Personal Banking is a term used to describe the range of products and services banks offer to individual consumers. These include checking and savings accounts, money market accounts, credit cards, loans, certificates of deposit (CDs), and overdraft lines of credit.
Typically, customers who use Personal Banking have an account at their local bank or credit union. They are able to make deposits and withdrawals, transfer money between accounts, pay bills, and manage their account balances online or through mobile apps.
A personal banker’s job duties include providing sound financial advice and building trusting relationships with clients. These relationships are based on the banker’s ability to understand their client’s needs and concerns, and to tailor solutions accordingly.
Personal Bankers often have a wealth of knowledge about a variety of different financial products, from mortgages and home equity lines of credit to investment products. This enables them to help customers weigh their options for making purchases or investments.
They can also help customers with retirement planning and college saving. They can sell traditional IRAs and Roth IRAs, as well as annuities. They can also help customers with tax-deferred college savings programs like 529 plans and college bonds.
These services can be a valuable part of personal banking for individuals with a lot of money to invest. However, they are not available to everyone.
In addition, some personal banking products are very complex and require an understanding of esoteric banking terminology that many customers may not have. This can make it challenging for a personal banker to help a client purchase these products with ease.
The most common personal banking products are checking and savings accounts, money market accounts, certificates of deposit, and loans. In addition to these, some banks also offer overdraft lines of credit and auto loans.
When you talk to a banker about personal banking, the conversation generally revolves around deposits, loan products, and personal investment planning. The banker will also discuss how to make these products work for you and your lifestyle.
For example, if you are looking to save money and invest your savings in a low-risk stock index fund, the banker will likely tell you that it’s not a good idea to place all your funds in one index. This is because the risk of losing all your money in a single stock decline can be much higher than if you spread it across a number of stocks.
Most personal bankers have excellent customer service skills, which are vital in helping customers understand and feel comfortable with the financial products that they buy. They also have excellent problem-solving capabilities when resolving client issues. They also have the ability to forge and maintain strong relationships within their community and are familiar with local business culture and economic trends.