Finance Wanted.

By Jerry Warner

Though they are somewhat of a staple of the financial services offered by banks, a large number of people aren't entirely sure how certificates of deposit work. They might know that certificates of deposit, or CD's, are usually purchased from a bank and that they last for set periods of time, but they might not know how savings are built with these CD's or what some of the terminology associated with CD investments mean.

The information below is meant to serve as an introduction to certificates of deposit, and should help to answer some of the more basic questions that you might have concerning CD's. As with any financial investment, it's important to make sure that you understand exactly how certificates of deposit work and how you can use them to augment your savings before putting your money into a CD. Check with your preferred bank for information about the specifics of their certificates of deposit or perform additional research online before investing your money.

How CD's Work

Certificates of deposit work much like common savings accounts, with the restriction that the money invested into the certificate is not to be withdrawn until the CD has reached its maturity. The maturity of a certificate of deposit is the point at which the amount of time that the CD was purchased for (also known as a term) has ended, and the CD no longer collects interest at the rate it previously was. Once a certificate of deposit has reached maturity, the full value of the CD can be withdrawn without penalty and the money is often transferred into other savings or into chequeing or money market accounts.

Maturity and Withdrawal

Since the money invested in a certificate of deposit will continue to draw a nice interest rate until the CD reaches maturity, it makes sense that you would be encouraged to keep your money in the certificate until maturity has been reached. Most banks and issuers of certificates of deposit don't want to be entirely unreasonable, however, and generally offer a brief period each year where the certificate can be cashed in before it reaches maturity without the usual penalties for early withdrawal. You should make sure that you know when this period is if you plan on cashing in your certificate beforehand, however... depending upon the issuer, some of the fines associated with withdrawal before maturity can be quite steep.

Choosing the Right Term for Your CD's

The term that you choose for your certificates of deposit will largely depend upon how long you want your money to draw interest before you need it. If you're planning on using CD's to plan for future events such as a wedding, additional schooling for your children, or retirement, you might want to consider a long-term certificate. If, on the other hand, you're wanting to use a certificate of deposit to set aside money for a vacation later in the year or another similar short-term circumstance, you don't want your money to be locked in a CD for an extended amount of time.

Using CD's to Enhance Your Savings

In order to use certificates of deposit to enhance your savings, it's important to remember that unlike traditional savings accounts you won't have as easy of access to your money in a CD. The advantage of this is that you can more easily resist the temptation to "borrow" from your savings. Several CD's with varied terms can help you to get the most out of your savings without locking all of your money away until a 10-year maturity date.

Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk

By Jerry Warner

Sometimes, it seems as though you just can't find the money that you need when you need it and it's made even worse by the fact that if you could wait until your next payday you would be able to afford whatever you are short on at the moment without much of a problem. Luckily, there are a variety of options available for people in just that situation. One of the more common of these options is the cheques cashing service, which can often make small loans known as cheque advances in addition to other services such as cashing payroll cheques. The information provided below should help you to decide whether cheque cashing services are right for you and your needs.

Payroll

One of the common uses of cheque cashing services is the cashing of payroll cheques without the need for a bank account. This allows individuals to skip the time that it may take for payroll cheque deposits to clear, cashing their cheque in its entirety in the matter of a few minutes. Of course, cheque cashing services need to make money in order to stay in business... they do so by charging a nominal fee for the services that they offer, which are usually either a set rate or a percentage of the total amount of the cheque, whichever is lower. Some may waive these fees for cheques issued by the government.

Cheque Advance Services

Another common service that is offered by cheque cashing establishments is the cheque advance loan. This type of loan allows an individual to write a personal cheque to the cheque cashing service, made out for the amount that is being borrowed plus a service charge based upon that amount. The cheque is often postdated to a few days after the individual's next payday, and the cheque writer has until that time to return and pay the specified amount in order to retrieve their cheque. If they haven't returned to pick up the cheque within a few days of their payday, the cheque cashing service will go ahead and deposit the cheque into their own bank account. Should the funds not be available in the cheque writer's account to cover it, then standard returned cheque fees will apply and in some cases additional fees will be imposed as well.

