Banking | Educational Article

How to Find the Right Online Savings Account For You

Monday, March 16th, 2009

by Savings Buddy

There are so many savings accounts out there nowadays that it’s almost impossible to figure out which bank is actually the best. If you are searching online, here are a few things that you can check out before you make a decision.

If the online bank is online, then the whole process should not take more than 15 minutes (even if you type slow). If it’s offline, your banker should handle pretty much everything. Don’t spend too much time on the bank if the process takes too long.

It’s very important to make sure the savings account you open an account with has the reputation. Do you really want to be the first person to open a bank account with a brand new bank? In this day and age, you just don’t need the risk.

It is a no-brainer to find a bank with FDIC insurance. With up to $250,000 per individual insured, it is the safest investment one can make on the planet.

It needs to be extremely easy to access your account. Online accounts should be easy to login without sacrificing security. Some cool login process requires a token.

With online accounts, you have to deal with hackers. Make sure your bank is very secure and offers ways for you to increase that. Your password should be changed often.

Make sure you keep the contact information of customer service before something goes wrong. You might also want to read review sites to see what others feel about the savings accounts’ support level.

Of course, savings account are useless if the yield is low. Online savings account seem to give a higher savings rate than traditional savings account but even those have different yields. Find out that’s high enough for your money.

Don’t pay termination fees if you don’t have to. Some companies will tack on an account closing fee if you want to leave them so know the fine print before you take action.

Make sure you have the minimum balance ready before account opening. You don’t want to open an account with a savings account that needs $1,000 as the minimum balance when you only want to keep $500 in there.

Easier user interface also means less chances of mistakes. While it’s sometimes hard to figure out which banks have the easiest to use interface, you can always check the bank review sites.

Banks are loaded with fees but there are actually some that don’t charge any for most of the common tasks. Usually, the name brand banks will charge more fees than the less known ones.

This is a godsend because you can actually do everything online (some savings account offers this too). Make sure you find one that charges no fees for this or else it’s not worth the effort.

online savings accounts are just better based on your situation. For example, etrade customers who use the brokerage accounts can use the savings account like a sweep account. Other savings account allows you to additional perks because you are adding to the overall relationship with the bank.

About the Author:

Bank Savings Review is a site that reviews online savings accounts. Currently, the best savings account is FNBO Direct Savings. For the review and others, check out the reviews on the site.

Tags: Banking
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Money Saving Tips: Personal Check

Sunday, March 8th, 2009

by Paula Finkle

Check into your skills for saving money; it is on everyone’s mind. There is no escaping the impact that stretching the dollar has on the quality of life.

Assessment appeals could lower property taxes. For many, taxes rise while property values decline. Statistics show that there is a high error rate in the property tax assessment valuation process. If you divide your property tax assessment by the assigned sales ratio equalization rate, you’ll have the true market value figure that the tax assessor placed on your home. Most confuse assessed value information think it means market value.

No car should be without a tire pressure gauge. Soft tires take more energy to move. You could save $300-$500 over every 12,000 miles driven by proper tire pressure. You get 0.4 percent lower mileage for every drop in PSI tire pressure. Air is a gas which contracts as temperatures get colder. A 50 degree change in temperature is equal to 5 PSI.

Be sure to check your tire pressure when it is cold and not driven. Tire pressure increases when it is driven as little as 1 mile.

When you have a clean air filter as opposed to a dirty one, you save about 10% on your mileage. Most people spend in between $1,200 to $2,500 on gas over a year. 10 percent in your pocket adds up over the years.

Keep the weight of the stuff you carry in your car to a minimum. Did you know that for every 100 pound you reduce gas mileage by 1-2 percent? Using the right grade oil will improve mileage by 1-2%. Keeping the car tuned will increase gas mileage by 4.15 on average. Do the math. The average 12,000 miles driven and if your car gets 20 mpg, that’s 600 gallons of gas for the year. And if gas cost $2.00 a gallon, that results in a gas expenditure of $1,200.

Ordering personal checks online instead of at the bank will save you in the neighborhood of fifty percent. Banks charge a markup fees and pass it on to customers in the way of high check supply charges. Not only do you get better prices when you order checks online, you get more choices of check designs and features.

Cut back on the ol’ food bill by looking for the grocery store that gives you the best deal on the 12 or so most common items you purchase. Eventually you find one that more constantly delivers. Plan you meals around store flyers instead of the cookbook recopies. Also begin to get adequately hydrated by drinking a glass of water before meals; you’ll not eat as much (most are perpetually somewhat dehydrated)

About the Author:

Smart people don’t pay full price on items and services. Coupons save customers a large portion of savings as well as buying direct and avoiding the retailer. One way to save is here at Order Checks Online

Tags: Banking
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Do You Want to Open a Secret Offshore Bank Account?

Monday, February 23rd, 2009

by Amy Nutt

There are many people who feel more secure placing their money into a offshore accounts instead of a domestic account. They will find a bank in the country of their choice and they will house their money there. Most of the time, the owner of the offshore bank account won’t tell anyone that the money is there. As a matter of fact, the account holder tries to forget that it is there because this is money that they are not likely going to spend. This is one reason why businesses will use offshore bank accounts to house some of their money. They feel that it is more secure and, in many cases, it really is.

Here are more reasons why individuals will place their money within an offshore bank account:

- Privacy - Many individuals do not desire that others know about how much money they have. Many times, the reasons behind this are quite valid.

