With a current account you can:
Receive money transfers:
Send money via bank transfer:
Make withdraws and payments with debit card
Pay utility bills
Make monthly payments
How many types of bank cards are there?
Debit cards allow you to:
It is important to know:
With a credit card you may feel that you can afford many things. However, without self-control the credit card limit can be quickly reached. If you take out the entire limit with one withdraw, you should develop the habit to regularly restore certain share of it. Otherwise, you will need to, after certain period, deposit the entire amount in one payment.
What can be the fees related to a current account?
Draw a parallel between the various banks:
|Current account fees||Bank 1||Bank 2||Bank 3|
|Account opening fee (flat fee)|
|Monthly maintenance fee|
|Account closing fee (flat fee)|
|Withdraws and deposits fees|
|Deposit at cash desk fee|
|Withdraw at cash desk fee|
|Limit for fee-free deposits/withdraws|
|Utility bills payment fee|
|Fixed transfer fee (leasing, rent, internet bill, etc.)|
|Current Account Card|
|Fee for issuance of debit card|
|Yearly service fee for debit card|
|Fee for withdraw at ATM|
|Payment at POS devise|
What else are bank cards used for?
How important are the savings?
How to save?
We recommend you:
|lorem||Standard deposit||Savings deposit|
|Period||Usually opened for a defined period||Most often termless|
|Advantage||Higher interest rate; it is mandatory that the amount is not withdrawn before maturity||Free withdraws and deposits without loss of interest|
|Interest||Paid at maturity||Paid monthly or yearly|
What kinds of deposits are there?
How to calculate the interest on a deposit?
Example: You are opening a 3-month deposit with BGN 1000 with 8% interest rate.
Interest rate for 1 month = 8%/12 = 0.67%
Interest rate for 3 months = (BGN 1000 x 0.67%) x 3 months = BGN 20.10
Important to know:
Is the deposit automatically renewed and if so – under what conditions?
Is the interest added to the initial amount or is it paid on another account?
Is there a minimal amount for opening the account?
Is it possible to deposit additionally and are there any limitations in this regards?
When and under what conditions you can withdraw from your deposit?
Are any additional fees due?
How to allocate the personal budget?
The financial situation of the borrower is one of the key factors for the bank to disburse a credit.
To estimate what amount you can repay monthly without getting in a difficult situation, it is important that you calculate your monthly budget:
|А (Income)||Amount||B (Expenses)||Amount|
|Bonuses||Bills for Electricity + Phone + Water + Heating + Gas|
|Income from rent||Cable TV & Internet|
|Pension||Payments on a credit/credit card|
|Family expenses / education|
|Entertainment - cinema, concerts|
|Total income (A):||Total expenses (B):|
|Remaining amount (A - B):|
The remaining amount is the sum that you can depend on and which will be used to settle the new credit. It is recommended that you use no more than 50% of that amount for settling the requested credit. In this way you will have some funds for unforeseen expenses.
What types of credit are there and what are the possible collaterals?
Types of credit offered by the banks
Consumer loans – disbursed to individuals that work on a permanent labour contract, with salary as main source of income;
Repair loans – these are loans for home repairs and activities related to energy efficiency;
Housing loans – disbursed for purchase of real estate;
Credit card – disbursed as a limit on card which can be used for payments in shops and trade centres in Bulgaria, abroad, and on the Internet.
The most common collaterals are the following:
What adds additional costs to your loan?
Draw a parallel between the various banks
|Bank 1||Bank 2||Bank 3|
|Application processing fee|
|Possible taxes upon disbursement of loan|
|Flat fee for credit disbursement, paid usually upon disbursement,
most often a percentage of the whole loan amount
|Fee for management and processing – can flat or yearly one and
it is usually a percentage of the amount/the outstanding amount
|Taxes related to the collateral|
|For review and appraisal of collateral|
|Notary fees for mortgage|
|Annual percentage rate|
The consumer loan act obligates the banks to announce and calculate the expenses on consumer loans in the same way. This indicator used is called Annual percentage rate (APR). For calculating the APR all loan fees and interest are included.