Over recent years the popularity of online banking in the UK has soared, with many consumers enjoying the benefits of being able to conduct their day to day finances and manage their bank accounts from the comfort and privacy of their own homes. These days, many major banks offer online banking facilities to customers, and some banks even operate solely online, reflecting the popularity of banking online.
With online banking many consumers are able to conduct all sorts of transactions online – in fact, pretty much anything other than physically making deposits or withdrawing cash can be done using an online bank account. You can set up or cancel direct debits or standing orders, transfer money, make one off bill payments, check balances, check statements, order stationery such as cheque books, and more.
But just how safe is online banking? Well, the risk of fraud and theft in relation to online banking was once a major concern amongst consumers, and this resulted in many being reluctant to conduct their banking online some years ago. However, banks now use sophisticated software that minimises the risk to the customer, and this has resulted in more and more people enjoying the benefits of online banking whilst also enjoying peace of mind.
Providing you are sensible and exercise caution with regards to your bank account you will find that doing your banking online can be perfectly safe. However, you need to make sure that you do not put yourself at risk through your own actions. For example, although security amongst online banks has become more sophisticated, so have procedures used by fraudsters, and there are some common scams that you need to look out for.
One common scam is known as phishing, and this is where you receive an email that appears to be from your bank, asking you to link to the site and enter your account details. This is something that you should never do, as banks will not send out this type of email. If you have any concerns following the receipt of such an email you should either contact your bank by phone or you should log into your bank account through the search engine and never through the email link, otherwise you will be handing your account details to fraudsters on a plate.
Another thing that you should avoid doing is saving your bank details and password details on a computer that is shared, as this gives others access to your details. Even when the computer is not shared it is safer and more secure to make sure that your details are not saved, and to enter them manually each time you log into your bank account.
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02 Desember 2008
Top 5 reasons to use online banking
In recent years online banking has become increasingly popular, and many consumers have benefited from being able to conduct all of their banking transactions online without having to resort to queuing in the local bank or spending time trying to get through automated switchboard in order to speak to someone on the phone.
Online banking allows you to run your day to day finances, and manage your bank account, with ease and convenience, and with this method of banking you are always in control. With online banking you get to enjoy convenience, ease, speed, and increased control, which is why so many people now decide to conduct their banking transactions online rather than at a branch. The main reasons many people opt to use online banking are:
The ultimate in convenience: When you use online banking you can conduct your transactions from the comfort and privacy of your own home, so you won't have to worry about going out to your local branch, spending time queuing up, and trying to fit your banking commitments into your busy day, which can be particularly difficult for those that work full time.
No time constraints: With regular banking you are restricted in terms of when you can contact or call in to the bank in order to conduct transactions, and this can prove difficult for those with busy lifestyles and full time jobs. However, when you opt for online banking you can conduct transactions at any time of the day or night, which means that you can effectively manage your account around the clock.
Do everything you need to online: You will find that you are able to conduct pretty much any banking transaction that you can perform by phone or visit to your branch by going online, other than withdrawing and depositing cash. This means that you can effectively control your finances from the privacy of your own home.
Increased security: Banks now use very secure software to ensure the safety and security of customers, making it safer than ever to bank online. Just remember never to link to your bank account from an email link, as this could be a false link, and do not save your banking passwords and security details on a shared computer that could give others access.
24 hour access to your account: With online banking you can access your account 24 hours a day, conducting transactions such as making bill payments, checking your balance and statements, setting up or cancelling direct debits and standing orders, and more.
Gone are the days when you could only gain access to you bank between the hours of 9.30am and 3.30pm.
Online banking allows you to run your day to day finances, and manage your bank account, with ease and convenience, and with this method of banking you are always in control. With online banking you get to enjoy convenience, ease, speed, and increased control, which is why so many people now decide to conduct their banking transactions online rather than at a branch. The main reasons many people opt to use online banking are:
The ultimate in convenience: When you use online banking you can conduct your transactions from the comfort and privacy of your own home, so you won't have to worry about going out to your local branch, spending time queuing up, and trying to fit your banking commitments into your busy day, which can be particularly difficult for those that work full time.
No time constraints: With regular banking you are restricted in terms of when you can contact or call in to the bank in order to conduct transactions, and this can prove difficult for those with busy lifestyles and full time jobs. However, when you opt for online banking you can conduct transactions at any time of the day or night, which means that you can effectively manage your account around the clock.
Do everything you need to online: You will find that you are able to conduct pretty much any banking transaction that you can perform by phone or visit to your branch by going online, other than withdrawing and depositing cash. This means that you can effectively control your finances from the privacy of your own home.
Increased security: Banks now use very secure software to ensure the safety and security of customers, making it safer than ever to bank online. Just remember never to link to your bank account from an email link, as this could be a false link, and do not save your banking passwords and security details on a shared computer that could give others access.
24 hour access to your account: With online banking you can access your account 24 hours a day, conducting transactions such as making bill payments, checking your balance and statements, setting up or cancelling direct debits and standing orders, and more.
Gone are the days when you could only gain access to you bank between the hours of 9.30am and 3.30pm.
The Future of Offshore Banking, Corporations and Foundations
First it needs to be stated that no one has a crystal ball which predicts the future. These thoughts are just opinions and should be taken as such not as legal or tax advice. We will try to show the political positions of the countries that are not in favor of the tax haven offshore jurisdictions and the position of the tax haven countries. The countries most outspoken against offshore banking and offshore corporations are Australia, UK and USA.
Today there is a great outcry from these and other countries about the tax saving benefits afforded to citizens of certain countries by going offshore. These countries claim that their constituents are cheating them out of billions of dollars of taxes by going offshore. The offshore jurisdictions that are considered the tax havens say that is a nice allegation but we are not your collection agency and do not ask us to change our bank and corporate privacy laws because your constituents do not want to pay taxes, this is your problem not ours. The actual amount of taxes that are avoided unlawfully is a figure that one can only take a guess at. Many people set up offshore structures to do business outside of their home country and are not in violation of any laws the way they conduct their business affairs. Many people live in other countries and need to own offshore bank accounts, offshore corporations, offshore real estate, etc. Many people use offshore privacy to protect themselves from identity theft, kidnapping, blackmail, and possible extortion.
Let me use an analogy to make a point. In Latin America there is an organization of five states called Mercosur. Mercosur consists of Argentina, Brazil, Paraguay, Venezuela, and Uruguay. Mercosur also has associate members which are as follows: Chile, Bolivia, Peru, Columbia and Ecuador. The Mercosur countries engage in free trade and easy border controls with no passports, just national identity cards for border crossings. Mercosur recently issued a statement that they would in the future strive to resist any further attempts to get them to spend more resources on narcotics enforcement that stems from the UN. The UN says its member countries must enact certain kinds of laws to control narcotics and states these laws and insists on enforcement policies. The Mercosur spokesperson stated that this was an irrational policy since it has not worked for over a quarter of a century and it was severely draining the resources of their countries. Essentially they said they were sick and tired of the United States which is the nation driving these policies through the UN, making their problems, the problems of other countries and they were going to collectively attempt to legalize narcotics in their own nations to free themselves from this heavy burden of narcotics enforcement. This has already begun to happen in Bolivia, Paraguay, Argentina and Venezuela with the abundant legal availability of cocoa leaf. The cocoa leaf has cocaine alkaloids (real cocaine) and is commonly used as a chew like chewing tobacco leaf or made into tea leaves. Street cocaine is perhaps 30 times as potent and is diluted with harmful substances like turpentine, ether, etc. Cocoa leaf is a natural plant product used for centuries as a stimulant by people living in the high altitudes of Bolivia, farm workers etc. One can now see coca tea being sold freely on the internet but I would strongly advice you not to order any because you may get charged with narcotics importation, seriously because it can be lab tested to contain cocaine. So my point is a lot of countries have said ok enough is enough when it comes to narcotics. It is not working leave us alone, take care of your own problem. So Mercosur countries are now worrying about their own problems more and less about the narcotics issues in the USA and other nations. I think you will see more of the same type of thinking when it comes to offshore banking, offshore corporations, offshore foundations, offshore stock brokerage accounts etc.
Offshore jurisdictions have to go through all sorts of compliance that is not needed in say the USA or the UK. One offshore formation agent went to the USA and was able to open eight USA bank accounts in one day. In Panama a bank account can take five days after you collect and submit the reference letters and documents. In the USA and UK no bank reference letters are required to open a bank account, neither are any professional references required. In the USA and UK they do enforce money laundering protective measures strictly. One can buy USA corporations or UK corporations without any of the due diligence requirements that are required from offshore jurisdictions. So the playing field is not exactly level yet these countries are screaming for more controls not on themselves but on other countries. It seems that the offshore jurisdictions will scream enough is enough if any further controls are imposed on them and resist them. Of course one wonders what further controls they could come up with that they haven’t already imposed.
Let’s look at history a little to see how things deteriorated in the past regarding offshore privacy and offshore banking. Most of the older offshore tax havens are also tourist destinations such as Cayman Islands, Nassau, Bermuda, Grenada, Belize etc. These countries usually have little if any natural resources and need to bring in everything they consume. While some of them avoid income taxes instead they impose taxes on goods imported. These countries got heavily involved in tourism as a way to keep their economies moving. A cruise ship docking at these ports usually carries 2500 people. Each person probably spends an average of $100 a day when in this ports buying t-shirts, duty free liquor, tobacco, jewelry etc. many spend a good deal more. That is $250,000 per cruise ship. These jurisdictions get from 3 ships per week, to 40 ships per week docking there. The money from the cruise ships exceeds what would be earned from their previous offshore banking and incorporation activities. Remember a bank that controls hundreds of millions of dollars of deposits can only have 50 or so employees. A thriving cruise ship port can have thousands of employees working in the shops, restaurants, as tour guides, taxi drivers etc. So more jobs are at stake in the tourism business. We also have to take into account the resorts these countries have which create even more jobs and generate revenue in the form of a hotel room tax built into the rates. These countries also charge a head tax on every person coming into their country. Bottom line is there is much more money in the tourism business than there is the offshore business for the government of these jurisdictions. The governments of these countries don’t make much off of a bank account for instance, actually nothing. They have no income or capital gains tax. The offshore corporations would pay a few hundred dollars a year in taxes but that was it. The banks would pay a few thousand dollars a year for their licenses. So these countries sold out on offshore privacy to protect their tourism. If they did not do so the countries allowing tax free importation from these countries of tourist bought items might go away. Tourists returning from these countries by ship or air might find themselves stuck in long lines while they are searched and interrogated by authorities of various affected countries which would quickly and seriously discourage tourism to these countries. Other countries like Switzerland, Lichtenstein, and Luxembourg sold out due to pressure from the EU. But now we are seeing a reversal in position regarding the EU, not much of a reversal but at least a sigh of OK enough is enough.
In recent months the USA was exposed by the New York Times Newspaper in a scandal whereby they were monitoring SWIFT wire transactions for some years. SWIFT is a private company that enables banks to communicate with each other securely including sending wire transfers. SWIFT machines require a separate terminal and line so as to make them most secure. The USA served a court order on the SWIFT people in New York to turn over all the data they requested and gag ordered them to not mention what was going on. It went on for two years. This got the EU nations most upset. While they have not actually prosecuted the SWIFT people for violating the banking laws of the various European nations affected, there was serious talk of it. Whether or not obeying a USA court order to violate the banking laws of other nations is a viable defense has never been tested in any court, yet anyway. The EU position on this was they must get the USA to understand their banking laws call for privacy. This of course is not exactly giving ground for more privacy invasive laws which is what we mean by a reversal.
Today the most privacy oriented jurisdiction in the world is Panama. Panama has 400,000 corporations registered there. Panama requires corporation formation agents to be lawyers and their know your client rules are strict and call for criminal penalties if not followed. Panama banks follow tight anti-money laundering laws as well as know your customer laws. Panama does still allow for anonymous bearer share corporations which do not require the entry into any registry of any ownership names or identities. The anonymous bearer share corporations combined with Panama bank secrecy laws make for the best privacy in the world today. Panama foundations are also anonymous with no owners, beneficiaries or protectors names appearing in any registry or database. Panama is also in no tax treaty with any other country and is fairly unique in this regards. Of course one can ask the question if Panama can sustain their practices under pressure from other nations.
First off Panama does follow the FATF (Financial Action Task Force) practices. Secondly Panama does not exactly have a lot of tourism, actually it has quite a small amount of tourism and most of their tourism comes from Latin America not the EU or USA. This means there is no meaningful tourism that can be taken away. Panama is a small country and 15% to 20% of the workforce is employed by the international banks. Panama has 400,000 corporation registered there who each pay $300 in annual corporate taxes. This comes to $120,000,000 dollars and this is for a country of 2.9 million people. Also consider these corporations are paying for resident agents, nominee directors etc. Then we get into Panama Foundations which also collect $300 in annual taxes each year plus nominee council member fees. Panama will and has resisted attempts to compromise banking secrecy and corporate secrecy.
Again let us look towards history to see what we can learn, this time focusing on anonymous bearer share corporations. The issue with anonymous bearer share corporations is that when the international wires are monitored it is impossible to tell who the natural persons are behind the bearer share corporations sending or receiving the wires. The British Virgin Islands used to offer anonymous bearer share corporations. A few years ago they gave in to pressure from the UK and stopped issuing new bearer share corporations but they did make allowances for the existing bearer share corporations to remain anonymous for 10 years. After that time they would need to dissolve or operate in a non-anonymous mode. If we want to look on the dark side we can consider Panama doing the same if international pressure ever built up sufficiently to force a change. So of course those owning an existing bearer share corporation would be unaffected for ten years and these corporations would probably go up significantly in value on the secondary market. We have absolutely no indications subtle or otherwise that anything is going to change in Panama.
It is also a possibility that some other nations may enter into the bank secrecy arena in the near future and some other nations may return to bank secrecy as well. Only time will tell. Nothing we see gives any inkling of an idea that Panama will reverse on its position of bank and corporate privacy and it appears that things may have already sunk to an all time low and offshore banking and corporate privacy may actually soon start to improve, first with the wire transfer system and later on in other areas.
Today there is a great outcry from these and other countries about the tax saving benefits afforded to citizens of certain countries by going offshore. These countries claim that their constituents are cheating them out of billions of dollars of taxes by going offshore. The offshore jurisdictions that are considered the tax havens say that is a nice allegation but we are not your collection agency and do not ask us to change our bank and corporate privacy laws because your constituents do not want to pay taxes, this is your problem not ours. The actual amount of taxes that are avoided unlawfully is a figure that one can only take a guess at. Many people set up offshore structures to do business outside of their home country and are not in violation of any laws the way they conduct their business affairs. Many people live in other countries and need to own offshore bank accounts, offshore corporations, offshore real estate, etc. Many people use offshore privacy to protect themselves from identity theft, kidnapping, blackmail, and possible extortion.
