THE BANK ACCOUNT.

THE manner in which Miss Smith had left her
money on what is termed a current account at the
Bank is convenient to herself and profitable to
the Blankshire Bank, for they have the use of it
free, paying nothing for that use in the way of
interest.

She will have other money coming to her in
the shape of rents, and the interest on money
invested, as represented in those documents in
the tin box - all which money can be handed
over to the Bank in the same way that the ?500
was. There is, however, no reason why she
should leave so much lying idle without obtaining
any interest upon it. She will reckon up how
much she will require for, say, the next six
months, for house expenses and personal use,
and also how much, on the other hand, she will
be paid in rents or interest, and will then find
that there will be a sum of; at least, say, ?300
over and above all she desires to spend.

If she is wise, she will draw out this sum by
cheque from her current account and have it
placed on a deposit account. In this case the
bank will give her a deposit receipt or interest
note, somewhat in this form:-

---------------------------------------------------------
| No. 23975 26th June, 1897. |
| |
| Blankshire Bank, Blanktown. |
| |
| RECEIVED from Miss Jane Smith the sum of Three |
| Hundred Pounds, to be accounted for with interest at |
| 2.5 per cent per annum, on 14 days' notice of |
| withdrawl. |
| |
| Entered - J. Hill T. Dale, Manager. |
| |
---------------------------------------------------------
(and, written across the receipt "Not transferable")

If the money is at any time wanted in a hurry,
banks do not insist upon notice being given to
withdraw, but deduct the days of notice from the
time the interest note has run. For instance, if
the money has been deposited for 184 days, the
14 days of notice will be deducted and interest
allowed on 170 days only. These receipts or
notes are not transferable, and the repayment of
the principal or the interest must be applied for
by the owner either personally or by letter.

Money may be deposited in a bank in two
names and be repayable to both conjointly,
by either separately, or to the survivor of the
two. The bank will require a form to be signed
by both parties, specifying the manner in which
it is desired that the money may be deposited.
By giving directions, too, the principal may be
retained in the name of one person and the
interest paid to another. Some banks adopt the
plan of book deposits, that is, the amount paid
in is entered in a pass-book, and the interest
credited half yearly. This may go on accumu-
lating, or it can be drawn out in one sum only,
not as in the case of a current account by
cheques of various amounts.

Having thus established relations between
Miss Smith and her bankers, let us see at the
end, say, of a month, the state of her pass-book,
premising that in the meantime she has received
and paid into the bank some moneys, and also
signed and sent cheques to some of her trades-
men:-

--------------------------------------------------------------------------------
| || |
| THE BLANKSHIRE BANK. || BLANKTOWN, |
| || |
| Dr. to Miss Jane Smith. || of Blanktown. Cr. |
| || |
|--------------------------------------||--------------------------------------|
|1897| | | ? |s.|d.||1897| | | ? |s.|d.|
|June|24| To Cash . . |500| 0| 0||June|24| By Self . . | 10| 0| 0|
| | | | | | || | | | | | |
|July| 8| " Dividend Consols| 11| 4| 6|| " | "| " Tucker . . | 23|10| 0|
| | | | | | || | | | | | |
| " |23| " Rent from Cook | 24|10| 0|| " |26| " Deposit receipt |300| 0| 0|
| | | | | | || | | | | | |
| " |25| " G.W.R. dividend | 30| 0| 0||July| 1| " Figges . . | 8| 3| 4|
| | | | | | || | | | | | |
| | | | | | || " | 3| " Jones . . | 5|10| 0|
| | | | | | || | | | | | |
| | | | | | || " |24| " Self . . | 10| 0| 0|
| | | | | | || | | | | | |
| | | Total ?565 14s. 6d.| | | || | | Total ?357 3s. 4d. | | | |
| | | | | | || | | | | | |
--------------------------------------------------------------------------------

By the entries in the pass-book it will be per-
ceived that ?565 14s. 6d. has been paid into the
bank, as appears on the left-hand page, and that
?357 3s. 4d. has been drawn out, as appears on
the right-hand page. The balance or difference
between the two, amounting to ?208 11s. 2d.,
remains to the credit of Miss Smith.

In this comfortable state of things we will
leave Miss Smith, who can now claim to consult
her banker in matters of business.

He will be able to offer her facilities in various
ways. He will hold for her, in safe custody, any
deeds or securities; and whilst she is absent
from home will take charge of her plate or valu-
ables, free of all expense. If she is travelling
about the country he will arrange so that her
cheques on the Blankshire Bank may be cashed
at any other bank in the kingdom. If she has
occasion for it he will send money on her account
to some other person's credit at any bank in the
kingdom or the civilised world. If she desires
to travel abroad, he will obtain a passport for
her and provide her with "circular notes," which
may be turned into money at any place she is
likely to visit.

He will buy and sell stocks, shares, annuities,
&c., for her, and collect dividends, interest,
coupons, &c., payable anywhere at home or
abroad. He will cheerfully advise her on all
matters connected with money, and it will be
quite the exception if she does not, in all things,
find him a safe and prudent counsellor.

As a rule, no charge is made by a bank for
keeping an account, provided the balance, that
is, the amount of money they hold for the cus-
tomer - technically the credit balance - is not
persistently small. If it were always under ?50
that would be considered small, but if only occa-
sionally below that figure, and sometimes above
?200 for any time, it would generally be exempt
from charge. When a charge is made for keeping
an account which is not remunerative or free
from trouble, it does not amount to much, and is
fairly earned.

If an advance of money is required for a tem-
porary purpose, the bank will often lend the
money by allowing the account to be overdrawn,
that is, the balance in the pass-book will appear
as due _to_ the bank instead of _from_ the bank for
the sum required from time to time. This is
sometimes convenient when the advance is only
required for a short time as avoiding the necessity
for disturbing any investment which otherwise
would have to be sold. As a rule, however
(though exceptions are made where the customer
is absolutely to be depended upon), the bank
would desire some security to be deposited.
This may take the form of a sufficient portion in
value of stocks or shares in which the customer
has invested, or sometimes the personal guar-
antee of one or two responsible persons is
accepted. This is quite regular business, and
the interest usually charged is fair and reason-able.