Other Offered Services

Some cheque cashing establishments offer additional services as well. Automotive title loans are becoming increasingly popular among cheque cashing locations, allowing individuals to borrow larger amounts to be paid back over time by using the title to an automobile or other vehicle as collateral to secure the loan. Other cheque cashing stores offer a variety of financing loans in addition to their regular services, merging the convenience of common cheque cashing services with the utility of finance companies.

An increasing number of cheque cashing locations also offer other common financial services, such as the issuing of money orders, wire transfers to other locations, installation of home telephone service, and even one-stop bill payment to a number of creditors and public utility companies. As the needs of consumers continue to develop and evolve, it's likely that other useful services will be offered by cheque cashing companies in the future.

Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk

By Bill Stone

Here are some useful tips on how to avoid overdraft and bounced cheque fees. When you write a cheque, withdraw money from an cash machine, use your debit card to make a purchase or make an Direct Debit bill payment or other electronic payment for more than the amount in your current account, you overdraw your account.

Your bank has the choice to either pay the amount or not. If it pays even though you don't have the money in your account, you may be charged an "overdraft" fee. If your bank returns your cheque without paying it, you may be charged a "bounced cheque" fee.

Avoid Fees

The best way to avoid overdraft fees and bounced cheque fees is to manage your account so you don't overdraw it.

Keep track of how much money you have in your current account by keeping your account register up-to-date. Record all cheques when you write them and other transactions when you make them. And don't forget to subtract any fees.

Pay special attention to your electronic transactions. Record your cash machine withdrawals and fees, debit card purchases, and online payments. Don't forget about Direct Debit bill payments you may have set up for utilities, insurance, or loan payments.

Keep an eye on your account balance. Remember that some cheques and automatic payments may not have cleared yet. Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling your bank or by checking online or at a cash machine.

Overdraft

Sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid additional overdrafts and fees.

Banks may provide other ways of covering overdrafts that may be less expensive. Ask your bank about these options before making your choice. You may be able to:

Link your current account to a savings account you have with the bank. If you overdraw your current account, the bank can transfer funds from your savings account to your current account. Set up an overdraft limit of credit with the bank. You need to apply for a "line of credit" just as you would apply for a regular loan. If you overdraw your account, the bank will lend you the funds by using your line of credit to cover the overdraft. You will pay interest on this loan, and there may be an annual fee.

Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

By Jerry Warner

For years, consumers had to pay for the convenience of being able to write cheques for the goods and services that they purchased. As time has gone by, however, a number of banks have not only gotten rid of some of the excess charges and fees associated with cheque accounts but have also begun creating cheque accounts that pay interest to the account holder.

These interest bearing cheque accounts are a great boon to customers who maintain a healthy balance in their account, but not all are created equal. The information below should help you to shop around and compare the features and interest rates of different cheque accounts so that you can find the best account for you and your financial needs.

Make Sure the Account Pays Interest

Obviously, there is a major difference between an account that pays interest and one that simply doesn't charge additional fees. While looking for interest bearing accounts, you'll likely find many that are simply free cheque, make sure that you don't confuse these two aspects or else you might end up with an account that doesn't have one of the main features that you're looking for. When inquiring about different cheque accounts, the informational pamphlets that many banks offer should tell you about any accounts that offer interest; the information is also likely contained on the bank's website. Should you still have questions, a teller or customer service representative should be able to tell you what you want to know.

Shopping Around for Accounts

Just because you've always done business with a specific bank doesn't mean that you have to do all of your banking business with them. Since the account that you're looking for pays interest, you're going to want to find the highest interest rate available, that means that you should take the time to shop around and compare the rates that are offered by a variety of different banks. Ask for interest rate quotes, as well as a copy of the fee schedule and any additional information that might be pertinent to your decision. Take the time to find out whether cheques are included with the account or if you have to purchase them yourself, and make sure that overdraft and insufficient fund fees aren't excessive.

