Mauritius is an island that is not only known for its beautiful landscape and beaches but also for its thriving financial sector. The banking sector in Mauritius plays a crucial role in the economy, by providing different banking services to both its citizens and tourists, they ensure that their people are well informed before completing a financial transaction thus, preventing any error or mistakes from happening.
The banks in Mauritius provide banking services such as:Checking and Savings account, Personal loans, mortgages, credit cards, and Certificate of deposits, we will look at those terms in depth below:
Checking and Savings account:
A checking and savings account are two main deposit accounts and they each hold different characteristics and have unique features.
A checking account is an account that can be used to perform daily transactions such as: withdraw unlimited amounts of money, pay bills,and purchase goods. On this account the interest rate is low.
A savings account is mainly used to achieve long term goals, you can accumulate your money, and benefit from interest rate but the only constraint is that withdrawal of money is limited.
Mortgages:
A mortgage is different from other loans but similar in another way as a lender will lend money to the borrower for a period of time and will have to pay installments with interest. Mortgages are secured by the property, that is if the borrower fails to return the money borrowed he will lose the property.
Personal Loans:
Individuals can apply for a loan from the bank and if they meet the bank criteria, the bank will lend money to that individual for a fixed period of time and in exchange the borrower will have to pay monthly installments that include interest rate. This type of loan is usually used to achieve personal goals such as: building a house.
Credit Cards:
Credit cards are given by financial institutions, it allows the card holder to borrow money from those institutions in order to make purchases. They operate on a revolving credit system, which means that customers have a credit limit and should repay the money borrowed along with an interest on a monthly basis. This card has some advantages, but individuals have to be careful with their purchase habits to minimize accumulation debt.
Certificate of deposits:
Certificate of deposits is a type of savings account that is used to save money for a short amount of time to accomplish a specific goal. You agree with the bank to deposit a certain amount of money each month. The only constraint is that you cannot withdraw money until you reach the agreed date but the bank pays you a higher interest rate on the money deposited.
