An Introduction to Internet Banking in South Africa - By: Emma Drummond
Benefits of Internet Banking Services
Internet banking services provide a safe environment with hardly any of the frustrations associated with visiting a physical bank, giving you the control to bank when it suits you best, no matter where in the country you may be. Internet banking means that there is no need to stress out about getting to a branch during working hours or standing in queues for ages, waiting to complete one simple bank transaction.
Internet banking in South Africa has greatly reduced paperwork, saving time and money. Instead of waiting for statements to arrive by post, you can access your transaction records at any time you wish. The ability to also print a copy of your bank statements can be used as proof of payment to a creditor. The ability to monitor your personal finance activities 24 hours a day also enables discrepancies to be picked up and dealt with swiftly. Internet banking services allow you to manage multiple accounts from one easy location and perform an array of banking activities from one convenient and secure portal.
Internet Banking Services
When you register for Internet banking, you will have access to a range of services and facilities:
• Request statements - you will be able to access statements whenever you like, as well as choose the date range that you want to reflect back on.
• Interaccount transfers – with a few simple clicks, you can transfer money between accounts, saving you the time and hassle of visiting your branch.
• Pay bills – this Internet banking service has given you the freedom and convenience of paying electricity or water bills online.
• Pay school fees – with Internet banking you are able to pay school or tuition fees with ease.
• Apply for an overdraft facility ¬- this also saves the time and hassle of visiting your branch.
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Supervisory Scheme Under Modifying Financial System - By: Lumber Joe
At the initial stage of development, commercial banks provided most of the services of financial intermediation. Later with the appearance of a variety of other financial intermediary services, such as investment banking, insurance, fund management, (notably between 1930 and 1970) strict demarcation lines between the various financial intermediaries and their functions was imposed with direct controls over competition between such intermediaries. For instance, the Glass-Steagall Act in the USA in 1933 prohibited provision of investment banking by commercial banking institutions and Italian Banking Law of 1936, which established the principle of separation between banking and non-financial activities.
With a view to limiting the risk of financial instability, significant restrictions on the lines of business, geographical location and operation of financial enterprises existed in many countries, sometimes supplemented by ceilings on deposit rates, new entry restrictions and official tolerance of cartel-type agreements. The result, in many cases, was the establishment of cartelized oligopolistic clubs of semi-specialized intermediaries, that led to the appearance of largely self-regulating clubs with agreed rules of conduct.
The cartelized oligopolistic structure limited competition, guaranteed franchise value and reduced likelihood of failure. This was partly due to international stability achieved by the Bretton Woods arrangements. This reduced the need for financial supervision. So over the years banking supervision did not play the central role in the central bank’s activities, due to the structure that reduced the need for regulation and allowed self-regulation. In the United States the Federal Reserve became the major player in regulation and supervision only after enactment of Bank Holding Company act in 1956 that assigned central bank supervisory function over BHCs.
Oligopolistic structure reduced competition, efficiency and innovation. The protected and regulated financial system was abolished under the conditions of increased international competition, technological innovation, drive for efficient, improved services for customers and return of liberal, market based ideology. Instability and failures became frequent and led to greater involvement of central banks in supervisory activities. Moreover, this also led to the blurring of the previously clear boundaries between different types of financial intermediation. Universal banking became more popular and commonplace. Banking mixed with insurance, bank assurance, and undertook fund management. Eventually, this meant that the attempt to supervise separately by function would end up with multiple supervisors involved with the same institution.
So, one obvious conclusion that was reached was placing responsibility for the supervision of all financial intermediaries in one institution. But this naturally caused a problem for central banks, wishing to maintain internal control of banking supervision.
On the other hand, such unification results in economies of scale arising from single set of central support services (information services, premises, human resources, financial control etc), a unified management structure, a unified approach to standard-setting, authorization, supervision, enforcement, consumer education and tackling of financial crime. It also results in economies of scope implying that single services regulator will be able to tackle cross-sector issues more effectively and efficiently than multiple separate specialist regulators.
Alternatively, placing all supervision under the roof of the central bank would require taking responsibility for supervision over activities which lay outside its historical sphere of expertise and responsibility. One obvious example of this would be market price risk versus credit risk. Banking institutions mostly deal with credit risk, while securities firms face market price risk that derives from fluctuations in market price of securities held by the financial institution.
An even more serious problem would arise out of how to set the boundaries between those sub-sets of depositors/institutions which would be covered by the deposit insurance, the lender of last resort (LOLR) facilities, etc., and those not so covered. The central bank would be unwilling to extend its operational remit to dealing with financial markets and institutions where issues related to systemic stability are limited and customer protection of much greater importance.
One more proposal was delegating supervisory responsibilities to multiple agencies outside the central bank. This option requires full and free exchange of information among multiple agencies at national and international level. Within the European Community, legislation has imposed a duty on these authorities to cooperate, however implementation of this may be more difficult. This model also requires the harmonization of capital standards. This would imply that the risks incurred would be subject to the same standards irrespective of the unit of the corporate organization they are incurred.
An obvious problem with the model is allocation of responsibilities between different supervisors. Traditionally, countries have organized their prudential framework along institutional lines. This has generally been on a tripartite basis (banks, securities firms, insurance companies), except in countries such as Germany and Switzerland which have universal banking systems, where securities business is generally regarded as the banking business. So it is difficult to allocate it under the specific supervisor.
One alternative proposal was to divide the structure of supervision into two purposes: systemic stability (prudential supervision) and customer protection (conduct of business supervision). This was the Twin Peaks proposal, advocated in the UK primarily in the work of Michael Taylor (1995 and 1996). The supervisory body charged with customer protection would naturally take the lead in some areas, markets and institutions. Contrary to this, the body charged with responsibility for systemic stability would take the lead in dealing with the payments system, and with certain aspects of banking and, perhaps, other financial markets. In practice, however, to a large extent a ‘systemic stability’ regulator and a ‘customer protection’ regulator most probably would implement the regulation of a bank in exactly the same way, so there would be considerable duplication and overlap. Dealing with two supervisors would also raise the cost of supervised entities. The Twin Peaks concept has, so far, not found favor in practice, though, the US system has evolved in a way that approximates it, with the Federal Reserve coming close to a systemic stability (prudential) supervisor, and the Securities and Exchange Commission (SEC) undertaking the conduct of business role.
One important point is dividing tasks according to micro and macro approaches. Customer protection issues are generally associated with micro level decision-making, while systemic stability deals mostly with macro, however to some extent with micro-level as well. It has been argued that keeping macro part of systemic stability issues with the central bank and micro part with an independent agency would restore clarity and responsibility.
It is worth discussing how this problem applies to developing countries. The financial structure in developing and transitional countries is quite distinct from developed economies. They tend to be simpler, more dependent on standard commercial banking and degree of blurring boundaries in these countries is low. In developed countries the complexity of financial sector and blurring boundaries force central bankers to extend their activities further away from traditional limits. It also creates multiplicity of supervisors or unified supervisory body outside the central bank. This is not the case in developing countries. The banking system, insurance companies and stock exchange can co-exist without much friction or overlap.
Thus, the strength of argument concerning the changing structure of financial system and whether the central bank should regulate non-bank financial institutions as well largely depends on the degree of blurring boundaries between various types of financial intermediaries and readiness of the central bank to tackle with the responsibilities that lie outside its historical sphere of expertise. Practically observed trend towards separation of regulatory function from the central bank can be explained by the development of the financial markets in different countries that tends to make this argument decisive.
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Get unexpected loans with Credit Unions. - By: healthy weight
Based on the common sense and conventional wisdom, there are a number of people who visit a mortgage broker so they can get some of the best deals with mortgage loans. Some of the best brokers offer you with diverse arrays providing different options. But most mortgage brokers avoid speaking of credit union mortgage loans. There are different types of credit union like Phoenix Credit Union , Austin credit union and Phoenix banking systems that have advantages over a number of lenders. One of the main advantages with these are that they tend to operate on small and medium scale and concentrate on low risk loans. So, during the financial crises most credit union companies like Phoenix credit union, Austin credit unions and Phoenix banking have not suffered much loses as compared to other financial institutions.
One of the main advantages with these credit union companies is that they simply tend to operate their business on a non-profit basis. They are generally organizations that are meant to provide mutual benefit to each and every member. Credit union companies like Phoenix credit union, Austin Credit Union and Phoenix banking provide their members with money at lower interest rates. You can always see the difference when signing up with one such credit union company. There are some that might just offer loan for as low as 4.8% flat rate of interest. This part of interest is expected to stay flat and unchanged for at least three years. After that particular period the rate of interest offered by Phoenix credit union, Austin credit union and Phoenix banking could in fact change for as much as 2% per year or even after every three years, depending on the amount of loan.