Let me use an analogy to make a point. In Latin America there is an organization of five states called Mercosur. Mercosur consists of Argentina, Brazil, Paraguay, Venezuela, and Uruguay. Mercosur also has associate members which are as follows: Chile, Bolivia, Peru, Columbia and Ecuador. The Mercosur countries engage in free trade and easy border controls with no passports, just national identity cards for border crossings. Mercosur recently issued a statement that they would in the future strive to resist any further attempts to get them to spend more resources on narcotics enforcement that stems from the UN. The UN says its member countries must enact certain kinds of laws to control narcotics and states these laws and insists on enforcement policies. The Mercosur spokesperson stated that this was an irrational policy since it has not worked for over a quarter of a century and it was severely draining the resources of their countries. Essentially they said they were sick and tired of the United States which is the nation driving these policies through the UN, making their problems, the problems of other countries and they were going to collectively attempt to legalize narcotics in their own nations to free themselves from this heavy burden of narcotics enforcement. This has already begun to happen in Bolivia, Paraguay, Argentina and Venezuela with the abundant legal availability of cocoa leaf. The cocoa leaf has cocaine alkaloids (real cocaine) and is commonly used as a chew like chewing tobacco leaf or made into tea leaves. Street cocaine is perhaps 30 times as potent and is diluted with harmful substances like turpentine, ether, etc. Cocoa leaf is a natural plant product used for centuries as a stimulant by people living in the high altitudes of Bolivia, farm workers etc. One can now see coca tea being sold freely on the internet but I would strongly advice you not to order any because you may get charged with narcotics importation, seriously because it can be lab tested to contain cocaine. So my point is a lot of countries have said ok enough is enough when it comes to narcotics. It is not working leave us alone, take care of your own problem. So Mercosur countries are now worrying about their own problems more and less about the narcotics issues in the USA and other nations. I think you will see more of the same type of thinking when it comes to offshore banking, offshore corporations, offshore foundations, offshore stock brokerage accounts etc.
Offshore jurisdictions have to go through all sorts of compliance that is not needed in say the USA or the UK. One offshore formation agent went to the USA and was able to open eight USA bank accounts in one day. In Panama a bank account can take five days after you collect and submit the reference letters and documents. In the USA and UK no bank reference letters are required to open a bank account, neither are any professional references required. In the USA and UK they do enforce money laundering protective measures strictly. One can buy USA corporations or UK corporations without any of the due diligence requirements that are required from offshore jurisdictions. So the playing field is not exactly level yet these countries are screaming for more controls not on themselves but on other countries. It seems that the offshore jurisdictions will scream enough is enough if any further controls are imposed on them and resist them. Of course one wonders what further controls they could come up with that they haven’t already imposed.
Let’s look at history a little to see how things deteriorated in the past regarding offshore privacy and offshore banking. Most of the older offshore tax havens are also tourist destinations such as Cayman Islands, Nassau, Bermuda, Grenada, Belize etc. These countries usually have little if any natural resources and need to bring in everything they consume. While some of them avoid income taxes instead they impose taxes on goods imported. These countries got heavily involved in tourism as a way to keep their economies moving. A cruise ship docking at these ports usually carries 2500 people. Each person probably spends an average of $100 a day when in this ports buying t-shirts, duty free liquor, tobacco, jewelry etc. many spend a good deal more. That is $250,000 per cruise ship. These jurisdictions get from 3 ships per week, to 40 ships per week docking there. The money from the cruise ships exceeds what would be earned from their previous offshore banking and incorporation activities. Remember a bank that controls hundreds of millions of dollars of deposits can only have 50 or so employees. A thriving cruise ship port can have thousands of employees working in the shops, restaurants, as tour guides, taxi drivers etc. So more jobs are at stake in the tourism business. We also have to take into account the resorts these countries have which create even more jobs and generate revenue in the form of a hotel room tax built into the rates. These countries also charge a head tax on every person coming into their country. Bottom line is there is much more money in the tourism business than there is the offshore business for the government of these jurisdictions. The governments of these countries don’t make much off of a bank account for instance, actually nothing. They have no income or capital gains tax. The offshore corporations would pay a few hundred dollars a year in taxes but that was it. The banks would pay a few thousand dollars a year for their licenses. So these countries sold out on offshore privacy to protect their tourism. If they did not do so the countries allowing tax free importation from these countries of tourist bought items might go away. Tourists returning from these countries by ship or air might find themselves stuck in long lines while they are searched and interrogated by authorities of various affected countries which would quickly and seriously discourage tourism to these countries. Other countries like Switzerland, Lichtenstein, and Luxembourg sold out due to pressure from the EU. But now we are seeing a reversal in position regarding the EU, not much of a reversal but at least a sigh of OK enough is enough.
In recent months the USA was exposed by the New York Times Newspaper in a scandal whereby they were monitoring SWIFT wire transactions for some years. SWIFT is a private company that enables banks to communicate with each other securely including sending wire transfers. SWIFT machines require a separate terminal and line so as to make them most secure. The USA served a court order on the SWIFT people in New York to turn over all the data they requested and gag ordered them to not mention what was going on. It went on for two years. This got the EU nations most upset. While they have not actually prosecuted the SWIFT people for violating the banking laws of the various European nations affected, there was serious talk of it. Whether or not obeying a USA court order to violate the banking laws of other nations is a viable defense has never been tested in any court, yet anyway. The EU position on this was they must get the USA to understand their banking laws call for privacy. This of course is not exactly giving ground for more privacy invasive laws which is what we mean by a reversal.
Today the most privacy oriented jurisdiction in the world is Panama. Panama has 400,000 corporations registered there. Panama requires corporation formation agents to be lawyers and their know your client rules are strict and call for criminal penalties if not followed. Panama banks follow tight anti-money laundering laws as well as know your customer laws. Panama does still allow for anonymous bearer share corporations which do not require the entry into any registry of any ownership names or identities. The anonymous bearer share corporations combined with Panama bank secrecy laws make for the best privacy in the world today. Panama foundations are also anonymous with no owners, beneficiaries or protectors names appearing in any registry or database. Panama is also in no tax treaty with any other country and is fairly unique in this regards. Of course one can ask the question if Panama can sustain their practices under pressure from other nations.
First off Panama does follow the FATF (Financial Action Task Force) practices. Secondly Panama does not exactly have a lot of tourism, actually it has quite a small amount of tourism and most of their tourism comes from Latin America not the EU or USA. This means there is no meaningful tourism that can be taken away. Panama is a small country and 15% to 20% of the workforce is employed by the international banks. Panama has 400,000 corporation registered there who each pay $300 in annual corporate taxes. This comes to $120,000,000 dollars and this is for a country of 2.9 million people. Also consider these corporations are paying for resident agents, nominee directors etc. Then we get into Panama Foundations which also collect $300 in annual taxes each year plus nominee council member fees. Panama will and has resisted attempts to compromise banking secrecy and corporate secrecy.
Again let us look towards history to see what we can learn, this time focusing on anonymous bearer share corporations. The issue with anonymous bearer share corporations is that when the international wires are monitored it is impossible to tell who the natural persons are behind the bearer share corporations sending or receiving the wires. The British Virgin Islands used to offer anonymous bearer share corporations. A few years ago they gave in to pressure from the UK and stopped issuing new bearer share corporations but they did make allowances for the existing bearer share corporations to remain anonymous for 10 years. After that time they would need to dissolve or operate in a non-anonymous mode. If we want to look on the dark side we can consider Panama doing the same if international pressure ever built up sufficiently to force a change. So of course those owning an existing bearer share corporation would be unaffected for ten years and these corporations would probably go up significantly in value on the secondary market. We have absolutely no indications subtle or otherwise that anything is going to change in Panama.
It is also a possibility that some other nations may enter into the bank secrecy arena in the near future and some other nations may return to bank secrecy as well. Only time will tell. Nothing we see gives any inkling of an idea that Panama will reverse on its position of bank and corporate privacy and it appears that things may have already sunk to an all time low and offshore banking and corporate privacy may actually soon start to improve, first with the wire transfer system and later on in other areas.
Offshore Banking Information
Offshore Banking
Offshore banking or Offshore banks refers to the many banking and investment institutions available in countries and jurisdictions other than the depositor’s home country. While technically any bank can be considered an Offshore bank when it meets the above criteria, the term is generally reserved for the banking institutions located in what are consider low-regulation, low-taxation “haven” jurisdictions.
Since their origin, Offshore banks tended to be unfairly portrayed by both media and the home jurisdictions alike--the accusations have ranged from tax evasion to money laundering, but careful examination of the true purpose of the Offshore banks, and an unbiased examination of where illicit funds are truly held or “laundered” sheds light on the situation. Other false accusations have centered around criticism of unsafe environments, poor regulation, etc. Again, these could not be further from the truth. Most Offshore banking jurisdictions of any repute have very sophisticated, stable banking regulations, and because it is in their best interest to attract and keep depositors, these regulations are geared towards meeting the needs of the depositor. Many of these jurisdictions rely on foreign capital held in their banks as their primary economic factor, and as their only source of foreign investment.
What is Offshore Banking?
The broad definition of an Offshore bank is that of a bank that is located in a jurisdiction or country that is different from the jurisdiction or country that the depositor or investor resides in. One of the many benefits of holding an Offshore banking account is that they are usually located in tax havens that provide substantial asset protection and confidentiality benefits to the account holder. These jurisdictions also often allow for a relaxation of restrictions with respect to the types of accounts available to depositors or investors, and how then can manipulated. This amounts to decreased regulation. The more popular offshore jurisdictions often provide a substantial decrease in tax liability. While technically any bank outside of a depositor’s home country can be called an “offshore bank,” for our purposes here we will focus only on those proven to provide quantifiable benefits as outlined above. These Offshore banks can be located in actual island-states such as the Caymans or Channel Islands, or in landlocked countries such as Switzerland--being surrounded by water is no longer a determining factor.
As mentioned in our opening paragraph, there are a number of misconceptions and myths associated with offshore banking in these offshore financial centers… Are Offshore Banks the Haven of Money Launderers and Criminals? We have additional information on Offshore Banking Myths that should be taken into consideration.
Where Should an Offshore Bank Account be Established?
It is important that the proper jurisdiction be selected when deciding which jurisdiction to use as an offshore banking jurisdiction. The majority of the offshore jurisdictions have prudent, sound regulations in place geared towards safeguarding the deposits and maintaining their confidentiality. However, some weigh their benefits in taxation, while others in confidentiality, and so forth. Though they all offer a comparatively confidential and secure environment, it bears consideration to outline what the banking goals are and then choose the jurisdiction accordingly. A small minority of the offshore jurisdictions do a poor job of managing and regulating their banking institutions, but the informed investor or advisor will deem these as unsuitable for themselves or their clients. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors and hence prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity.
Offshore Banking History
It is an unfortunate fact that Europeans have always been subjected to relatively heavy tax burdens. This was as true on the British Isles as it was on the continent. Faced with the prospect of watching their hard earned assets and wealth diminish with every out-reach of the tax collector’s hand, they were ripe for a solution. And a solution came--the small, island nation state known as the Channel Islands convinced these frustrated depositors that deposits placed in its banks could be free from scrutiny and hence the heavy-handed taxation burden. The Euros were convinced--and soon this service thrived, with other small jurisdictions becoming savvy to this foreign capital-attracting status and they began to revamp their banking institutions, adopting sound, pragmatic banking rules and regulations that eased the potential concerns of investors and depositors. The Offshore bank was off to a running start!
And soon the term “Offshore banking” became synonymous with any smaller, haven jurisdiction that offered safe, secure, confidential banking with practical regulations. Soon the rest of the world was “in the know,” and began to look at these havens as viable solutions to their needs. Americans, Africans, Asians, etc., found these Offshore banks quite useful for a myriad of reasons. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife, and were most welcome for their stability and asset protection benefits.
In the years since they have come into greater use and thus more visible, offshore banks and accounts have been unfairly portrayed by the media and by the larger jurisdictions as the stomping grounds of the criminal underground--a veritable haven for their illicitly-obtained assets and funds, or the choice locales for their money-laundering schemes. Money-wise investors and depositors have long known that these prejudices could not be further from the truth. They know that offshore banks can be remarkably effective havens for assets and funds in need of safe, secure, confidential keeping. They know that these banks can safeguard their funds from the perils of civil, economic, or political strife in their home countries. Today, offshore banks continue to keep their end of the bargain and continue to provide a safe, confidential haven for those seeking to safeguard their assets and funds from the perils of undue regulation and taxation.
Many a discriminating depositor has benefited from the safe, confidential, and low taxation environment that Offshore banking has to offer. While it is important to assess your goals and discuss these with a competent, experienced agent before leaping into un-chartered waters, there are many unquestionable benefits provided by establishing an Offshore account. Their reputation among depositors and investors for providing a viable banking location featuring protection from liability and confidentiality is growing, and Offshore banks will continue with this hard-earned reputation for asset protection, tax reduction, and superb confidentiality of deposits.
Offshore banking or Offshore banks refers to the many banking and investment institutions available in countries and jurisdictions other than the depositor’s home country. While technically any bank can be considered an Offshore bank when it meets the above criteria, the term is generally reserved for the banking institutions located in what are consider low-regulation, low-taxation “haven” jurisdictions.
Since their origin, Offshore banks tended to be unfairly portrayed by both media and the home jurisdictions alike--the accusations have ranged from tax evasion to money laundering, but careful examination of the true purpose of the Offshore banks, and an unbiased examination of where illicit funds are truly held or “laundered” sheds light on the situation. Other false accusations have centered around criticism of unsafe environments, poor regulation, etc. Again, these could not be further from the truth. Most Offshore banking jurisdictions of any repute have very sophisticated, stable banking regulations, and because it is in their best interest to attract and keep depositors, these regulations are geared towards meeting the needs of the depositor. Many of these jurisdictions rely on foreign capital held in their banks as their primary economic factor, and as their only source of foreign investment.
What is Offshore Banking?
The broad definition of an Offshore bank is that of a bank that is located in a jurisdiction or country that is different from the jurisdiction or country that the depositor or investor resides in. One of the many benefits of holding an Offshore banking account is that they are usually located in tax havens that provide substantial asset protection and confidentiality benefits to the account holder. These jurisdictions also often allow for a relaxation of restrictions with respect to the types of accounts available to depositors or investors, and how then can manipulated. This amounts to decreased regulation. The more popular offshore jurisdictions often provide a substantial decrease in tax liability. While technically any bank outside of a depositor’s home country can be called an “offshore bank,” for our purposes here we will focus only on those proven to provide quantifiable benefits as outlined above. These Offshore banks can be located in actual island-states such as the Caymans or Channel Islands, or in landlocked countries such as Switzerland--being surrounded by water is no longer a determining factor.
As mentioned in our opening paragraph, there are a number of misconceptions and myths associated with offshore banking in these offshore financial centers… Are Offshore Banks the Haven of Money Launderers and Criminals? We have additional information on Offshore Banking Myths that should be taken into consideration.
Where Should an Offshore Bank Account be Established?
It is important that the proper jurisdiction be selected when deciding which jurisdiction to use as an offshore banking jurisdiction. The majority of the offshore jurisdictions have prudent, sound regulations in place geared towards safeguarding the deposits and maintaining their confidentiality. However, some weigh their benefits in taxation, while others in confidentiality, and so forth. Though they all offer a comparatively confidential and secure environment, it bears consideration to outline what the banking goals are and then choose the jurisdiction accordingly. A small minority of the offshore jurisdictions do a poor job of managing and regulating their banking institutions, but the informed investor or advisor will deem these as unsuitable for themselves or their clients. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors and hence prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity.
