Principal x Interest Rate x (Term/360) x (100% – Tax Rate)
Sample Time Deposit Interest Rates
“Interest Rate x (Term/360)” is used to compute the effective interest rate as the
deposit term days is proportioned to 360 days or 1 bank year. “(100% – Tax Rate)” is
the tax deducted from the gross interest amount earned. At present, the tax rate
stands at 20%.
To understand how the formula works, consider an example in which you opened a time
deposit with principal amount of, say, Php 100,000 and with maturity date (term) after
35 days. Using the interest rate as shown in the corresponding table, the net interest
earned is computed as,
Earned Interest (net) = 100,000 x 1.625% x (35/360) x (100% – 20%) = Php 126.39
Your money is now Php 126.39 more for just letting it stay in a time deposit for 35 days.