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.

A Banking Guide for Students is a post from:

AER

AER stands for Annual Earnings Rate. AER is used to calculate the annual amount that you earn on an investment or savings account. The higher the AER, then the better the investment or savings account. If you are looking for a savings account then compare AER’s to work out where your money is going to make the most profit.

APR

APR stands for Annual Percentage Rate, and is the amount of interest that you pay each year on a loan or mortgage. The lower the APR then the less you will pay yearly on that item of borrowing. Items with high APR’s like credit cards have APR figures around 15-20% whereas mortgages have a low APR figure of about 5-7%. The quickest way to compare loans is to look at their APR values.

Chip and PIN

Chip and PIN is the current system used to pay for items or withdraw cash using a credit or debit card. The card has a 4-digit PIN, or personal identification number, that you enter into a cash machine or till machine in order to retrieve money or pay for goods. The chip on the card holds information that, combined with the PIN, allows the machine to identify you as the correct owner of the card. Chip and PIN is more secure than the previous magnetic strip and signature technology that was used a few years ago.

Overdraft

An overdraft is a sum of money that you are minus within an account. If you go beyond the amount of actual money you have in an account, then you go into the overdraft. Many accounts have a pre-arranged limit that allows you to go overdrawn, which can be useful, as unauthorized overdrafts will cost you a lot in interest and fees.

Phishing

If you use online banking, then Phishing is a term you might have heard of but you might not know what it means. Phishing is a form of scam or illegal attempt to get hold of your bank details online so that they can withdraw money from them. When online banking started this was a big problem, but with increased security measures the problem is getting better. Most Internet browsers include a Phishing filter to stop such practices from occurring.

Standing orders and Direct Debits

Standing orders and Direct Debits are similar in some ways, but different in others. Both involve a regular amount being transferred from one account to another. Standing orders are a regular, fixed amount that you pay to another person or company, usually monthly. Direct Debits are an amount of money, which can be fixed or varied, that is removed from your account at set intervals. One example of a Direct Debit is mortgage repayments.

Getting advice

If you are unsure about any other banking terms, then visiting your local bank branch or looking online might help. Never be afraid to ask about something, because if you don’t understand something that is part of your account policy, you could lose money or not be taking full advantages of the features on offer to you.

Understanding your Bank Account Details Better is a post from:

A business savings account works in the same general ways that a personal savings account does, but with a few differences. Business savings accounts encompass a wide variety of investment options including money market accounts or regular savings accounts that are designed only for the business customer.

Keep in mind that money market accounts will usually pay a higher level of interest than a regular savings account will. By using these funds you have available will provide you with a substantial investment gain without creating a potential cash crunch later on. This is important for any small businessman.

There are so many other benefits to consider with opening up a business savings account. Your current funds which have been sitting and earning you nothing can begin to earn you a nice rate of return. It is important to remember that they are also FDIC insured, thereby giving you peace of mind where safety is concerned.

You will find that many, if not most, of your bigger banks will offer a business savings account tied together with a business checking account. Why is this a good benefit? Well, not only will you earn interest on your funds, but you will have overdraft protection, and a fast way to transfer funds back and forth between the business savings account and the business checking account if needed.

You can find out more information on business savings accounts from the bank you’re currently with, as well as the Internet and many other avenues. Many banks will allow you to start up a new account for as little as $100. In addition they may not require an account balance minimum or a set number of transactions per month.

Options with most all business savings accounts include the ability to do transactions online, an ATM or debit card, and unlimited withdrawals every month.

Business savings accounts should play a role in your businesses financial portfolio. They can provide help in growing your small business into its maximum potential. So if you’re looking for a way to utilize your company’s excess funds, consider starting a business savings account today.

Business Savings Accounts: Make Them Work For You is a post from:

Now, savings accounts can be of different types and each of these will give you some amount of return, depending on how much you save and the bank you choose. The fastest way to see your money grow in leaps and bounds is to have a money market savings account.