Offshore Banking History
It is an unfortunate fact that Europeans have always been subjected to relatively heavy tax burdens. This was as true on the British Isles as it was on the continent. Faced with the prospect of watching their hard earned assets and wealth diminish with every out-reach of the tax collector’s hand, they were ripe for a solution. And a solution came--the small, island nation state known as the Channel Islands convinced these frustrated depositors that deposits placed in its banks could be free from scrutiny and hence the heavy-handed taxation burden. The Euros were convinced--and soon this service thrived, with other small jurisdictions becoming savvy to this foreign capital-attracting status and they began to revamp their banking institutions, adopting sound, pragmatic banking rules and regulations that eased the potential concerns of investors and depositors. The Offshore bank was off to a running start!
And soon the term “Offshore banking” became synonymous with any smaller, haven jurisdiction that offered safe, secure, confidential banking with practical regulations. Soon the rest of the world was “in the know,” and began to look at these havens as viable solutions to their needs. Americans, Africans, Asians, etc., found these Offshore banks quite useful for a myriad of reasons. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife, and were most welcome for their stability and asset protection benefits.
In the years since they have come into greater use and thus more visible, offshore banks and accounts have been unfairly portrayed by the media and by the larger jurisdictions as the stomping grounds of the criminal underground--a veritable haven for their illicitly-obtained assets and funds, or the choice locales for their money-laundering schemes. Money-wise investors and depositors have long known that these prejudices could not be further from the truth. They know that offshore banks can be remarkably effective havens for assets and funds in need of safe, secure, confidential keeping. They know that these banks can safeguard their funds from the perils of civil, economic, or political strife in their home countries. Today, offshore banks continue to keep their end of the bargain and continue to provide a safe, confidential haven for those seeking to safeguard their assets and funds from the perils of undue regulation and taxation.
Many a discriminating depositor has benefited from the safe, confidential, and low taxation environment that Offshore banking has to offer. While it is important to assess your goals and discuss these with a competent, experienced agent before leaping into un-chartered waters, there are many unquestionable benefits provided by establishing an Offshore account. Their reputation among depositors and investors for providing a viable banking location featuring protection from liability and confidentiality is growing, and Offshore banks will continue with this hard-earned reputation for asset protection, tax reduction, and superb confidentiality of deposits.
How To Avoid Common Personal Banking Mistakes
Using a bank can really save you money, but there are also ways in which you lose a lot of money. If you are not proactive in recognising potential dangers and mistakes, then you could be caught out. Here are some of the most common personal banking mistakes and how to avoid them.
Not reviewing your statements
Many people get their statement each month, open it and then throw it away. If you don't look at your statements properly then you will not see mistakes on your account that could be costing you a lot of money. If there is a payment that you did not make then you could be charged a fee, and there is also a chance that you card has been copied. Checking your statements against all your purchases each month is imperative.
Paying too much
Many people are too lazy to shop around or to question the fees that they pay each month on their accounts. If you look at the fees you pay you might find that you are paying far too much. If this is the case then it is time to shop around for a better deal, because you could save yourself a lot of money each year just by not paying expensive banking fees.
Leaving paper around
When you look at your bank statement or open bank related information, make sure that you don't leave it lying around. If you carelessly discard information relating to your account then you are an easy target for identity thieves and fraudsters. Make sure that you keep all bank related information in a safe place, and shred any documents that you are going to throw away.
Using ATMs without care
When using an ATM, make sure that you take precautions. Do not write down your PIN number anywhere near your card, and make sure that you shield your number when you type it in. Being aware of people around you when using an ATM can stop most potential crime.
Banking online in public
Although you might need to check your account urgently, checking your online account and carrying out transactions on a wireless network is not totally secure. There is a chance that someone could access your details, or that the transaction will be lost. Use your online banking at home if at all possible.
Not establishing a relationship
If you want to get the best deals from your bank, then you need to establish a relationship with them. If you have a local branch, then arrange a meeting with the bank manager so that you know who they are. Although you might never need their help, if there are any problems or you need extra funds then knowing your bank manager can really help.
Only borrowing from your bank
If you have been loyal to one bank for a while, then perhaps it is time to rethink that loyalty. Although you might think your bank offers the best deal, whenever you want to purchase a new financial product you should shop around. There are many other places, particularly online, that can offer you great deals on borrowing money from credit cards or loans. If you are careful with your banking information and shop around for the best deals, then you can avoid most of these common personal banking mistakes.
Not reviewing your statements
Many people get their statement each month, open it and then throw it away. If you don't look at your statements properly then you will not see mistakes on your account that could be costing you a lot of money. If there is a payment that you did not make then you could be charged a fee, and there is also a chance that you card has been copied. Checking your statements against all your purchases each month is imperative.
Paying too much
Many people are too lazy to shop around or to question the fees that they pay each month on their accounts. If you look at the fees you pay you might find that you are paying far too much. If this is the case then it is time to shop around for a better deal, because you could save yourself a lot of money each year just by not paying expensive banking fees.
Leaving paper around
When you look at your bank statement or open bank related information, make sure that you don't leave it lying around. If you carelessly discard information relating to your account then you are an easy target for identity thieves and fraudsters. Make sure that you keep all bank related information in a safe place, and shred any documents that you are going to throw away.
Using ATMs without care
When using an ATM, make sure that you take precautions. Do not write down your PIN number anywhere near your card, and make sure that you shield your number when you type it in. Being aware of people around you when using an ATM can stop most potential crime.
Banking online in public
Although you might need to check your account urgently, checking your online account and carrying out transactions on a wireless network is not totally secure. There is a chance that someone could access your details, or that the transaction will be lost. Use your online banking at home if at all possible.
Not establishing a relationship
If you want to get the best deals from your bank, then you need to establish a relationship with them. If you have a local branch, then arrange a meeting with the bank manager so that you know who they are. Although you might never need their help, if there are any problems or you need extra funds then knowing your bank manager can really help.
Only borrowing from your bank
If you have been loyal to one bank for a while, then perhaps it is time to rethink that loyalty. Although you might think your bank offers the best deal, whenever you want to purchase a new financial product you should shop around. There are many other places, particularly online, that can offer you great deals on borrowing money from credit cards or loans. If you are careful with your banking information and shop around for the best deals, then you can avoid most of these common personal banking mistakes.
Tips For Safe And Secure Banking
Although most of us never have any security problems with are banking, fraudsters and identity thieves are finding more and more ways to steal our hard earned money. If you are careless with your banking then you can make it very easy for people to access your details and steal your money. If you want to keep your banking safe and secure, then follow these simple steps.
Careful ATM use
The simplest things can help to protect your money, and one such step is to be careful when using cash machines. Make sure that you don’t have your PIN number written down anywhere, and check behind you to make sure that no one is trying to read your number whilst you type it in. Also, if you see anything suspicious on or around the cash machine, don’t use it.
Destroying documents
We all receive a heap of bank statements and correspondence from our banks, many of which we simply don’t need to keep. If you are going to through out anything that is related to your financial affairs or bank accounts, then make sure you dispose of it properly. A common trick of identity thieves is to look through your rubbish to obtain your bank details. Make sure that all important documents are kept safe, and that any discarded documents are thoroughly shredded or torn up so as to make them unreadable.
Never give out your details
Another technique that is used by fraudsters is to try and get you to give them your bank details by sending you mail or email pretending to be your bank. If you get emails or messages asking you to give up your bank details, then ignore them completely. Your bank will never ask you for your details via postage or email, as these methods are not secure. If you are unsure about whether an email or message is genuine, call your bank to obtain confirmation. Also, you should never give out your bank details to anyone that you don’t trust 100%. The more people that you give your details to, even family members, then the more exposed you are to fraud.
Online banking
When you are banking online, make sure that you only access your account in a secure place, and try to avoid looking at account details on public servers. Also, you should make sure that you have adequate virus protection and firewall software on your company so as to stop anyone accessing your bank details. Furthermore, try and avoid making purchases on web sites that you do not trust or if you are unsure about their security features. Try and avoid using debit cards altogether online for purchases, as their security features are much weaker than credit cards.
Reducing the risks
The key to safe and secure banking is to reduce the risk of your account details being exposed. The best way to do this is to go completely paperless, as some banks now offer online only accounts. If you have adequate computer protection then paperless banking can really reduce the risks of your bank details being used by someone else.
Careful ATM use
The simplest things can help to protect your money, and one such step is to be careful when using cash machines. Make sure that you don’t have your PIN number written down anywhere, and check behind you to make sure that no one is trying to read your number whilst you type it in. Also, if you see anything suspicious on or around the cash machine, don’t use it.
Destroying documents
We all receive a heap of bank statements and correspondence from our banks, many of which we simply don’t need to keep. If you are going to through out anything that is related to your financial affairs or bank accounts, then make sure you dispose of it properly. A common trick of identity thieves is to look through your rubbish to obtain your bank details. Make sure that all important documents are kept safe, and that any discarded documents are thoroughly shredded or torn up so as to make them unreadable.
Never give out your details
Another technique that is used by fraudsters is to try and get you to give them your bank details by sending you mail or email pretending to be your bank. If you get emails or messages asking you to give up your bank details, then ignore them completely. Your bank will never ask you for your details via postage or email, as these methods are not secure. If you are unsure about whether an email or message is genuine, call your bank to obtain confirmation. Also, you should never give out your bank details to anyone that you don’t trust 100%. The more people that you give your details to, even family members, then the more exposed you are to fraud.
Online banking
When you are banking online, make sure that you only access your account in a secure place, and try to avoid looking at account details on public servers. Also, you should make sure that you have adequate virus protection and firewall software on your company so as to stop anyone accessing your bank details. Furthermore, try and avoid making purchases on web sites that you do not trust or if you are unsure about their security features. Try and avoid using debit cards altogether online for purchases, as their security features are much weaker than credit cards.
Reducing the risks
The key to safe and secure banking is to reduce the risk of your account details being exposed. The best way to do this is to go completely paperless, as some banks now offer online only accounts. If you have adequate computer protection then paperless banking can really reduce the risks of your bank details being used by someone else.
What Is Online Banking And How You Can Benefit From It
The internet has become an important part of our lives. There are many of us who rely on the internet to communicate with our friends and family. Online shopping is also making buying new and used merchandise easier. If you enjoy using the internet to communicate with those that you know or to shop, you may also enjoy banking online. Online banking is rapidly increasing in popularity. If you do not already participate in some form of online banking, it is likely that you will in the future.
When it comes to online banking, there is often some confusion. Many individuals, maybe even yourself included, feel that online banking involves a bank that does not have a physical branch location. There is such a thing as an online bank, also sometimes referred to as a virtual bank, but that is not all that online banking is about. You can also participate in online banking with your local bank. In fact, this is the most popular type of online banking.
If you are interested in participating in online banking, you will first have to determine whether or not your bank offers the service. A large number of banks do, but not all of them. You will find that many national or statewide banks offer online banking. Smaller banks, often only consisting of five or so branches, do not always offer the service. Even if you have never heard of online banking being offered at your local financial institution, you are still encouraged to ask about it. You never know, but if enough customers are interested in it, your local bank may decide to start an online banking program.
Online banking means different things to different financial institutions. You may find that different banks offer different online services. Despite the difference in services, you will find a number of common services. These services are likely to include the online paying of bills, the online ordering of a debit card or checks, or the altering of your bank account information. Perhaps, the feature that most enjoy is the ability to pay bills online.
Most banks offer online banking free of charge, but you may find a financial institution that charges you to use this online service. If you have yet to choose a bank to do business with, you may want to keep this potential fee in mind. If your bank will charge you a fee, you may want to consider whether or not online banking is right for you. As with all other services, online banking does have its advantages and disadvantages.
As previously mentioned, the greatest advantage of online banking is being able to do a number of things right from your home. If you are looking for an easier way to pay your bills, you will enjoy online banking. Instead of having to pay for postage or write a check, you can simply use the click of a mouse to pay your bills. There are also banks that offer online calendars. Combined with quickly being able to pay your bills, you may find that an online calendar will help to eliminate any late payments.
The biggest disadvantage of online banking is having your information online. There are many individuals, maybe even yourself included, who are concerned with the security of the internet. As long as your bank’s website is hosted on a secure website, which most are, you should experience no trouble at all. Aside from getting over the issue of trust, there are very few, if any, disadvantages to banking online.
Before making a decision as to whether or not you want to participate in online banking, you are encouraged to speak with a bank representative. You may be surprised just how convenient and easy it to use the internet to do your banking.
When it comes to online banking, there is often some confusion. Many individuals, maybe even yourself included, feel that online banking involves a bank that does not have a physical branch location. There is such a thing as an online bank, also sometimes referred to as a virtual bank, but that is not all that online banking is about. You can also participate in online banking with your local bank. In fact, this is the most popular type of online banking.
If you are interested in participating in online banking, you will first have to determine whether or not your bank offers the service. A large number of banks do, but not all of them. You will find that many national or statewide banks offer online banking. Smaller banks, often only consisting of five or so branches, do not always offer the service. Even if you have never heard of online banking being offered at your local financial institution, you are still encouraged to ask about it. You never know, but if enough customers are interested in it, your local bank may decide to start an online banking program.
Online banking means different things to different financial institutions. You may find that different banks offer different online services. Despite the difference in services, you will find a number of common services. These services are likely to include the online paying of bills, the online ordering of a debit card or checks, or the altering of your bank account information. Perhaps, the feature that most enjoy is the ability to pay bills online.
Most banks offer online banking free of charge, but you may find a financial institution that charges you to use this online service. If you have yet to choose a bank to do business with, you may want to keep this potential fee in mind. If your bank will charge you a fee, you may want to consider whether or not online banking is right for you. As with all other services, online banking does have its advantages and disadvantages.
As previously mentioned, the greatest advantage of online banking is being able to do a number of things right from your home. If you are looking for an easier way to pay your bills, you will enjoy online banking. Instead of having to pay for postage or write a check, you can simply use the click of a mouse to pay your bills. There are also banks that offer online calendars. Combined with quickly being able to pay your bills, you may find that an online calendar will help to eliminate any late payments.
The biggest disadvantage of online banking is having your information online. There are many individuals, maybe even yourself included, who are concerned with the security of the internet. As long as your bank’s website is hosted on a secure website, which most are, you should experience no trouble at all. Aside from getting over the issue of trust, there are very few, if any, disadvantages to banking online.
Before making a decision as to whether or not you want to participate in online banking, you are encouraged to speak with a bank representative. You may be surprised just how convenient and easy it to use the internet to do your banking.
The Benefits Of Banking
Do you have a bank account? If you do then you are one of the billions of individuals that do. If you do not have a bank account, you are missing out on the many benefits of banking.
The benefits of banking, there are many who wonder exactly what they are. If you are interested in opening up a bank account with a finical institution, but you have yet to do so, you may be wondering what the benefit of banking are. There are an unlimited number of banking benefits. To determine how you can benefit from having a bank account, it is important to examine your needs.
Bank accounts are often obtained because they allow you to have money. If you are employed, it is likely that you will receive a paycheck. There are many financial institutions that you will charge you a fee each time you go to cash in your paycheck. This fee is typically assessed to those individuals who do not have a bank account. While the fee may not seem like a large amount of money at the time, the fees can easily add up. By opening up a savings account or a checking account, you will not be subject to these fees.
Having a bank account often means having a safe place to store your money. If you do not have a bank account, it is likely that you are carrying around large amounts of cash. It is advised, no matter where you live, that you do not carry large amounts of cash with you or keep large amounts of cash in your home. In the event that your money becomes lost or stolen, you will be unable to have that money replaced. A bank account provides you with a safe place to store your money. It also provides you with easy access to your money, either with checks or a debit card.
