TALLER NRO.

10

FINANCIAL SERVICES

FICHA: 2232423

APRENDIZ:
LESLIE YELEMIS RAMOS MARTINEZ

CENTRO DE SERVICIOS FINANCIEROS

TECNICO: RECURSOS HUMANOS

INSTRUCTORA:
LILIANA ANDREA BEDOYA SOLANILLA
2021
 FINANCIAL SERVICES (SAVING ACCOUNTS/ CURRENT ACCOUNTS/
LOANS/ AUTOMATIC PAYMENT SERVICES)
This workshop attempts to help you improve your basic knowledge about Financial
Education, starting with services that some financial companies and Banks offer to the
public, such as current accounts, savings accounts, loans and automatic payment
services. You will learn about what the financial services are, their difference and
similarities, and pros and cons, in order to suggest to your costumers the best option
they have in the Colombian context.

Objective: From the development of these activities, you will be able to

describe and suggest some financial services that banks offer to costumers,
according to the Colombian context.

1. Work in groups and discuss:

- Did you or do you have a bank account? What type of bank account do/did you have?
Yes, I have a savings bank account.

- What types of bank accounts exist?

- Savings account.
- Payroll Account.

- What are the differences between them?

With the savings account you deposit the money that you want to use at any time. While in the
checking account you manage a credit (the limit imposed by the bank), you cover your
expenses and at the end of the month you pay all the money you used.

- Which type of bank account do you recommend? Why?

Personally, I would recommend the savings account because the money you have is what you
can spend and thus avoid getting into debt on things that many times you do not need.

2. Skills practice: do the following activities to practice the learnt vocabulary and English
structures.

2.1. Listening Practice: Savings account and Current account.

Before watching the video, work in groups and discuss:

- How often do you save money?

I would say that 90% because I always try in each income that I have to take out a part for
savings.

- Where do you usually keep your money?

Usually in my bank account.

- What is your source of money?

My source of money at the moment is the support that the Sena gives me.
 - Write your answers

Look for the meaning of the following vocabulary:

Savings/ withdrawal/ withdrawal form/ amount/ balance/ interest-bearing/

Passbook/statement/transaction/ overdraft/ ledger/ opening balance/

1. Savings: Amount of money, property, or other thing that is saved.

2. Withdrawal: It is the process and effect of withdrawing or withdrawing (putting something or someone
aside, abandoning an activity).

3. Withdrawal form: When you want to withdraw money from your checking or savings account,
banks will ask you to fill out a withdrawal form. You have to include important information on this
paper so that the bank can keep an accurate record of your withdrawal, and provide you with the
amount you want.

4. Amount: The amount of something is how much there is, or how much you have, need, or get. He
needs that amount of money to survive.

5. Balance: Periodic examination of a company's accounts, comparing its income and expenses to
establish the level of profit or loss.

6. Interest-bearing: Accounts are types of bank accounts where you can keep your money safe while
earning interest. When you deposit money into an interest-bearing account, the bank pays you
interest (money) based on a percentage of your account balance.

7. Passbook: A passbook or bankbook is a paper book used to record bank or building society

transactions on a deposit account. A page with a pre-printed table.

8. Statement: A statement is an official or formal announcement that is issued on a particular occasion.

9. Transaction: Something transacted; especially : an exchange or transfer of goods, services, or funds.

How to use transaction in a sentence.

10. Overdraft: An overdraft is a situation in which a checking, savings or passbook account has a balance
of less than zero, negative. The customer has spent more money than he/she had in that account and
owes that money to the bank.

11. Ledger: A ledger is a book containing accounts in which the classified and summarized information
from the journals is posted as debits and credits.

12. Opening balance: The amount of money in a company's account that is brought forward at
the start of an accounting period.
Now, watch the following video about “The Difference between a Savings and
Current Account” at: https://www.youtube.com/watch?v=D740SawepFU

Based on the information presented, write at least 3 features/ characteristics for

savings account and Current accounts.

SAVINGS ACCOUNT CURRENT ACCOUNT

 Withdrawal, of money on demand, on presentation  Non- interest bearing account

of cheque or through withdrswal form, is
permissible.  Overdraft facility

 Restrictions on the number of withdrawals per

 Statement of accounts
month and the amount withdrawn per.

 Minimum balance has to be maintained.

Taking into account the information from the video and your personal
experience, answer these questions:

- If a Company came to you asking for what the best bank account for the
Company is, what would you suggest?

According to what was evidenced in the video and what I have been able to
have as experience, the most appropriate would be a checking account
since its characteristics such as not having transaction limits and is the
most used by institutions of all kinds.

- If a person came to you asking for what the best bank account for him/her
is, what would you suggest?

For a natural person since it is the most viable to have the money saved in
the long term so its characteristics are the most appropriate

- What is the average rate of interest that most of the banks use in
Colombia?
The monetary policy intervention rate is the minimum interest
rate ... Finance of Colombia

2.2. Speaking Practice: talking about loans

GC-F -005 V. 01
 Make four-person group and gather information about one of the
following topics:

- What is a loan?
- What are loans’ pros and cons?
- Different types of loans.
- Rate of interest of the loans.
- Describe any loan experience you have had.