Comparing to Find the Best Deal

Once you've received several different rate quotes and have all of the related information for each of those accounts, it's time to start comparing the different account options to each other and determine which cheque account offers you both the best interest rate and the most reasonable terms and fees. Sort your quotes by their respective interest rates, making note of any accounts that seem to have a rate much higher or much lower than the rest. You're looking for the highest rate, but you want to make sure that you don't take a higher rate and get stuck with inferior account terms.

Begin looking at the various fee schedules and other information for the highest interest accounts, taking into consideration the cost of purchasing cheques or other common expenses that might come with your account. After careful consideration, you should be able to determine which account is the best one for you and your needs, and which accounts should be left alone. All that's left from that point is actually opening the account and beginning to draw interest on your cheque balance.

Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk

By Jerry Warner

With all of the financial terms in the world, it seems that few are more confusing than compound interest. Perhaps it is the name that leads people to misunderstand exactly how it is that compound interest works, or maybe it's the formula that is used to compute it. Compound interest doesn't have to be confusing, however; the information below should answer most if not all of your questions concerning compound interest and how it can affect you.

What Is It?

Compound interest is simply interest that is collected both on the principal (the original amount) and the interest that has already been applied to the principal. This means that each time interest is applied to the amount (also known as being compounded), the amount of interest compounded will be added to the principal for the next time that the interest is compounded. To put it more simply, compound interest means that every time interest is applied, it is applied based upon the entire amount instead of just the principal.

What Does It Do?

Since compound interest is applied to all of the money held within the account being compounded, this means that as time goes by more money will accumulate within the account because each increase will subsequently increase the amount being paid. This is most often the case in savings accounts and interest-bearing chequeing accounts, as well as with the interest due on many loans.

How Is It Calculated?

The formula for calculating compound interest is written as A = P(1 + r) n , with A being the amount of money accumulated after the interest is compounded, P being the principal amount of deposit, r being the annual rate of interest, and n being the number of years over which interest is collected. If the interest is being compounded more regularly than once per year, the r is divided by the number of times that the interest is being compounded (for monthly interest, this would be 12 times, and for daily interest it would be 365 times.) As an example, imagine P being 100, on 5 percent interest (compounded monthly), over a period of 5 years. This would look like A = 100(1 + 5/12) 5 , or 100 x (1 + 5/12), with the portion in brackets multiplied by itself 5 times.

How Does It Work For You?

Since compound interest pays additional interest money based upon the interest that has already been paid, this means that as time goes by you will be making a significant amount of money simply from having your principal deposit in your savings or other bank account. You should be sure to keep in mind that many banks and other lenders use compound interest on their loans as well, so that the longer that you take to repay the loan then the more you will have to repay. This can be an incentive to repay debts during a grace period, or at least to do your best to pay off the debt as early as possible so that you can save as much money as you can.

Finding the Best Rates

In order to find the best loan rates, it's important to take the time to shop around and explore your various options concerning the type of account or loan you're looking for. Request rate quotes and compare them to each other to ensure that you get not only a rate that you're satisfied with but also the best rate that you can get.

Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk

By Paul Rogers

Banking is one of the most important industries in the world today. The economy of every country in the world flows through the various banks and financial institutions that exist in the world. There are times, though, that some of the terminology that's used in banks and the banking industry might seem a bit confusing to those who aren't exactly sure how they work. Below you'll find a list of common banking services and terms, compiled to assist you in making your banking decisions in case there are some terms that you aren't familiar with.

Chequeing

Chequeing accounts are one of the most common types of bank accounts in the world, but there are some individuals who might not be sure exactly how the cheque writing process works. Basically, a cheque is a form of contract between an individual and the recipient... the cheque is submitted to the recipient's bank, and its value is transferred from the writer's account to the recipient's.

Debit

Working on much the same principal as a cheque, debit cards transfer funds from an account held by the user and an account held by a business or individual. Unlike cheques, however, the debit card uses credit card processors and doesn't require the same amount of time as cheque writing. Additionally, there aren't any cheques to write and no chequebook to carry around.

Interest

Interest is a term that can have two meanings, depending upon which type of banking service it's used in conjunction with. When used with savings, chequeing, or money market accounts, interest is the amount that is paid to you monthly based upon the balance that you have. For loans, credit cards, and other such services, however, interest is an additional fee that you pay that is added on to the monthly balance of your debt.