This account is as simple as a regular savings account. The only differences are:

• The minimum opening balance requirement is more.
• These allow limited (three to six) monthly withdrawals, unlike ordinary savings accounts.
• These pay much higher interests.

You begin with more, you withdraw less and you get high interest and naturally, your money grows faster than in the usual savings accounts.

These accounts center on the money market. The latter is a financial market in which money is borrowed and lent on a short-term basis, thereby giving some liquidity in the global fiscal system. In money market accounts, the bank benefits by putting a limit to your monthly withdrawals and you benefit from the high interest the bank pays.

However, it should be noted that the limited transactions have a breather in this that if the account holder urgently needs to withdraw some money beyond the maximum number of withdrawals allowed, he/she can do that with a charge of approximately $5 to $10 for each withdrawal.

If you deposit more, your actual fund will multiply manifold for the simple reason that the interest in these accounts is compounded daily. Though the rate of interest varies from bank to bank, all money market accounts generally work on compound interests. For instance, if you start your account with $100 and your interest is $1, your principal on Day 2 becomes $101 and interest is charged on this amount, not on the initial $100. So every time you add to the account, you are actually enhancing your interest amount and getting back more. This is one reason why many people consider these to be the best savings accounts.

Once you have this account, you will get a register to maintain your transaction details like the opening balance, withdrawals, deposits, etc. This will help you tally your records with those in the monthly bank account statement.

All money in these accounts is insured by an independent agency of the federal government called Federal Deposit Insurance Corporation (FDIC). So your money is always in safe hands when you bank on the money market.

Remember, it doesn’t always take genies to do magic, you can be one yourself. And the best way to accomplish this is to be smart and plan early when it comes to saving and growing money. At the end of the road, you just might be surprised to learn how much your discipline and dedication pays off.

Helping Your Money To Grow Faster is a post from:

Why use a bank?

Of course, the main reason to use a bank is the fact that banks are widely available, and they are the first option that comes to mind when dealing with finances. In fact, some people aren’t even aware that there are alternatives to banking apart from keeping your money at home. Although banking has its uses, it can cost you money for day-to-day financial matters that you can get for less. Bank fees can be extremely expensive, but there are some alternatives.

Credit unions

Credit unions are one alternative to using conventional banks. Unlike banks, credit unions are not for profit organizations that are run by their members. Credit unions are used by people who share a workplace or occupation, or even a religion. They offer many of the same services as banks, but because profit is not their main function they can offer lower fees and higher interest rates on savings than normal banks. Credit unions can be fairly large and organizations, and some offer similar levels of convenience to a regular bank.

If you are looking for cheaper fees and better interest rates on savings then a credit union might be right for you. However, credit unions are still small compared to banks, and you cannot simply join the credit union of your choice. You have to meet their specific requirements or be related to someone who is already a member in order to join. Also, you generally have to save money with a credit union before you can have access to other financial products.

Online banking

Perhaps the best alternative to traditional banking is online banking. There are many banks that operate solely online, and there are a lot of benefits to this sort of bank. Although you might not be able to get money as easily as you could with a normal bank, you can transfer funds and pay bills much more efficiently. Also, online banks usually operate all day every day, meaning that you can access your account and carry out transactions whenever you want. For paying bills and transferring money, you can’t really beat online banking

Combining accounts

Although there are viable alternatives to traditional banking, perhaps the best way to save yourself time and money is to have a combination of accounts. If you are eligible for a credit union, then saving with them is probably the best option as you can get great rates and you might be able to borrow money at a much more reasonable rate if you need to do so in the future. You could combine this with an online account to pay your bills, as this allows you to pay bills quickly and manage your money more effectively so that you always pay on time.

Thirdly, having a traditional bank account is usually a good idea, because if any problems arise you can go to your bank and speak to someone face to face. If you look around at all the alternatives to regular banking then you could save yourself money and make banking work more effectively for you.