2.3. Reading Practice: reading about automatic payment services

Before reading the following text, discuss the following questions:

- What do you know about “Automatic Payment Services”?

An automated payment is essentially what it sounds like: a payment that's automatically sent to one
of your billers from your bank account or credit card account. You can authorize an automatic bill
payment to be made using your debit card, credit card, checking account, savings account or money
market account
- Do you think these services are a good or bad idea?

I think they are a good idea because in recent times virtuality has been a tool that facilitates us to
make payments or transactions in a practical and comfortable way.

- Have you ever had or taken an “automatic payment service”?

I think they are a good idea because in recent times virtuality has been a tool that facilitates us to
make payments or transactions in a pAractical and comfortable way.

Look for the definition of the following words:

Bill: A printed or written statement of the money owed for goods or services.
Payment: The action or process of paying someone or something or of being paid.
Automated: Operated by largely automatic equipment.
Checking account: A checking account is a deposit account with a bank or other
financial firm that allows the holder to make deposits and withdrawals.
Schedule: A plan for carrying out a process or procedure, giving lists of intended
events and times.
Mortgage: A legal agreement by which a bank, building society, etc. lends money at
interest in exchange for taking title of the debtor's property, with the condition that the
conveyance of title becomes void upon the payment of the debt.

GC-F -005 V. 01
Bill-paying: Bill Payment or “Payment” means the remittance of funds, initiated
through the Service, from an Account to a Payee. ... Bill Payment means an
electronic service that allows you to set up secure one time or recurring payments bill
payments.
Credit score: A credit score is a number that represents a person's creditworthiness.
Credit scores are based on a variety of personal financial data. Financial institutions
judge people with higher credit scores to have lower credit risk, and grant them a
broader selection of credit products at lower interest rates.
Online account: Online Account means a User's account, accessed via the Website,
and through which the User accesses and utilises the Online Services, and which
encompasses the Access Information and rights of permission of a User.
Overdraft fee: An overdraft fee is what a bank charges you any time you withdraw
more money from your account than what you have in it. Overdraft fees can be a
significant and unnecessary expense, particularly if you have to pay them often.
Late payment: A late payment is an amount of money a borrower sends to a lender
or service provider that arrives after the date that the payment was due or after a
grace period for the payment has passed.
Withdraw: Remove or take away (something) from a particular place or position.
Due (due date): Owed as a debt or as a right: I'm due a refund for the sweater I
returned

Read the following text about “Automatic payment services” and complete the activities
proposed.
Look for models and examples of Loans and interest rates from different banks in
the city and prepare a presentation for your class about this topic. Choose a bank
and explain the types of loans with the corresponding data (interest rate,
requirements, benefits, terms, etc.)
Take into account the following tips for making your presentation.

- Use adequate vocabulary according to your topic.

- Search for videos, readings and articles for gathering relevant information.
- Practice your pronunciation in your house or work, when you don’t know how
to pronounce a word, please google it, and then repeat it out loud.
- Include statistics, data, and relevant information related to the bank and its services.
- Use multimedia resources for your presentation (videos, images, slideshares, slides, podcasts.)

What are “Automatic payment services”?1

An automatic payment service is a money transfer scheduled on a predetermined date

to pay a recurring bill. It can be scheduled for all types of payment transactions: loans,
GC-F -005 V. 01
auto loans, mortgage loans, credit card bills, electric bills, cable bills and more. These
payments can be automated easily from a checking
account. This involves making arrangements with the bank holding the checking account
to make the exact payment each month. The set of instructions is typically created online
by the account holder. More frequently, this power is given to the vendor (the utilities
company, for example) to charge the checking
account for whatever amount is owed that particular month. In both cases the
individual paying the bill must initiate the automatic bill payment and provide the
necessary information required to make
automated recurring payments.

1 Adapted from: https://www.investopedia.com/terms/a/automatic-bill-payment.asp

https://www.nerdwallet.com/blog/banking/automatic-bill-payments-pros-cons/ Used by
SENA for academic purposes, exclusively.
PROS

It’s convenient: You shouldn’t be visiting several different websites or fielding mailed
invoices at various times during the month, all you need is to automate the bill-paying
process. If you do this through your
bank, your bills can be organized and viewed in one place. And some companies will
email to let you know they are about to take a payment. In a sense, instead of you going
to them, they come to you.

It can improve your credit score: If you have some negative marks on your credit
history or want to have some good credit history, you should accept some automatic
payment services because you can control your payments and avoid missing those
payments, and over time, your credit history should get better, fade those negative
marks and increase your credit score.

It’s secure: You shouldn’t keep your money under your pillow or put in a check in an envelope in an
unguarded mailbox any longer. It is suggested to have an online account, so your
accounts may be better protected through the encryption techniques that banks use
online to secure customers’ information.

CONS

You risk overdraft fees: Some payments fluctuate in amount, so you need to pay
attention to your bank account and your automatic payment, because if you’re not
careful, your account may be
overdrawn. Overdraft fees vary by institution, but the median is $34; you should keep a
GC-F -005 V. 01
good balance in your bank account.

… and late fees: Even though it’s called “automatic,” a payment still takes time to
process and reach a merchant or service provider. You need to check and confirm
how long it takes for payments to arrive, you should avoid to get some extra fees for
late payments.

They might make a costly mistake.

What if your phone company accidentally withdraws your monthly payment twice? Or your cable
provider adds a zero to your balance and takes out $850 instead of $85? Such
mistakes, while rare, can happen, you should check and confirm your bills monthly
avoiding errors in your payment and legal
problems.

How to use automatic bill

pay wisely Sign up in the

right place

- Is your bill for the same amount every month, or does it vary? The answer
should determine where you sign up for automatic payments.
- For bills that are the same amount every month, we suggest that you use your
bank’s auto pay to keep multiple accounts in one place.

GC-F -005 V. 01
 - For accounts where your balance changes each month, such as a credit card,
you should better sign up for automatic payments directly through them.

Set up electronic alerts.

Some banks and credit unions offer email or text reminders that let you know when
your balance is running low or when a bill is due. Think of yourself as a manager.
You’re delegating the task of paying
your bills, but you still want to know when something pops up that requires your attention. You need to
pay attention to those reminders.

Mark the following statements true (T) or false (F)

- Automatic payment services are related to bill-paying any time during the month (F)
- Setting an automatic payments, makes it easier to manage your money and your bills (T)
- Negative marks on your credit history, might become positive by accepting
automatic payment services (F)
- Automatic payments will always be the same amount of money (T )
- The electronic alerts help you remember payments are in progress (T )

Answer the following question according to your understanding of the previous text.

- What is the purpose of the text?

The purpose of the text is to show us the features offered by the automatic payment of services
and the advantages that this tool can offer us.

- What is an “Automatic payment service”? What can this service do for you?

This service aims to automatically schedule payments on certain dates for the required service
and has everything in place to make it a virtually autonomous task.

- What is your opinion about the automatic payment services?

I believe that it can be a very easy and practical way to carry out these financial activities when
you know how to use them and they can be very useful in a matter of time.
 2.4. Writing Practice: writing about financial practices

Imagine you were asked to write on an important financial blog about your experience and knowledge
about financial services, and you have to tell about some pieces of advice, suggestions,
tips, pros, cons of the financial services (saving accounts, current accounts, loans,
automatic payment service). Write at least 200 words.

A nation's financial services are the set of services provided by the set of financial entities
operating in the country, such as banks, credit unions, insurance companies, mutual benefit
societies, brokerage firms and brokerage firms, etc. related to the management of people's money
or their future expectations.
All banking financial services are related to the possibility of varying our money either to "multiply"
it by investing it in savings instruments (money deposits), or investment instruments (bonds,
shares of a company or investment funds, etc.), or the possibility of borrowing money (getting into
debt or obtaining external financing) that allows us to buy investment goods (a car, a house) or
start a business.
Some examples of the most basic financial service we can think of as ordinary users is a bank
current account (BBVA, Santander, CaixaBank, ING Direct, etc.) where we can confidently deposit
our income (the monthly salary for our work) and have an associated bank credit card. Using the
card in a restaurant (a McDonalds, a Chinese, an Italian) or a fashion store (Zara, Stradivarius,
Mango, etc.), we can use the balance of our account and pay in all kinds of establishments without
needing to carry cash with us.

2 Images taken from: https://www.calbanktrust.com/blog/

3. Extension Activities
- Complete the Crossword using the key words seen in this workshop, take
into account the definitions below.
Answers:
1. Payment
2. Rationcard
3. Bill
4. Interest
5. Schedule
6. Draft
7. Pay
8. Tenant

- In pairs or in a three-person group, make a role-play activity where one or two

people are some costumers asking for information about financial services
(what a current account/saving
account/ loans/ automatic payment services are, their characteristics, pros and
cons) according to a hypothetical need. And another person has to provide
information and to answer some
questions about financial services, also, it has to be related with real
information about Colombian Banks and their policies about these
services.
- Based on your instructor’s orientation, explore the following website and
practice the English structures. Do these activities according to what was
studied in class and deliver them to your instructor:

https://elt.oup.com/student/project3rdedition/level3/unit6/grammar/exercise1?cc=cl&selLanguage=en
https://elt.oup.com/student/solutions/elementary/grammar/grammar_05_022e?cc=co&selLanguage=en
http://www.focus.olsztyn.pl/en-should-should-not-exercises.html#.XGMCmlVKiUk

https://www.tolearnenglish.com/exercises/exercise-english-2/exercise-english-87185.php
https://www.englishgrammar.org/uses-of-need/