Sep
10
Problem with Banks as an Investment
Filed Under Banking, Investments | Leave a Comment
Banks are considered monetary castles where your money is safe as a house. They do much client reading before even opening an account and thee is a feeling of assurance with banks. Many thus like to invest in and with banks. But due to this assurance factor, there are a few accumulated problems.
• There might be strict rules in case the client and his nominee suddenly die.
• The rate of investment is often at a below par level than with other investments.
• There is just too much paperwork and you have to keep updated monthly.
• Once locked in an investment, it is harmful to get out of it. The client stands to lose big money.
• If there is any fraud on the part of the client, he automatically gets blacklisted.
• You get paltry dividends in the interim periods and often feel that you might have put the money somewhere else. But yes, safety is guaranteed.
Mar
14
Important Tips to Establish Your Emergency Fund
Filed Under Banking, Emergency / Contingent Funds, Financial Planning, Recurring Accounts | 2 Comments
Emergency funds as the name suggests helps you during the time of emergency. The idea is to look for creating a fund that you do not encroach for trivial expenses. Go for automatic deductions. This can be done through an online electronic clearance scheme.
The idea is to keep paying through something that you don’t have to bother about each month. Of course you will have to save for the purpose and hence value of an emergency fund will be automatically incorporated in you.
Set up a recurrent account that calls for a daily or weekly payment. This way you will have to save for it forcefully so that you can meet the demands of the recurring account.
Just like paying for all the important expenses at the beginning of the month, also allocate some resource towards the emergency fund. This will allow you to make a conscious and disciplined decision of making an emergency fund set-up.
Mar
10
How You Can Deal with the Reconfigured FICO Score?
Filed Under Banking, Credit rating | Leave a Comment
FICO stands for Fair Isaac Corporation. This credit rating corporation started the credit jargon years ago. Even today, it is very highly respected; you need to look at the FICO scores for your credit rating. Once your FICO scores are high you need not bother about availing credit from the lenders. They will themselves come to you.
Today, the FICO scores range between 30 and 800. Anything over 700 is considered worthy. Many credit reporting agencies take the FICO score from the bureau and float it to the lenders. Now few services also show a reconfigured formula to change your credit score.
To deal with such formula, just keep a tab on your credit rating and travel through the top agencies, for instance, Equifax Inc, TransUnion and so on. Also look to make timely payments through automated set ups. Do not go too far ahead with the credit card dues owing to making only the minimum payments and you will be just fine in dealing with reconfiguration.
Mar
6
Importance of FDIC Insurance
Filed Under Banking, Deposits, Investment Insurance | 1 Comment
Bank crunches and subsequent failures have taught us the importance of FDIC insurance. FDIC stands for Federal Deposit Insurance Corporation. FDIC insures up to $100000 of your deposit if you have a personal account. If you are a retiree, you get a cover of $250000. This is a great thought as the retirees have their lifetime savings invested in a bank and they do not have age on their side to recover from the loss.
Now, these are tough times and though banks lure you with teasing interest rates, it is always difficult to trust the banks anymore. So if you are looking to invest more than $100000, go ahead by doing it under various different accounts, none exceeding the $ 100000 mark. This can help greatly with protecting your entire money.
The importance of FDIC rings truer in the light of over $245 million losses faced by investors owing to bank failures.
Feb
8
Today banks had changed a lot. They are providing more services using advanced technologies like internet cell phones. Gone are the days when people used to wait before banks to draw or deposit.
Mobile banking or phone banking is used to deposit amount, get information on transactions, perform payments etc. this can be done via SMS or mobile internet or through client downloaded service.
Through mobile banking, subscribers are able to pay bills through phone. A subscriber having an account in a bank linked to the mobile provider of the subscriber can enroll for this service.
Balance inquiry
Instead of going to bank during these busy times, one can get information through mobile banking service.
Transfer of funds
During this modern service, transfer of funds is possible. The subscriber would go to the network service center and deposit the money they want to transfer. Transfer of money is in real time. Recipient will get money immediately.
Purchases can also be done through this service. This serves the basic needs of the subscriber for all transactions.