Commercial banks and financial institutions provide a range of critically important services to the citizens and residents of the Eastern Caribbean Currency Union.
Speaking on this week’s episode of ECCB Connects, Baldwin Taylor, General Manager of Bank of Montserrat Limited, and Secretary of the Antigua and Barbuda and Montserrat Bankers Association as well as the ECCU Bankers Associations, shares information about
the different types of accounts available at financial institutions and discusses some common terms used in banking.
Taylor outlines that the various types of accounts offered by commercial banks include a regular savings account, accounts for educational purposes; children savings accounts, and accounts for retirement savings.
Taylor further explains that there are different types of interest that can be generated on savings or loan accounts. Two of these are accrued interest, which accumulates daily but is paid at a specific time period; and compound interest which is not just paid on the principal amount, but also on the interest previously earned. Interest rates, says Taylor, are usually applied at a fixed rate depending on the type of account and the amount involved.
Taylor encourages customers to engage their bankers in a conversation to clarify any concerns they may have with regards to their money.