Alternative Banking: Do you Need a Traditional Bank? is a post from:

Number of accounts

Many people have a few current accounts as well as one or two savings accounts, which they are not getting the best out of. If you pick the right accounts then you will only need one current account and one savings account for your personal use. If you have a large number of accounts, then now is the time to think about replacing them with one or two accounts that better serve your needs.

Don’t be lazy

The first step to finding the right bank account for your needs is to start being active and looking for a new account. Banks rely on the fact that you are too lazy to check your fees to see if they are worth your while. It is likely that you pay fees and rates each month that are more than you need to pay, or are for services that you don’t need. If you are proactive then you are more likely to get a good deal.

Features

Once you have decided that your current bank account is not fully serving your needs, then you need to look at what features are most important to you. Are you someone who transfers a lot of money electronically, or do you write checks to pay for things? Some accounts will have better rates for each of these features, so you need to decide what you are going to use the account for.

Online banking

One aspect that you need to look at when choosing an account is online banking. If you only need basic checking and savings services, then having online banking might not be worth it. However, if you need to access your money quickly and be able to transfer between accounts or pay bills instantly, then you should get an account that has online banking features.

Current and savings accounts

There are many account variations available for both current accounts and savings accounts, and it is even possible to get combined current and savings accounts. The type of account you need depends on the features you need and the amount of money you will be paying in and out of your account. If you have a large amount of savings, then you want a savings account with the best interest rate to take advantage of this. Also, if you have relatively little money in your current account then you shouldn’t opt for an account that requires a minimum amount be paid into the account each month.

Where to look

Now that you know what sort of account you want, you need to find the right institution to suit your needs. Although traditional banks should be your first port of call, you should also look at credit unions and online banks to find the best bank account for your needs.

Choosing the Right Bank Accounts is a post from:

Offshore Banking Myth #1 The offshore banking jurisdiction is the most important element to look for.

Not true. The laws of the jurisdiction are of course important and vary from country to country and are vital but one must look to the bank itself. The soundness of the bank is most important because what good does it do you to have an offshore bank account in a bank located in the greatest privacy jurisdiction in the world if the bank fails. So a very financially sound offshore bank in a jurisdiction with weak privacy laws would be better than a really financially weak offshore bank in the best privacy jurisdiction. Of course certain countries monitor their banks better than others like Panama is top notch in this department.

Offshore Banking Myth #2 All offshore banking jurisdictions are about the same.

Not true. One must see if the country has tax treaties with other countries. Tax treaties are where the fishing expeditions come from. One must gain a knowledge of the offshore banking laws in the particular jurisdiction being considered. Many has been offshore banking jurisdictions have changed their once favorable offshore banking laws since 9/11 and are basically doing business with people who do not take the time and trouble to check the offshore banking laws for the country in question. For instance Belize does not have any banking secrecy laws written in statues. Switzerland has modified their laws to suit the EU. Many of the Caribbean island offshore banking jurisdictions have given in to EU and American pressure and being afraid of losing their cruise ship business have changed their bank secrecy laws for the worse.

Offshore Banking Jurisdictions additional information by country is included at the links to the right.

Offshore Banking Myth #3 No Offshore bank will ever reveal information about the bank accounts or banking clients.

The truth is offshore banks will reveal some information in some cases. This varies from case to case and country to country. Panama will cooperate in four categories of crimes: terrorism, money laundering, narcotics trafficking and child pornography. Countries have what is called MLAT (Mutual Legal Defense Treaties) that call for the release of information under certain defined circumstances. Most offshore countries have Tax Treaties that call for the release of other information to other countries in the treaty. Panama has no tax treaties with other countries and is most unique in this respect being the only offshore banking and incorporation jurisdiction without any tax treaties. In Panama all tax offenses are considered civil offenses. As a general rule the MLAT treaties require that the crime being investigated by the requesting country must also be a crime in the country the information is being requested from.