There are a number of other mortgage loan lenders who charge you with flat rate of around 6.4% average. So if you opt for credit union loans then you can save around $300 every month for a mortgage of $350,000 on your home. A number of other federal mortgage companies might charge you with 6.5% for 30 day fixed rate mortgages. One of the best parts with credit union companies is that they certainly do not charge any upfront fee for your loan amount. It is pretty easy to join any credit union companies like Phoenix credit union, Austin credit unions and Phoenix banking. Anyone can be a member just by paying a low initial fee amount which could be as low as $5 per member. In order to get the benefit you certainly might have to prove that you live, own or work in the desired community where this credit union serves.
There are a number of credit union companies that have in fact managed to gain popularity. Companies like Phoenix credit union, Austin credit union and Phoenix banking have managed to sell more mortgages as compared to other financial institutions. At the time of economical crises most members are turning towards these credit union companies forgetting some of the best deals.
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Offshore Banking - Explained - By: Melissa Glotzer
Many entrepreneurs and individuals have heard about offshore banking, but are unsure about the benefits, the legal implications and even what it is exactly. By gaining a better understanding of what offshore banking really is entrepreneurs can decide whether it is relevant to their company, and to what extent it can benefit them.
Technically speaking, an offshore bank is simply a bank in a jurisdiction other than the one in which the client resides. A person living in France who has a bank account in the US technically has an ‘offshore bank account’. However, the term offshore banking is more commonly used in reference to offshore banking in jurisdictions that provide tax benefits to the client. For example, living in France and having an offshore bank account in Panama, a jurisdiction often perceived as being a tax-haven.
By opening a corporate account in an offshore bank, entrepreneurs can benefit from favourable interest rates as interest received is typically tax-exempt. Furthermore, offshore bank accounts can be structured for multiple currencies so that entrepreneurs can avoid paying foreign exchange commissions on money transfers, and reduce their company’s exchange rate risk. Overall, having an offshore account presents many logical and attractive benefits for entrepreneurs and their business.
It should be noted that offshore banking can sometimes be perceived as tax evasion, and as a result many countries that provide competitive tax benefits also make double tax agreements with other nations, whereby account-holder information and tax information is exchanged in order to identify tax evaders. The Organization for Economic Co-operation and Development (OECD) has also created strict guidelines in order to monitor and reduce the abuse of tax systems, such as the Savings Tax Directive.
It is, therefore, important to recognize that offshore banking can only be secure, confidential and legitimate when the account location is properly researched in light of the company involved. Professional services and consultancy firms exist to assist companies with the decision making and procedures involved, to ensure that the company can make use of tax-efficient international transactions without defying the law.
When determining where to locate a corporate offshore account, various factors need to be taken into consideration. Firstly, offshore banking jurisdictions are often in remote locations with poorly-developed communications technologies, which can complicate banking queries or issues and even impede on bank/client relations. Furthermore, since the September 11 terrorist attacks, offshore banking is sometimes associated with terrorist group and criminal money laundering. That being said, various offshore banking locations, such as Singapore and Hong Kong, remain reliable and are highly respected in the business world.
Offshore banking in Singapore and Hong Kong not only offers significant tax benefits when appropriately structured, but typically provides excellent internet banking technologies that are secure, user-friendly and highly efficient. While Singapore and Hong Kong provide such benefits, their jurisdictions are not regarded as tax havens and are approved by the OECD despite having strict client confidentiality laws.
Important recent developments on the policies and laws related to offshore banking and tax evasion are:
1. The Isle of Man’s efforts to impose further Tax Information Exchange Agreements (TIEAs) and Double Taxation Agreements (DTAs).
2. A Bill being considered in the US that would tighten existing laws for offshore companies, increase transparency requirements and impose severe tax evasion fines.
3. Switzerland’s recent efforts to co-operate with OECD requirements by signing its 11th TIEA and revealing previously secure client confidentiality details.
4. The G20’s decision to enforce OECD guidelines and work together to penalize tax evaders.
That being said, these laws apply to individuals and corporations who abuse overseas tax benefits. It is still possible to plan efficient tax procedures in offshore bank accounts within legal boundaries, however advice and assistance from knowledgeable individuals is recommended in order to avoid unintended tax evasion.
Locations to consider for offshore banking include Singapore, Hong Kong, Cyprus, Dubai, and UAE.
Melissa Glotzer is a Marketing Assistant at Healy Consultants. She is a graduate of the University of Manchester Business School with a BSc (Honours) in Management with Accounting and Finance.
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Technological Transformation of the Banking and Financial Services Sector - By: Alex Jordon
Our life has been transformed by the positive effects of technology. Technological innovations have simplified our life. The changes are visible in every sector. The Banking and Finance sector are among one of those sectors which have completely changed due to technological innovations. Nowadays, we use several advanced banking and financial services like Internet Banking, ATM Transactions, Core Banking Services (CBS), Electronic Funds Transfer, and Cashless Transactions while shopping. These are just a few examples of the changes experienced.
The banking services mentioned above have become a common way of life. A few decades ago there were not even a concepts as such in the banking and financial services sector. More recently, people used to hesitate while using these types of services. They were concerned about the security of their personal information as well as their money. But, secure security implementation techniques in the delivery of such services, packed with time sensitive results encouraged people to leverage the benefit of these services and the use of these services has increased year in year.
To provide a interactive and user friendly service, banks and financial institutions have adopted the most recent technological trends. Queuing at banks is a thing of the past; nowadays customers can enjoy various facilities at the doorstep of their banks and at other locations. Phone banking and SMS banking services can also keep customers updated with the status of their money, investments and offer an array of additional services.
Consumers can use most of the banking services anytime and nearly everywhere. You can transfer funds, pay utility bills, deposit your insurance premiums, and shop online with the assistance of online payment facilities and technology to access these services. Stock or share trading is also not spared with the changes in technology Stock brokers or even everyday normal buyers can have an almost instant up-to-date update and status of the market status of stocks of their interest. They no longer need to wait for newspaper , news channel or need some fancy program
Most consumers have accepted these significant change in the banking and finance sector. The early adopters are more experimental and they are more willing to accept anything that can make a significant difference in their daily life. One of the best examples of the change in consumer behavior is the global popularity of social networking websites like Facebook, MySpace and the micro blogging website twitter. Just another reflection of how consumers are more readily accepting technology and innovative changes to enrich their life’s or make it easier and more convenient.
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Offshore Banking – An Outlook - By: Samuel Congdon
Offshore banking is a tool that many businesses and multinational corporations utilize because of the advantages it offers. Having a bank account in a country other than the one you normally live in is termed as offshore banking. Though offshore banking and offshore bank accounts are a common term for many there may be some who are totally unaware of offshore banking or the advantages that offshore banking can offer. This article will give you an idea of what offshore banking is all about.
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction or so-called tax haven that provides privacy advantages. Offshore banking has many advantages such as privacy, low or no taxation (the country where the offshore bank is located generally does not tax assets in the offshore bank accounts or income earned from those assets. However, taxes on the assets or taxes on the income may still need to be reported to the client’s home-country government. Additionally, control, ownership or authority over or signatory power over an offshore bank account at an offshore bank may need to be reported to the client’s home government) , online access to deposits, protection against political or financial instability.
With online access to the funds in the offshore bank account, offshore banking is a common practice around the globe for corporations, entrepreneurs and executives and multi-national companies. Offshore bank accounts and offshore structures, such as an offshore company or LLC, also help to shield assets from potential litigants thus creating asset protection.
The practice of offshore banking is a widely accepted fact in financial and business circles and most governments have no laws preventing offshore banking.
Many of these offshore banks provide their clients with an offshore credit card or offshore debit card. Using an offshore debit card or offshore credit card gives a client immediate access to funds in an offshore bank account (or to a credit line secured by funds in an offshore bank account – which is how most offshore credit cards function). As with any other bank, offshore banks also offer online banking making account management faster and easier. And, many offshore banks allow their offshore banking customers to request wire transfers from within online banking. This makes transferring funds out of an offshore bank account more convenient.
Some of the locations offering offshore banking are Antigua, Bahamas, Belize, Bermuda, St. Lucia, The Cayman Islands, Dominica, British Virgin Islands, Gibraltar, Luxembourg, Austria, Isle of Man, Jersey, Mauritius, Nevis, Panama, and The Turks and Calicos Islands. And in fact, any bank that is located in a country outside of one’s home country is an offshore bank with respect to the client.
Open an offshore bank account today and enjoy all the advantages and perks that offshore banking has to offer.