The elimination of check chasing fees and the security of a bank account are just a few of the many benefits of banking. You may also find that having a bank account will improve your chances of being able to obtain a loan. If you are in need of a personal loan, automobile loan, student loan, or mortgage, you have a higher chance of being approved if you are already the customer a bank. This is because many banks are more likely to do business with their existing customers.
In addition to being approved for a loan with your bank, having a bank account can improve your chances of obtaining financing elsewhere. Before financing is granted, the lender in question will examine your ability to pay. If you have a savings account or a checking account, the balance of those accounts will be taken into consideration. The more money you have in your account, the more likely it is that you will be approved for financing.
If do not already have an account with a bank, it is advised that you at least consider opening one. You should be able to obtain free information from a number of local financial institutions. This information may provide insight into all of the ways that you can benefit from opening up a bank account.
The benefits of banking, there are many who wonder exactly what they are. If you are interested in opening up a bank account with a finical institution, but you have yet to do so, you may be wondering what the benefit of banking are. There are an unlimited number of banking benefits. To determine how you can benefit from having a bank account, it is important to examine your needs.
Bank accounts are often obtained because they allow you to have money. If you are employed, it is likely that you will receive a paycheck. There are many financial institutions that you will charge you a fee each time you go to cash in your paycheck. This fee is typically assessed to those individuals who do not have a bank account. While the fee may not seem like a large amount of money at the time, the fees can easily add up. By opening up a savings account or a checking account, you will not be subject to these fees.
Having a bank account often means having a safe place to store your money. If you do not have a bank account, it is likely that you are carrying around large amounts of cash. It is advised, no matter where you live, that you do not carry large amounts of cash with you or keep large amounts of cash in your home. In the event that your money becomes lost or stolen, you will be unable to have that money replaced. A bank account provides you with a safe place to store your money. It also provides you with easy access to your money, either with checks or a debit card.
The elimination of check chasing fees and the security of a bank account are just a few of the many benefits of banking. You may also find that having a bank account will improve your chances of being able to obtain a loan. If you are in need of a personal loan, automobile loan, student loan, or mortgage, you have a higher chance of being approved if you are already the customer a bank. This is because many banks are more likely to do business with their existing customers.
In addition to being approved for a loan with your bank, having a bank account can improve your chances of obtaining financing elsewhere. Before financing is granted, the lender in question will examine your ability to pay. If you have a savings account or a checking account, the balance of those accounts will be taken into consideration. The more money you have in your account, the more likely it is that you will be approved for financing.
If do not already have an account with a bank, it is advised that you at least consider opening one. You should be able to obtain free information from a number of local financial institutions. This information may provide insight into all of the ways that you can benefit from opening up a bank account.
Lifestyle Banking – Living For Pay Day
For some people it comes mid-month, for others at month’s end. Occasionally it comes right at the start of the month – just in time for you to watch those figures plummet.
And what am I talking about? Pay day.
Lifestyle banking is the term for a new breed of loan, and it’s an appropriate moniker – as our lifestyles have sped up, digitised, and, ultimately, revolutionised our lives so has our demand for more flexible banking services. Services such as the Payday Loan (www.mypaydayloan.co.uk) are surfacing to fill this emerging market and provide a new approach to loans.
We all have hectic lifestyles and speed is often the most important factor in any decision. “How fast?” we ask ourselves of a service - and services such as the Payday Loan are fast. Often, we need to get cash into our account on the same day we request it – and this is becoming more and more viable. In fact, generally, cash advance loans costs less and are more flexible than similar products.
Take the importance of credit ratings to our consumer society today – it’s vital to maintain a good rating as the number of products and services requiring it to be good increase in number daily. A new breed of lenders have emerged who appreciate this problem and most of the time their services will not impact your rating in any way.
None of us want to get into problems financially, yet we have all been in a situation where a cash loan or a cash advance would be beneficial. It might be that getting hold of the money owed to you on pay day in cash is the most cost effective use of that money. After all, companies talk of enabling their cash flow so why shouldn’t we?
If you need to borrow cash fast, and increasingly we all do, then a cash advance loan is precisely the kind of cost effective product that can enable you to do just that, all the while maintaining your long term financial commitments. Typically you can be offered anything up to your current wage minus rent, bills, and so on - and charges are most often fixed depending on the quantity borrowed. Whatever the precise loan you go for, you can be sure to know exactly what to expect before you finalise your decision.
Typically, we want to keep close track of our finances and we look to pay back our loan as soon as possible. However, as flexibility is the key to modern finance, you can generally find that it’s possible to roll over your loan payments to a later date if you feel the need.
A personal loan is designed to help keep your finances liquid, not to increase the burden on your pay packet: and you should find a company which subscribes to responsible lending and won’t let you overspend or harm your ability to meet monthly payments. So, if you feel the need to access money due to you on your next pay day then a short-term, cash advance loan would be ideal for you.
And what am I talking about? Pay day.
Lifestyle banking is the term for a new breed of loan, and it’s an appropriate moniker – as our lifestyles have sped up, digitised, and, ultimately, revolutionised our lives so has our demand for more flexible banking services. Services such as the Payday Loan (www.mypaydayloan.co.uk) are surfacing to fill this emerging market and provide a new approach to loans.
We all have hectic lifestyles and speed is often the most important factor in any decision. “How fast?” we ask ourselves of a service - and services such as the Payday Loan are fast. Often, we need to get cash into our account on the same day we request it – and this is becoming more and more viable. In fact, generally, cash advance loans costs less and are more flexible than similar products.
Take the importance of credit ratings to our consumer society today – it’s vital to maintain a good rating as the number of products and services requiring it to be good increase in number daily. A new breed of lenders have emerged who appreciate this problem and most of the time their services will not impact your rating in any way.
None of us want to get into problems financially, yet we have all been in a situation where a cash loan or a cash advance would be beneficial. It might be that getting hold of the money owed to you on pay day in cash is the most cost effective use of that money. After all, companies talk of enabling their cash flow so why shouldn’t we?
If you need to borrow cash fast, and increasingly we all do, then a cash advance loan is precisely the kind of cost effective product that can enable you to do just that, all the while maintaining your long term financial commitments. Typically you can be offered anything up to your current wage minus rent, bills, and so on - and charges are most often fixed depending on the quantity borrowed. Whatever the precise loan you go for, you can be sure to know exactly what to expect before you finalise your decision.
Typically, we want to keep close track of our finances and we look to pay back our loan as soon as possible. However, as flexibility is the key to modern finance, you can generally find that it’s possible to roll over your loan payments to a later date if you feel the need.
A personal loan is designed to help keep your finances liquid, not to increase the burden on your pay packet: and you should find a company which subscribes to responsible lending and won’t let you overspend or harm your ability to meet monthly payments. So, if you feel the need to access money due to you on your next pay day then a short-term, cash advance loan would be ideal for you.
Your Offline Banker does not Want You to Know the Differences between Online and Offline Banking
There are many major differences between online banking and offline banking; if you are presently undecided between your current, limited offline bank and opening a new online bank account, you should take some time to thoroughly evaluate your choices.
What's so good about opening an online banking account?
An online banking account will make it easy to do all your transactions and bill- paying at home whenever you want; whereas someone who doesn't have an online banking account will have to make a trip to the local bank and sort everything out there.
When you have bills to pay it’s easier to switch on the computer rather than running down to the bank. You also can't delay trips to the bank; when a bill has to be paid, it has to be done on time, unless you want to pay additional fees and risk losing a good relationship with your creditor.
However, there are some benefits to using an offline banking account over an online account. One benefit is going over to the bank and being able to talk to someone face to face if you have a problem with your account. You can speak with a bank employee who will help you through the problem and will assist you in any possible way; and can even inform you of what went wrong.
Do you live within walking distance of your bank? Then another advantage is the exercise that you will get from walking down to the bank.
Other advantages of online banking are being able to make transactions 24 hours a day, 365 days a year. If you give the order outside of regular banking hours, your order will be executed as soon as the bank opens. Do you want to check time deposit rates? No problem, just go online and you won’t have to listen to some music while you are put on hold for twenty minutes, while the operator is trying to find the right person to connect you to.
If there is a problem with your online bank account you may send the bank an email. You can call the bank for urgent problems and since it is an online bank they have a lot less incoming calls than an offline bank. Meaning you will get an answer much faster.
These are just a few advantages and disadvantages you can factor in when you make the decision, but ultimately, the choice will be up to you.
What's so good about opening an online banking account?
An online banking account will make it easy to do all your transactions and bill- paying at home whenever you want; whereas someone who doesn't have an online banking account will have to make a trip to the local bank and sort everything out there.
When you have bills to pay it’s easier to switch on the computer rather than running down to the bank. You also can't delay trips to the bank; when a bill has to be paid, it has to be done on time, unless you want to pay additional fees and risk losing a good relationship with your creditor.
However, there are some benefits to using an offline banking account over an online account. One benefit is going over to the bank and being able to talk to someone face to face if you have a problem with your account. You can speak with a bank employee who will help you through the problem and will assist you in any possible way; and can even inform you of what went wrong.
Do you live within walking distance of your bank? Then another advantage is the exercise that you will get from walking down to the bank.
Other advantages of online banking are being able to make transactions 24 hours a day, 365 days a year. If you give the order outside of regular banking hours, your order will be executed as soon as the bank opens. Do you want to check time deposit rates? No problem, just go online and you won’t have to listen to some music while you are put on hold for twenty minutes, while the operator is trying to find the right person to connect you to.
If there is a problem with your online bank account you may send the bank an email. You can call the bank for urgent problems and since it is an online bank they have a lot less incoming calls than an offline bank. Meaning you will get an answer much faster.
These are just a few advantages and disadvantages you can factor in when you make the decision, but ultimately, the choice will be up to you.
Banking on the Internet Today
Talking about conventional banking, you can already imagine the queue and long and tedious procedures. That was then. Now, most banks in developing and developed countries allow their customers to do their banking on the internet. Banking on the internet is extremely convenient and saves consumers a lot of time. One thing that we may have to concern ourselves with is the safety of banking on the internet. Internet banking replaces tedious tasks like writing and sending checks and personal banking-in of money through a teller or machine. Since we’re performing financial transactions on the internet, we have to make sure that the transactions are completely safe and secure. With the advancement of technology and internet banking infrastructure, most online banking websites are backed up with reliable and dependable systems that helps keep customers’ accounts and information away from prying eyes and malicious programs.
And of course, when you choose to do your banking on the internet, you’re looking at a bank that is open 24 hours a day, 7 days a week. This means, you can literally perform transactions through the internet banking website anytime and anywhere you want without the hassle of driving to the bank, finding a parking space, queuing up, waiting for your turn. Internet banking effectively transforms a task that usually takes about 1 hour into a 2 minute task!
Electronic Fund Transfers (EFT) depend a lot of a form of internet banking technology that utilizes stuff like codes, PINs (Personal Identification Numbers). In order to access your internet banking account, you are issued codes and PINs to help the internet banking system recognize and verify the authentication of the login. This helps protect your account. Some inbound funds transfer done through an internet banking website requires scans of signatures for the officer to verify your identification. However, this is not the case with ALL internet banking websites. The requirements depend a lot on the country that the internet banking website is located.
Through internet banking, you can also authorize or cancel direct debits or even authorize a direct withdrawal from your account for bills like insurance premiums, mortgages, and utility bills. The amazing thing is that you can view and verify these transactions all completely online so that you are notified if there’s something amiss with your internet banking account.
Some financial institutions back their internet banking facilities with a phone-banking system. If the internet banking facility is not for you, you can always pay bills or perform transactions through the phone. Interestingly, if you wish to have a card that ties in with your bank account, the bank will issue you a debit card. The debit card works very much like a credit card; except that you will need to have enough funds in your bank account in order to use the debit card. By logging in to the internet banking account, you can transfer funds from your savings or checking account to your debit card and use the debit card at merchant counters for your purchases.
In this busy and stressful modern world, internet banking seems to be the answer to our banking nightmares.
And of course, when you choose to do your banking on the internet, you’re looking at a bank that is open 24 hours a day, 7 days a week. This means, you can literally perform transactions through the internet banking website anytime and anywhere you want without the hassle of driving to the bank, finding a parking space, queuing up, waiting for your turn. Internet banking effectively transforms a task that usually takes about 1 hour into a 2 minute task!
Electronic Fund Transfers (EFT) depend a lot of a form of internet banking technology that utilizes stuff like codes, PINs (Personal Identification Numbers). In order to access your internet banking account, you are issued codes and PINs to help the internet banking system recognize and verify the authentication of the login. This helps protect your account. Some inbound funds transfer done through an internet banking website requires scans of signatures for the officer to verify your identification. However, this is not the case with ALL internet banking websites. The requirements depend a lot on the country that the internet banking website is located.
Through internet banking, you can also authorize or cancel direct debits or even authorize a direct withdrawal from your account for bills like insurance premiums, mortgages, and utility bills. The amazing thing is that you can view and verify these transactions all completely online so that you are notified if there’s something amiss with your internet banking account.
Some financial institutions back their internet banking facilities with a phone-banking system. If the internet banking facility is not for you, you can always pay bills or perform transactions through the phone. Interestingly, if you wish to have a card that ties in with your bank account, the bank will issue you a debit card. The debit card works very much like a credit card; except that you will need to have enough funds in your bank account in order to use the debit card. By logging in to the internet banking account, you can transfer funds from your savings or checking account to your debit card and use the debit card at merchant counters for your purchases.
In this busy and stressful modern world, internet banking seems to be the answer to our banking nightmares.
"Banking Calories": Eat Less Now To Pig Out Later???
Suppose you’re on a diet and you have a banquet or a holiday party coming up. You’re expecting a big meal to be served for dinner, and there will be open bar with lots and lots of “party snacks.” You’re not sure if there will be any healthy food there, but you are sure that you’re going to be in a festive, partying mood! What should you do? Should you cut back on your food earlier in the day to make room for the big feast?
What I’ve just described is commonly known as "banking calories," which is analogous to saving calories like money because you're going to consume more later, and it’s a very common practice among dieters. If you’re really serious about your diet and fitness goals however, then the answer is no, you should NOT “bank calories! Here's why and here's what you should do instead:
First of all, if you're being really honest with yourself, you have to agree that there's almost always something healthy to eat at any gathering. You know those tables you see at holiday parties that are covered with yards of chips, dips, pretzels, cookies, salami, candies, cheese, punch, liquor, and a seemingly endless assortment of other goodies? Well, did you also notice that there's usually a tray full of carrot sticks, cauliflower, celery, fruit, turkey breast and other healthy snacks too?
No matter where you are, you always have options, so make the best choice you can based on whatever your options are. If nothing else, you can choose to eat a small portion of "party foods" rather than a huge portion.
If you skip meals or eat less earlier in the day to bank calories for a big feast at night, you are thinking only in terms of calories, but yo’re depriving yourself of the valuable nutrition you need all day long in terms of protein (amino acids), carbohydrates, essential fats, vitamins, minerals and other nutrients that come from healthy food, as well as the small frequent meals required to stoke the furnace of your metabolism.
Not only that, but eating less early in the day in anticipation for overeating later is more likely to increase your appetite, causing you to binge or eat much more than you thought you would at night when the banquet does arrive.