So offshore banks will under certain circumstances release information about the bank accounts they have. Again, one must select the right country not only the right offshore bank.

Offshore Banking Myth #4 – Offshore Banks are regularly Licensed Banks.

No so.

Most offshore banks hold an offshore banking license from the jurisdiction they are in. These licenses allow them to conduct full banking activities, just not with any resident of the country they are located in. In some countries they are also prohibited from conducting business with any corporation or trust formed in that country as well. If this is going to scare you I do not know what will. The offshore jurisdiction issues a license to an offshore bank that does not let them bank with anyone in the country. Not too reassuring huh. In Panama our law firm only introduces clients to banks with full banking licenses that are allowed to do business with the residents of the country, have branches, drive through tellers, etc.

Offshore Banking Myth #5 Offshore banks that are part of a large international conglomerate will compromise your privacy.

Not so.

The general line of unfounded thought is that if the international bank has a branch in the USA or EU it can be compelled to reveal banking records from the offshore country where it also has a bank. If you are in an offshore country like Panama this would be unlikely to happen. The bank in Panama is a separate corporate entity from the banks in other countries. The bank in Panama would have its own Panama banking license and would be bound by Panama banking secrecy laws. It would be a violation to give access

To employees located in another country not bound by Panama bank secrecy laws. Of course some jurisdictions that used to be secure with their banking laws are no longer secure. Again this is a matter of knowing your jurisdiction and bank. At times clients of our law firm ask us to get them a bank account with a bank that does not have any operations outside of Panama and this is of course a request we can readily accommodate.

Offshore Banking Myth #6 Offshore banks will create numbered bank accounts.

Not really.

The offshore numbered bank account was a creation of Switzerland mostly and these came to an end in the 1980′s. They originally were accounts requiring no identity documents and no name. They were operated by account numbers and passwords. Due to terrorism and money laundering laws these accounts came to an end. Other countries also issued numbered accounts. There are still numbered accounts in Switzerland but they are not like the old days. The Swiss banks require ID and limit the access to the ID to a few select bank employees and issue a numbered account this way. Nothing like the old Swiss numbered bank accounts. These accounts will of course draw a lot of unwanted attention when wires are sent and received and in some countries the offshore banks will refuse to send or receive wires to such accounts. Panama has solved the problem by having dead anonymous Bearer Share Corporations. These Corporations have no registry or database which records ownership of the corporation. The ownership of the corporation is based on who physically has the stock certificates.

There is no requirement to report changes in ownership as well. Panama also has anonymous foundations also with no registry or database to record ownership. So when wires move to and from an anonymous Panama Bearer Share Corporation or anonymous Panama Foundation no one can determine who the natural persons are behind the corporation or foundation because of the Panama Bank Secrecy Laws. A very nice combination of corporate and banking privacy legislation.

Offshore Banking Myth #7 Offshore Banks are fine if they are on a little island

Not true.

One must also take into account weather conditions of the jurisdiction considered. Many of the offshore banking countries in the Caribbean get hit with hurricanes and storms of a great magnitude. This can cause their internet and phones to go out for weeks at a time. I am most sure you would not be enjoying the experience of waiting for a few weeks to see if your offshore bank is still alive and well after their phones and internet get knocked out. The reason the Panama Canal was built in Panama is because Panama has no hurricanes, earthquakes, volcanoes, tornadoes, tsunamis etc. Panama is tops when it comes to an offshore jurisdiction for offshore banking, corporations and foundations.

Offshore Banking Myth #8 The national currency of the offshore bank is irrelevant.

Not true.

Even if the offshore bank gives you an account in several currencies inquire about the conversion costs. Frequently every time you convert a currency they move you first into their national currency and then into the destination currency. At the end of the day this type of offshore banking conversion expense can be painful. Panama uses the US dollar for its national currency so this is the currency the banks operate on with some euro accounts available.

