Financial services are all the financial services offered by the finance sector, which covers a wide spectrum of different businesses that deal with money, such as banks, credit unions, mortgage companies, investment banks, financial institutions and pension funds. The service that most people associate with financial services is an investment; however, there are many other services, such as superannuation and life insurance that are included in the financial services sector of the market place. Superannuation is a type of investment where the investor buys an asset, such as a retirement bond, a mutual fund or a stock option, and saves the amount of the asset until it reaches a certain age (the retirement age). This is one of the most widely used methods of financial investment, as it offers the flexibility of being able to make withdrawals from the fund at any time during the year.
Another popular financial services product that most people associate with the financial services sector is savings accounts. These products are offered through banks and other financial institutions and offer customers the opportunity to save and invest for a number of different purposes. Most banks will provide customers with either a checking account or a savings account, but some banks offer no checking account and only offer savings accounts. The benefits of savings accounts are that they allow the customer to build up a high level of interest-bearing investments over time. They also allow the customer to convert their investments into cash or take out loans against the value of the savings account.
One of the other commonly associated financial services products is insurance. Insurance can be bought from either a brick and mortar business, or online. An insurance product can include life insurance, annuities, mortgages, general insurance, and stock market investment products. Some of the most commonly offered insurance products are mortgages, life insurance, annuities, and general insurance. Many banks offer a variety of financial services to their customers in order to cater to their individual needs and preferences.Alex Wade