Eating healthy food earlier in the day is likely to fill you up and you'll be less likely to overeat in the evening. High fiber foods, healthy fats and especially lean protein, tend to suppress your appetite the most.
I don’t like the concept of "banking calories." Your body just doesn't work that way - it tends to seek equilibrium by adjusting your appetite to the point where you consume the same total amount of calories in the end anyway.
Even if it worked the way you wanted it to, why would you eat less (starve) in an attempt to burn more fat, then overeat (binge) and put the fat right back on? Why allow yourself to put on fat in the first place?
A starving and bingeing pattern will almost certainly cause more damage than an occasional oversize meal. Some dieticians might even say that this kind of behavior borders on disordered eating.
A better approach is to stay on your regular menu of healthy foods and small meals through the entire day - business as usual - and then go ahead and treat yourself to a "cheat meal," but sure to keep your portions small.
It should be a big relief to know that on special occasions, whether it's a party, restaurant meal, banquet or holiday dinner, you can eat whatever you want with little or no ill effect on body composition, as long as you respect the law of calorie balance. However, you CANNOT starve and binge and expect not to reap negative consequences.
To burn fat and be healthy, you don't have to be a "party pooper" or completely deny yourself of foods you enjoy, but you do need to have the discipline to stick with your regular meal plan most of the time and control your portion sizes all of the time.
What I’ve just described is commonly known as "banking calories," which is analogous to saving calories like money because you're going to consume more later, and it’s a very common practice among dieters. If you’re really serious about your diet and fitness goals however, then the answer is no, you should NOT “bank calories! Here's why and here's what you should do instead:
First of all, if you're being really honest with yourself, you have to agree that there's almost always something healthy to eat at any gathering. You know those tables you see at holiday parties that are covered with yards of chips, dips, pretzels, cookies, salami, candies, cheese, punch, liquor, and a seemingly endless assortment of other goodies? Well, did you also notice that there's usually a tray full of carrot sticks, cauliflower, celery, fruit, turkey breast and other healthy snacks too?
No matter where you are, you always have options, so make the best choice you can based on whatever your options are. If nothing else, you can choose to eat a small portion of "party foods" rather than a huge portion.
If you skip meals or eat less earlier in the day to bank calories for a big feast at night, you are thinking only in terms of calories, but yo’re depriving yourself of the valuable nutrition you need all day long in terms of protein (amino acids), carbohydrates, essential fats, vitamins, minerals and other nutrients that come from healthy food, as well as the small frequent meals required to stoke the furnace of your metabolism.
Not only that, but eating less early in the day in anticipation for overeating later is more likely to increase your appetite, causing you to binge or eat much more than you thought you would at night when the banquet does arrive.
Eating healthy food earlier in the day is likely to fill you up and you'll be less likely to overeat in the evening. High fiber foods, healthy fats and especially lean protein, tend to suppress your appetite the most.
I don’t like the concept of "banking calories." Your body just doesn't work that way - it tends to seek equilibrium by adjusting your appetite to the point where you consume the same total amount of calories in the end anyway.
Even if it worked the way you wanted it to, why would you eat less (starve) in an attempt to burn more fat, then overeat (binge) and put the fat right back on? Why allow yourself to put on fat in the first place?
A starving and bingeing pattern will almost certainly cause more damage than an occasional oversize meal. Some dieticians might even say that this kind of behavior borders on disordered eating.
A better approach is to stay on your regular menu of healthy foods and small meals through the entire day - business as usual - and then go ahead and treat yourself to a "cheat meal," but sure to keep your portions small.
It should be a big relief to know that on special occasions, whether it's a party, restaurant meal, banquet or holiday dinner, you can eat whatever you want with little or no ill effect on body composition, as long as you respect the law of calorie balance. However, you CANNOT starve and binge and expect not to reap negative consequences.
To burn fat and be healthy, you don't have to be a "party pooper" or completely deny yourself of foods you enjoy, but you do need to have the discipline to stick with your regular meal plan most of the time and control your portion sizes all of the time.
The Banking Internet Basics
Traditional banking has always been a brick and mortar building where you go to deposit or withdraw money. However, the banking Internet sector has exploded in the past five years. You may not be aware of what banking Internet actually is, and it can be a bit confusing because it has so many names from online banking to PC banking as well as electronic banking and banking online.
With the popularity of the Internet and the power it gives people to take control of their lives, many traditional banks have created banking Internet web pages where customers could transfer money, set up bill payments recurring or otherwise, quickly check items that have cleared, and many other functions that can be accessed 24 hours per day 7 days a week. This banking Internet option has been very popular not only for customers who want to have some control over their account without having to go to the bank but for banks as well whose man hours have been freed up from performing simple tasks like balance inquiries, account transfers, and the like because the customer does it himself with banking Internet.
Banking Internet options also include virtual banks. This is the truest form of banking Internet simply because these banks only exist online. Banking Internet options have become popular because they save customers time and money, which is a very trendy combination. Banking Internet which only exist online means you will have to transfer your money to the new account or else mail a payment via check. Since the whole idea of banking Internet is to make banking as easy as possible, most banking Internet sites will allow you to make a transfer from a brick and mortar bank to the banking Internet site as often as you like with no charge or a small fee.
When you utilize banking Internet options you are able to access your account, move money, pay bills, and any number of things from any computer with Internet access worldwide. This is amazing and makes traveling a lot less stressful as well because with banking Internet you always know where your account stands.
With the popularity of the Internet and the power it gives people to take control of their lives, many traditional banks have created banking Internet web pages where customers could transfer money, set up bill payments recurring or otherwise, quickly check items that have cleared, and many other functions that can be accessed 24 hours per day 7 days a week. This banking Internet option has been very popular not only for customers who want to have some control over their account without having to go to the bank but for banks as well whose man hours have been freed up from performing simple tasks like balance inquiries, account transfers, and the like because the customer does it himself with banking Internet.
Banking Internet options also include virtual banks. This is the truest form of banking Internet simply because these banks only exist online. Banking Internet options have become popular because they save customers time and money, which is a very trendy combination. Banking Internet which only exist online means you will have to transfer your money to the new account or else mail a payment via check. Since the whole idea of banking Internet is to make banking as easy as possible, most banking Internet sites will allow you to make a transfer from a brick and mortar bank to the banking Internet site as often as you like with no charge or a small fee.
When you utilize banking Internet options you are able to access your account, move money, pay bills, and any number of things from any computer with Internet access worldwide. This is amazing and makes traveling a lot less stressful as well because with banking Internet you always know where your account stands.
7 Tips For Better Online Banking
Banking has never been easier than it is today. Online banking allows you to access you bank at any time of day or night. You can even do this dressed in your underwear if you like. And if you choose to do it that way, it's just as well there are no lines to wait in for online banks.
Probably the first thing to consider with online banking is the convenience. You can access your bank via the Internet at any time of day or night, even while lying in bed if you like.
Transaction performed online are generally much cheaper than those done over the counter at a bank branch. You can pay bills, transfer cash, check balances, and much more for much less.
Online savings accounts is something worth considering. The interest rates are usually higher and the fees are lower than traditional bricks and mortar bank branches.
Your computer has convenient ways to help you remember your login details. But don't use the "remember my password" option if your computer suggests it. Keep your bank login details very safe and very secret.
Most online banks will allow you change your password. This is a very good idea and something you should do regularly. Of course, you must also remember your new password each time it is changed.
Logging on to your online bank is easy and very convenient. But after you have completed your business, remember to log out of your online bank again. This is especially important if you access you bank from a library, at work, or in a cyber café.
Enjoy your online banking, but beware of any email you receive asking you to verify your bank details by clicking a link. The site may look authentic, but it will probably be a fake. Respectable banks don't ask anyone to verify details by email.
Probably the first thing to consider with online banking is the convenience. You can access your bank via the Internet at any time of day or night, even while lying in bed if you like.
Transaction performed online are generally much cheaper than those done over the counter at a bank branch. You can pay bills, transfer cash, check balances, and much more for much less.
Online savings accounts is something worth considering. The interest rates are usually higher and the fees are lower than traditional bricks and mortar bank branches.
Your computer has convenient ways to help you remember your login details. But don't use the "remember my password" option if your computer suggests it. Keep your bank login details very safe and very secret.
Most online banks will allow you change your password. This is a very good idea and something you should do regularly. Of course, you must also remember your new password each time it is changed.
Logging on to your online bank is easy and very convenient. But after you have completed your business, remember to log out of your online bank again. This is especially important if you access you bank from a library, at work, or in a cyber café.
Enjoy your online banking, but beware of any email you receive asking you to verify your bank details by clicking a link. The site may look authentic, but it will probably be a fake. Respectable banks don't ask anyone to verify details by email.
What is Online Banking and How Can It Help Me?
If you're like most people, you've heard a lot about online banking but probably haven't tried it yourself. You still pay your bills by mail and deposit checks at your bank branch, much the way your parents did.
You might shop online for a loan, life insurance or a home mortgage, but when it comes time to commit, you feel more comfortable working with your banker or an agent you know and trust rather than use online banking.
Online banking isn't out to change your money habits. Instead, it uses today's computer technology to give you the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage your finances more quickly and easily.
Today, most large national banks, many regional banks and even smaller banks and credit unions offer some form of online banking or Internet banking. Some banks have no physical branches or tellers whatsoever and their whole business revolves entirely around online banking.
Credit card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of credit card fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.
It's not always possible to prevent credit card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility. Here are some tips to help protect yourself from credit card fraud.
Sign your cards as soon as they arrive. Keep a record of your account numbers and their expiration dates in a secure place. Keep an eye on your card during the transaction. Void incorrect receipts. Destroy carbons. Save receipts to compare with billing statements. Report any questionable charges promptly and in writing to the card issuer. Notify card companies in advance of a change in address. All this and more is required to help you avoid credit card fraud.
You might shop online for a loan, life insurance or a home mortgage, but when it comes time to commit, you feel more comfortable working with your banker or an agent you know and trust rather than use online banking.
Online banking isn't out to change your money habits. Instead, it uses today's computer technology to give you the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage your finances more quickly and easily.
Today, most large national banks, many regional banks and even smaller banks and credit unions offer some form of online banking or Internet banking. Some banks have no physical branches or tellers whatsoever and their whole business revolves entirely around online banking.
Credit card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of credit card fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.
It's not always possible to prevent credit card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility. Here are some tips to help protect yourself from credit card fraud.
Sign your cards as soon as they arrive. Keep a record of your account numbers and their expiration dates in a secure place. Keep an eye on your card during the transaction. Void incorrect receipts. Destroy carbons. Save receipts to compare with billing statements. Report any questionable charges promptly and in writing to the card issuer. Notify card companies in advance of a change in address. All this and more is required to help you avoid credit card fraud.
Internet banking fundamentals
Historically banks were institutions that held your money under lock and key. Times are changing, with the internet redefining the banking sector over the last five years. Don’t be confused as it continues to develop, the many names it goes by all mean the same thing electronic, online and PC banking are all just synonyms traditional banking services provided through a secure internet portal.
Traditional banks have monitored the popularity and growth of the internet, and realising customers wanted greater control of their affairs, have created their own internet banking web sites. Customers now have the freedom to securely perform their banking 24 hours a day 7 days a week, where they can pay bills and set up recurring savings or payments, monitor check clearances and perform other tasks like transfers and balance enquiries through an internet connection. The banks also benefit from a lesser need for staff due to the migration to internet banking where customers serve themselves.
The purest form on online banking is the virtual bank, where the only place they exist is in cyberspace. These banks, and all other internet banking continue to grow in popularity because they are convenient, saving customers time and money. To help the growth and assist customers to make the change, many traditional banks offer minimal fee or completely free transfers to help customers migrate to their online banking service. Others will also enable you to set up online banking by simply transferring your funds by check.
Internet banking has revolutionalized banking with immediate global access to your bank accounts using a secure internet connection. Paying bills, transferring funds and just plain monitoring your account are all possible with minimal stress whether you are ravelling, holidaying or working anywhere in the world.
Traditional banks have monitored the popularity and growth of the internet, and realising customers wanted greater control of their affairs, have created their own internet banking web sites. Customers now have the freedom to securely perform their banking 24 hours a day 7 days a week, where they can pay bills and set up recurring savings or payments, monitor check clearances and perform other tasks like transfers and balance enquiries through an internet connection. The banks also benefit from a lesser need for staff due to the migration to internet banking where customers serve themselves.
The purest form on online banking is the virtual bank, where the only place they exist is in cyberspace. These banks, and all other internet banking continue to grow in popularity because they are convenient, saving customers time and money. To help the growth and assist customers to make the change, many traditional banks offer minimal fee or completely free transfers to help customers migrate to their online banking service. Others will also enable you to set up online banking by simply transferring your funds by check.
Internet banking has revolutionalized banking with immediate global access to your bank accounts using a secure internet connection. Paying bills, transferring funds and just plain monitoring your account are all possible with minimal stress whether you are ravelling, holidaying or working anywhere in the world.
Getting The Most Bang For Your Buck Out Of Your Banking Services
I realize most people have already made their resolutions for the New Year, but try adding one more. Decide that you are going to get the biggest bang for your buck out of your banking services this year.
My husband and I have been using the same bank for several years. We have a joint checking account for household expenses and we each have a separate checking account also. The joint account was originally his and my name was added to it when we got married.
The two separate accounts are free checking accounts that we signed up for to simplify some of our expenses and track them better. The money he needs each week for gas and tolls and other miscellaneous expenses goes into his account. Money that I need for the supermarket and children related weekly expenses goes into my account. The joint account is for the mortgage and all other household bills and expenses.
Since this was originally his checking account my husband prefers reconcile that statement when we get it. I usually track the balance in that account when I am paying bills by using the automated phone line. I handle the other two account statements.
I have been looking for more ways to cut expenses this month so we can stick to our resolution to pay down our mortgage and build up more equity. I was mortified when I saw the amount of fees we were paying on that checking account. This month we paid almost $25.00 in extra fees. I checked back a few months and there have been months that were more than that.
This bank charges for everything. We get charged for every check after a certain amount of checks, we get charged for electronic transfers to our children's savings accounts when we make deposits with their online bank, online banking fees, fees for the bank's ATM machine and larger fees if we use a different ATM machine.
Needless to say we will be using a different bank before the month is out. My husband is going to get the paperwork to change his direct deposit and we will get this taken care of before he gets his next paycheck. He gets paid every two weeks.
I was really surprised because my husband is usually so good with money. It's just that he was so territorial about that bank statement. So I left it for him to take care of like he wanted. I guess it had to do with that account being his from before we were married.
If you have been dealing with the same bank for years out of habit or because of its location, do yourself a favor and take a hard look at your statement and decide whether convenience or habit is really worth the fees you are paying. I'd rather be putting that $25.00 a month toward my mortgage than giving it to a bank for fees.
There are too many banks out there that will give you those same services for free. This is such an easy fix and it can save you a couple of hundred dollars a year in fees. Bankrate.Com compares checking account fees in your area for you.
Go to http://www.bankrate.com/brm/default.asp and click on Checking & ATM under where it says compare local interest rates. Once you choose your state, it will give you a list of banks in your area with their fees.
If you click on the avoid fees category heading it will show you the minimum amount you need to keep in the account to avoid fees arranged from the lowest to the highest. If you click on monthly service fees category it will arrange the list again in the order of the banks that charge the lowest service fees each month.
