Today, we will elaborate a list with the definitions of essential financial products and more complex financial products, as well as a series of economic concepts that are necessary to know for your banking study. Very interesting if you want to start your studies in Finance! Pay attention:
Basic concepts about banking
Basic financial products
There are short term banking courses in Delhi for people to manage money nowadays. The essential thing we can imagine, for example, to save our money, we hire the services of a commercial bank, whose primary product is the current account. In that account, we can direct payroll or any payment or regular invoice, as well as transfer money between one mind and another.
It is also common that we have a card associated with that account, debit or credit. The debit card makes the payment directly from our money into the report, while with the credit card the account charge is at the end or the beginning of the month, so there is an associated interest payment.
To buy a flat, plan the studies of children and other future expenses, it is possible to hire a savings account, which allows you to accumulate money in exchange for an interest in the trade.
A similar product is the term deposit, which aims to immobilize money during a period in exchange for interest, that is, an additional amount of money.
And when we retire, we can hire pension plans, which combines savings with long-term investment.
If you need money, we can ask for a credit, which allows us to have a certain amount of cash in exchange for returning it within a specific period with additional money or interest.
Similar is the mortgage contract that we link our home as collateral in exchange for a sum of money to pay the same property or other transfer to repay the loan with interest as the agreement has been reached with the entity banking.
Complex financial products
Currently, as a savings product, the investment fund is becoming more frequent. In short, it is a heritage that is nourished by the contributions of several investors, both companies and bank training institute in Delhi or individuals, to obtain a return, that is, a monetary benefit.
These funds aim to invest in specific products, such as shares (shares in companies) or debt (loans made to companies or public bodies, as in the case of bonds or obligations) with the objective of offering benefits to short, medium or long term.
Another more complex savings product is the investment portfolio or securities portfolio, where a manager manages a quantity of money in one or more investment funds according to the client’s investment needs.
Other financial concepts
The shares are also an increasingly popular product. We can acquire them and receive an amount for the distribution of benefits or sell it in the market at a price or market value higher than the purchase price.
The shares can be purchased on the stock exchange through an intermediary qualified for this, a broker, which can be an individual or a company.
So far all the information related to the most basic terms that help us understand banking. Do not forget that banking is one of the main outlets that you can access after studying finance. It is a viable option and where you will not have too many job offers. Of course, you must be prepared! Good luck!