Samuel Congdon is knowledgeable in the field of offshore banking, offshore bank accounts, offshore companies and offshore investment accounts. Sam Congdon has travelled to The Bahamas, Antigua, Nevis and St. Kitts, Dominica, St. Lucia, The Turks and Caicos Islands, The Netherland Antilles, Canada, Mexico, Ireland, England, The Isle of Man, Switzerland, Luxembourg, Austria, Holland, Panama, Venezuela, Nepal, Thailand and India.
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Banking and Financial Services – Essential Part of Everyone’s Life - By: Alex Jordon
Banking and Financial Services
Nowadays, Banking and Financial Services are an essential part of everyone’s life. Every day people use different types of banking and various financial services. Some examples include paying utility bills or insurance premiums, shopping online or through Debit/Credit Cards. These technology driven banking and financial services have simplified transactions and made life easier.
Why Banking and Financial Services?
No one is left untouched by the impact of money. We all have to rely on banking and financial service providers for effective use of our money. Be it lending, investment, or insurance, people need to depend on banking and financial service providers.
Life in the digital age has become somewhat more secure and simpler through the implementation of beneficial banking and finance practices. Different banking services provided by major banks like personal banking, enterprise banking solutions, and investment consultancy help investors properly utilize their money with the aim to grow and gain future financial benefits. There is protection which consumers may be able to obtain to ensure that your investments are protected. Insurance companies provide protection from several uncertainties that may come without notice. Life and non-life insurance covering all kinds of emergencies give people peace of mind.
Apart from that, several financial institutions provide consultancy for the right of investment so that your money is invested in the right place and your can enjoy the maximum possible benefits on your invested money. Your investments may also help in tax savings and other economic benefits.
Credit Services – Economic Relief When You Are in Need
Credit/lending services are among the most popular segment of modern banking and finance industry. We come across several situations in life when we face some sort of cash crunch at a crucial moment in life. Its times like these when banks and lending institutions come to the rescue by offering various credit schemes and loans. In addition to this consumers may also need credit to turn their dreams into reality (like buying a luxury vehicle or a dream house). This is where banking institutions can also assist us.
Credit services may help people by increasing our quality of living. Banks and lending agencies provides credit for almost every need. You can get loans not only to purchase a dream house, or luxury vehicles, but also for emergency medical treatments, higher education, or even a loan for a wedding.
In summary, different types of banking and financial services are an essential need for everyone. One cannot expect to live a comfortable financial life without the right banking and financial services assistance and security.
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Is Singapore Private Banking Surpassing Swiss Private Banking? - By: Patrick Winters
Singapore private banking has grown massively over the past decade. Assets under management at Singapore private banks have grown to around 300Bn, 6 times what they were 10 years ago. It is estimated that Singapore manages around 5% of the world's private wealth, while Swiss private banking manages around a quarter.
Singapore has benefited from tight bank secrecy regulation, in addition to a rise in the number of Asian millionaires, especially the type that want to invest with private banks and financial instruments rather than in property.
Yet in response to demand from the G20 group of developed countries, Singapore has promised to rethink its ultra private secrecy laws. Like Switzerland, Singapore has to walk the tightrope between keeping its sovereignty and international acceptance of its laws and banks.
One of the reasons why Singapore has grown is because it already was a large financial center in its own right. Unlike smaller tax havens and dependencies of other countries which have been accused of ''inventing'' laws to benefit from capital flight, Singapore is a long-standing trading hub and center of international financial settlements.
There are several arguments in favour of Singapore keeping its privacy laws. Many private banking clients in Singapore are very powerful people among neighbours like China, Indonesia and Thailand. It's in their interest to ensure that Singapore bank secrecy is not relaxed. Furthermore, Singapore is an international financial center - it cannot be blackmailed in the same way as other jurisdictions.
However Singapore has made concessions, and may not necessarily see its future in harbouring Western tax evaders. Singapore has signed TIEAS with a number of countries and promised to adopt article 26 of the OECD model tax convention on information exchange over tax matters.
After Swiss banking secrecy was put under the spotlight, it was widely reported that bankers were urging a massive flight of capital to Singapore, where bank secrecy rules still held strong. But in reality, basing any structure on bank secrecy is like building a house on a fault line, it's bound to change. The smartest investors instead used techniques which do not depend on bank secrecy in any single country.
Savvy private banking clients are now using distinct structures which operate independent of bank secrecy such as investing through trusts or trust companies.
Further, the reasons for banking in an offshore centre like Switerland do not depend entirely on tax. In fact the biggest reason is security. Hundreds of banks have been going under in the US, not Switzerland. Investors are also escaping from currency devaluations, civil forfeiture and frivolous lawsuits.
Singapore wealth management is certainly growing in sophistication, but it is still in a learning phase. During the mid 2000's when Singapore's private banking industry was growing rapidly, it was alleged that ther were not enough bankers to meet demand. Singapore private banks were instead employing local hairdressers and carsalesmen with good people skills and turning them into private bankers.
Singapore private banking is modelled closely on Swiss private banking, even down to its family trust law. In terms of weathering geo-political events like the war on bank secrecy, Singapore may have to follow the Swiss lead also.
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Offshore Bank Accounts - Easy Introduction For First-timers - By: Patrick Winters
Bond villains, corrupt dictators and even Bono can lay claim to offshore bank accounts. But what about the rest of us? Does anyone really need an offshore bank account, and how much money do you need to make it worthwhile?
Getting an offshore bank account simply means opening an account outside of your home country. If you live in America, opening an offshore account in Canada will be ''offshore''. Likewise if you live in Britain, an account in one of the Channel Islands or Ireland will be classed as ''offshore''. In fact if you have lived in another country for any length of time it's highly likely that you already have an offshore bank account.
A separate branch of offshore banking involves accounts provided by an offshore bank ONLY to outsiders. Offshore banks or financial companies operating in this way are frequently prohibited under the terms of their charter from providing banking services to citizens of the country in which they are licensed. A typical example may be an offshore bank in a Caribbean island that offers services to US and European citizens but is not allowed to offer services to citizens of the island.
Aside from the simple necessity of having a separate account when you live a foreign country, what is so attractive about offshore accounts? Why is it that rich people have them?
1) Offshore bank accounts are frequently available in more than one currency. This makes them extremely valuable to those who work in a different country or travel frequently. It is also very useful to your average investor as a hedge against dramatic currency movements. Some investors for example may like to buy into a currency recognized for its stability like the Swiss franc, to prevent keeping all their money in one currency such as the dollar.
2) As a hedge against financial instability at home. When most people think of offshore banks perhaps the notorious ''shell banks'' come to mind. Unregulated and at times run out of someone's bedroom, the most physical presence some of these banks may have is a brass plate on a building along with hundreds of similar unlicensed institutions. However, these days shell banks are increasingly out of favour and ostracised by domestic banks in western countries. The offshore banks that operate seriously are well regulated and as safe or even safer than typical domestic banks.
3) Confidentiality. Depending on where and how exactly you bank offshore, offshore bank accounts can be much more confidential than an onshore account. The reasons for wanting this privacy are numerous, and most commonly include protection against threats to your wealth from criminals or frivolous litigation. While swiss bank accounts and cayman bank accounts are traditionally viewed as the most secretive, international developments have rendered them less private than they used to be.
4) Access to offshore investments. When people decide to move part of their wealth offshore, it is often not just a bank account they are looking for. The offshore bank account is often a portal to other investments such as foreign equity, offshore funds and financial instruments that give high rates of interest. Some of these investments may be available completely tax-free, depending on your personal situation.
5) International payments. Sending and receiving large wire transfers abroad can be a nightmare when using a domestic bank. There are mountains of questions and paperwork to be dealt with. That's understandable. Domestic bank accounts are really for in-country transactions and not equipped to deal with large volumes of foreign transfers - kind of like using a mini metro to go off-road. Offshore bank accounts on the other hand are specifically equipped to send and receive money from outsider countries, and make the process as fast and efficient as possible.
There's no point in setting up an offshore account if you do not really need one. If you could easily do what is required with a simple domestic account, that's the best course to follow. On the other hand, if some of the ideas above struck a chord with you, maybe it is a good time to move offshore!
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NRI & NRO Deposit Accounts with Online Banking in India! - By: bankbars
Finances have always been of utmost importance and handling it with complete responsibility can be quite a task. At the end of it all, you need growth, sustainability and security for your money. When you are in a far-off land and you need to be connected with your homeland financially, then the bank you choose plays a crucial role in your wealth management. NRI Accounts in banks offer you a lot more than just parking space for your hard-earned money. They have on offer a bouquet of services including financial planning, investments, lockers, etc.
