Page 98 - DCOM208_BANKING_THEORY_AND_PRACTICE

Unit 6: Type of Deposit Account

The next challenge was selling Keep the Change to the public. The team stumbled upon an Notes
approach in another focus group when someone suggested getting people to dig for
change among the cushions of a couch. The bank tweaked the idea by creating a custom-
made 20-foot-long red-velvet monstrosity that would really grab eyeballs.

To launch the product on Oct. 5, the bank staged a marketing event-cum-press conference
in New York’s Grand Central Terminal. The staff lugged the mega-couch into the station,
stuffed it with coins and invited people to look for change. The bank sent replicas of the
sofa to malls in Boston, Dallas, Los Angeles, and Miami and cosponsored events with the
National Football League. Wives of NFL players and retired gridiron stars such as Ed
“Too Tall” Jones were hired to show up at malls and dig for change. Proceeds were
donated to charity. Bank of America ran TV commercials for the program during the
winter Olympics. The bank continues to promote Keep the Change on its Web site, and it
has bought ads with search engines.
Question
Analyse the case and write down the case facts.
Source: http://www.businessweek.com/stories/2006-06-18/case-study-bank-of-america

6.5 Summary

The various steps involved in opening a bank account are: Application in the Prescribed
Form, Introduction of the Applicant, Specimen Signature and To make the Initial Deposit

Pay in slips, also referred to as personalized invoices are a form used for paying money
into a bank account with the same bank.
Cheque is an official instrument in writing, containing an unconditional order, addressed
to a banker, signed by the person who has deposited money with the banker, asking him
to pay on demand a certain amount of money only to or to the order of certain person or
to the bearer of instrument.
A cheque is said to be “dishonoured” or “bounced” when even though it is presented to
the bank for payment, it is not encashed.

Types of cheque on the basis of issuing: open cheque, crossed cheque, self cheque, pay
yourself cheque & post dated cheque.

Types of cheque on the basis of their functionality are: local cheque, at par cheque, banker’s
cheque, travellers’ cheque & gift cheque.
The parties involved in a credit card transaction are: Cardholder, Card-issuing bank,
Merchant, Acquiring bank, Independent sales organization, Merchant account, Credit Card
association, Transaction network and Affinity partner.

6.6 Keywords

No frill account: No Frills account is a basic banking account. Such account requires either nil
minimum balance or very low minimum balance. Charges applicable to such accounts are low.
Pay in slip: Pay in Slip is a slip through which a person can deposit his money or cheque in his
bank account. It is also called as Deposit Slip.
Prime Lending Rate (PLR): The interest rate that commercial banks charge their most credit-
worthy customers on short-term loans.

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