Offshore Banking Myth #9 The US Dollar is not stable enough for use in Offshore Banking.

Think again.

What many do not realize is that a nice low currency on the international exchange helps a country enabling it to sell exports. It helps them with their balance of international payments. It encourages foreign tourism and they bring in foreign currency by converting to dollars. Do you really think the EU could let the USA lower the value of their dollar further? Think about what it would do to the price of US imports in the EU like cars for instance. It would make them cheaper. The EU would need to slap on punitive taxes and the USA would reciprocate in kind hurting their sales of cars in the USA. There is a lot of fatalistic talk of the US dollar falling, true and it has fell but only to a level of comfort for exports.

What about housing prices falling in the USA? Well they were driven up by speculators and now comes the adjustment. A nice drop of 30% to 40% in housing prices will make the houses somewhat more affordable. Can the US fix it’s problems domestically? Probably much could be done if they wanted to do something. They could create tax incentives for business, get interest rates down lower and so forth. On the broad horizon a steep drop in the housing prices makes things more affordable versus constant speculation which would eventually drive the housing prices to the point where a 3 bedroom 2 bath 180 sq meter home would cost $1,000,000 in a small city and $6,000,000 in a major area.

A country is better off with affordable housing where housing prices are set by people wishing to live in the house because they like the area, the schools are desirable, the house is close to shopping, airports, hospitals etc. When housing prices are set by people thinking if I buy this house now I can sell it for a 27% profit in two or three years, this is a mania that will end poorly. This is the end of this mania in the USA. They are adjusting not collapsing.

There are still branch banks in rich neighborhoods of South Florida, Southern California, parts of New York city, etc where these branches of US banks have a branch office with in excess of $100,000,000,000 (one hundred billion dollars) in deposits. I mean the little neighborhood branch offices have this much on deposit, of course the whole bank is much larger. There are a lot of people with many millions of dollars in the USA and they tend to congregate near each other in the same communities. We could also talk about all the stock, option future exchanges all working in dollars but then this would go beyond the scope of the article.

So let’s say you are scared of the US dollar and go into Euros and the dollar strengthens back to where it was and you lose 25% of your value? The dollar is already down and it is not likely that the other countries would want to see it go down further since they would suffer in the long run competitively from such a drop. We suggest that one need not be afraid to have an offshore banking account in US dollars but we also offer Euro accounts for those who need them.

Offshore Myth #10 It is illegal to own an offshore bank account.

Not so.

We are not aware on any jurisdiction that makes it illegal to have an offshore bank account.

The 10 Most Common Offshore Banking Myths is a post from:

Why get offshore banking?

Getting offshore banking can be useful if you are travelling around a lot and aren’t really located in one specific place. If you use an account from one country then you will find it harder to get your money out abroad, and might have to pay fees each time you want to carry a transfer or withdrawal. You might not even be able to access your account in some countries. Offshore banking can help you to have access to your accounts like you were in your home country wherever you are in the world.

Tax exemption

Another reason why offshore banking is popular is for tax exemption. If you have a large sum of money that you don’t want to pay tax on, then moving it to an offshore account might be useful. Of course, you need to make sure that you abide by the tax laws of your country, but there are legal ways to save yourself money through offshore banking

Benefits of offshore banking

Apart from the tax benefits, having your money offshore means that you have equal access to all of the world’s markets, and this makes it easier to invest in a diverse range of products and services.

Offshore banking features

You can use offshore banking simply as a savings account, or you can use it as your main means of banking. You can have a current account with a debit card, and even make investments and buy insurance and loans using your offshore bank. Most of the products and services that your standard bank can offer are available offshore, with the added bonus of being available around the world.

Risks

Offshore banking does use the law to its fullest, and so there are a number of risks associated with it. Firstly, if you don’t know what you are getting into then you could end up in legal trouble. Before signing up to offshore banking you need to consult a lawyer.

