Bank Services (JSS 2-Business Studies Lesson Note: Second Term, Week Four)

Lesson Plan for JSS Two (Age 12)

Subject: Business Studies
Class: JSS 2
Week of the Second Term: 4th Week
Topic: Bank Services
Sub-Topic: Definition of Bank, Types of Banks: Commercial, Central, Development Banks, Services of Commercial Banks, Various Accounts: Fixed, Current, Savings

Objectives

At the end of the lesson, students should be able to:

1. Define a bank and explain its importance in the economy.
2. Identify and differentiate between the types of banks, including their specific functions.
3. List and describe the different types of accounts offered by commercial banks.

Entry Behaviour

Students should be familiar with basic banking terms and services like savings and deposits from previous lessons.

Instructional Materials

• Business Studies textbook
• Chart showing types of banks and their services
• Sample bank account forms

Reference Materials 

Egbe, T. E., Osu-Nwufo, K. O., Makeri-Yahaya, G. I., & Oladunjoye, T. G. (2017). Business Studies For Junior Secondary School 2 (BEC Edition). Spectrum Books Limited.
Inanga, E. L., Ojo, E. C., & Mustafa, A. (2017). Business Studies For Junior Secondary School 2 (BEC Edition). University Press PLC.

Content

Definition of Bank

A bank is a financial institution that accepts deposits from the public, provides loans, and offers various financial services. Banks play a crucial role in the economy by facilitating transactions, providing credit, and helping individuals and businesses manage their finances.

Types of Banks

1. Commercial Banks:
   Commercial banks are financial institutions that provide a wide range of services to individuals and businesses. They accept deposits, offer savings and checking accounts, and provide loans for personal, business, and mortgage needs. Commercial banks aim to make a profit by charging interest on loans and offering various financial products.
2. Central Banks:
   Central banks are government institutions responsible for managing a country’s monetary policy, regulating the banking sector, and ensuring financial stability. They control the money supply, set interest rates, and act as a lender of last resort to commercial banks. Examples include the Federal Reserve in the United States and the European Central Bank in the Eurozone.
3. Development Banks:
   Development banks are specialized financial institutions that provide funding for projects aimed at economic development, particularly in developing countries. They focus on long-term investment in sectors like agriculture, infrastructure, and small and medium-sized enterprises (SMEs). Development banks often provide loans at lower interest rates and may offer technical assistance as well.

Services of Commercial Banks

Commercial banks offer a variety of services to meet the needs of their customers, including:

• Accepting Deposits: Customers can open various types of accounts to save and manage their money securely.
• Loans and Credit: Banks provide personal loans, business loans, mortgages, and credit cards to individuals and businesses.
• Payment and Money Transfer Services: Banks facilitate transactions through checks, electronic funds transfers, and wire transfers.
• Investment Services: Many commercial banks offer investment products, including mutual funds, stocks, and bonds.
• Financial Advice: Banks provide financial planning and advisory services to help customers manage their investments and savings.

Various Accounts

1. Fixed Deposit Account:
   A fixed deposit account allows customers to deposit a lump sum of money for a fixed period at a specified interest rate. The money cannot be withdrawn before the maturity date without incurring a penalty. This account typically offers higher interest rates compared to savings accounts.
2. Current Account:
   A current account is a type of deposit account designed for frequent transactions. It allows for unlimited deposits and withdrawals and is commonly used by businesses for daily operations. Current accounts typically do not earn interest, but they provide features like checkbooks and overdraft facilities.
3. Savings Account:
   A savings account is a deposit account that allows customers to save money while earning interest on their deposits. It is designed for individuals who want to save for future needs while maintaining access to their funds. Savings accounts usually have limitations on the number of withdrawals allowed per month.

Step 1: Introduction

Lesson Presentation (Step-by-Step Procedure)

Others removed.