It also lets you know the insufficient funds fee, ATM fees for their and other ATM machines and whether or not online banking is available for each bank. You can also do the same for savings accounts and CD's and just about any other type of account.
If you are already comfortable with online banking you can save even more by paying your bills online, many banks offer that service now too. Automate the process for yourself as much as possible it does help you to save money.
If your job offers direct deposit, take advantage of it. It will save you the trouble of cashing your paycheck (and spending some of it before you get to your bank) before you deposit it. Taking advantage of your bank's online bill pay service will also save you postage and late fees if your payment gets delayed in the mail.
So pull out your checking account statement and take a good hard look at it. Unless your checking account is already free, chances are that you could do better by doing some comparison shopping. Don't let old habits stop you from keeping a few hundred more of your hard earned dollars in your pocket this year.
According to a recent report by Keynote Systems, the leading provider of online customer experience research services, the three banks that offer the best customer experience for online banking services are National City, Washington Mutual and Bank of America. So if you have decided to give online banking a try you might want to check out one of these banks first.
They were chosen out of a group of ten banks which included: The Bank of America, Bank One, Chase, Citibank, National City, Sun Trust, U.S. Bank, Wachovia, Washington Mutual and Wells Fargo.
Now that you have checked out banks to save money on your checking account, do yourself a favor and check out a savings account. If you don’t open one up, you will always be able to give yourself a reason not to save.
I happen to use ING Direct http://www.tkqlhce.com/click-1586025-10281104 Their savings account has a 2.35% APY a year. It is the highest one that I have been able to find. Although it is an online bank, it is attached to my checking account so that I can transfer money to it when I need to.
The thing I like most about ING Direct it is the low minimums. If you are like me and need to start small, there are no minimum deposits to worry about. You can open your savings account for $25.00 or less.
Make it a point to save all of your change in a jar all month long and deposit it into your account once a month. It really does work. We paid for both of our children’s birthday parties this year just by depositing our spare change into the bank that way every month.
Also if you are leery of the stock like I am (we lost some money in the market a couple of years ago), than you can open up CDs. If you ladder the CDs (open a 1 year, 2 year, 3 year, 4 year and 5 year at the same time). It is almost the same as dollar cost averaging with the stock market if you keep adding to them over time and then keep rolling them over. There are also no minimums on CDs with ING Direct.
Many other banks have minimums of $500.00 $1,000.00 and more to open CDs. Their rates are a little better but if cannot meet the minimums at this time, this is the way to go. It will help you to make a start and you can transfer them to a bank with better CD rates once you have accumulated enough money to meet their minimums. As they mature each year you can transfer them one at a time to a bank with a higher rate.
If opening a savings account is not an option you want to explore right now, see if your employer has an employee stock option plan or a 401k you can take advantage of. You can have the money taken out of your check, usually before taxes, and many employers will match what you put in up to a certain amount. That’s a 50% return on your investment. You won’t come close to that in the stock market.
If you have been telling yourself that you have time, eventually you will start saving, stop kidding yourself. We all know that tomorrow never comes, life happens, things come up if we keep allowing them to. I used to tell myself the same thing and something would always come up. It is not going to change until you decide to pay yourself first and make it a priority.
Pretend you are paying a bill that has to be paid then put that amount into your savings account. Save your raise when you receive it. Forget that you got it and put that amount toward your 401k if you have one or put that amount in your savings account every pay period. As you pay off your debts, put part of the money you used to use for your debts in your savings.
There many ways to save. Cutting expenses, clipping coupons eat one less lunch or dinner out a week, cut out one cup of coffee out a day and more. Make it a habit to look for ways to save just like you make it a habit to save. The two habits go hand in hand.
None of us know if Social Security will still be there when we need it. If you don’t make saving some money every month a priority and a habit now, you might just find yourself with only your savings or lack there of and the goodwill of relatives to depend on when you retire. Don’t wait for that. Check your budget now and see where you can squeeze a few extra dollars from. This is one habit you will eventually be grateful you picked up.
My husband and I have been using the same bank for several years. We have a joint checking account for household expenses and we each have a separate checking account also. The joint account was originally his and my name was added to it when we got married.
The two separate accounts are free checking accounts that we signed up for to simplify some of our expenses and track them better. The money he needs each week for gas and tolls and other miscellaneous expenses goes into his account. Money that I need for the supermarket and children related weekly expenses goes into my account. The joint account is for the mortgage and all other household bills and expenses.
Since this was originally his checking account my husband prefers reconcile that statement when we get it. I usually track the balance in that account when I am paying bills by using the automated phone line. I handle the other two account statements.
I have been looking for more ways to cut expenses this month so we can stick to our resolution to pay down our mortgage and build up more equity. I was mortified when I saw the amount of fees we were paying on that checking account. This month we paid almost $25.00 in extra fees. I checked back a few months and there have been months that were more than that.
This bank charges for everything. We get charged for every check after a certain amount of checks, we get charged for electronic transfers to our children's savings accounts when we make deposits with their online bank, online banking fees, fees for the bank's ATM machine and larger fees if we use a different ATM machine.
Needless to say we will be using a different bank before the month is out. My husband is going to get the paperwork to change his direct deposit and we will get this taken care of before he gets his next paycheck. He gets paid every two weeks.
I was really surprised because my husband is usually so good with money. It's just that he was so territorial about that bank statement. So I left it for him to take care of like he wanted. I guess it had to do with that account being his from before we were married.
If you have been dealing with the same bank for years out of habit or because of its location, do yourself a favor and take a hard look at your statement and decide whether convenience or habit is really worth the fees you are paying. I'd rather be putting that $25.00 a month toward my mortgage than giving it to a bank for fees.
There are too many banks out there that will give you those same services for free. This is such an easy fix and it can save you a couple of hundred dollars a year in fees. Bankrate.Com compares checking account fees in your area for you.
Go to http://www.bankrate.com/brm/default.asp and click on Checking & ATM under where it says compare local interest rates. Once you choose your state, it will give you a list of banks in your area with their fees.
If you click on the avoid fees category heading it will show you the minimum amount you need to keep in the account to avoid fees arranged from the lowest to the highest. If you click on monthly service fees category it will arrange the list again in the order of the banks that charge the lowest service fees each month.
It also lets you know the insufficient funds fee, ATM fees for their and other ATM machines and whether or not online banking is available for each bank. You can also do the same for savings accounts and CD's and just about any other type of account.
If you are already comfortable with online banking you can save even more by paying your bills online, many banks offer that service now too. Automate the process for yourself as much as possible it does help you to save money.
If your job offers direct deposit, take advantage of it. It will save you the trouble of cashing your paycheck (and spending some of it before you get to your bank) before you deposit it. Taking advantage of your bank's online bill pay service will also save you postage and late fees if your payment gets delayed in the mail.
So pull out your checking account statement and take a good hard look at it. Unless your checking account is already free, chances are that you could do better by doing some comparison shopping. Don't let old habits stop you from keeping a few hundred more of your hard earned dollars in your pocket this year.
According to a recent report by Keynote Systems, the leading provider of online customer experience research services, the three banks that offer the best customer experience for online banking services are National City, Washington Mutual and Bank of America. So if you have decided to give online banking a try you might want to check out one of these banks first.
They were chosen out of a group of ten banks which included: The Bank of America, Bank One, Chase, Citibank, National City, Sun Trust, U.S. Bank, Wachovia, Washington Mutual and Wells Fargo.
Now that you have checked out banks to save money on your checking account, do yourself a favor and check out a savings account. If you don’t open one up, you will always be able to give yourself a reason not to save.
I happen to use ING Direct http://www.tkqlhce.com/click-1586025-10281104 Their savings account has a 2.35% APY a year. It is the highest one that I have been able to find. Although it is an online bank, it is attached to my checking account so that I can transfer money to it when I need to.
The thing I like most about ING Direct it is the low minimums. If you are like me and need to start small, there are no minimum deposits to worry about. You can open your savings account for $25.00 or less.
Make it a point to save all of your change in a jar all month long and deposit it into your account once a month. It really does work. We paid for both of our children’s birthday parties this year just by depositing our spare change into the bank that way every month.
Also if you are leery of the stock like I am (we lost some money in the market a couple of years ago), than you can open up CDs. If you ladder the CDs (open a 1 year, 2 year, 3 year, 4 year and 5 year at the same time). It is almost the same as dollar cost averaging with the stock market if you keep adding to them over time and then keep rolling them over. There are also no minimums on CDs with ING Direct.
Many other banks have minimums of $500.00 $1,000.00 and more to open CDs. Their rates are a little better but if cannot meet the minimums at this time, this is the way to go. It will help you to make a start and you can transfer them to a bank with better CD rates once you have accumulated enough money to meet their minimums. As they mature each year you can transfer them one at a time to a bank with a higher rate.
If opening a savings account is not an option you want to explore right now, see if your employer has an employee stock option plan or a 401k you can take advantage of. You can have the money taken out of your check, usually before taxes, and many employers will match what you put in up to a certain amount. That’s a 50% return on your investment. You won’t come close to that in the stock market.
If you have been telling yourself that you have time, eventually you will start saving, stop kidding yourself. We all know that tomorrow never comes, life happens, things come up if we keep allowing them to. I used to tell myself the same thing and something would always come up. It is not going to change until you decide to pay yourself first and make it a priority.
Pretend you are paying a bill that has to be paid then put that amount into your savings account. Save your raise when you receive it. Forget that you got it and put that amount toward your 401k if you have one or put that amount in your savings account every pay period. As you pay off your debts, put part of the money you used to use for your debts in your savings.
There many ways to save. Cutting expenses, clipping coupons eat one less lunch or dinner out a week, cut out one cup of coffee out a day and more. Make it a habit to look for ways to save just like you make it a habit to save. The two habits go hand in hand.
None of us know if Social Security will still be there when we need it. If you don’t make saving some money every month a priority and a habit now, you might just find yourself with only your savings or lack there of and the goodwill of relatives to depend on when you retire. Don’t wait for that. Check your budget now and see where you can squeeze a few extra dollars from. This is one habit you will eventually be grateful you picked up.
The Future Of Banking - Bank Online
Chances are your bank is a virtual place. Since the invention of the Internet you can see your balances anywhere, at any time. Most banks think globally and have acted this way by creating secure portals to manage their account holder’s information stored in their databases. This information stored usually shows account balances, previous transactions, current balances, interest paid and electronic scans of their checks. Anywhere you can get to a computer, your bank account is right in your hands, usually in real-time.
Online checking
Some banks even provide a service where you can pay your bills online vis-à-vis a checking account or saving account. You can setup creditors accounts, addresses and account numbers to be printed out on each check shipped. There are even some banks that will electronically send the check directly to their account for a nominal fee. Most electronic banking can be free depending on the minimum account requirements are met. Otherwise, electronic banking can cost up to $10 per month for the convenience to send money and manage your account via the web.
In our move towards a paperless society, banks have begun to stop shipping back cleared checks to their account holders. These cleared checks can be found on the Internet and printed out should they need access to these records. Some banks also will not ship their monthly statements as they too can be printed out on the web as well.
Interest bearing accounts
Some checking accounts, savings accounts and IRA’s can also be managed via the Internet. Account holders can move money between accounts and add money to their savings accounts electronically without ever visiting a teller or the local branch.
Convenience
One of the greatest conveniences is being able to reconcile your accounts with the popular personal finance software such as MS Money and Quicken. Banks have ways to create files that can be imported into these software products so that balancing the account is done for them with little intervention. The web makes it very handy should you forget to record items into your register and will do it all for you with a couple clicks of the mouse.
Online checking
Some banks even provide a service where you can pay your bills online vis-à-vis a checking account or saving account. You can setup creditors accounts, addresses and account numbers to be printed out on each check shipped. There are even some banks that will electronically send the check directly to their account for a nominal fee. Most electronic banking can be free depending on the minimum account requirements are met. Otherwise, electronic banking can cost up to $10 per month for the convenience to send money and manage your account via the web.
In our move towards a paperless society, banks have begun to stop shipping back cleared checks to their account holders. These cleared checks can be found on the Internet and printed out should they need access to these records. Some banks also will not ship their monthly statements as they too can be printed out on the web as well.
Interest bearing accounts
Some checking accounts, savings accounts and IRA’s can also be managed via the Internet. Account holders can move money between accounts and add money to their savings accounts electronically without ever visiting a teller or the local branch.
Convenience
One of the greatest conveniences is being able to reconcile your accounts with the popular personal finance software such as MS Money and Quicken. Banks have ways to create files that can be imported into these software products so that balancing the account is done for them with little intervention. The web makes it very handy should you forget to record items into your register and will do it all for you with a couple clicks of the mouse.
Banking For Students And Graduates
If you are a student or have recently graduated, then there a large number of bank accounts and financial products designed specifically for you. Although students used to be much derided for the large government grants they received, those days are long gone and students today have to be financially astute in order to avoid large debts. If you are a student or recent graduate then here are some tips about the types of accounts to look for.
Why so many student accounts?
Student and graduate accounts are more and more common, and they usually have a wide range of features and good rates. Although students are generally fairly poor and cannot pay back money they borrow, banks want to offer these accounts to students in the hope that they will remain loyal to their company once they are earning good money.
Student accounts
When you go to university you might have a simple current account, but the best thing to do is to open a dedicated student account. Student accounts offer a wide range of benefits, including vouchers and discounts for clothing and record shops. However, the most important part of your student account is the interest-free overdraft
Overdrafts
When you are at university it is likely that at some point you are going to need an overdraft facility to handle the fees whilst not bringing in a lot of money. Therefore it is essential that you pick an account with a good interest-free overdraft limit. Try and find the bank that has the highest level of interest-free overdraft, because any unauthorised borrowing will cost you a lot of money.
Overall package
Although the overdraft limit is important, you should look at the overall account package. Look at other fees and charges that the bank applies to your account, as well as the extra benefits on offer. Some student accounts will offer students a credit card with their account amongst other benefits. Try and find the best overall account package for your needs.
Dedicated support
In addition to the account benefits, you need to make sure that the student account you choose has dedicated support, as this can help you when times are tough. An even better option is a bank that has a branch on your campus, because a dedicated student bank manager is more likely to be sympathetic to your financial difficulties. Online banking is also something to look out for, as this can help you move funds and pay bills quickly when you need to, as well as helping you to closely monitor your spending.
Graduate accounts
Once you have finished university, many banks will offer you an upgrade to a graduate account. It is worth looking at these when you get your student account, as the right student and graduate package can really help you to move smoothly from student to worker. Whatever package you choose, don’t be afraid to move accounts and banks, and shop around before you make any decision.
Why so many student accounts?
Student and graduate accounts are more and more common, and they usually have a wide range of features and good rates. Although students are generally fairly poor and cannot pay back money they borrow, banks want to offer these accounts to students in the hope that they will remain loyal to their company once they are earning good money.
Student accounts
When you go to university you might have a simple current account, but the best thing to do is to open a dedicated student account. Student accounts offer a wide range of benefits, including vouchers and discounts for clothing and record shops. However, the most important part of your student account is the interest-free overdraft
Overdrafts
When you are at university it is likely that at some point you are going to need an overdraft facility to handle the fees whilst not bringing in a lot of money. Therefore it is essential that you pick an account with a good interest-free overdraft limit. Try and find the bank that has the highest level of interest-free overdraft, because any unauthorised borrowing will cost you a lot of money.
Overall package
Although the overdraft limit is important, you should look at the overall account package. Look at other fees and charges that the bank applies to your account, as well as the extra benefits on offer. Some student accounts will offer students a credit card with their account amongst other benefits. Try and find the best overall account package for your needs.
Dedicated support
In addition to the account benefits, you need to make sure that the student account you choose has dedicated support, as this can help you when times are tough. An even better option is a bank that has a branch on your campus, because a dedicated student bank manager is more likely to be sympathetic to your financial difficulties. Online banking is also something to look out for, as this can help you move funds and pay bills quickly when you need to, as well as helping you to closely monitor your spending.
Graduate accounts
Once you have finished university, many banks will offer you an upgrade to a graduate account. It is worth looking at these when you get your student account, as the right student and graduate package can really help you to move smoothly from student to worker. Whatever package you choose, don’t be afraid to move accounts and banks, and shop around before you make any decision.
A Guide to Banking for Students
A bank serves as a financial institution, providing complex financial services, right from the maintenance of deposits to extending credit. A little guidance and initiative help students to improve their personal credit record.
Banking offers the convenience of not having to handle large sums of money, thereby minimizing the chances of theft. Moreover, most of the financial institutions enable you to earn interest on your money deposited in a particular account.
There are a number of bank accounts and financial plans that are specifically designed for students. Today, students handle allowances that take care of all their financial requirements and if judiciously saved, could save them from debt in the future too. It is essential for students to select the right bank.
Tips to select the right bank for students:
The following tips would help students in selecting the best bank for themselves:
Services offered: It is essential to opt for a bank that meets your specific requirements and serves you efficiently.
Convenience: Before selecting a bank, you should check the location, working hours and your accessibility.
Insured federally: Always look for a bank that is insured. The Federal Deposit Insurance Corporation or FDCI insures most banks. It indicates that even if the bank goes bankrupt, you would get your money back, up to $100,000.
Bank fees: There are bank fees associated with the bank accounts. They charge fees on dropping below the minimum balance, overdraft protection, issue of checks and many more.
Requirements in setting up your banking services:
Financial institutions require you to submit certain important documents, for opening a bank account. They are as follows:
Your social security number
A photo ID, like a driver’s license, passport or student ID
Proof of address
Your signature on a card or form that is maintained by the bank
Essential banking services for students are as follows:
There are student and graduate accounts, with a number of attractive fringe benefits, designed especially for students. Students struggling to excel in their chosen fields usually cannot afford to pay back the money they borrow, within the expected time frame. Banks offer them the facility of special accounts, designed to increase their loyalty to the financial institution in good time.
Some of the essential considerations to be made, before opting for banking services are:
Student accounts: A student account offers advantages like vouchers and discounts on branded articles and department stores.
Overdrafts: Overdrafts enable you to pay your university fees without carrying liquid money. Therefore, it is essential to pick an account with an interest- free overdraft limit.
Overall package: Though, the overdraft limit is necessary, you need to study the overall bank account package offered. You need to check the fees and charges applicable for certain services.
Support: Before opening a student’s account, you need to ensure that your account provides you with dedicated support at time of crisis.
You should select a banking service only after conducting substantial research and analyzing the banks credentials.
Banking offers the convenience of not having to handle large sums of money, thereby minimizing the chances of theft. Moreover, most of the financial institutions enable you to earn interest on your money deposited in a particular account.
There are a number of bank accounts and financial plans that are specifically designed for students. Today, students handle allowances that take care of all their financial requirements and if judiciously saved, could save them from debt in the future too. It is essential for students to select the right bank.
Tips to select the right bank for students:
The following tips would help students in selecting the best bank for themselves:
Services offered: It is essential to opt for a bank that meets your specific requirements and serves you efficiently.
Convenience: Before selecting a bank, you should check the location, working hours and your accessibility.
Insured federally: Always look for a bank that is insured. The Federal Deposit Insurance Corporation or FDCI insures most banks. It indicates that even if the bank goes bankrupt, you would get your money back, up to $100,000.
Bank fees: There are bank fees associated with the bank accounts. They charge fees on dropping below the minimum balance, overdraft protection, issue of checks and many more.
Requirements in setting up your banking services:
Financial institutions require you to submit certain important documents, for opening a bank account. They are as follows:
Your social security number
A photo ID, like a driver’s license, passport or student ID
Proof of address
Your signature on a card or form that is maintained by the bank
Essential banking services for students are as follows:
There are student and graduate accounts, with a number of attractive fringe benefits, designed especially for students. Students struggling to excel in their chosen fields usually cannot afford to pay back the money they borrow, within the expected time frame. Banks offer them the facility of special accounts, designed to increase their loyalty to the financial institution in good time.
Some of the essential considerations to be made, before opting for banking services are:
Student accounts: A student account offers advantages like vouchers and discounts on branded articles and department stores.
Overdrafts: Overdrafts enable you to pay your university fees without carrying liquid money. Therefore, it is essential to pick an account with an interest- free overdraft limit.
Overall package: Though, the overdraft limit is necessary, you need to study the overall bank account package offered. You need to check the fees and charges applicable for certain services.
Support: Before opening a student’s account, you need to ensure that your account provides you with dedicated support at time of crisis.
You should select a banking service only after conducting substantial research and analyzing the banks credentials.
How To Reduce Banking Fees
Nobody likes to pay banking fees, but if you aren't active in trying to reduce them, you are probably paying more in fees than you need to be. One of the most important actions to take in order to reduce the banking fees is to figure out exactly how you use your bank. Consider what your average balance will be and how low the balance may dip. Also consider the type of transactions you make and what types of services you need. Once you have a better understanding of how you utilize the bank, you are in the position to get the most out of it while avoiding fees for services you don't need or use.
Probably the best move you can make is to try and qualify as a member of a credit union. Credit unions are not for profit organizations meaning they don't have to worry about making a profit. The qualifying factors to join a credit union vary from institution to institution, so you will need to check with each. The good news is that there are a large number of credit unions associated with a wide variety of organizations. Qualifying for inclusion has been broadened a great deal over the years, so it is much easier to find a way to qualify.
Since credit unions are there for their members and not out to make a profit, they are much more likely to offer completely free checking or free checking with a small minimum balance. In most cases, they also charge lower banking fees and their interest rates on accounts are higher. The one big drawback is that they tend to have fewer branches and automatic teller machines (ATMs) than major bank networks which can be costly if you are an ATM addict. You can begin your search to locate a credit union near you at the National Credit Union Administration: http://www.ncua.gov/siteoutline.html
If a credit union isn't a possibility, then you need to take a look at the different types of banks. While the major banks will have a better distribution of ATMs and a greater variety of services, their fees can be as much as 50% higher than those of local banks. It is also worthwhile investigating Internet banks since their fees still tend to be lower than those of major banks.
Once an appropriate bank has been chosen, reducing the standard fees they charge is an important. Although there are a wide variety of checking accounts offered, most banks will offer at least two typical checking account alternatives. A basic checking account will have a lower minimum balance requirement, but it will usually have restrictions on the number of no cost transactions you are able to make each month. A premium account will usually offer interest and allow for more no cost transactions, but will require a larger minimum balance to avoid monthly fees. Not meeting the requirements of either of these can be quite costly, so it pays to chose the checking account style that best fits your use.
Although an interest earning checking account seems like the obvious choice to make, there are a variety of situations where you're better off choosing a no interest checking account. If your account balance fluctuates quite a bit so that you are likely to go under the minimum balance required for the account even a few times during the year, you are likely to pay more in fees than you will ever earn in interest. In addition, checking account interest rates are some of the lowest, so choosing a checking account with no interest and a low minimum balance can make sense if you can put the difference into a higher yielding account.
Many people have several bank accounts at different institutions. It sometimes make sense to consolidate them at one bank. Consolidating your banking to one bank can give you more leverage in negotiating fee reductions and allow you to be more proactive in getting the best deals available. If you keep several different accounts at a bank, some banks will take into consideration the total balance of all your accounts at the bank. Although you may not have the minimum requirement in your checking account to earn interest, if you are also keeping a large deposit in a CD account that more than covers the checking minimum, the bank may be willing to count the balance of the combination of accounts as meeting the minimum requirement.
Another option that can give you leverage when negotiating on checking account fees is to have your paycheck direct deposited. Although every bank has its own set of rules, most will waive the checking account monthly fees if you direct deposit your paycheck. Don't, however, assume they will automatically give it to you. Chances are you will have to politely ask before they offer you this service.
A further possibility in getting free checking is to invest in the bank. Although this doesn't work with the larger banks, some small to medium sized banks have programs that award free checking and other special offers to investors. All you need to do is purchase a single share of stock to qualify.
Probably the best move you can make is to try and qualify as a member of a credit union. Credit unions are not for profit organizations meaning they don't have to worry about making a profit. The qualifying factors to join a credit union vary from institution to institution, so you will need to check with each. The good news is that there are a large number of credit unions associated with a wide variety of organizations. Qualifying for inclusion has been broadened a great deal over the years, so it is much easier to find a way to qualify.
Since credit unions are there for their members and not out to make a profit, they are much more likely to offer completely free checking or free checking with a small minimum balance. In most cases, they also charge lower banking fees and their interest rates on accounts are higher. The one big drawback is that they tend to have fewer branches and automatic teller machines (ATMs) than major bank networks which can be costly if you are an ATM addict. You can begin your search to locate a credit union near you at the National Credit Union Administration: http://www.ncua.gov/siteoutline.html
If a credit union isn't a possibility, then you need to take a look at the different types of banks. While the major banks will have a better distribution of ATMs and a greater variety of services, their fees can be as much as 50% higher than those of local banks. It is also worthwhile investigating Internet banks since their fees still tend to be lower than those of major banks.
Once an appropriate bank has been chosen, reducing the standard fees they charge is an important. Although there are a wide variety of checking accounts offered, most banks will offer at least two typical checking account alternatives. A basic checking account will have a lower minimum balance requirement, but it will usually have restrictions on the number of no cost transactions you are able to make each month. A premium account will usually offer interest and allow for more no cost transactions, but will require a larger minimum balance to avoid monthly fees. Not meeting the requirements of either of these can be quite costly, so it pays to chose the checking account style that best fits your use.
Although an interest earning checking account seems like the obvious choice to make, there are a variety of situations where you're better off choosing a no interest checking account. If your account balance fluctuates quite a bit so that you are likely to go under the minimum balance required for the account even a few times during the year, you are likely to pay more in fees than you will ever earn in interest. In addition, checking account interest rates are some of the lowest, so choosing a checking account with no interest and a low minimum balance can make sense if you can put the difference into a higher yielding account.
Many people have several bank accounts at different institutions. It sometimes make sense to consolidate them at one bank. Consolidating your banking to one bank can give you more leverage in negotiating fee reductions and allow you to be more proactive in getting the best deals available. If you keep several different accounts at a bank, some banks will take into consideration the total balance of all your accounts at the bank. Although you may not have the minimum requirement in your checking account to earn interest, if you are also keeping a large deposit in a CD account that more than covers the checking minimum, the bank may be willing to count the balance of the combination of accounts as meeting the minimum requirement.
Another option that can give you leverage when negotiating on checking account fees is to have your paycheck direct deposited. Although every bank has its own set of rules, most will waive the checking account monthly fees if you direct deposit your paycheck. Don't, however, assume they will automatically give it to you. Chances are you will have to politely ask before they offer you this service.
A further possibility in getting free checking is to invest in the bank. Although this doesn't work with the larger banks, some small to medium sized banks have programs that award free checking and other special offers to investors. All you need to do is purchase a single share of stock to qualify.
"Bankers' Banks"- The Role of Central Banks in Banking Crises
Central banks are relatively new inventions. An American President (Andrew Jackson) even cancelled its country's central bank in the nineteenth century because he did not think that it was very important. But things have changed since. Central banks today are the most important feature of the financial systems of most countries of the world.
Central banks are a bizarre hybrids. Some of their functions are identical to the functions of regular, commercial banks. Other functions are unique to the central bank. On certain functions it has an absolute legal monopoly.
Central banks take deposits from other banks and, in certain cases, from foreign governments which deposit their foreign exchange and gold reserves for safekeeping (for instance, with the Federal Reserve Bank of the USA). The Central Bank invests the foreign exchange reserves of the country while trying to maintain an investment portfolio similar to the trade composition of its client - the state. The Central bank also holds onto the gold reserves of the country. Most central banks have lately tried to get rid of their gold, due to its ever declining prices. Since the gold is registered in their books in historical values, central banks are showing a handsome profit on this line of activity. Central banks (especially the American one) also participate in important, international negotiations. If they do not do so directly - they exert influence behind the scenes. The German Bundesbank virtually dictated Germany's position in the negotiations leading to the Maastricht treaty. It forced the hands of its co-signatories to agree to strict terms of accession into the Euro single currency project. The Bunbdesbank demanded that a country's economy be totally stable (low debt ratios, low inflation) before it is accepted as part of the Euro. It is an irony of history that Germany itself is not eligible under these criteria and cannot be accepted as a member in the club whose rules it has assisted to formulate.
But all these constitute a secondary and marginal portion of a central banks activities.
The main function of a modern central bank is the monitoring and regulation of interest rates in the economy. The central bank does this by changing the interest rates that it charges on money that it lends to the banking system through its "discount windows". Interest rates is supposed to influence the level of economic activity in the economy. This supposed link has not unequivocally proven by economic research. Also, there usually is a delay between the alteration of interest rates and the foreseen impact on the economy. This makes assessment of the interest rate policy difficult. Still, central banks use interest rates to fine tune the economy. Higher interest rates - lower economic activity and lower inflation. The reverse is also supposed to be true. Even shifts of a quarter of a percentage point are sufficient to send the stock exchanges tumbling together with the bond markets. In 1994 a long term trend of increase in interest rate commenced in the USA, doubling interest rates from 3 to 6 percent. Investors in the bond markets lost 1 trillion (=1000 billion!) USD in 1 year. Even today, currency traders all around the world dread the decisions of the Bundesbank and sit with their eyes glued to the trading screen on days in which announcements are expected.
Interest rates is only the latest fad. Prior to this - and under the influence of the Chicago school of economics - central banks used to monitor and manipulate money supply aggregates. Simply put, they would sell bonds to the public (and, thus absorb liquid means, money) - or buy from the public (and, thus, inject liquidity). Otherwise, they would restrict the amount of printed money and limit the government's ability to borrow. Even prior to that fashion there was a widespread belief in the effectiveness of manipulating exchange rates. This was especially true where exchange controls were still being implemented and the currency was not fully convertible. Britain removed its exchange controls only as late as 1979. The USD was pegged to a (gold) standard (and, thus not really freely tradable) as late as 1971. Free flows of currencies are a relatively new thing and their long absence reflects this wide held superstition of central banks. Nowadays, exchange rates are considered to be a "soft" monetary instrument and are rarely used by central banks. The latter continue, though, to intervene in the trading of currencies in the international and domestic markets usually to no avail and while losing their credibility in the process. Ever since the ignominious failure in implementing the infamous Louvre accord in 1985 currency intervention is considered to be a somewhat rusty relic of old ways of thinking.
Central banks are heavily enmeshed in the very fabric of the commercial banking system. They perform certain indispensable services for the latter. In most countries, interbank payments pass through the central bank or through a clearing organ which is somehow linked or reports to the central bank. All major foreign exchange transactions pass through - and, in many countries, still must be approved by - the central bank. Central banks regulate banks, licence their owners, supervise their operations, keenly observes their liquidity. The central bank is the lender of last resort in cases of insolvency or illiquidity.
The frequent claims of central banks all over the world that they were surprised by a banking crisis looks, therefore, dubious at best. No central bank can say that it had no early warning signs, or no access to all the data - and keep a straight face while saying so. Impending banking crises give out signs long before they erupt. These signs ought to be detected by a reasonably managed central bank. Only major neglect could explain a surprise on behalf of a central bank.
One sure sign is the number of times that a bank chooses to borrow using the discount windows. Another is if it offers interest rates which are way above the rates offered by other financing institutions. There are may more signs and central banks should be adept at reading them.
This heavy involvement is not limited to the collection and analysis of data. A central bank - by the very definition of its functions - sets the tone to all other banks in the economy. By altering its policies (for instance: by changing its reserve requirements) it can push banks to insolvency or create bubble economies which are bound to burst. If it were not for the easy and cheap money provided by the Bank of Japan in the eighties - the stock and real estate markets would not have inflated to the extent that they have. Subsequently, it was the same bank (under a different Governor) that tightened the reins of credit - and pierced both bubble markets.
The same mistake was repeated in 1992-3 in Israel - and with the same consequences.
This precisely is why central banks, in my view, should not supervise the banking system.
When asked to supervise the banking system - central banks are really asked to draw criticism on their past performance, their policies and their vigilance in the past. Let me explain this statement:
In most countries in the world, bank supervision is a heavy-weight department within the central bank. It samples banks, on a periodic basis. Then, it analyses their books thoroughly and imposes rules of conduct and sanctions where necessary. But the role of central banks in determining the health, behaviour and operational modes of commercial banks is so paramount that it is highly undesirable for a central bank to supervise the banks. As I have said, supervision by a central bank means that it has to criticize itself, its own policies and the way that they were enforced and also the results of past supervision. Central banks are really asked to cast themselves in the unlikely role of impartial saints.
A new trend is to put the supervision of banks under a different "sponsor" and to encourage a checks and balances system, wherein the central bank, its policies and operations are indirectly criticized by the bank supervision. This is the way it is in Switzerland and - with the exception of the Jewish money which was deposited in Switzerland never to be returned to its owners - the Swiss banking system is extremely well regulated and well supervised.
We differentiate between two types of central bank: the autonomous and the semi-autonomous.
The autonomous bank is politically and financially independent. Its Governor is appointed for a period which is longer than the periods of the incumbent elected politicians, so that he will not be subject to political pressures. Its budget is not provided by the legislature or by the executive arm. It is self sustaining: it runs itself as a corporation would. Its profits are used in leaner years in which it loses money (though for a central bank to lose money is a difficult task to achieve).
In Macedonia, for instance, annual surpluses generated by the central bank are transferred to the national budget and cannot be utilized by the bank for its own operations or for the betterment of its staff through education.
Prime examples of autonomous central banks are Germany's Bundesbank and the American Federal Reserve Bank.
The second type of central bank is the semi autonomous one. This is a central bank that depends on the political echelons and, especially, on the Ministry of Finance. This dependence could be through its budget which is allocated to it by the Ministry or by a Parliament (ruled by one big party or by the coalition parties). The upper levels of the bank - the Governor and the Vice Governor - could be deposed of through a political decision (albeit by Parliament, which makes it somewhat more difficult). This is the case of the National Bank of Macedonia which has to report to Parliament. Such dependent banks fulfil the function of an economic advisor to the government. The Governor of the Bank of England advises the Minister of Finance (in their famous weekly meetings, the minutes of which are published) about the desirable level of interest rates. It cannot, however, determine these levels and, thus is devoid of arguably the most important policy tool. The situation is somewhat better with the Bank of Israel which can play around with interest rates and foreign exchange rates - but not entirely freely.
The National Bank of Macedonia (NBM) is highly autonomous under the law regulating its structure and its activities. Its Governor is selected for a period of seven years and can be removed from office.
Central banks are a bizarre hybrids. Some of their functions are identical to the functions of regular, commercial banks. Other functions are unique to the central bank. On certain functions it has an absolute legal monopoly.
Central banks take deposits from other banks and, in certain cases, from foreign governments which deposit their foreign exchange and gold reserves for safekeeping (for instance, with the Federal Reserve Bank of the USA). The Central Bank invests the foreign exchange reserves of the country while trying to maintain an investment portfolio similar to the trade composition of its client - the state. The Central bank also holds onto the gold reserves of the country. Most central banks have lately tried to get rid of their gold, due to its ever declining prices. Since the gold is registered in their books in historical values, central banks are showing a handsome profit on this line of activity. Central banks (especially the American one) also participate in important, international negotiations. If they do not do so directly - they exert influence behind the scenes. The German Bundesbank virtually dictated Germany's position in the negotiations leading to the Maastricht treaty. It forced the hands of its co-signatories to agree to strict terms of accession into the Euro single currency project. The Bunbdesbank demanded that a country's economy be totally stable (low debt ratios, low inflation) before it is accepted as part of the Euro. It is an irony of history that Germany itself is not eligible under these criteria and cannot be accepted as a member in the club whose rules it has assisted to formulate.
But all these constitute a secondary and marginal portion of a central banks activities.
The main function of a modern central bank is the monitoring and regulation of interest rates in the economy. The central bank does this by changing the interest rates that it charges on money that it lends to the banking system through its "discount windows". Interest rates is supposed to influence the level of economic activity in the economy. This supposed link has not unequivocally proven by economic research. Also, there usually is a delay between the alteration of interest rates and the foreseen impact on the economy. This makes assessment of the interest rate policy difficult. Still, central banks use interest rates to fine tune the economy. Higher interest rates - lower economic activity and lower inflation. The reverse is also supposed to be true. Even shifts of a quarter of a percentage point are sufficient to send the stock exchanges tumbling together with the bond markets. In 1994 a long term trend of increase in interest rate commenced in the USA, doubling interest rates from 3 to 6 percent. Investors in the bond markets lost 1 trillion (=1000 billion!) USD in 1 year. Even today, currency traders all around the world dread the decisions of the Bundesbank and sit with their eyes glued to the trading screen on days in which announcements are expected.
Interest rates is only the latest fad. Prior to this - and under the influence of the Chicago school of economics - central banks used to monitor and manipulate money supply aggregates. Simply put, they would sell bonds to the public (and, thus absorb liquid means, money) - or buy from the public (and, thus, inject liquidity). Otherwise, they would restrict the amount of printed money and limit the government's ability to borrow. Even prior to that fashion there was a widespread belief in the effectiveness of manipulating exchange rates. This was especially true where exchange controls were still being implemented and the currency was not fully convertible. Britain removed its exchange controls only as late as 1979. The USD was pegged to a (gold) standard (and, thus not really freely tradable) as late as 1971. Free flows of currencies are a relatively new thing and their long absence reflects this wide held superstition of central banks. Nowadays, exchange rates are considered to be a "soft" monetary instrument and are rarely used by central banks. The latter continue, though, to intervene in the trading of currencies in the international and domestic markets usually to no avail and while losing their credibility in the process. Ever since the ignominious failure in implementing the infamous Louvre accord in 1985 currency intervention is considered to be a somewhat rusty relic of old ways of thinking.
Central banks are heavily enmeshed in the very fabric of the commercial banking system. They perform certain indispensable services for the latter. In most countries, interbank payments pass through the central bank or through a clearing organ which is somehow linked or reports to the central bank. All major foreign exchange transactions pass through - and, in many countries, still must be approved by - the central bank. Central banks regulate banks, licence their owners, supervise their operations, keenly observes their liquidity. The central bank is the lender of last resort in cases of insolvency or illiquidity.
The frequent claims of central banks all over the world that they were surprised by a banking crisis looks, therefore, dubious at best. No central bank can say that it had no early warning signs, or no access to all the data - and keep a straight face while saying so. Impending banking crises give out signs long before they erupt. These signs ought to be detected by a reasonably managed central bank. Only major neglect could explain a surprise on behalf of a central bank.
One sure sign is the number of times that a bank chooses to borrow using the discount windows. Another is if it offers interest rates which are way above the rates offered by other financing institutions. There are may more signs and central banks should be adept at reading them.
This heavy involvement is not limited to the collection and analysis of data. A central bank - by the very definition of its functions - sets the tone to all other banks in the economy. By altering its policies (for instance: by changing its reserve requirements) it can push banks to insolvency or create bubble economies which are bound to burst. If it were not for the easy and cheap money provided by the Bank of Japan in the eighties - the stock and real estate markets would not have inflated to the extent that they have. Subsequently, it was the same bank (under a different Governor) that tightened the reins of credit - and pierced both bubble markets.
The same mistake was repeated in 1992-3 in Israel - and with the same consequences.
This precisely is why central banks, in my view, should not supervise the banking system.
When asked to supervise the banking system - central banks are really asked to draw criticism on their past performance, their policies and their vigilance in the past. Let me explain this statement:
In most countries in the world, bank supervision is a heavy-weight department within the central bank. It samples banks, on a periodic basis. Then, it analyses their books thoroughly and imposes rules of conduct and sanctions where necessary. But the role of central banks in determining the health, behaviour and operational modes of commercial banks is so paramount that it is highly undesirable for a central bank to supervise the banks. As I have said, supervision by a central bank means that it has to criticize itself, its own policies and the way that they were enforced and also the results of past supervision. Central banks are really asked to cast themselves in the unlikely role of impartial saints.
A new trend is to put the supervision of banks under a different "sponsor" and to encourage a checks and balances system, wherein the central bank, its policies and operations are indirectly criticized by the bank supervision. This is the way it is in Switzerland and - with the exception of the Jewish money which was deposited in Switzerland never to be returned to its owners - the Swiss banking system is extremely well regulated and well supervised.
We differentiate between two types of central bank: the autonomous and the semi-autonomous.
The autonomous bank is politically and financially independent. Its Governor is appointed for a period which is longer than the periods of the incumbent elected politicians, so that he will not be subject to political pressures. Its budget is not provided by the legislature or by the executive arm. It is self sustaining: it runs itself as a corporation would. Its profits are used in leaner years in which it loses money (though for a central bank to lose money is a difficult task to achieve).
In Macedonia, for instance, annual surpluses generated by the central bank are transferred to the national budget and cannot be utilized by the bank for its own operations or for the betterment of its staff through education.
Prime examples of autonomous central banks are Germany's Bundesbank and the American Federal Reserve Bank.
The second type of central bank is the semi autonomous one. This is a central bank that depends on the political echelons and, especially, on the Ministry of Finance. This dependence could be through its budget which is allocated to it by the Ministry or by a Parliament (ruled by one big party or by the coalition parties). The upper levels of the bank - the Governor and the Vice Governor - could be deposed of through a political decision (albeit by Parliament, which makes it somewhat more difficult). This is the case of the National Bank of Macedonia which has to report to Parliament. Such dependent banks fulfil the function of an economic advisor to the government. The Governor of the Bank of England advises the Minister of Finance (in their famous weekly meetings, the minutes of which are published) about the desirable level of interest rates. It cannot, however, determine these levels and, thus is devoid of arguably the most important policy tool. The situation is somewhat better with the Bank of Israel which can play around with interest rates and foreign exchange rates - but not entirely freely.
The National Bank of Macedonia (NBM) is highly autonomous under the law regulating its structure and its activities. Its Governor is selected for a period of seven years and can be removed from office.
Direct Deposit Brings Reliability, Safety and Convenience to Banking
Have you ever rushed to the bank to deposit your paycheck before the cutoff time? Have you ever played "beat the bank" -- writing checks before making a deposit? Have you ever made a trip to the bank just to deposit your paycheck? Have you ever lost checks that needed to be cashed or deposited?
If you answered yes to any of the above, it's time to reconsider the way you bank. Banking should be easy and convenient, and it can be with direct deposit.
According to America's Community Bankers, an independent national trade association representing the nation's community banks, having your paychecks routed to your bank electronically is one of the easiest and safest ways to improve your banking routine. Here's why:
Direct deposit is reliable. Direct deposit puts money in your account on time, every time. And checks don't get lost. The Social Security Administration has used direct deposit for benefits payments since 1976 and has never lost a payment. And with direct deposit, you don't have to wait for your checks to catch up with you if you move to a new address.
Direct deposit is convenient. You don't have to make that special trip to the bank if you have direct deposit. This is a real convenience if you're on vacation or away on business. And you can be confident that the funds will be credited to your account safely and ready to use, whether you're at home or halfway around the world.
Direct deposit is quick. With direct deposit, your money is transferred electronically into your account and available to use instantly once the transfer is complete. When you deposit your paycheck in person, you may have to wait up to three days to access all of your funds because some banks put a "check hold" on paychecks to ensure that the funds clear. With direct deposit there's nothing to "hold" since it's transmitted electronically directly to your bank account. Your money also begins collecting interest immediately if you have it in an interest-bearing account.
And above all, direct deposit is secure. You don't have to worry about lost, stolen or misplaced checks with direct deposit. With the electronic trail that direct deposit leaves, deposits are easier to track than paper checks. And if you are one of the many individuals that will be receiving a refund from the Internal Revenue Service (IRS) this coming tax season, direct deposit enables the IRS to deposit your refund up to three weeks earlier than if you were to receive it by mail.
Your banking can be hassle-free and secure. Talk to your local community banker about direct deposit and other ways to enhance your banking opportunities. For more information about America's Community Bankers, visit www.americascommunitybankers.com, or call (202) 857-3100.
If you answered yes to any of the above, it's time to reconsider the way you bank. Banking should be easy and convenient, and it can be with direct deposit.
According to America's Community Bankers, an independent national trade association representing the nation's community banks, having your paychecks routed to your bank electronically is one of the easiest and safest ways to improve your banking routine. Here's why:
Direct deposit is reliable. Direct deposit puts money in your account on time, every time. And checks don't get lost. The Social Security Administration has used direct deposit for benefits payments since 1976 and has never lost a payment. And with direct deposit, you don't have to wait for your checks to catch up with you if you move to a new address.
Direct deposit is convenient. You don't have to make that special trip to the bank if you have direct deposit. This is a real convenience if you're on vacation or away on business. And you can be confident that the funds will be credited to your account safely and ready to use, whether you're at home or halfway around the world.
Direct deposit is quick. With direct deposit, your money is transferred electronically into your account and available to use instantly once the transfer is complete. When you deposit your paycheck in person, you may have to wait up to three days to access all of your funds because some banks put a "check hold" on paychecks to ensure that the funds clear. With direct deposit there's nothing to "hold" since it's transmitted electronically directly to your bank account. Your money also begins collecting interest immediately if you have it in an interest-bearing account.
And above all, direct deposit is secure. You don't have to worry about lost, stolen or misplaced checks with direct deposit. With the electronic trail that direct deposit leaves, deposits are easier to track than paper checks. And if you are one of the many individuals that will be receiving a refund from the Internal Revenue Service (IRS) this coming tax season, direct deposit enables the IRS to deposit your refund up to three weeks earlier than if you were to receive it by mail.
Your banking can be hassle-free and secure. Talk to your local community banker about direct deposit and other ways to enhance your banking opportunities. For more information about America's Community Bankers, visit www.americascommunitybankers.com, or call (202) 857-3100.
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