Vol_33

مقالت يف الإدارة الإسالمية7. AAA Visa Credit Card: AAA coordinates withleading credit card companies to provide financialservices to its members.The services offered by the American AutomobileAssociation (AAA) are by no means limited toinsurance; they include loaning, finance and amultitude of other non-financial services.Section Two: BankingBank of America is one of the leading financialcorporations catering to consumer and commercialneeds nationwide. It is also one of the leadingcredit card vendors internationally. The followingassessment of its services will provided sufficientinsight into the banking system.The services provided by Bank of America include:(BankofAmerica) (wikipedia)• Account Management: This includes checkingaccounts, savings accounts and certificates ofdeposit (CDs). Each of these accounts has uniquebenefits. However, the important differencerelevant to this research is that checking accountsare usually non-interest bearing, whereas savingsaccounts and CDs accrue a fixed amount ofinterest periodically added to the account.• Insurance: The various insurance policies at Bankof America are operated by a bank subsidiaryknown as Banc Of America Insurance Services,Inc.• Credit Card Services: Some types of credit cardsloosely fall under the term, such as CommercialPrepaid Cards. A Commercial Prepaid Card is apre-funded card with a spending limit set by theamount of money one’s sponsor loads onto thecard. Hence, it doesn’t reflect the technical fiqhdefinition of a loan.• Mortgage loans: This loan comprises twotransactions:1. Financial Lending: The lender, in this case thebank, purchases the property on behalf of theborrower and collects the sum total at interest inan agreement that can be thirty years long.2. Mortgage agreement: The bank places theproperty as collateral for the loan. Thisconsequently limits the borrower’s ability to sellor transfer ownership of the property.3. Another service provided is mortgage refinanceloans, which is to basically replace an existingdebt obligation with another debt obligation.This is commonly done to reduce the monthlypayment and, in turn, the property owner agreesto a longer term.4. Home Equity: This refers to the differencebetween the home’s fair market value and theoutstanding balance of all liens on the property.There are two different types of equity loans:• Home Equity loans: The borrower uses the equityof his home as collateral in order to receive a loanwith the sum of his equity. For example, if he paid30% of the home’s value, which has a sum totalof $200,000, he will receive a loan of $60,000 inreturn for placing 30% of his home as collateral.• Home Equity Line of Credit (HELOC): Thelender agrees to lend a maximum amount within aterm where the collateral is the borrower’s equity.The borrower is not advanced the entire sum upfront, and the loan does not exceed the amount ofthe equity.5. Individual Retirement Accounts (IRAs): Withthis account, the bank offers the investor a varietyof investment options. The IRA account holderaccrues his profit by Speculation via a brokeragefirm in the stock and bonds market. Theseinvestment options are regulated by Americanlaw in order to protect the rights of taxpayers andto facilitate a way to build tax-deferred savingsfor retirement (Wikipedia).6. Mutual Fund: A mutual fund is a commoncollective investment option in the UnitedStates that pools money from many investorsto purchase securities such as stocks, bonds andother money market instruments. The fund isoperated by a portfolio manager who speculatesthe money markets with the investments.The money manager would provide potentialinvestors with a disclosure document known asa prospectus that describes financial securitiesincluding material information about a company’sbusiness, its financial records and its officersand directors. The prospectus is law-bindingbetween the investors and the portfolio manager.There are many different types of mutual fundswith varying degrees of risk (Colombiafunds).Some mutual funds provide safe financial gains,whereas others are high risk for investors. Thesehigh risk investments are known as hedge funds.In return for offering this service, the bank gains amonthly rate from both the investor’s capital andprofit.7. Wealth Management: This service incorporatesfinancial planning, investment advice and otherfinancial services usually for high-net-worthwww.giem.info42