Month: January 2021

Using Discipline to Succeed With an Online Savings Account

Most people know that online savings accounts offer safety, security, high interest rates, low fees and a certain convenience that appeals to many consumers. But online savings accounts are just there to hold your money and help it earn interest. They cannot make your efforts to save money successful. Instead, you need to have discipline in order to set up an account that eventually grows to have enough value to meet your future needs.

If you manage to combine some self-discipline with the high interest of an online savings account, you may find financial success. There are several steps that you can take in order to make this happen.

Step 1: Set up automatic deposits. It is not enough to open an online savings account and just leave the initial deposit sitting there collecting interest. You must continue to add to its balance in order to maximize the generous interest rate and compounding interest structure. When you set up an automatic deposit into your bank from your checking account, you ensure that a regular contribution is made to the account. This contribution is one you likely won’t even notice since you don’t need to do anything to initiate it each month.

Step 2: Avoid dipping in. When you start removing money from your online savings account in order to indulge in impulse purchases and other non-necessities, you hurt your chances of having a successful savings plan. So try to keep an out of sight, out of mind mentality about your bank. The less you tap into it, the more it will grow.

Step 3: Plan for taxes. When you earn interest in your online savings account, you eventually need to pay taxes on that interest. If you don’t plan ahead for this, then you might need to dip into your online bank in order to pay the tax bill. Make sure you are setting aside a little extra to accommodate this responsibility so that it doesn’t hinder your savings plans. Put the extra savings into your online savings account so that it too can earn interest before it is paid to the IRS.

Step 4: Bump it up. When you get a raise, a bonus, a gift or any new influx of money, put at least 10 percent of it in your online savings account as an extra contribution. Since this is money that you weren’t counting on to live and pay the bills, you won’t even miss it when you make the deposit.

No matter how much or how little you can afford to save, you can reach your savings goals when you use the above steps. However, like any goal you want to achieve, you must be strong and disciplined in order for it to be successful. Just make sure you keep the big picture in mind and commit yourself to the process.…

Mobile Banking Applications Are Changing

Mobile banking applications are changing with the introduction of the mobile wallet. New mobile phone apps will enable us to trade stocks from our mobile phones. The mobile wallet will give us the ability to run our smartphone over a bar code scanner at the store to pay for purchases. IT specialists are working on new mobile apps to allow us to do this. Customers also use WAP billing as an alternative to paying for products online with a credit card, debit card or by using premium SMS for billing purposes.

The GFT Group, one of the world’s largest providers of IT services, is working on new mobile apps for large financial organizations. These organizations will soon be able to use mobile banking applications, not only to manage their accounts and pay bills, but they will also be able to receive investment counseling and buy and sell stocks. The GFT group helps clients set up mobile apps by offering IT specialist’s services and solutions specifically for their financial needs.

We already have the ability to use mobile banking apps to pay bills, access our bank accounts and credit card accounts, to get alerts in our email, and deposit checks in our bank accounts if the bank we use is set up to do this. The GFT AppStore is helping financial organizations develop mobile apps and platforms to specifically fit businesses needs. They are now setting up testing sites for their employees which enables them to fine tune this process.

The mobile wallet is moving to the forefront of banking solutions. Once NFC abilities (near field communications) are set in place, meaning banks, stores and other businesses, both online and off, are able to offer consumers the means to use them, we will see a change in the world of online banking. Experts say that by next year one in five cell phones will be NFC equipped to use mobile wallets.

Many banks and credit card companies enable their customers to pay bills and deposit checks over their mobile phone, although not all banks are set up for all types of mobile phones. WAP billing has become a viable method of paying for downloading music, games, wallpaper and ringtones by being billed via a mobile phone. Mobile banking applications are changing. Newer innovative apps are being designed and developed by IT specialists everyday and some companies now have the capabilities to allow consumers to use them.…

The Birth of Banking in the United States

Paying for War.Colonial experiments with paper currency established a precedent for the financing of the American Revolution in 1775. The Continental Congress at Philadelphia was not empowered to directly tax colonists, and it could not borrow enough money from Britain’s traditional enemies to cover all the colonies’ financial needs.

The most practical alternative for raising funds was, therefore, to issue bills of credit, or paper currency. Many congressmen recognized that the overissue of paper currency was nothing but a form of disguised taxation, a procedure for transferring purchasing power to the government from the final holders of the depreciated currency. But it was the only “taxation” they had the power to levy. In June 1775, Congress authorized the issue of $2 million in bills of credit, declaring that it would be the only such authorization.

By 1779, in spite of its resolution to limit issues of new bills, Congress had authorized $200 million in paper currency. And, after attempts to have the colonies provide the funds to redeem these issues proved unsuccessful, depreciation, which had already started in 1776, accelerated. By 1780, a $1 silver coin was worth $80 in Continental currency!

Congress attempted to deal with depreciation by recalling much of the outstanding paper currency in a complicated plan adopted in 1780. The overall failure of that plan spelled the end of Continentals. In time, they became worthless, giving rise to the expression “not worth a Continental.”

The First Commercial Bank in the United continuing need of Congress for assistance in financing the war eventually overcame resistance to the establishment of a commercial bank. In 1781, the Continental Congress granted a charter to the Bank of North America, which aided in financing the rest of the war–principally through a large loan from France.

The Bank of North America was successful as a commercial enterprise. It issued notes redeemable in money, provided credit for trade and economic expansion, and gradually overcame the general suspicion and distrust the colonists had developed from past experience with paper currency and land banks.

Soon after, commercial banks patterned closely after the Bank of North America were established in New York and Boston. The successful operation of these three banks provided valuable banking experience and helped lay the groundwork for the Bank of the United States.

The Bank of the United States set the stage for fractional-reserve banking in the Federal government. This allowed the United States to become the welfare-warfare State it is today.…

3 Ways A Business Credit Card Will Help Grow Your Business

Small business owners, even ones who have set up a separate bank account for their business, often hold off on procuring a business credit card, choosing instead to use their personal card for business transactions. The arguments for doing so range from not wanting to give up spending rewards offered by personal cards to not seeing the advantage in a business card, since they must be personally guaranteed by the business owner anyway.

It is true that small businesses do not typically qualify for credit cards that are not personally guaranteed by the business owner. This is unlikely to change as the issuing bank is entitled to financial protection in a case where a small business fails. Therefore, a small business owner is just as responsible for their business debt as they are for their personal expenses.

It is also true, at present, that business credit cards are not bound by the same consumer protection laws which govern personal cards (although expanding these protections to include small business cards has been proposed). These 2 facts may make business owners even more wary of opting to utilize a card specifically in the name of the business.

But there are several excellent reasons to utilize a business credit card for your small business.

Tracking your business expenses on a personal card may seem simple on the surface; you only need to carry and use a single card and the expenses are all there on the statement so you can sort out which is for business and which personal at the end of each billing cycle. But there are definite disadvantages to this practice.

Having company expenses mixed in with personal makes it very easy to miss business purchases on your monthly statement. You may be omitting some transactions that should be classified as business expenses, ultimately affecting your tax liability and your bottom line. In addition, because you track your personal expenses and your business expenses, these “cross-over” expenses are essentially being double-posted each month – once to ensure you track the business expenses, and then again to make sure you are accurately tracking your personal cash flow. This practice is costing you valuable time each month that could be spent growing your business. With a business credit card, your expenses are cleanly and easily separated and tracked for accounting and tax purposes, saving you time.

Tracking company purchases on your personal plastic does nothing for establishing credit in the name of your business. If you do plan to grow your business and will someday be looking for a loan or credit line to help you reach your goals, a business credit card is a great way to establish an ongoing record of financial responsibility.

There are a multitude of business credit card options available from financial institutions, including some that offer the same types of spending rewards as are available from a personal account. When choosing a card, choose one with options that match your spending patterns. And consider your local bank, the same one where you keep your business bank accounts, as a source. This bank will be a great resource when you are ready to grow your business, and setting up business credibility though a well-managed business credit card now will begin to establish an ongoing relationship that will be of great benefit to you in the future.…

Explaining Some Extraordinary Banking Interview Questions

Banking is generally an industry of financial activities. It is fast growing and changing environment. Banking interview questions are very important to check the skills of a person whether he or she is suitable for the post or not. You recruiter will ask so many common interview questions what they consider before hiring a candidate. They look for the candidates who have much skills and quality to determine the future of the bank. To become very successful in banking section, you need to be much prepared for the banking interview.

The banking interview starts with the some very common questions about the interviewee like technical and professional education, area of interest and family background. In the second set of interview questions, employer wants to know more about the interviewee’s work experience, capacity of work, ability, ideology to solve questions and nature. To give the answers to the first set of interview is quite easy for the candidate instead of second set. On the other hand second set of questions are also very easy to answer. All you have to think before answering to the questions.

Some Effective And General Banking Interview Questions

The employer may start with the very common and frequently asked question like “tell me about yourself”. It is common opening question. It is asked to set the cool and relax environment for the interviewee. You can get many good points just by answering this common question in a bit different way.

General Questions

Why did you choose this banking profession?

Do you posses any work experience?

What did you learn from your previous job?

What does your father do?

Behavioral Questions

Do you have any leadership quality?

Explain where did you present your leadership?

What are your positive and negative traits?

What is your best accomplishment?

What are your strengths?

What is your weakness?

Can you explain us how will you resolve any problem?

Banking Interview Questions Related To Finance

Why would you buy a stock? Can you describe the major reasons of raising the interest rate based on the United States economy?

What do you understand by the word Capital?

Tell us about your banking work experience?

Where you will find yourself after three years in the field of banking?

Have you ever applied for any other banking job?

What is trail balance?

These are some extraordinary banking interview questions that are asked during the interview by an employer. So be prepared before attending the banking interview.…

How the Banks Lend Up to Ten Times What They Hold in Reserve

There are a number of issues that can be brought up about the current banking system in the United States. One thing that needs to be considered is the idea of fractional reserve banking. This theory is that it is possible for the lender to lend out ten dollars on every dollar that they hold in reserve. There are a number of different areas in modern banking that occur and affect all individuals involved and this is one of them.

The idea behind this type of banking is that there can be an increase in the money supply that is available to the people who are working with the bank. The problem starts when there is little money being paid back by borrowers and when banks are unable to work through their processes to loan and collect money in order to earn income in the form of interest. The process also requires that banks be able to meet demands for withdraws by being able to produce the right amount of money in cash on hand. If the banks are unable to do this then there are a specific number of issues that have been concerned with these things. This is because many people who use a bank to hold money or deposits seek the ability to withdraw from these deposits at any time. People want to be able to use their money and do not want banks to hold their money and withhold it from them.

Overall this basis of fractional reserve banking can create an unstable situation as there are problems with the bank not following through with being able to provide money to all of the consumers who are using the bank. If the bank is lending ten dollars for every dollar that they have then if all of the consumers potentially decided that they wanted their money that was in accounts held at the bank the bank would theoretically be unable to produce this money upon demand and there would be problems with the individuals who were unable to get their money and had to do without until the bank had more money sent in from those who were borrowing money. Overall this means that the system of banking principal that is used makes the consumers’ money unavailable to them and something that they might not be able to understand or utilize. Basically the bank would not be able to give all consumers the money that they had deposited or given to the bank in the first place.

This systematic crisis is referred to as a bank run. These commercial banks are then regulated by government ran system banks that are able to loan commercial banks money if one of these problems was to occur. This insurance of the commercial banks makes it possible for consumers to feel as though they can trust their bank and be able to invest their money in this way. Overall these areas are something that can be considered an important process in understanding how you have little control over your own money.…

Financial Services Technology For a Collateral Management Solution

Your collateral management solution handling your financial plans can be quite a struggle no matter what age you are. Considering that life’s daily activities may change on an every day basis, it is reassuring to possess a clear and reliable perspective on your financial future. Although you may only know just a little regarding individual financing or setting up a savings account for retirement, there are agencies dedicated to assisting you in realizing your financial objectives.

Knowing Where To Invest Your Money & Protect It

Collateral management solutions is a process that have advisers which will make an effort to be aware of your financial requirements on a personal basis as well as prepare you on the different financial services technology available to you and your loved ones. With a collateral management solution plan with the proper financial services technology you will be able to gain an expert education so that you can expect to achieve monetary stability and security to generate your own financial planning.

Financial Services Technology include:

* Financial Services Planning

* How To Manage Annuities

* 401K Retirement Plan

* Retirement Planning Services

* Pension Planning

* Profit Sharing Planning

* Roth IRAs

Financial Planning & What It Can Do For You

In these recessionary times, preparing for the long term future are very careful and important steps that you must carefully plan and execute. Simply by researching your financial circumstances and by using financial services technology accordingly, you will be able to obtain your long term financial freedom. Simply by doing a little due diligence on your own you will be able to choose the right financial services technology to be able to make certain you get to where you want to go in securing your financial freedom.

Future Investments

Preparation in planning early is at the centre for a sound fiscal long term future. The importance of a proper collateral management solution in making the appropriate steps in order to achieve not only your own short-term financial objectives, but also your long-term needs so that you will have a worry free retirement.

With a proper financial planning service, you will be able to seek out professionals that will give you helpful advice and will be committed to assisting you in planning for a safe and secure abundant future. Financial planning advisers will be able to help you determine:

* The appropriate retirement strategy for your personal as well as family-oriented needs

* Exactly how much money you need to put aside in savings

* Whether or not you presently possess the correct amount of insurance coverage protection

* Precisely how much money you should commit to investments

* If you are on course to saving a sufficient amount for retirement

Money Management Experts

Professional money management experts can also aid you on Estate Planning and Analysis. It is essential for the majority of people to understand as well as manage what takes place to their property upon their passing. Using the correct guidance and strategy, you can guarantee the family home remains in the family, your trusts and wills are correctly drawn up, your affairs are properly put in order, and your funds are properly protected.

One of the greatest feelings a person can possess is realizing that your financial resources are secure.…

Opening Up a Business Banking Account of Your Own

A big part of having and operating a business identity is by keeping all of your business finances separate from all of your personal finances. This is something that the Internal Revenue Service requires. You will not find a more better way to open up a business banking account.

It is known that the free business checking is not quite as common for a business as it would be for a personal account, which several banks now offer. You may not earn much interest with these business account, it will allow you to establish some credit for your own business.

There are many credit unions which will offer you a business account at much lower rates than any commercial banks will offer. In some cases you do not need to be the employer or even a member of any organization to be able to join. The only requirement that is needed is that you must be a resident from wherever the credit union is chartered.

Whenever you decide to compare from financial institutions, do not forget to also include all of the cost of checks and the endorsement stamps within your comparison. Many banks shall offer you some low or no fees, but you will find out later that the bank will then stick you with a fee for the first set of checks.

You should consider opening up a savings account for your business so this way you shall earn some interest towards the accumulated funds which you will need later in order to pay off the bills, like your estimated taxes. After you have established a good relationship with the business banking partner, then you shall want to apply for a credit card with your business name on it. This business credit card will really help should you ever fall a little short on any funds that you may need for your business.

As time goes by and you begin to extend good relations with the business banker you shall then have a good source to contact whenever you may need a loan to operate or expand your business. This business banking can also offer you some valuable services too, like credit card and also payment processing towards your business.…

How Did the Federal Government Finance Itself Before the Federal Reserve?

After the end of the “first” and “second” Bank of the United States, the Federal government had no bank from which it could draw credit. This period began in 1836, after the charter of the “second” bank was not renewed.

In 1836, President Andrew Jackson wanted the United States to spend within its means and to not use credit from a bank. However, the bank interests were determined to revive the relationship between the U. S. Treasury and its dependence on credit. So, they waited for the next President to hear their proposals.

President Martin Van Buren rejected suggestions for a new bank, proposing instead the creation of a sub-Treasury system whereby the Treasury would require payment in gold and silver and collect its revenues directly, rather than through financial intermediaries. Van Buren hoped to advance the cause of hard money by completely separating the federal government from the banks.

The Independent Treasury Act of 1846 separated the Treasury from the banking system. The act instructed the Treasury Department “to keep safely, without loaning, using, depositing in banks” all the money it collected. All transactions with the Treasury were to be settled in either money or Treasury notes.

For the next 67 years, the United States financed itself using the Independent Treasury system. Prices were stable, the Federal government was small, and the standard of living improved dramatically during this period. The only disruption to the system occurred during the Civil War. However, it was quickly restored once the war ended. The United States government financed itself, without banks, for more than half-a-century!

In late December, 1913, the United States Congress passed the Federal Reserve Act. It spelled the end of the United States Treasury’s indepndence from banks. While the Independent Treasury Act was not officially repealed until 1920, it was effectively over once the Federal Reserve System became established.…

What You Must Know About 0 Balance Transfers

0 balance transfer cards can be the ideal solution for people who have credit card debt. While these offers certainly have their benefits, you should assess the facts before you decide to get one. If you do not understand the important facts, things can get complicated.

Read the Fine Print and Compare Offers

This is the most time consuming aspect but the most important. Card companies are always coming up with new offers to entice people to get cards. These usually do not have annual fees, but check the terms and conditions to be sure. Also remember that 0% APR intro offers are not given by all cards.

Understand the Balance Deal Limitations

Unlike in the past, the 0% is now available for fixed terms only (i.e., a year). During the time credit flowed easily, low interest rates were offered after the 0% offer.

This usually is not the case anymore. However, there are still some good deals out there. You simply have to analyze the offers and compare the rates set after the promo period elapses.

Balance Transfer Fees

Not only will rates be adjusted after the 0% period is finished, but there may also be balance transfer fees. The rate is around 3%. Here you need to make a decision: if you pay the balance within the 0% time frame, then you should get a transfer card. Again, you need to read the conditions so you know the exact time period allotted for the 0 balance transfer.

Make Inquiries

Sometimes the card company offers can be difficult to understand. If there is something you cannot comprehend, make inquiries. The terms should state the penalties for unfulfilled payments. If it is not, ask. You should also figure out how your card payment will be set against your current debt.

For Loan Applicants

If you are getting a big loan, you need to carefully assess the pros and cons that much more. Making a transfer can have a negative effect on your credit standing. Unless it is really necessary, it is probably best if your present card standing remains unchanged to a year of the loan.

Use the Card Prudently

The urge to use the new card will always be there, but resist it. A lot of potential problems can be prevented by using different cards for buying and balance transferring.

Closing the Deal with the Old Card

Some people like to close their old card when they get the new one. The fewer cards you hold, the easier it will be to track your finances. If you do close it, make sure you follow the exact procedures. Mishandling your old credit cards can have a negative effect on your score.

Also remember that certain amounts have to be paid if you have a balance. Check with the company for the exact amount; do not presumptions.

Getting a 0 balance transfer card can be a great way to deal with debt. As long as you are aware of how these programs work, you will be able to use these to lessen your financial burden.…