Also, you need to deposit a large amount of money in order to get offshore banking, and that money could be at risk if anything happens in the country you opt for. You know that your money in your own country is insured, but if something happens offshore then you might be in trouble. Offshore banking does have some benefits, but make sure that you know the details of the system before proceeding. If you do this then offshore banking can help you save money and access your finances wherever you are in the world.

Offshore Banking – An Overview is a post from:

One of the biggest advantages of online banking is conducting the transactions from the comfort of your home. It saves the hassle of going physically to the bank and spending the time that can be put to better use. Paying bills online becomes much easier. Many banks offer online calendars, which assist in the timely payment of bills and prevent default. However, all transactions cannot be done online. There are some that would require personal interaction with the bankers.

The online banking services are offered free to customers, by many banks. Some banks charge a certain amount for the use of this facility. Banks with a wide network of branches normally have the online banking facility, whereas smaller banks may not offer the service. In case you want to avail of online banking, it is better to find out directly from your present bankers if the facility is available and the charge associated with the service.

Online investment can be beneficial if conducted with a bit of caution. Familiarity with the system and procedure of online investment is essential. Investing small amounts initially helps to reduce the risk factor. Once you are confident enough, the amounts can be gradually increased.

Online investment should be made after thorough research. Online research can be done in the privacy of your home. Other resources, like newspapers and financial magazines also offer assistance in tracking investment opportunities. The information available online is usually accurate and reliable, to decide on the amount of investment. The websites are regularly updated and the available information may have been posted just hours ago. Some reputed financial websites offer quotes that are merely minutes old. Online information on investment is available 24 hours a day and 365 days a year.

There are financial websites that allow you to customize the information you want to see. By signing up with them you would be presented with selective information that you want every time you access your account.

Like every other system, online banking and investment also have disadvantages. One of them is having your information online, which is a security concern. Many people consider online information to be insecure. However, if your bank or investment company websites are available online, you can be sure that all information on your investment is secure. You can take extra precaution by using passwords at least six or eight characters long and alphanumeric in structure. Avoid replicating or keeping the same password for all accounts.
There are many benefits of Internet banking and investment. However, in view of the hi-tech cybercrimes these days, it is advisable to proceed with caution while conducting online transactions.

How To Get The Most Out of Banking Online is a post from:

Finding a bank

Before you can begin business banking you need to find the right bank for your needs. Unless they have the best deal, it is usually inadvisable to use your current bank for your business needs. This is because it is a good idea to keep your business and personal affairs separate, and means that one bank isn’t in control of all your money. Secondly, new banking customers often get better deals because of the banks being so eager to attract new business. Whatever bank you use, it pays to shop around to find the best products for your needs.

Opening an account

Once you have chosen a bank you need to open an account for your business. This is probably the most important step, and there are a number of things you need to do before you can open an account. Firstly, prepare a business plan to present to the bank to show them where your business is headed. Also, if you are a new company then you will probably need to get proof of your initial financial backing. Your personal credit history and the history of any business partners will also be checked. Once these checks are complete then you will be able to open an account.

Features and rates

The features and rates you will receive will partially depend on the size of your business, as well as the results of your credit checks and the evaluation of your business plan. You are best off starting with a simple account, where you can withdraw money and pay in earnings. Once your business increases then you can add features, such as a high interest savings account, as you go along.

Limited companies

If you are starting a limited company, then you are required by law to open a business account. If you are a sole trader then it is not compulsory, but having an account that bears both your name and a business name is a good idea. This can give your business a more professional look when asking for payment from a client. For example, having checks made out to John Smith T/A (Trading As) John Smith Services’ is more professional than simply having money paid into your personal account. Whether your business is one person or a large company, having business banking will help you.

Online banking

Online banking is one of best ways to conduct your business banking. If you are looking for a business account, then you should consider one that has online features. This will make basic banking a lot quicker and save you having to travel to your branch every time you need to pay money in or transfer funds.

An Introduction to Business Banking is a post from: