Banking Finance

: The point of putting your money into a bank account is to have a secure place to store your funds. Therefore, you do not want to have to pay charges to keep your money safe. Shopping around for a new bank may save you a considerable amount of money over a long time.

 

Comparing Different Banking Institutions

 

The first bank you come across may not be the best bank for your financial needs, which is why you need to compare several banking institutions. A bank account for a wealthy businessperson may not be very beneficial or appropriate for the funds of a university student and vice versa.

 

You can begin your search online, but as you become more serious, you may want to begin meeting bank representatives in person to talk more thoroughly about your banking situation, your needs, the fees associated with different accounts and the perks of being a member of that particular banking institution. Try to go into the meeting with a list of specific questions so that you can make a thorough comparison and decision regarding who to choose to keep your money with.

 

What To Look For in a New Bank

 

Stability is very important in a banking institution. You may want to start looking at banks that have had a good history in your state or territory. You can check them out online as well to get an idea of the mortgage fees, bank rates and any type of special promotions that they may currently be holding.

 

For savings and transaction accounts, be on the lookout for minimum balances, free internet banking, free phone banking, cheque book options and ATM access. Listing these different types of features will help you to choose the bank that is best for your needs. Banking rates often change, especially in times of economic downturn, so keep updated on the current banking trends that may alter your interest rates and other banking services.

 

Switching Banks

 

If you are looking to switch banks, this information will help you to compare what you are paying for currently and what you will have to pay if you switch banks. If you are currently paying a minimum balance fee nearly every month, it may be beneficial to switch banks.

 

You may also seek the advice of friends, family and colleagues. If you are in the same economic situation and the bank your colleague uses seems to be convenient for you, you may want to place this bank on the top of your list.

Any company sending or receiving money globally will discover international bank transfers are a highly efficient international payment option.  Reducing cross-border payment processing expenses increases profit margins, reduces cost of sales, and improves cash flow.  International bank transfers provide an easy method to transform international payments into inexpensive local transactions with no risk.

International bank transfers are a reliable, modern, cost-saving alternative to wire transfers.  For years, wire transfers were the default payment mechanism for international payments.  While wire transfers are reliable, out-dated technology make them difficult to automate, hard to keep manage and laborious to reconcile.  And wire transfers are expensive to send and expensive to receive.

International bank transfers work through a unified international banking platform which links together the banking networks of 192 countries into a single system.  Businesses receive and send money through the same platform.  The system automatically transforms international bank transfers into low-cost local transactions.

International bank transfers enable internet merchants to sell globally while allowing customers to pay locally.  Consumers located anywhere in the world make online purchases quickly and easily simply by transferring money from the buyer’s local bank account to the seller’s bank account.  Buyers pay directly via local bank transfer by internet, telephone or as an over-the-counter deposit to a bank in the country in which they are located.

The merchant is notified as soon as the transaction is complete.  The merchant then releases the goods or services to the buyer with confidence that “cleared funds” will be settled to the merchant’s bank account.  There are no chargebacks with international bank transfers and buyers cannot reverse transactions

Businesses also use international bank transfers to rapidly deposit money into the bank accounts of customers, affiliates, employees, vendors or suppliers throughout the world. This eliminates the need to send paper checks or wire transfers.

International bank transfers reduce operating expenses and streamline business operations.  Businesses no longer need to establish and manage banking relationships throughout the world.  Instead, businesses access banks world-wide through a single easy-to-use interface.

Using the international bank transfers platform, businesses get the fastest credit reflection and payment completion times in the market. Without the international bank transfers system, a business has to wait for its bank, the correspondent bank, and all the intermediary bank networks to update in order for transactions to be viewed or completed.

The international bank transfers system is directly integrated with each international bank network.  Proprietary software constantly polls all accounts to detect incoming payments and make outgoing payments and transactions are completed quickly and easily.  All transactions are at low cost “in-country” local bank transfer rates.

Businesses using international bank transfers have full single-access view and control over their balances no matter in which country the balances are held. Accounts can be viewed in single currency or they can be viewed in multiple currencies.  The business has full control over those funds and can repatriate them back to their own “home” account whenever they wish, or they can use the international bank transfers platform to pay the funds on elsewhere as if the transaction were a local bank transfer.

MONEY AND BANKING

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MONEY AND BANKING

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MONEY AND BANKING

By: Michael Newman

About the Author

Michael Newman: http://homework-expert.net

(ArticlesBase SC #1289487)

Article Source: http://www.articlesbase.com/ – MONEY AND BANKING

Money is an intrinsic part of our life. By money we mean  any commodity generally accepted in payment for goods, services, & debts. The main use of money is makes the trading process simpler & more efficient, but actually money has various uses in the modern world & various functions, such as:

means of payment medium of exchange standart of value unit of account store of value standart of deferred payment

Money, as the medium of exchange, is used in one-half of almost all exchange. Workers exchange labour services for money. Poeple buy & sell goods in exchange for money. We accept money not to consume it directly but bacause it can subsequently be used to buy things we do wish to consume. Money is the medium through which people exchange goods & services. To see that society benefits from a medium of exchange imagine a barter economy.

A barter economy has no medium of exchange. Goods are traded directly or swapped for other goods. In a barter economy, the seller & the buyer each must want something the other has to offer. Each person is simultaneously a seller & a buyer. In order to see a film, you must hand over in exchange a good or service that the cinema manager wants. There has to be a double coincidence of wants. You have to find a cinema where the manager wants what you have to offer in exchange.

Trading is very expensive in a barter economy. People must spend a lot of time & effort finding others with whom they can make mutually satisfactory swaps. Since time & effort are scarce resources, a barter economy is wastful.

Although the crutial feature of money is its acceptance as the means of payment & medium of exchange, other functions are also in great importance. Money can also serve as a standart of value. Society considers it convenient to use a monetary unit to determine relative costs of different goods & services. In this function money appears as the unit of account, is the unit in which prices & quoted & accounts are kept.

In Russia prices are quoted in roubles, in US – dollars, in majority European countries – euros. It is usually convinient to use the units in which the medium of exchange is measured as the unit of account as well.

But let’s turn to the history & see how everything began, what is the background of money & banks.

In the past most societies used different objects as money. Some of these were valuable because they were rare & beautiful, others – because they could be eaten or used. Early forms of money like these were used to buy goods. They were also used to pay for marriages, fines & debts. But although everyday objects were extremely practical kinds of cash in many ways, they had some disadvantages too. For example, it was difficult to measure their value accurately, devide  some of them into a wide range of amounts, keep some of them for a long time, use them to make financial plans for the future. For the reasons such as these, some societies began to use another kind of money, that is precious metals.

People used gold, gold bullion, as money. Those were dangerous times, & people wanted a safe place to keep their gold. So they deposited it with goldsmiths, people who worked with gold for jewellery & so on & also had a guarded vault to keep it safe in. & when people wanted some of their gold to pay for things with, they went & fetched it from goldsmith.

Two developments turned these goldsmiths into bankers. The first was that people found it a lot easier to give the seller a letter than it was to fetch some gold & then physically hand it over to him. This letter transferred some of the gold & they had at the goldsmith’s to the seller. This letter we would nowadays call a cheque.  &, of course, once these letters or cheques, became acceptable as a way of paying for goods, people felt that the gold they had deposited with the goldsmith, was just as gold as gold in their own pockets. & as letters or cheques were easier to carry around than gold & a lot less dangerous, people started to say that their money holdings were what they had with them plus their deposits. So a system of deposits was started. The second development was that goldsmiths realized they had a great deal of unused gold lying in their vaults doing nothing. This development was actually of greater importance than the first.

Now let’s turn to the first bank loan & see what happened. A firm asked a goldsmith for a loan. The goldsmith realized that some of the gold in his vault could be lent to the firm, & of course he asked the firm to pay it back later with a little interest.

The goldsmith bankers were an early examples of a financial intermediary.

A financial intermediary is an institution that specializes in bringing lenders & borrowers together.

Banks are not the only financial intermediaries. Insurance companies, pension funds, & building societies also take money in order to relend it. The crucial feature of banks is that some of their liabilities are used as a means of payment, & are therefore part of the money stock.

There can be different types of banks.

Central banks supervise the banking system, the fix minimum interest rate, issue bank notes, control the money supply, influence exchange rates, & act as lender of last resort.

A commercial banks are businesses that trade in money. They borrow money from the public, crediting them with a deposit. The deposit is a liability of a bank. It is money owed to depositors. In turn the bank lends money to the firms, households or governments wishing to borrow. Commercial banks are financial intermediaries with a government license to make loans & issue deposits, including deposits against which cheques can be written.

In some European countries, notably Germany, Austria, & Switzerland, there are universal banks which combine deposit & loan banking system with share & bond dealing, investment advice, etc. Yet even universal banks usually forms a subsidiary, known as a financial house money – at several per cent over the base lending rate – for hire purchase or installment credit, that is,  loans to consumers that are repaid in regular, equal monthly amounts.

In Britain, the USA & Japan, however, there is, or used to be, a strict separation between commercial banks & banks that do stockbroking or bond dealing. Thus in Britain, merchant banks specialize in raising funds for industry on the various financial markets, financing international trade, issuing & underwriting securities, dealing with takeovers & mergers, issuing government bonds, & so on. They also offer stockbroking & portfolio management services to rich corporate & individual clients. Investment banks in the USA are similar, but they can only act as intermediaries offering advisory services, & do not offer loans themselves.

In Britain there are also building societies that provide mortgages, i. e. they lend money to home-buyers on the security of houses & flats, & attract savers by paying high interest than the banks. The savings & loan associations in the USA served a similar function, until most of them went spectacularly bankrupt at the end of 1980s.

There are also supranational banks such as World Bank or the European Bank for Reconstruction & Development, which are generally concerned with economic development.

As we see there are a lot of different types of banks, but also we can talk about different kinds of money. (This classification is mostly based on the functions of money).

In prisoner-of-war camps, cigarettes served as money. In the 19th century money was mainly gold & silver coins. These are examples of commodity money, ordinary goods with industrial uses (gold) & consumption uses (cigarettes), which also serve as a medium of exchange. To use a commodity money, society must either cut back on other uses of that commodity or devote scarce resources to producing additional quantities of the commodity. But there are less expensive ways for society to produce money.

A token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money. The essential condition for the survival of token money is the restriction of the right to supply it. Private production is illegal. Society enforces the use of token money by making it legal tender. The law says it must be acceptable as a means of payment.

In modern economies, token money is supplemented by IOU money. An IOU money is a medium of exchange based on the debt of a private firm or individual. A bank deposit is IOU money because it is a debt of the bank. When you have a bank deposit the bank owes money. You can write a cheque to yourself or a third party & the bang is obliged to pay whenever the cheque is presented. Bank deposits are a medium of exchange because they are generally accepted as payment.

As you know each country has its own national currency, but there is such a phenomenon as euro – it’s European currency, which is acceptable in the 12 countries of European Union. On 1 January 2002, the euro, which has been adopted in 1999, started circulating in notes & coins. This was a historical moment in the integration of Europe. From 1 January 2002 the euro existed as cash, but before it it could be used only for banks & financial transaction.

What are the advantages of the euro?

-         the euro is a safe currency against counterfeiting

-         the euro is based on one of the strongest economies in the world with stable prices

-         the euro is business friendly

-         the euro is convenient & transparent for tourists

& the last point I would like to discuss is the banking in Russia.

Russian present days banking system features two levels of banking institutions, the Central Bank of Russia (high level) being the regulating body, & commercial banks & credit institutions (lower level) being banking services providers for economic subjects.  Status, responsibilities & jurisdiction of the Central Bank of Russia are outlined in the Federal Law on the Central Bank.

The principal purposes of activities of the Central Bank are:

-         protection of the national currency (Russian ruble)

-         development & enhancement of national banking system

-         provision for efficient payment system functioning

Profit derivation is not considered a purpose of the Central bank’s activity. Some of its functions are:

-         currency issue (monopolized by the Central bank)

-         payment regulation issue

-         issue & withdraw banking licenses

-         regulation of operations in foreign currency

The majority transaction in rubles payment in Russia are effected via the Central Bank clearing system – set of arrangements in which debts between banks are settled by adding up all the transactions in given period & paying only the net amounts needed to balance inter-bank accounts.

The Central Bank reports to the Parliament (State Duma).

Commercial banks & credit institutions are founded & operated in compliance with the Federal Law on Banks & Banking Activities other applicable law regulations issued by the Central Bank.

Commercial bank is considered founded & regarded as a legal entity after registration of its charter at the Central Bank of Russia. The license, issued in its name by the Central Bank confirms its entitlement to effect banking operations.

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(ArticlesBase SC #1289487)

Michael Newman -
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Michael Newman: http://homework-expert.net

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Every year in the past decade, we have seen dramatic increases in the number of  bank levies that the IRS issues (in some cases the number doubles from year to year). In 2009, the IRS issued nearly 4 million bank levies.  In 2009, the IRS announced huge increases in their collection efforts, and raked in nearly $50 billion in back taxes due.  2010 promises to be another painful year of an upsurge in bank levies.

For many taxpayers, tax terror can strike like lightning. Your life changes in a flash like when you try to buy milk and make the horrifying discovery that your bank account has been suddenly emptied. All your checks bounce. Have you been robbed? A victim of identity theft?  It’s worse, your bank account has been gutted by an IRS bank levy. Not only are you suddenly broke, but you’ve just entered the IRS’s version of “Beat The Clock.”

Act quickly today (but don’t panic).

An IRS levy on your bank account is something you need to fix fast. An IRS bank levy has a 21-day ticking clock. The first step to fighting an IRS levy on your bank account is to get a tax attorney or a Certified Tax Resolution Specialist as quickly as possible.

Under no circumstance should you contact the IRS (or your state’s tax board) yourself, without expert tax help from a tax attorney or Certified Tax Resolution Specialist, to try to release the IRS bank levy. Alone and panicked, you may start babbling, trying any collection of random syllables or incantations to unfreeze the IRS levy on your bank account. Chances are, without a tax attorney or Certified Tax Resolution Specialist, not only will you not be successful, but you just get may incriminate yourself and get into even bigger trouble (including possible federal criminal charges for back tax evasion).

What is an IRS bank levy?

If you owe back taxes and have been ignoring IRS communication, the IRS can go into your bank account to satisfy your tax debt. An IRS levy on your bank account is the most effective weapon in the IRS’s arsenal. An IRS bank levy can turn a battle-hardened Marine into a Jell-o mold. With an IRS levy on your bank account, Uncle Sam has you right where he wants you. You may think you have no leverage, but there are steps a tax attorney or Certified Tax Resolution Specialist can take to release your IRS bank levy.

With an IRS levy on your bank account, there is more at stake then just your bank accounts. The IRS is the most brutal collection agency on the planet. An IRS bank levy can seize the money in your corporate, or personal checking and savings accounts (whatever accounts are tied to your Social Security number, or employer identification number in the case of a corporation). But that’s just the beginning of the IRS bank levy horror show.

For employees who file a W2, the IRS typically will levy a wage garnishment, but if they can’t find an employer (if you are self-employed, for example), the IRS will often place an IRS levy on all your bank accounts, your accounts receivable (contacting your clients) and every other source of income they can find. To make things worse, in addition to an IRS bank levy, the IRS can seize any account with your name anywhere near it, including those belonging to your children, spouse, parents and any clubs where you are an officer. An IRS levy on these bank accounts is only the start of your problems. The IRS can seize and sell your property (car, house) as well as any accounts you have, such as retirement accounts, rental income, the cash loan value of your life insurance, etc. This is how they get your “attention”.

An IRS Bank levy has one teeny, tiny silver lining

The good news is that when the IRS levies a bank account, it is generally a “one-shot” levy, which means that the IRS levy on your bank account is only for the particular day the IRS bank levy is received by the bank. The bank removes whatever amount the IRS says you owe (most often emptying the account). The bank has 21 days to send it to the IRS unless you make a deal in the meantime. On the 21st day, the entire amount will go to IRS. If you ever want to see your money again, you’ve got to have your tax attorney or Certified Tax Resolution Specialist cut a deal quickly so that your bank receives a notice of IRS bank levy release from the IRS before the 21st day.

Although most IRS bank account levies are one-shot deals only for that day, that doesn’t mean you’re in the clear after that day. In most cases you can deposit money (to cover written checks) after the day of the IRS levy, but that just means your money is safe until the IRS strikes back with another bank account levy. Every tax attorney or Certified Tax Resolution Specialist will tell you that the IRS will keep issuing IRS bank levies until they get every penny they think is owed. Your best bet is to enlist a tax attorney or Certified Tax Resolution Specialist to cut a deal including an offer in compromise or IRS payment plan to permanently resolve your tax debt.

How do I release an IRS levy on my bank accounts?

In most cases, a tax attorney or a Certified Tax Resolution Specialist can appeal your IRS bank levy by requesting a Collection Due Process hearing with the Office of Appeals. To remove your IRS bank levy, your tax attorney or Certified Tax Resolution Specialist may launch one of these popular IRS bank levy defenses:

IRS bank levy defense #1: The taxpayer will suffer financial hardship (not be able to meet basic needs) if the account is levied
IRS bank levy defense #2: The taxpayer has paid all taxes owed before the IRS sent the levy notice
IRS bank levy defense #3: The IRS assessed the tax and sent the levy notice when the taxpayer was in bankruptcy, and subject to the automatic stay during bankruptcy
IRS bank levy defense #4: The IRS made a procedural error in an assessment
IRS bank levy defense #5: The time to collect the tax (called the statute of limitations) expired before the IRS sent the levy notice
IRS bank levy defense #6: The taxpayer did not have an opportunity to dispute the assessed liability
IRS bank levy defense #7: The taxpayer wants to discuss collection options
IRS bank levy defense #8: The taxpayer wants to make a spousal defense

The need for speed.

You must work fast to beat the 21-day deadline. Get the name, email and fax number of the person at your bank who is responsible for your IRS bank levy release and the same information from the IRS revenue officer who is handling your IRS levy. Even with the help of a tax attorney or a Certified Tax Resolution Specialist, you’ll still need to move very fast to get the Notice of Levy Release to the bank officer in time. Faxes are the fastest way to slay the IRS bank levy dragon. If you wait for the IRS to send you the Notice of Levy Release via U.S. Mail, you could easily miss the 21-day IRS bank levy deadline. If you miss it by just one business day, you’ve missed the IRS levy deadline forever.

What is the advantage of working with a tax attorney or Certified Tax Resolution Specialist to release my IRS bank levy?

We get between you and the IRS. After learning which tax years are part of the IRS bank levy, have your tax attorney or Certified Tax Resolution Specialist look at those returns. Every tax year is different, so a one-size-fits-all response to an IRS levy on your accounts (personal, corporate, etc.) might be a costly one. Find out what the IRS says you owe them and have your tax attorney or Certified Tax Resolution Specialist check it against your returns. The IRS may have made some mistakes (happens all the time) that only a tax attorney or Certified Tax Resolution Specialist can spot and fix.

If things don’t go your way with the IRS Office of Appeal and your IRS bank levy isn’t released, that’s when you’ll REALLY need a tax attorney or Certified Tax Resolution Specialist. After the Office of Appeals issues a determination on your IRS bank levy, you have 30 days to have your tax attorney or Certified Tax Resolution Specialist bring a suit to contest the ruling.

An IRS bank levy is terrifying, but with IRS help from a good tax attorney or Certified Tax Resolution Specialist you have the hope of getting your financial life back in order, in some cases paying far less than the IRS says you owe. If you get any IRS bank levy notices in the mail, contact a tax attorney or Certified Tax Resolution Specialist immediately so you don’t have to worry about whether you can buy milk without getting struck by IRS bank levy lightning.

For more information on how to resolve your back taxes and remove IRS bank levies, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.

These amounts are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.

These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.

And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.

All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.

So how come you’re still looking for financing?

Perhaps you aren’t presenting your company effectively.

Or perhaps you haven’t located the right lender.

It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.

So where do you go to find all these investors? Here are some starting points:

For standard business financing, talk with the local office of the Small Business Administration. It’s a different agency, with different programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer all companies.

Also talk with your local banks. (That was plural “banks”, not singular “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.

Read more on

http://myfreeinfo4u.com/finance/finance_your_small_business_so_much_money_so_little_time.html

Renovating your home is a stressful process but it is a great way to improve its appearance and make it a more enjoyable place to live. A home renovation can greatly improve the way you and your family live, and once it is completed it will increase the value of your home. Renovating your home is probably one of the biggest financial investments you will ever make but if the financing is properly structured you can save thousands of dollars in interest charges. There are many different options available when it comes to financing a home renovation and we will examine three different options to see which is the most cost effective.

One alternative that many homeowners use for financing a home renovation is their credit cards; this is probably the most expensive way to go. Most credit cards charge approximately 18%-30% interest and if you consider the monthly compounding the interest charges are phenomenal. If you were to use a home improvement project of thirty thousand dollars as an example, with a credit card that charged 19% interest the payments would be approximately $459.00 per month for interest only payments. That means if you paid only the minimum payment every month you would never bring down the balance.

Another option is an unsecured loan such as a line of credit or bank loan. An unsecured loan is a loan that the bank gives you based solely on your credit history and since there is no collateral for the bank, this type of loan is a higher risk so the interest charges are higher. The average unsecured loan charges an interest rate of 10% -13%. Using the last example of a thirty thousand dollar renovation and a ten year term with an interest charge of 10% the monthly payment would be $383 per month. This is a much less expensive way to go to finance a large project.

The third alternative is a secured loan such as a secured line of credit or a refinance. The difference between a secured loan and an unsecured loan is that the bank uses the equity in your home as collateral. This type of loan is much less risky, so the homeowner is rewarded with lower interest charges. Interest charges range depending on the type of secured loan you decide to go with, a secured line of credit generally fluctuates with the prime rate. The least expensive choice is a refinance, what this means is that you take your renovation and combine it into your current mortgage.

With a refinance you are increasing your current mortgage amount and monthly payment but by doing so you are saving a loan payment and getting great rates that range anywhere from 4%-6%. A homeowner whose house is worth $250K and they owe $180K has a monthly payment is $1062. If they were to consolidate the $30K renovation into their current mortgage the payment would be $1239/month. That would save the homeowner $206 per month when compared to a traditional bank loan. It is apparent that the most cost effective way to finance a home renovation is a secured loan, now deciding on which type of secured loan that is best for your personal situation.

There are many factors to consider and each homeowner’s situation is different so the best thing to do is to get some help from a professional. A specialist at the bank will recommend programs offered by their bank, not necessarily what’s in your best interest. Using a mortgage broker will offer you unbiased advice because they are familiar with all of the different banks and their programs and they have access to the best rates available. Whichever way you decide to finance your renovations be sure to consider all of your options.