Annual Percentage Rate

The annual percentage rate, or APR, is used when determining interest on credit cards. The APR is based upon national interest rates and other rates determined by the bank and dependent upon the credit rating of the cardholder. The APR that you pay may fluctuate, and the lower it goes the less interest you have to pay each month.

Equity

Equity is a representation of how much of a mortgage has been paid off... some people look at it as how much of your home or real estate you actually "own". This percentage of how much debt has been cleared from your property can be used as collateral for some types of loans, and can be an important factor in refinancing a home loan.

Balloon Payment

A balloon payment is a specific type of mortgage payment, and is named "balloon payment" because of the structure of the payment schedule. For balloon payments, the first several years of payments are smaller and are used to reduce the total debt remaining in the loan. Once the small payment term has passed (which can vary, but is commonly 5 years), the remainder of the debt is due... this final payment is the one known as the "balloon" payment, because it is larger than all of the previous payments.

Closing Costs

Closing costs are additional costs associated with the purchase of real estate and some other high-value items. Once the loan has been approved to pay for the purchase and all of the paperwork has been completed, various costs associated with filing, legal fees, and other commonalities are due at the time of closing the deal. While there are some mortgage lenders who don't charge closing costs, they are required in most cases.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

By Jerry Warner

If you're in the market for a new bank or are simply looking at different banks so that you can determine which one to apply for a loan from, it's important to have an easy way to compare the services that each bank offers. Though often overlooked for this purpose, a wealth of bank information can be found on the individual banks' websites and from other online financial sites.

If you've never considered using the internet to find information so that you can compare different banks, then the information below should help you to determine the various items that can be found and compared from the comfort of your home.

Finding Banking Information Online

Of course, in order to compare bank information you have to be able to find it first. Pretty much any bank that you can think of has a website that details the various features of all of the accounts that they offer, and the website address can usually be found on all of their promotional material. If you're having trouble finding the website's location on the materials that you have at hand, enter the name of the bank into your preferred search engine and you should be able to find links not only to the bank's site itself but also to other websites that have information about that same bank. You can use some of these third-party sites to find out additional information about some of the services of that bank, customer experiences with the bank, and other information that might help you to determine whether the bank and its features are what you're looking for or not.

Comparing Account Features

By visiting the websites of several different banks as well as some third-party sites that have additional information about those banks, you can begin comparing the account features of each so as to determine which bank has the account with all of the features that you're looking for. In most cases you'll be able to find out exactly what you want to know in regards to minimum deposits, activity levels, and provided services that relate to each of the accounts offered by the different banks. Should you not be able to find the information that you're looking for, there should be contact information available online so that you can contact the bank directly with your questions so that you can get the information that you want.

Using the Internet to Find ATM and Branch Locations

In addition to being able to compare the features of various accounts offered by different banks, you should be able to find the location of bank branches and ATM machines in your local area. This can be especially useful if you're attempting to determine which bank that is local to you would be the most convenient for your business, letting you know in advance which bank has either a branch or an ATM machine that's either close to your home or your place of work.

Online Banking

Once you've decided which bank is right for your business, that doesn't mean that the usefulness of online access has to end there. Many banks offer online account access that lets you keep track of your transactions, access up-to-the-minute account statements at any time of the day or night, and in some cases even transfer funds from one account to another or make bill payments online. The availability of online banking services may vary from one bank to another, however, so it's important to check and see if they offer the online services that you want before committing to a specific bank.

Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk

By Robin Brain

A protected debt is a debt in which the creditor maintains a safety interest in an item or piece of individual property such as a house or an automobile. With secured debts, if you drop following on payments, the lender can recover the property that initially secured the debt. An added disadvantage to secured debt is the fact that you might stay responsible for the shortage balance due on the debt after your property has been reclaimed and sold.

Unsecured debt is debt in which you scrounge from a creditor to attain goods or services on credit in replace for your assure to reimburse the debt. The primary dissimilarity between secured and unsecured debt is that unsecured is not collateralized by individual property.

This is frequently given in the shape of credit card debt, profitable debt, medical debt, and individual loans. If you drop following on an unsecured debt, lenders can obtain legal exploit against anyone, but more normally will strive to labor out a sensible debt conclusion. It is probable for a secured debt to turn into an unsecured debt when the property that is securing the loan has previously been reclaimed and sold by the creditor.

Conventionally, if the sale of the property does not wrap the full sum of the debt, it will outcome in a shortage balance which is still the liability of the consumer. This shortage balance is now measured an unsecured debt since no property is securing it. In most of the cases, this balance can be fruitfully determined during the debt completion plan.

Read out for Real Estate Finance. Check out IVA Debt Management and Refinance Mortgage.

By Bill Stone

Just thinking about how to write a will is enough to put some people off. It does not have to be a morbid experience. It is a necessity and makes for good financial sense.

Start by organizing what you need: outline your objectives, inventory your assets, estimate your outstanding debts and prepare a list of family members and other beneficiaries. Use this information to carefully consider how you want to distribute your assets.

Questions

Ask yourself lots of questions: Is it important to pass my property to my heirs in the most tax-efficient manner? Do I need to establish a trust to provide for my spouse or other beneficiaries? How much money will my grandchild need for college?

Taking inventory of the assets may be the key to making a will. Assets should be mentioned in your will. Any items not specifically mentioned may be addressed in a catchall clause of your will called a residuary clause, which generally states, "I give the remainder of my estate to ..." Without this clause, items not specifically mentioned will be distributed in accordance with law.

Outstanding debts usually will be paid by your estate before your beneficiaries receive their shares. You may want to clear up debts that you know will be a problem, or make specific provisions for payment of those debts in your will.

Be Specific

Remember to be specific and clear when naming beneficiaries. For example, state the person's full name as well as his or her relationship to you (child, cousin, friend, etc.) so your executor will know exactly who you mean. Clarity will also help to prevent challenges to your will.

Do not forget to get the will witnessed. A witness should not be a beneficiary under the will. Only one copy should be signed.

Once your will is written, store it in a safe place that is accessible to others after your death. If you had a solicitor prepare your will, have him or her retain a copy with a note stating where the original can be found.

The end of your life is something you probably don't want to dwell on, but thinking about what will happen to your loved ones and your assets and personal possessions is important.

Making sure you've done all you can to make their lives easier will give you peace of mind. And once your will is drafted, you won't have to think about it again unless something significant in your life changes.

Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

By Paul Rogers

Opening a new bank account is a major step in your life, and as such it should not be taken lightly. Depending upon the use that you have intended for the account, certain options might be very beneficial to you while others might not be beneficial at all.

By taking a little time to consider exactly how you plan on using the new account, you might find that the account that you had in mind isn't the best option available to you... or you might confirm that the new account is exactly what you need. Below is additional information on some of the most common types of bank accounts, so that you can take the time to compare some of the advantages and disadvantages of each and decide which type of account is best to meet your needs.

Chequeing

One of the more common types of accounts, chequeing accounts allow you to write cheques or use a cheque card in place of carrying cash. The amount of the purchase is deducted from the balance of your account, and you are usually allowed quite a bit of access to the account over the course of the month if not unlimited access. The main drawback of chequeing accounts is the fact that unless you keep records of all of your transactions it can be quite easy to become overdrawn which leads to fines and other fees.

Savings

Quite possibly the most common account type, savings accounts are designed to assist you in saving money for the future. These accounts usually offer decent interest rates and may have several options available concerning accessibility to the account... the number of withdrawals allowed each month is severely limited, however.

Money Market

A money market account, sometimes referred to as an investment account, uses the value of stock market investments to determine the interest rate on the account. These accounts are most often used to have a balance from which to make investments in the market, though some banks also use them as a separate account option as well. The number of withdrawals allowed may vary from bank to bank, especially depending upon the intended use of the account.

Certificate of Deposit

When you want to find the best interest rates and terms on savings, you might want to look at getting a certificate of deposit. These accounts are designed for savings over a period of time... the term of the certificate is set when it is opened, and it gains interest until that period has expired. Fines and penalties often apply for early withdrawal, though most certificates of deposit have a brief period each year that allows for withdrawal without the penalties.

Credit Lines

Credit cards and lines of credit are also common types of accounts, but unlike the other account types listed here they are actually forms of loans. When you open a credit line or receive a credit card, you are given a credit limit... this is the total amount that you can borrow at any given time. Any items or services purchased using a credit card or credit line must be repaid with interest, though on-time payments are reported as a positive report toward your credit score. The main drawback of credit cards and credit lines is that it can be easy to use them as an additional source of funds instead of merely a loan, and this sort of use can quickly build up into a significant debt.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

By Bill Stone

Have you ever stopped to wonder exactly how it is that automatic teller machines (known as ATM's) work? It seems so simple. You walk up to the machine, insert your ATM or debit card, and are then able to withdraw or deposit money, inquire on your account status, and in some cases even purchase postage or a variety of other goods or services.

There is obviously a computer at work, and it does its job well since it's very rare that the ATM makes a mistake. To help provide some insight into the automated teller, here is an overview of exactly how the ATM does all of the things that it does.

What are automatic teller machines?

They are basically computerized bank interfaces, allowing customers to access several banking features any time of the day or night regardless of whether the actual bank is open or not.

While there are some features that cannot be accessed from an ATM (such as opening a new account or applying for a loan), modern ATMs strive to allow customers to have as much of the banking experience available to them as possible.

How ATMs work

ATM operation is fairly straightforward. A computer within the machine allows users to choose from a variety of different options after they insert or swipe their ATM or debit card. The card information along with their choices is sent to a computer at the bank where the ATM is located or to the bank which controls the ATM, if the machine is a stand-alone that isn't located at a bank branch.

If the individual using the machine is a customer at the bank, then the computer then accesses their account; if they are not, then the bank's computer contacts the computer at the user's home bank.

Checks are made to see whether or not the user can complete the transaction that they request, and if so then the transaction is completed. An electronic eye within the ATM counts any money that is given, making a record of the bills used and whether any of them are damaged, while a camera and, sometimes a microphone, record the user in case there is a need to know who used the card.

ATMs and other banks

Almost all automatic teller machines allow users from other banks to make use of them, though there is generally a service charge associated with this. The options available may be limited when the user isn't a customer with the bank that controls the ATM; they may not be able to make certain inquiries or deposits, or access certain features that the machine offers. In many cases, however, most or all of the options offered by a particular machine are available to all users, regardless of their bank of origin.

When ATMs make mistakes

It doesn't happen often, but occasionally ATM machines do make mistakes. This is usually due to some glitch in the software, or by bills that are loaded incorrectly or that are sticking to each other and causing a jam or blockage. If this happens to you, report the problem to the bank that controls the ATM as soon as possible. They will check the internal records of the machine, and work to get the problem resolved as quickly as possible.

In most cases, checking the records will not only reveal the source of your problem so that it can be corrected but will also help them to fix the problem so that it doesn't happen to others.

Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

By Paul Rogers

Banks offer a large number of financial services, and pay you interest on at least some of them. Because of this, many people are quick to overlook the fact that banking is still a business, and banks need to make money to pay their employees, keep the utilities running, and make a profit for their shareholders and customers. If you've ever found yourself wondering exactly how it is that banks manage to pay out as much as they do while still making money, then this article is designed for you. Below you'll find information on some basic banking services, as well as how banks make the money that they need to cover all of their expenses and make the profits that they need to grow.

The Basics of Banking

Most banks have a variety of account types and services in common. These include savings accounts, chequeing accounts, certificates of deposit, investment services, online account access, and lending services, and are among the things that most people expect to find when they choose a new bank. Having services in common with other banks enable the banking industry to be competitive... one bank can set itself apart from the rest by offering superior service and better rates and terms than the others that they compete with locally.

Savings, CD's, and Other Interest-Bearing Accounts

Some of the services that banks offer are interest-bearing, meaning that they have an interest rate that is paid to the account holder based upon the amount of money that's in the account. These accounts are an incentive for customers to put both their money and their trust into the bank, as they are the accounts that pay a return on the money in them. Interest rates that are paid on these accounts can vary from bank to bank, though they are all based upon rates that are set nationally to ensure that they do not fall too low.

Chequeing, Loans, and Other Interest-Charging Accounts

In order for banks to stay in business, they have to make money one way or another. They do this by issuing loans, offering chequeing accounts, and having other interest-charging accounts and services that must be paid for.

Loans require that the borrowed amount be repaid with interest, and many chequeing accounts either charge a monthly maintenance fee or have other costs associated with them in addition to the overdraft fees and fines that are applied when you try to write a cheques for more than you have in your account. Other services, such as safe deposit boxes, also have fees associated with their use, and credit cards that are issued by banks charge interest rates as well as potentially some other fees associated with their use.

Advanced Banking Services

There are a variety of banking services that are not common to every bank but are well-known enough that many banks offer them. Services such as online account access and itemized bank statements may be offered for free or may have charges associated with them, but provide a better understanding of your finances and more information on where your money is going and how than the standard bank statement.

Banks may also offer advanced services such as investment services, money market accounts, currency exchange, and even the opportunity to invest in the bank itself. The services that are offered by any one bank will largely depend upon that bank and the wishes of the owners and operators, so you should investigate fully the services that are offered before assuming that any one specific service is available.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

By Paul Rogers

Whether you're starting a new business or you're simply looking for a new bank for your current business, finding the bank that serves your business best generally isn't as easy as simply opening an account at the bank where you do your personal banking. Businesses tend to have different needs than individuals, and the fact that a bank does well with personal banking services isn't always an indication that they'll be able to best fit the various needs of your new or existing business.

What to look for in a bank

When looking for a new bank for your business, there are a variety of factors that you should keep in mind. Request information on any business-specific services that the bank offers, the interest rates that they offer on certain accounts or the fees that they charge for certain services, and the availability of night deposits or online access to your business accounts. Some banks offer only some of these services, whereas others offer all of them... taking the time to investigate the offerings of several different banks will help you to determine which bank offers the best combination for you and your business.

Business services

Many banks offer services for business that are specific to the needs of those businesses. Some of these services may include specialized account statements detailing various aspects of expenses, interest, and deposits, as well as quarterly tax account preparation. Other business services offered by banks may vary from area to area and from bank to bank, and should be investigated fully before making a decision on one bank or another.

Interest rates

Interest rates on business accounts may vary from those offered on personal accounts, depending upon the type of account that you open for your business. Many business accounts may offer no interest at all, and may instead have fees associated with them... it largely depends upon the type of account and the bank at which it is opened. Investigate all of the options available to you so as to find the bank that offers your business the best account options.

Chequeing

One type of account that doesn't differ greatly from those accounts offered to individuals is the chequeing account. While business chequeing accounts do tend to have fees associated with them (as most business accounts do), they function in much the same manner as standard chequeing; there are generally a few differences in the account statements and cheque-writing policies, however. It is important to get as much information on the fees, attributes, and policies associated with a business chequeing account as you can, so be sure to take the time to question the banks about the specifics and compare the account offerings of several different banks in order to get the most out of your business chequeing account.

Night deposits and online access

Accessibility is also a major factor that should be considered when choosing a new bank for your business. The bank that you choose should have a night deposit drop box (with a key given to you or to specific people in your business), instead of simply having to use an ATM or wait until business hours. Online account access is another major factor that should be requested... this way you can track your business expenses, account balances, and verify deposits from either your office or the privacy of your own home. Making sure that you find a bank that meets your business needs should be a top priority, so compare the offerings of several banks before you make a final decision.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

By Paul Rogers

Whether you're looking for a bank at which to open a new savings account or you're simply unsatisfied with your previous bank and want to find a new place to do business, finding the bank that's right for you can sometimes be quite difficult. Of course, it doesn't have to be... it simply a matter of knowing what you're looking for before you head out to the bank, and making sure that you do a little bit of comparing of services before deciding upon one particular bank over the others. Below you'll find some basic tips for what to look for in a new bank, as well as what to avoid.

Interest rates

No matter what type of account you want to open, interest rates are going to be of major importance. Check to see what rates are being paid for savings and money market accounts, as well as whether or not interest is paid to chequeing accounts. If you're looking for a loan instead, find out what the base interest rates that are charged for loans and whether your interest can be affected by the collateral that you use.

Account options

When looking at a bank to determine whether or not it's the right one for you, consider how many options are available for each type of account. Ideally, there should be several different options for chequeing, savings, and other accounts. If a bank only offers very basic services, you might be better served to look elsewhere unless the interest rates that they offer are well above average.

Online account access

Though not as major a concern as some of the other considerations, banks that offer online account access can add a level of convenience to your banking experience that you might not otherwise have. Online account access can enable you to check your balance, transfer funds from one account to another, and even see which cheques have cleared the bank from the privacy of your own home.

Corporate vs. local

Another minor consideration that might have some bearing on your decision is whether the bank is part of a national or worldwide corporate chain or if it's a locally owned and operated institution. Corporate chain banks tend to have much more support from their corporate office, but are usually limited as to the services and concessions that they can offer without approval from a higher authority. Local banks, on the other hand, are usually able to handle most matters in-house, as the owner is usually an individual within the community.

Shopping around

When comparing banks to find the right one to meet your needs, it's important to explore all of your options. Gather information from several different banks and compare the account options that each offers to their interest rates. Some banks might offer exceptional rates but with relatively few options... others might have a wide variety of account options but offer horrible interest rates.

Compare and contrast a variety of bank options so as to find best deal that fits your needs... after all, this is a major decision and shouldn't be handled lightly. By taking the time to compare your available options and shop around for the best deal, you're much more likely to find the bank that's going to give you the best experience.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

By Paul Rogers

If you pay attention to finance and investment news, you might hear something from time to time about buying on margin. It may sound intriguing, being able to purchase large amounts of stocks or other securities without having to pay the full cost of them... in most cases, though, that's all of the information that is given and it leaves you to wonder exactly how buying on margin works.

If you are in this situation, then the information provided below is designed to give you more details on margin trading and may help you to determine whether or not buying on margin is right for you. Should you decide to try your hand at margin trading, do so with care... after all, there's a lot of money that can be made, but trading on margin without realizing how and what you should be doing can also cost you quite a bit of money.

Definition

Before getting into the hows and whys of margin trading, it's important that you realize exactly what buying on margin really is. In essence, buying on margin is like getting a loan from your stock broker that will enable you to purchase larger amounts of stocks and securities than you might actually be able to afford at that moment. The funds that you do pay go into a special type of brokerage account known as a margin account, and act as a deposit toward the total price of the purchase. The remainder of the price must be paid to the broker, either when you sell the stocks or after a predetermined interval.

Requirements for a Margin Purchase

Because of the specialized type of purchase that margin trading requires, you have to set up your margin account before being able to make any margin trades. Though the laws regarding buying on margin may vary from country to country, in most cases the setting up of a margin account requires that the brokerage has your signature on file authorizing them to set up the account.

A minimum deposit is also required for a margin account, which can be in the thousands... for many brokerages, however, they instead require that at least 50% of the value of the intended purchase is used as the deposit for the margin account though some may require as high as 60% to 75% for a first purchase.

The purchase made when buying on margin utilizes the value of your deposit as well as an additional amount which is borrowed from the broker... for experienced traders this can be up to 50%, though you can choose to borrow less for any trade. There may also be additional rules concerning which stocks and securities can be purchased, as well as a minimum price for any individual stock share.

Payment of Outstanding Cost

As with any loan, money borrowed for a purchase on margin must be repaid in a timely manner. Usually, the money is recovered when the purchased stocks or securities are sold... the portion that was borrowed from the brokerage firm is repaid first, and the remainder then goes to the shareholder.

In the case of long-term investments that are purchased on margin, however, payments may be required on regular intervals to maintain the margin loan. Should you not make the required deposits to maintain the margin and pay down the loan, the broker may require you to sell your stock so that they can reclaim their money.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk