Credit union refers to financial cooperative, which is a non-profit entity. It allows its members to borrow money from pooled funds, at cheap interest rates. Many times they are juxtaposed with a bank, but they are not one and the same thing. A bank can be described as a financial institution that provides banking services to the customers, such as accepting deposits, extending credit, safeguarding valuables and providing allied services. The credit union is a member-owned organisation, which … [Read more...]
Difference Between Investment Bank and Commercial Bank
Based on the work performed by the banks, the financial industry is bifurcated into two major segments i.e. investment bank and commercial bank. Commercial banks is set up for the purpose of concluding commercial transactions, such as legally take deposits and lend money to the customers like individuals and corporates. On the other hand, investment banks are established to offer services to investors. The operations of investment banks is different, and acts as an intermediary between buyers … [Read more...]
Difference Between Charge Card and Credit Card
Charge Card and Credit Card are the two types of cards, which are commonly juxtaposted by the people, as both are payment methods, through which one can make easy payments. Charge card is a form of credit card, which expects the customer to pay the entire balance, at the end of the billing cycle. It is not a revolving credit instrument. On the contrary, a credit card allows the user for revolving balances after minimum payment is made. While a credit card has certain pre-defined spending … [Read more...]
Difference Between NRE and NRO Account
Non-Resident Indian (NRI) is an Indian national who, for the time being, leaves India for the purpose of employment, education and similar other reason. Persons with such residential status suffer from a dilemma that when they need to open an NRI account in India. NRE account and NRO account two types of NRI account which differ in the sense that the former is an external rupee account while the latter is an ordinary rupee account. NRI's are allowed to open NRO account so as to receive funds … [Read more...]
Difference Between Cash book and Passbook
There are end number of transactions occur in the normal course of business, where in receipt or payment is made in cash or cheque. To record these transactions the entity uses cash book and contains all the details of the receipts and disbursements that are recorded chronologically. Many times cash book is juxtaposed with Passbook, but there is a slight difference in the two. Passbook is a book issued by the bank to the account holder which records the amount deposited in/withdrawn from the … [Read more...]
Difference Between SWIFT code and IFSC code
SWIFT stands for Society for Worldwide Inter-bank Financial Telecommunication, which is a cooperative non-profit organization, fully owned by its member banks. SWIFT code is used when the transfer between two banks happens internationally. It is an electronic message transfer system, that conveys messages in a pre-defined format, anywhere in the world as and when the transaction occurs. On the other hand, IFSC code is used when the fund transfers between banks take place within the … [Read more...]
Difference Between Direct Debit and Standing Order
There are end number of facilities provided by the banks to its customers, apart from the basic lending of money and accepting deposits. Direct Debit and Standing Order are two such facilities, which the customers can avail, in order to ease their monetary transactions. The former implies a facility, in which the payee is authorized to draw the amount due for payment from the account of the payer, while the latter denotes an instruction given to the bank by the customer to pay/transfer certain … [Read more...]
Difference Between NEFT and RTGS
With the advancement of technology, digital money transfer system is gaining popularity because of its speed, simplicity, safety, and convenience. Funds can be transferred electronically from one bank/account/place/branch to another through this system. Moreover, the system enables instant account update and gives quick information about the foreign exchange rates. In India, NEFT and RTGS are the two electronic media which effects fund transfer. While the former is used to handle smaller size … [Read more...]
Difference Between Fixed Deposit and Recurring Deposit
When it comes to savings, every person wants to earn high returns on its deposits. Deciding which banking product is best for us is a tough task. There are various deposit schemes started by banks in which a person can invest money as per his convenience. Fixed Deposit or FD is one of those scheme, in which the user invests his money for a long time in a lump sum. Similarly, Recurring Deposit or RD is a kind of bank account in which the customer has to deposit a fixed sum of money in short … [Read more...]
Difference Between Loans and Advances
Money is an essential element for any business, because it fulfills the short term and long term requirement of funds. It is nt possible for the owner to bring all the money himself, so he/she take recourse to loans and advances. Loans refer to a debt provided by a financial institution for a particular period while Advances are the funds provided by the banks to the business to fulfill working capital requirement which are to be payable within one year. The loan amount is required to be … [Read more...]