- The speed - An offshore account can usually be opened rather quickly. Once the bank is provided with the necessary documents, funds can be sent through secure means in just a matter of minutes.

- The documents needed - The documents don’t really go beyond the number of documents you need when opening up a domestic account. You have to show proof of your identity and fill out basic account paperwork. Some banks may require additional information that others do not, so make sure you pay close attention to what they need.

- Protection of assets - For individuals living in areas that are not economically stable, it can be risky to keep assets within the country. However, it is true that banks can be liquidated in rather stable countries, but the odds are less. When placing money within a stable economy, it is less likely that a bank is going to go under. If the economy does go under, the money can be moved to another account in another country.

- It’s worth the cost - It does cost a couple of hundred dollars to open up an offshore bank account, but you have to consider what it is you are protecting. If you’re protecting tens of thousands or even hundreds of thousands of dollars, then the cost of the account is definitely worth it.

- Tax savings - When you have your money in a private place, you can reduce the amount that you pay in taxes. Just be mindful of how the tax laws change and changes in your own finances.

- You can make your money grow - You can make your money grow with several types of investments. One of the most worthwhile investments, especially if you want your money to grow, is to invest in gold. Just keep in mind that an offshore account is not an investment strategy, but a way to keep money private and protected.

Offshore banking is a must for a lot of people for a lot of reasons. If you’re thinking about putting your money into an offshore bank account, go ahead and do it. It is inexpensive, quick, easy, you can save money on taxes, protect your assets, and not a soul other than you and the banking staff have to know the account even exists. And they’re not talking because they’re not supposed to and, besides, they handle these accounts every single day, so they don’t bat an eye at it. Just make sure you choose an economy that you are comfortable with. It must be a strong economy if you want peace of mind that your money is safe. It will remain safe as long as you keep an eye on economic performance and your own asset management.

About the Author:

Financial services company offers offshore investing, mutual funds and QROPS. When doing research for offshore accounts, mutual funds, or asset management, consider LOM.

Tags: Banking
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UK Online Pay Day Loans

Tuesday, January 20th, 2009

by Jillian Silver

This article looks at the way banks exploit customers with NSF and overdraft fees. It contrasts this with the other option known as payday or cash advances and proposes that these are in fact cheaper than bank fees. It goes on to show how banks lobby aggressively against the payday industry fearing cuts in there fees. The findings are based on a US study by the federal government and is freely down loadable.

This is an independent agency part of the federal government - created in 1933, just when thousands of banks failed. The 1920s and early 1930s saw thousands of banks fail. The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.

The FDIC Study of Bank Overdraft Programs was initiated in 2006 in response to the rapid growth of automated overdraft programs, defined as programs in which the bank honors a customer’s overdraft obligations using standardized procedures to determine whether the non-sufficient fund (NSF) transaction qualifies for overdraft coverage. Data and information were gathered through a survey of a sample of institutions representing 1,171 FDIC-supervised banks, and a separate data request of customer account and transaction-level data from a smaller set of 39 institutions.

FDIC publishes the results of a 2 year study on the banking systems use of overdraft programs. The study found that a typical NSF check can result in overdraft fees and interest in excess of 3,500 percent APR. In addition, the study found that customers in low-income areas (median annual income of less than $30,000) were nearly twice as likely to incur these charges.

The FDIC study reinforces the payday loan industry’s position that short-term cash advance loans are significantly less expensive than traditional bank overdraft fees. The study also found that, unlike payday loan companies that offer on-demand products, most banks (75.1 percent) automatically enrolled customers in overdraft programs that carry APRs and other fees far more expensive than the typical cash advance loan.

The study concluded that a typical customer would incur fees of $27- for each $20 overdraft over a 2 week period. A $60- ATM overdraft in 2 weeks would incur an APR of 1,067 percent. A customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent. Surprisingly, the study also concluded that the faster a customer repays an overdraft, the higher the resultant APR.

Some consumer advocacy groups like the CRL are lobbying to ban payday loans. This leaves customers with no option than to pay overdraft fees to the banks. CRL have led a charge to pass a law banning payday lending in Ohio. In 2006, Ken Compton, CEO of Advance America, said, “Contrary to the CRL’s spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances,”.

Some key findings;

Over 90% of banks completed overdraft fees without informing the customer.Very few banks (less than 8%) inform customers that they are about to incur insufficient funds. There is little opportunity to cancel the transaction so avoiding the fee.

Consumer complaints about automated overdraft programs were received by 12.5 percent of banks that operated these programs.

About nine percent of bank customers have 10 or more NSF transactions per year. 4.9 percent had 20 or more NSF transactions. Customer accounts with 20 or more NSF transactions were charged $1,610 per year in NSF fees on average.

About the Author:

Marsha Smythe is intrigued by the concept of APR and how banks can get away with charging such high amounts. He makes available on his blog downloads from the Federal Deposit Insurance Corporation (FDIC). These are a must read for anyone contemplating overdraft versus payday loans. Although US bank orientated the same rules apply to both UK Payday Now and Canada payday cash.

Tags: Banking
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Educational Article

Archive for the ‘Banking’ Category

How to Find the Right Online Savings Account For You

Money Saving Tips: Personal Check

Do You Want to Open a Secret Offshore Bank Account?

UK Online Pay Day Loans

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