Banking 101: Basic Banking Knowledge Every Adult Needs To Know

Banking 101: Basic Banking Knowledge Every Adult Needs To Know

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ATMs, credit cards, accounts, cheques, loans- you name it; banking is an essential part of every adult’s life and today’s world is no place to be unaware of the basic banking terms and activities. We have partnered upwith Al Ahli Bank of Kuwait – Egypt (ABK-Egypt) to bring you your guide to the basics of banking.

We know that making financial decisions can be confusing and often times, you might feel lost and too embarrassed to ask for clarifications. Because ABK-Egypt believes in offering simpler, more efficient banking services that can suit everyone’s needs, this guide will help clear out any confusion.

 

What’s the difference between a debit and a credit account?

A debit account is one which you have deposited a certain amount of money in which you can, later on, withdraw and spend money . A credit account is one where you essentially withdraw money that you have not deposited but are essentially borrowing from your bank. You will, later on, be required to pay back this amount at an interest. ABK-Egypt is offering credit services with installments up to 12 months interest free at selected merchants for any transaction with a minimum spend (spent) of EGP 500 as well as debit accounts that offer you competitive interest on your money.

 

What’s the difference between a checking (current) and a saving account?

Both are debit accounts. A checking account allows you to write cheques, as well as normally withdraw from your balance. A saving account allows you to deposit and withdraw cash as well as earn an interest on the deposited balance. ABK – Egypt is offering one of the highest interest rates on savings accounts in Egypt as well an interest bearing current account.

 

What is a minimum balance fee?

Every bank requires  a minimum amount deposited in your account. If the balance falls below this amount, a certain minimum balance fee is withdrawn.

 

What is a bank statement?

A bank statement shows your monthly transactions on your accounts/credit cards, where you either deposited or withdrawn money from your account or purchased using your credit card. It gets mailed to your address or your email monthly and you can also request it from certain ATMs or sign up for Internet Banking service and get access 24/7 on your accounts. It helps you keep track of your account balance or credit card activities and remaining balance.

 

Banking may seem like it’s way too complicated, but it really is a service that can make balancing your finances way easier. With a trusted bank like ABK-Egypt, you know you are in safe hands. So, remember, always ask for clarifications, do your research, try to understand your financial needs, don’t be too shy to make any inquiries and always go for a bank that offers simple solutions and has your best interest in mind- what a pun, right?