The government of India introduced the rules for holding a NRI banking account in the year 1970. Within that purview, individuals leaving their country have found great convenience in maintaining their finances. Non-resident Indians can open any of the below mentioned accounts with their Indian bank:
NRE (Non Resident External Accounts)
It is an account by way of Savings, Current or Fixed Deposits in Indian rupees. The funds in this account are fully repatriable.
NRO (Non Resident Ordinary Accounts)
This account can be opened in the form of Savings, Current or Fixed Deposits in Indian Rupees. The only difference in this account is that the funds cannot be repatriated. However, the interest accrued over the deposits and investments is repatriable.
FCNR (Foreign Currency Non Resident Accounts)
All funds in this account are easily repatriable. You can only open a Fixed Deposit with this account in five major currencies of the world. The currencies are - US Dollars, Pound Sterling (GBP) and Euro.
While all these facilities are available to you readily, it is not necessary to authorise an individual back home to handle the transactions. You can have complete control over your banking transactions right from your desk in a foreign country.
Online banking lets you do it. With just an internet connection, you can stay attuned to your finances from across seven seas.
Listed here are some of the functions that can be performed with ease online.
Financial transactions such as account to account transfer within the same bank or other bank accounts, crediting accounts
Electronic bill payments
Purchasing and / or selling investments
Applying for loans till its full execution. Repayment, interest and more
What’s more, you can perform a number of non-operational functions through Online Banking, some of which are mentioned below:
Checking account statements online, finding out about new products, etc.
Assistance from the bank staff for banking queries and feedback.
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Are Private Offshore Banks More Secretive? - By: Patrick Winters
Part of the reason why private offshore banks are called ´´private´´ is their reputation for secrecy. People expect private offshore banks in a country like Switzerland or Panama to keep confidential account records an issue between banker and client.
How Does Bank Secrecy Work In Practice?
The way a private offshore bank does this is twofold. Firstly, most offshore banks that purport to be confidential are located in countries with strong bank secrecy laws. The Swiss banking law or the Cayman secrecy law are good examples. Secondly, a typical characteristic of a private bank is its exclusivity. By keeping the number of clients down to a select few, and limiting the size of their own staff, well run private banks can limit the chances of a leak.
Very importantly, a smaller private bank that has no operations outside of its country of origin (often a tax haven or offshore financial centre), has no requirement to respond to information requests from foreign authorities.
Some private banks go a step further by offering ´´numbered accounts´´. Although a numbered bank account is not the same as an anonymous bank account, what it may do is shield the identity of a private banking client from 3rd parties. When the client sends or receives a bank transfer, his account is identified by an account number --12345678-- but his true identity is known only to the offshore bank.
But when private banks over-extend themselves and establish operations outside of their jurisdiction, no amount of tricks, accounting intrigue, shell banks or shell companies can protect the identities of their customers. When a private bank in an offshore island or tax haven opens a branch in a country that seeks information on the worldwide bank accounts of its citizens, it ceases at that point to offer any bank secrecy advantage. Numerous cases where banks have turned over confidential records demonstrate this.
So, is a small, well-run private bank in a jurisdiction known for its secrecy laws guaranteed to keep your account safe and private?
Although this is one of the more confidential options, bank secrecy in one country is never guaranteed. Increasingly, alternatives are being utilized to protect confidentiality independent of bank secrecy laws. Offshore financial companies and trusts for example that are authorized to hold client funds can legally shield their customers from 3rd parties. In all cases, due diligence must be completed, usually a notarized passport copy and proof of residence being the minimum.
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Legal Offshore Bank Accounts That Keep Your Identity Secret - By: Patrick Winters
The offshore banking dream is persistent. When people think of offshore bank accounts they think of yachts, fast cars and perhaps a balmy tax have lifestyle to complement it.
Maybe it involves moving to another country entirely, life in a far land supported by a swiss bank account.
One of the hardest first steps is finding offshore banking that you can trust. But offshore bank accounts are made hard to find by design, and the primary stages during offshore account opening can be treacherous.
How many investors have trouble finding an offshore bank account that really keeps their information confidential?
The solution many look for is bank secrecy. What is often overlooked is that bank secrecy can change. While Switzerland or Panama may offer extreme secrecy one year, the next year their laws might change, or outside pressure could lead to relaxed secrecy. Other jurisdictions like the Cayman Islands or the Channel Islands seem safe and private, when their secrecy is actually dependent on the generosity of high tax nations like the UK and US.
Increasingly, alternatives are developing which allow private wire transfers and offshore banking irrespective of changes in bank secrecy - just how we imagined the secret Swiss bank account. If you acknowledge that bank secrecy in individual countries can change, the requirement then is a structure which holds strongg irrespective of financial privacy laws.
Trust companies can fulfill this need because they can accept client deposits without having to reveal individual identities to anyone. In this scenario the only way confidentiality can be broken is if a customer is convicted of a real, non-tax crime. Trust company confidentiality is totally independent of bank secrecy.
While not absolutely guaranteed, (trust company law can also change) opening an offshore account this way will give you greater peace of mind, and a refuge for your wealth in a secluded place. Your options from here on in are unlimited. Invest in tax-free stocks, commodities or interest-bearing term deposits. You can shield your most important assets from the threat of frivolous litigation and corrupt administrators.
Enticingly, you can buy gold offshore anonymously, as a secret store of wealth to hedge against inflation and financial crises that never seem to end. Your safe haven for wealth will let you conduct business free of foreign exchange controls, burdernsome administrative procedures and heavy taxes.
While laws may change, your offshore options can continue to develop. Moving offshore is still within your reach!
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Online Business Banking: A Whole New World Of Opportunities - By: Robert William
Online banking has become popular for many a reasons. A growing number of business bankers are using the internet for making business transactions because of the real-time convenience and cost-effectiveness that it offers. Banks even offer specially designed softwares to the business owners through which they can perform their various business transactions. These days every bank is offering online business banking facility to new customers. Take advantage of it. It’s anytime a better option than traditional banking. You can save considerable amount of time since it is available 24*7; and can be able to manage your money beautifully, from anywhere.
With online business banking, you can avail a lot of benefits like; you can pay your dues and bills anytime, from anywhere and it is a safe and secure process, so you don’t have to worry about your money. Online banking also pays your bills automatically. If you want your bank to make automatic payments for you, all you need is just notify them about the specific time of payment. You can also set a particular time schedule to make the payments occur at regular intervals with respect to your payment terms. It also allows you to transfer your money from one business bank account to another. This is particularly useful if you have more than one business bank account. The transactions are completed within the day itself.
Online business banking offers you a range of additional facilities that you can avail; such as, business credit card, small business loan, bank overdraft, and the most notable feature – you can open accounts in several foreign currencies. You can allow your trusted acquaintances or business partners to have access to those accounts and operate them independently. The level of authority is even adjustable for different users. You can actually set a certain level of authority on the basis of the trustworthiness of the person you are allowing control to. If any kind of illicit use of your account occurs, the bank is liable to cover the loss. You can even stop the transactions of your account(s) anytime, and from anywhere. Furthermore, you get regular account updates in your e-mail.
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Internet Offshore Banking - Open an Offshore Account the Easy Way - By: Patrick Winters
Offshore banking is nothing more complicated than banking in a country where you are not a citizen or resident. If you live in the US, banking in Canada is just as much "offshore" as banking somewhere more exotic like the Caribbean or a Pacific island.
Unfortunately, some of the countries which offer most benefits to the offshore investor are not always close to home. The benefits of offshore banking have been clear for decades, but usually only available to the very rich. You may imagine someone on a private yacht making a call to their Cayman Islands bank, handling large transactions incognito. But the expenses incurred when traveling abroad or wiring money by telephone made the reality of offshore banking prohibitively expense.
Fortunately, with the advent of new technology, internet offshore banking has now become secure enough to be seen as an alternative to traditional means. In fact in some ways it's a lot more secure than traveling in person to an offshore jurisdiction. This is handy because the most private and confidential offshore banks will be those that have least connection with your home country, especially NO physical presence.
Internet offshore banking keeps your banking fees minimal because the entire process is automated. In addition, you are not dependent on working hours to do business. You can order the execution of your financial transactions 24/7 wherever you are in the world - with as little as a laptop and internet access. SSL (Secure Socket Layering) encryption prevents third parties from seeing what you are doing or checking your account. Even the most complex financial transactions can be executed by sending online messages within this secure system. In this way you can be sure that your financial affairs are kept private between you and the executors.
Internet offshore banking certainly makes banking offshore easier, but going from account opening to sending your first wire entirely online is not something that many banks or offshore service providers will offer. Often the process will involve visiting a jurisdiction at some point in person, multiple phone calls, and unearthing numerous documents such as bank reference letters, and information on the source of your funds. Other documents may need to be revised by an attorney. In most cases the process is certainly not instant.
The amount of paperwork and hoops you need to go through will depend heavily on who you bank with. If you are lucky, it could be nothing more than a notarized copy of your passport and a notarized proof of residence - but this will be the legal minimum. You should regard anything less with suspicion.
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Secret Swiss Bank Account Alternative Does Not Depend On Bank Secrecy - By: Patrick Winters
Swiss banks and Swiss private banking are recognized as the ultimate resource for high net worth individuals, used by the rich and famous, sports stars and big corporations. Despite recent attacks on offshore banking in Switzerland, Swiss private bankers still maintain the decades-old reputation for confidentiality and security.
The Swiss cities of Zurich and Geneva are world famous for the private banking services they offer - not to mention many other smaller cities which manage wealth on the scale of global financial centres.
What sets Swiss banking apart?
Its reputation for banking expertise, and of course the bank secrecy law. Swiss bank secrecy, codified into law by the 1934 Swiss banking Act, has ushered billions of dollars into Swiss banks - wealth fleeing from corrupt governments, excessive taxes, and the threat of frivolous litigation
A number frequently overestimated is the amount of ''black'' money in swiss bank accounts. Only a tiny fraction of money in Swiss banks has criminal origins. The truth is, most investors like banking in Switzerland for its security. When it comes to putting wealth in a safe place, the Swiss franc and Swiss banking are preferred 99% of the time.
However, bank secrecy in Switzerland is not as strong as it once was. For years the large corporations have known that relying on bank secrecy in any one jurisdiction is a recipe for disaster. That's why they no longer bank or incorporate solely in one country. When it comes to the HNWI, exactly the same rules apply.
Unfortunately, travelling to distant tax havens and setting up multiple trusts and offshore companies is enough work for a tax accountant - never mind the ultimate beneficiary. What many are really looking for is a way to simplify all of this, a private bank account that keeps your identity secret and your money secure.
A solution increasingly employed is international trust banking. When you bank with an offshore trust company you can make large transfers without hassle or excessive paperwork. Clients can send wires and make private investments in the name of the trust company so that their identities remain confidential. Best of all, trust company law is separate from bank secrecy laws - and protects your identity irrespective of changes in bank secrecy - wherever you choose to bank.
If you are looking to invest while keep your identity confidential, or simply for a safe alternative to swiss banking, trust banking could be your solution.
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Private Banking Services vs Retail Banking - By: Patrick Winters
Private banking is a much more personalized banking service given to individuals who invest substantial sums, typically over U$S1M. The most noticeable difference between retail and private banking services are that private clients receive customer service on a 1-1 basis via a relationship manager or a private banker. Wealthy individuals with private accounts can expect to meet their bank contact in person, and have direct phone access to a relationship manager. Usually the private banking arm of a bank is separate from the retail banking arm and the service is completely distinct.
A private bank is one that is not incorporated. Private banks are favoured by conservative investors because the directors are personally liable, and more likely to be cautious in managing client funds. Financial institutions like these are sometimes family owned and only cater to the very rich. One of the reasons why wealthy people choose them is their confidentiality – a pledge to maintain client records secret. For some it is a case of not wanting to be targeted by criminals, lawsuits or corrupt governments. Others use this secrecy to shield income from authorities like the IRS and evade tax.
Many of the world’s private banks are found in Switzerland because of the strict bank secrecy laws and sophistication of Swiss financial services. Small banks in countries like Switzerland are also more likely to keep their client records secret because they limit their operations to within the country’s bank secrecy laws.
Not only private banks offer private banking services – in fact some of the biggest providers of private banking and wealth management services like UBS, Credit Suisse and the Barclays are not privately owned. Private clients of these huge banks can take advantage of their in-house trading and research departments, and sometimes choose to have almost all their assets managed by the bank. This way they expect much higher returns than those given by a simple savings account or certificate of deposit.
Types of Private Banking Services
Usually only very affluent clients demand wealth management - where private bankers manage an investment portfolio for a family or an individual. The fee for this service varies from bank to bank and is charged yearly as a percentage of the total amount invested. The return of a portfolio will also depend on the standard of the private banking service. While some will provide excellent returns, others will continue to charge high fees while investing client funds in the bank’s own investment funds, regardless of whether or not this is beneficial to the client.
A popular alternative to wealth management is Self-Directed private banking, where the client manages his own portfolio, at times calling on advice from the bank. The advantages of this type of account are lower fees and greater personal control.
Inheritance and tax planning are extra private banking services provided either directly or by referral for an extra fee.
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The Swiss Offshore Bank Account Your Money Will Love - By: Patrick Winters
Swiss offshore bank accounts are synonymous with class, prestige and exclusivity.
For many the mere fact that they acquired a Swiss bank account shows they have “made it” – with good reason. These days it’s getting indecently hard to open one.
First of all, many have very high entry standards. Swiss private banking starts at around 1MU$S, while even basic accounts at cantonal banks or supermarkets may have minimum deposit requirements of several thousand dollars.
Its getting much harder for US citizens to open Swiss bank accounts, because of US suspicions that their wealthy only use Swiss bank accounts to dodge tax. Of course Swiss bank accounts aren’t just used to hide money. Switzerland has around $2.5 trillion in assets under management and is one of the biggest wealth management markets in the world. The country is so popular with the affluent because it provides excellent financial services, and solid banks that don’t vanish into thin air.
Nevertheless, the days where you could just walk into a Swiss bank with a suitcase full of cash are over. With international rules governing money-laundering and tax evasion getting tighter – Switzerland can no longer operate quite as secretly as it once did.
Some Swiss banks can offer more confidentiality than others, especially the smaller private banks that limit their operations to Switzerland. These have less motivation to hand over client records because foreign governments cannot blackmail them.
By contrast, large international banks that have operations in Switzerland, or Swiss banks that have operations in your country will be the first to hand over secret information. We have seen this with the huge international banking groups like Credit Suisse and UBS.
When foreigners try to open a Swiss offshore bank account it is usually through one of two routes.
1) Flying to Switzerland, and setting up a meeting with a bank.
2) Arranging for an agent to facilitate the account opening process remotely.
In both of these cases it is not guaranteed that the account will be opened. The likelihood of success increases exponentially when the bank thinks the applicant will deposit a very large amount.
Either option will cost several thousand dollars. Holders of Swiss work permits may not have to worry. Others are introduced by lawyers or friends with Swiss bank accounts. But for the majority who fear wasting thousands of dollars unsuccesfully there are better alternatives.
Swiss Trust banking
In this brand of Swiss offshore banking, a Swiss Trust Company opens an offshore bank account for you either in Switzerland, or elsewhere. It is in fact more secretive to open a Swiss offshore bank account in this way since Swiss Trust Company laws are separate from Swiss Banking Laws and will hold firm even in a direct attack on Swiss bank secrecy.
Furthermore, sending and receiving funds through a Swiss Trust Company will allow you to send large wires with greater credibility and less hassle. You can also open brokerage accounts and buy gold bullion effortlessly.
Due diligence procedures are modest and sensible, and require no travel to Switzerland. All you need is a notarized passport copy and proof of residence to open an account from the comfort of your own home!
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Luxury Private Bank Accounts For Less - By: Patrick Winters
Did you ever dream of owning a private bank account in Monaco or Switzerland or a Caribbean island? Luxury private bank accounts and secret bank accounts are not only the privilege of the very rich, but you have to find the right way of going about opening one.
Walk into a stuffy private bank with a suitcase full of cash, and you may be shown the door. That’s why more and more investors are choosing to open their secret accounts online.
The best thing is, opening an online account is much easier that you might think. In some cases its possible to get a private account opened in less than an hour.
What are the advantages of taking the online route?
1) You can get a private account for less. Online bank accounts are easier for banks to handle, so you don’t have to pay for superfluous back office staff.
2) Don’t feel obliged to travel abroad. Travelling to most tax havens may cost from a few hundred (if you are lucky) to several thousand dollars.
3) Manage your entire portfolio of investments including stocks, gold and certificates of deposit online without having to leave your home office.
4) Hold multiple currencies. One of the major benefits of private bank accounts as opposed to mass market retail banking is that you can switch seamlessly between currencies at the click of a button, or with a quick call to your personal banker.
5) Get yourself high-limit credit cards like mastercards or visas delivered to your door, without ever leaving the comfort of your own home.
It goes without saying that you can say goodbye to any form of queue. Waiting in line at your local bank will be just a distant memory once you have opened a private account. While the vast majority of your transactions can be completed online, for anything else you can call your private banker on first name terms.
Private offshore bank accounts protected by bank secrecy are within your reach, and you don’t have to fly to Switzerland to get one. You can choose “wealth-management” where a qualified professional cherry-picks investments for you, or the more streamlined “self-directed” private banking which gives you complete control of your investments – all through an online interface.
Whats the cost?
Online private banking opens the door to all these services for a nominal entry fee of 1-2% depending on your initial deposit. Best of all, you can eliminate the outrageous “hidden fees” which private banks don’t tell you about.
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Personal Savings Accounts - By: Mr Nathan
Saving for a short term need or a lifetime plan? The Jacksonville Bank offers the right options to fit your needs.
Personal Savings
Our Personal Savings account offers you a safe and convenient way to watch your savings grow. And, the more you save, the more you earn on your deposits.
How it benefits you
* Earn interest on your savings
* Imaged monthly bank statements
* Free Online Banking
Quick Facts
* $100 minimum deposit to open, $500 minimum balance to earn interest
* No monthly maintenance fee with a $500 minimum daily balance
* $5 monthly maintenance fee below the balance requirement
* 6 free monthly withdrawals per month
* $5 fee for each withdrawal over six
Personal Money Market Investment Account
Our Personal Money Market Investment account gives you the benefits of a savings account and the convenience of check access. Plus one big bonus! The more you save, the more interest you earn!
How it benefits you
* Earns interest
* Free Online Banking
* Free imaged monthly bank statements and checks
* Free notary service
Quick Facts
* $2,500 minimum deposit to open
* No monthly service fee with a $2,500 minimum daily balance or $5,000 average monthly balance
* $10 monthly service fee below minimum
* Six free monthly debit transactions allowed with no more than three by checks, drafts or similar orders to third parties; a fee of $6 will be charged for each additional debit transaction in excess of six, regardless of balance.
Youth Savings
It's never too early to begin! Our Youth Savings account offers your children a fun and easy way to watch their savings grow.
How it benefits you
* Earn interest on savings
* Imaged monthly statement
* Free Online Banking
Quick Facts
* $50 minimum deposit to open
* No monthly maintenance fee
* Must be under 18 years old to qualify
Certificates of Deposit
Earn a higher rate of interest on your savings with a Certificate of Deposit. Whether you prefer your money to earn a competitive rate of interest in just a few days or in several years, we offer a variety of certificates ranging in terms of seven days to five years. The longer the term - the higher your rate, and all our CDs are FDIC-insured.
* Guaranteed rate for the term of your CD
* Frequency of interest paid based on your choice
Individual Retirement Account (IRA)
It’s never too early to open an IRA certificate, a tax-efficient way to save for retirement. It’s a traditional IRA with tax-deferred earnings until withdrawal, or a Roth IRA which offers the same tax-deferred earnings but with greater tax savings and withdrawal flexibility. The Jacksonville Bank is prepared to help you select the right account for you.
* $500 minimum
* Interest is fixed for the term selected and paid at maturity
* Annual fee applies
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Bankings Made Easy - By: Mr Nathan
We want to make it convenient for you to manage your daily financial needs, whether you're looking for information or want to make a transaction, The Jacksonville Bank makes banking easy for you.
JaxBank Online
Do your banking from home, work or anywhere you have access to the Internet. JaxBank Online Banking gives you secure access to your accounts 24 hours a day. Check your account balances, transfer funds, and much more all online.
Online Bill Pay
Save money on postage and checks with The Jacksonville Bank’s convenient and easy to use Online Bill Pay. Sign up today and begin paying your bills online…quickly and securely…and it’s free!
e-Statement
Save time and enjoy the convenience of e-Statement, an electronic version of your regular bank statement. Notices are delivered to your email address or your JaxBank Online account just days after your normal statement period ends. With e-Statement you can view and print your statement from any computer with Internet access. Stop by any Jacksonville Bank location to sign up. Frequently asked questions
Personal Credit Card*
Earn rewards and enjoy the convenience of The Jacksonville Bank VISA® or MasterCard® credit card.
VISA® CheckCard*
It looks like a credit card, acts like a check. There’s no need to pay interest since the funds come directly from your checking account. Your VISA® CheckCard gives you a faster and more convenient way to buy the things you need, without having to carry cash or write a check.
ATM
Make withdrawals, transfer funds between your accounts, or get account balances - 24 hours a day, 7 days a week – at any Jacksonville Bank ATM. Enjoy the benefit of access to your funds at any Presto! ATM absolutely free! Additionally, you can access your funds at any ATM or other bank ATM terminals.**
Overdraft Protection
Save money and embarrassment should you overdraw your account. The Jacksonville Bank will automatically transfer funds from a designated savings account or a Jacksonville Bank Line of Credit to your checking account in the event of an overdraft. Ask how you can sign up for this convenient service.
Safe Deposit Box
Keep documents and other valuables safe from theft or fire with a secure Safe Deposit Box. Our boxes vary in size and prices. Please refer to our Fee Schedule and check your local office for availability.
Official Checks
The Jacksonville Bank offers official checks as a safe alternative to using cash or your own check. And there is no fee with a Classic Checking Account.
Wire Transfers
If you’re a Jacksonville Bank customer, enjoy the convenience of wire transfers. Wire transfers are a convenient, quick and safe way to transfer large amounts of money and may be wired to domestic or international locations.
Automated Telephone Banking
Access all your Jacksonville Bank accounts 24/7. Check your balances, transactions or make transfers any time of day or night with our free automated telephone service.
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Do You Want A Private Offshore Bank account? - By: Patrick Winters
Private offshore banking can open up a world of opportunity for the private investor. Although you don't have to be super-rich there's no denying that private offshore banking only makes sense for those with substantial sums to invest. A guideline could be U$S250,000-1,000,000 as the minimum you need to get a private banking account with your personal wealth adviser, although each bank will have its own criteria.
Here are just some of the benefits you can expect from a private bank account.
- A direct line to a private wealth manager (no waiting in line).
- No tax or a deferred tax on interest-bearing instruments.
- Access to trading facilities from a confidential, tax-free base and the ability to purchase financial instruments normally only available to "institutional" investors.
- Privileged access to the best resources of the bank and (often) a wealth manager who can draw up long-term plan for your finances.
- The better private offshore accounts will offer enhanced privacy for those private clients who desire it. This may include limiting access to financial records to a select group of employees, the use of trusts and companies to restrict knowledge of the account to bank, client and other persons the client chooses to advise.
Private banking clients may often need more than your average banking services. Some may have their wealth spread over different countries and multiple sources of income. They need one account that will be able to integrate all these income streams so that they are allocated in the correct manner, and not subjected to double taxation or other needless expenses. A good private banking service will let you hold accounts in all the major world currencies through one master account so that you can make payments or receive them with maximum efficiency.
Furthermore an excellent private banking account will ensure that your account remains confidential between you and the bank regardless of changes in bank secrecy and geo-political maneuvering. This has become all the more important as high-tax countries set their sights on removing bank secrecy in "traditional" offshore jurisdictions.
What will a private bank account cost?
While you don't have to be fantastically rich to benefit from Private Banking, fees are higher than those for a "standard" domestic account. For an all inclusive "wealth management" service including a hotline to your private banker, you can count of fees of around 1% of the account balance per year. If private banking is right for you, the personal service, tax benefits and enhanced confidentiality of private bank accounts easily outweigh these fees many times over.
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Should You Use Online Banking? - By: Timothy Hamlett
When it comes to banking on the internet, there is now a whole range of choice when it comes to setting up your account. But there is also another element to online banking, and that is when you use the internet to perform a range of features that you would traditionally have had to visit the bank to do. This kind of banking is now becoming more and more common across the world. If you are thinking about signing up for these services yourself then here is a quick guide to the pros and cons of doing so.
The Advantages of Internet Banking
The great news is that you can now do almost any kind of transaction from the comfort of your own home. This can save a lot of time, since we no longer have to go down to the bank just to transfer money, or other simple transactions. Before you could not even perform these basic tasks from the ATM, and had to queue up at the bank for someone to personally see to your business.
By making sure that you have online banking, you can now monitor all of your account information simply and easily. You'll get more control when it comes to working out your budget and controlling your expenses. You don't need to wait for your monthly statement, and you are guaranteed to be able to check whenever you need to! You don't need to rely on slow postal mail anymore.
The Disadvantages of Online Banking
Unfortunately some banks may charge you for the privilege of being able to use their online banking services. This could be a very small charge, but it will still add up if you are using the online services month after month. The good news is that internet banking is becoming more standard, meaning that less and less banks are now charging.
However, the main problem when it comes to online banking is that your account will not be secure. Since you are doing most of your transactions on the internet, it is possible that hackers could trace your information. And if they get hold of your username and password, they could use your account without you knowing.
Conclusion
When it comes to deciding whether to use online banking or not, you will save a lot of time by choosing the service. However, you always need to consider the security risks. This means that it's important to research your bank carefully. Try reading some online reviews, and asking your friends about their bank.
Most banks will have security in operation that can help to protect your details and your money from online hackers. Just ask your bank and they will probably be more than happy to let you know the measures they take to protect you. The good news is that online banking software is getting more and more advanced all the time, and in the near future practically all banks will be offering this online service.
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Online Banking Made Simple - By: Timothy Hamlett
If you want to handle your banking really simply, then online banking is the way to go. Traditionally you may have been used to doing your banking by visiting the hank itself and asking them to take care of whatever you need. You'd have to do this for all kinds of transactions, such as opening an account, paying in a check, checking your balance, withdrawing money, paying a bill, applying for a loan and more.
The days of spending hours visiting the bank are finally over! Internet banking has really taken off in the last five years, and is more convenient than ever. With online banking you can access your bank 24 hours a day.
If you sign up to an online banking service, you won't even need to get dressed or leave the comfort of your home to do your banking. This is great for those cold or rainy days when you just don't want to leave the house!
The good news is that these days most national and regional banks have some form of this online banking service. They do so to provide convenience to their customers as well as for their own convenience.
By allowing customers to access their bank accounts from the internet, they do not always have to employ as many staff - meaning that the banks save money. This, in turn, means that they can pass on some of the savings to the customer, including higher interest rates on your savings. You can benefit from this by shopping around for the best account.
There are even some virtual banks that exist today that do not have any brick and mortar existence at all, running solely off the internet. Due to the great savings they experience from only banking, they can offer some of the best interest rates around.
One of the other benefits of doing your banking online is that you can easily get all of your bills paid. All you need to do is press a few keys on the keyboard and your bill will be paid for! You no longer have to worry about the reliability of sending your bill in the post.
Another way you can use online banking is with direct deposits. This means that the money from your paycheck is automatically sent to your bank account. This also makes it a lot easier to deal with IRS. Just fill in your tax returns and you can pay your bills electronically!
As we get further into the 21st century we can take advantage of the many progresses available to us, especially with internet banking. There are many ways to do your banking online, which has now turned a chore into something that's really quick and easy to deal with. We no longer have to waste hours at the bank, letting the staff deal with our business. If you haven't tried it yet, then it's about time you signed up for online banking services and starting seeing how much it can help!
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What to Expect from the Best Private Banks - By: Patrick Winters
When looking for a private bank, prospective investors should expect nothing less than the ultimate in financial expertise and personal attention. After all, private clients are often the most lucrative customers which no bank wants to see leave.
Private banking is a holistic service that aims to be a one-stop shop for the financial needs of rich people. If the private bank does not normally provide a service, it will procure it elsewhere, calling on trusted contacts. Privileged services include:
Wealth Management - Financial advice from a qualified, independent investment professional is seen as one of the hallmarks of a superior private banking service. Private clients will have access to bonds and other interest-bearing financial instruments not available to investors at the retail level, and a customized financial plan. This service only makes economic sense for those depositing very large amounts.
Trust & Estate Planning - Good private banks can ensure inheritance issues are managed in accordance with your wishes, including issues of succession and the passing on of your estate with minimum tax implications. They will also be able to assist in the creation of legal entities such as trusts and companies to structure your assets in a way that brings the greatest return.
Gold and Silver Storage - Private banking clients can store their personal collection of gold at a safe repository, and the bank will make sure it is transported though trusted channels so that its value is not called into question. Swiss private banks are famous for this and the largest have their own "in-house" deposits.
Personal Relationship Mangers - these will be the focal point for all your needs. The personal touch is the essence of private banking and what sets it apart from regular banking. Traditionally, private banks offer substantially more than a "deposit-taking" service. High-net worth individuals will have private access to a relationship manager. They might meet the manager one-to-one several times a year. The bank often pays for freebies like outings to art exhibitions, society parties, and key sporting events. Ultra-high-net-worth clients might get access to what essentially amounts to a personal concierge service, their every whim catered for.
There is reason behind the madness; clients with huge liquid wealth are prized jewels and banks will bend over backwards to keep them satisfied. For services which include wealth management, private bank fees of over 1% of the account balance/year are not uncommon.
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Opening an Online Offshore Bank Account - By: Patrick Winters
Opening an offshore account online is the easiest and most-cost effective way of getting your funds from A to B. Having said that, there are many pitfalls associated with this kind of search. It's not only your money that you are entrusting to a website you found off google - you might also get drawn into an action that is plain illegal. Even if banks are regulated, the internet is not, so ready yourself to plough through a lot of junk, middlemen and websites that are out there purely to scam you before you find the perfect offshore account.
Here are some golden rules to follow to make sure you don't fall pray to internet schemes.
1) Get a phone or fax number. One of the easiest ways to flag a scam website is one that has little or no contact information.
2) Most offshore banks will have well-laid out websites with plenty of information. Often they have documents available to download such as application forms, due diligence requirements, and government issued credentials.
3) Don't trust an organization that asks for no due diligence to open an offshore bank account. All offshore banks need this to cover their end, and at least a recent utility bill and scanned notarized/apostilled copy of your passport are standard minimum requirements.
Look for clues as to what the organization behind the website ACTUALLY does, and consider whether it fits your requirements. In my experience, "Offshore banking" websites can be broken down into 3 main groups.
1) Sites that offer to open an offshore bank accounts in foreign tax havens for a fee. Many of these will promise to open bank accounts in jurisdictions where there is high demand for offshore accounts yet short supply such as the US and Switzerland. Not all of these groups are scams - many will save you a whole lot of time and effort in preparing the correct documentation. But you do run the risk that the guy who offers you a professional "introduction" will take your $1000 and run off into cyberspace.
2) Real offshore banks. How do you know they are real? Do they have their formation documents online? Don't be fooled by websites that say they are licensed by a fictitious country; if the website says it gets a banking license from Seeland, think how likely this could be...?
3) Treasury- type accounts. These guys will open an account for you in the name of their trust or financial company. Make sure the website has a record of its licence and check the country where it comes from. Even "legitimate" sounding companies can turn out to be fake when they are owned by a trust which, on investigation, doesn't exist. While trust accounts can offer you better privacy than the other options, "trust" is the operative word here. The treasury company will be signatories on the accounts rather than you personally - so make sure the one you choose has a bit of history, or even better look for 3rd party reviews to ensure they are legitimate.
Good luck!
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Decision time for Bank Charges Case - By: Sam Gooch
An appeal in the House of Lords is due to begin this week that may determine the future of overdraft fees incurred by millions of customers across Britain.
The appeal, put forward by some of the UK's main banks, will be heard by five Law Lords and is in response to a decision made earlier this year by the Appeal Court.
The ruling upheld from last year gave the Office of Fair Trading (OFT) the power to decide whether or not bank account charges were fair.
There are currently around one million people waiting to find out if they can reclaim previous bank charges.
Banks make around £2.5 billion of income every year from charges applied to customers accounts as a penalty for going overdrawn without permission or paying a cheque or direct payment that bounces, billing up to £40 a time.
Marc Gander of the Consumer Action Group (CAG) said: "I hope the House of Lords will make a very clear finding that the bank charge terms are subject to the Unfair Terms in Consumer Contracts rules."
The hearing comes nearly two years after the OFT and the banks made a joint decision to go to court in order to resolve the legality of bank charges.
This came at a time when banks were being bombarded by claims from angry customers that felt the charges were unfair. These claims were being fired both directly and through the courts.
Banks paid out an estimated £784m to around 378,000 customers before the test case agreement in 2007, rather than opposing the attempts made by customers contesting the fees.
However, after both sides agreed to the litigation, it was agreed by the Financial Services Authority (FSA) and the courts that any future claims would be put on hold until a decision was made.
Nick Spooner of the campaign group Legal Beagles said: "It's going to be a very significant outcome, either way.â€
The banks have always defended the charging system, describing them as reasonable, fair and legal.
If they are successful in the appeal, it will be a big blow to the OFT and campaigners involved in the bank charges case.
The banks employed Jonathan Sumption QC to represent them in the case - one of the UK's top civil barristers.
Ray Cox QC – a barrister specialising in banking said: "If anyone can do it for the banks, he can, but he's got an uphill task. But you can never be sure; the Law Lords will certainly not rubber-stamp the decisions of the other courts."
If the banks were to suffer a total defeat it would result in bank charges being abolished, which would probably trigger the introduction of monthly fees for current accounts.
It could also mean that banks would have to refund billions of pounds to customers, dating back over six years ago or more.
Some banks such as RBS have already developed contingency plans to prepare them for the possibility of this outcome, allowing them to refund bank fees.
"A victory for the OFT would swiftly open the door for refunds of past charges," said Mr Spooner.
"If the OFT rules they were indeed unfair, I believe they will have to be refunded in total, as the unfair terms triggering the charges will be unenforceable."
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Aussie women 'offer tips for saving' - By: Sam Gooch
A group of women are increasingly looking at ways in which to save money in the current economic climate, it has been revealed.
Those looking at increasing the amount of cash they are able to place into saver accounts could be interested to hear parenting website Kidspot is calling on mums to share their advice on how to manage as the financial downturn rumbles on.
It is challenging its members to come up with 499 ideas on how money can be saved, something Kidspot's Sarah Bryden-Brown tells the Sunday Telegraph there has been an "instant response" to.
"Mums are really good at finding solutions to problems and a lot of mums have said they wanted to find ways of managing with less," she claims.
With work on the list of tips underway, it contains advice on saving money on domestic tasks such as cooking and shopping, as well as guidance on household budgeting.
Indeed, those who are struggling with credit cards and other financial commitments could find advice on drafting up a plan of expenditure proves to be useful.
One of the tips on offer comes from mum-of-two Liz Herriot, who suggests an effective way to save for Christmas is to get in the habit of purchasing gift cards while out shopping for groceries.
She claims that if money is placed into a bank account "it can be eaten by bank fees; but if you buy the gift cards, by Christmas you'll have $400 to $500 to buy presents and food".
Her announcement comes as the Commonwealth Bank - which offers the Commonwealth Platinum credit card in its range of products - reveals it is offering gift cards to the value of $499 for those ideas which it feels are the best.
The news follows comments from Adrian Raferty, chief executive of AccountantsRus, made to News.com.au that Aussies should attempt to have the equivalent of three months' income placed into a saver account to help them cope with an unexpected event.
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Brits 'looking to reduce debts and increase savings' - By: Sam Gooch
With the economic downturn continuing to rumble on, one financial expert has revealed how Britons are taking an increasingly sensible approach to their overall money management.
According to Motley Fool director David Kuo, consumers "have been scared into being responsible" due to constant reports about the possibility of rising unemployment rates.
Indeed, he points towards the possibility that as many as one out of ten Britons who can work will be out of a job by the end of this year.
Consequently, consumers are concentrating on doing one of the following - if not both - ways of improving their financial standing.
One of these, Mr Kuo highlights, is making moves to repay as much debt possible, which could include that accrued on credit cards.
By doing so, he states that should consumers eventually find themselves to be out of work then the burden of what they owe "is not as great".
Such moves to pay down debt comes as the Motley Fool director states that borrowers are taking advantage of the base rate standing at an all-time record low of 0.5 per cent.
He goes on to claim people will begin to spend money more once they see signs of unemployment rates easing, although those who are looking to fund major purchases straightaway may want to consider making use of a credit card that offers 0% purchases.
In addition, he states that people are concentrating on placing an increasing amount of money into savings accounts.
Britons looking to compare savings accounts to ensure they receive an attractive rate of return may be interested to hear the Motley Fool's advice that people should look to set aside between six and nine months worth of expenditure to see them through in case they lose their job.
Taking the time to increase the amount placed into savings accounts and reduce debts, Mr Kuo asserts, "can be no bad thing for the UK because the only way that the UK can dig itself outside of this hole is to get consumer debt down to a more sensible level".
His comments follow statements by Hargreaves Lansdown pensions analyst Laith Khalaf that the recession will hopefully remind people of the need to have a significant sum of money tucked away into a savings account.
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7 Things You Must Know Before Opening an Offshore Bank Account - By: David MacGregor
There are certain things you should know before opening an offshore bank account - things that can save you a lot of time and frustration. The following 7 facts about offshore banking offer a useful insight and a good starting point to the process.
1. The Most Important Benefits of an Offshore Account
WG Hill, the author of the underground classic PT (The Perpetual Tourist), was quoted as saying: "Get your money out of country, before your country gets the money out of you!" And this strikes at the core of what offshore banking is about.
Give you one example. Let's say you owe a tax bill which you are contesting. Now, in most of the modern Western democracies, it's a simple matter for the government to seize the funds from your domestic account. One day you have $10,000 in there - and the next day you don't. And such nations also get the banks to do their tax collecting for them. This is done by the practice of automatically deducting a withholding of tax on any interest earned. In this way your domestic banks are tax agents and put the government's interests above your own - the client.
Opening an offshore bank account puts your funds out of harm's way. If you had $10,000 in an offshore account, your own government could not siphon it off automatically. And if you are banking in a place where there is no tax charged on interest, then your funds are growing quicker - without any withholding taxes being applied at source.
An offshore bank account also gives you more financial privacy - something in great demand in this increasingly regulated world.
Then there's the flexibility that comes with having more than one bank account – in more than one country. This strategy allows you to hedge your bets and keep your cash in dispersed locations.
2. Choose Your Jurisdiction Wisely
Not all jurisdictions (countries) are equal. Every bank is governed by the laws of the country it is licensed to operate in. It is also governed by a plethora of internationally-applicable financial oversight regulations.
While some typical offshore tax havens appear ideal as banking jurisdictions, the truth is that often they aren't - precisely because they have been, or are being, targeted in some way by anti-money laundering laws or other financial restrictions on how they conduct business. You don't want to end up in the middle of such a financial conflict.
Another factor to take into consideration is the geographical area in which the bank operates and the existence of any information sharing treaties or tax-collecting agreements between the countries in that area.
Where you currently live in the world impacts on where you can bank offshore. For remember, offshore simply means somewhere other than where you currently reside.
3. The Truth About Privacy and Anonymity
Swiss banking has always been held up as the pinnacle of banking privacy, and that largely holds true - even though they are under increasing pressure to comply with international norms. The Swiss, however, have a vested interest in maintaining their USP (unique selling proposition), that they provide the most secure and private banking in the world.
But privacy in an offshore bank is conditional. Most offshore banks will be covered by privacy protection measures, which could include such things as it being a criminal offence for a bank employee to disclose the details of any client's financial affairs. However, these laws can usually be breached by the presentation of a court order issued on the basis of suspected criminal activity.
This is all well and good for those of us who are not criminals, and usually means our privacy is pretty well assured. The trouble is in the definition of the word “crime”.
It's well known that certain banking jurisdictions have now succumbed to pressure to include tax avoidance as a criminal offence - meaning your account information could be disclosed under such an assertion if part of a court order from another country.
So you may as well accept the fact that truly bullet-proof private banking is hard to come by - and anonymous banking is a thing of the past.
4. The Impact of KYC and FATF
Offshore banking has become a lot more restrictive since 9/11 - as the US enforces stringent regulations aimed at combating what it terms money laundering. This catchall approach means that straight-up, honest people find themselves having to jump through hoops just to get started. Unfortunately, there seems to be no end in sight to this process - so all you can do is bite the bullet and proceed.
When you first apply to open an offshore bank account you will immediately feel the impact of KYC (know your customer) regulations. Banks have a way of making this requirement sound as if its in your best interest, but that's just them trying to sweeten a bitter pill.
In effect, the bank will want to know a lot more about you than they would have a few years back. They will want not only to sight your valid ID, proof of address and business, banking or personal references, but they will also want to know what you do and what type of account activity to expect.
5. What You Need to Open an Offshore Account
Opening an offshore bank account needn't be traumatic - if you know what to expect and what you're in for. You need to carefully consider your banking requirements. Do you want a personal or corporate account? In most cases a personal account is sufficient - and is usually easier to open. Some offshore banks will only open corporate accounts in person – not on the internet or by mail.
Of course you'll need to have valid passport, and will have to get it notarized by a Notary Public (which you'll usually find in large legal firms). This process involves making an appointment with the Notary and having him sight your passport, then make a copy and add his Notary seal and signature, stating he personally viewed your passport. You will also need one or two utility bills as proof of residence.
The good news is, once you have gone through the mill and opened your account, you'll find the bank (like any company wanting to make a profit) will want to retain your business and keep you happy! A good banking relationship is like gold – so hang on to it.
6. The Facts About Offshore Credit Cards
Most offshore banks will readily offer you a debit card - you know, a plain ATM card like you have from your domestic bank. These are usually Cirrus and Maestro branded, although in EURO countries Visa Electron is quite popular. Now while these cards are very useful, the main function (when issued by an offshore bank) is to withdraw cash from ATM machines.
This is where the desire and need for a full-blown credit card comes in. However, due to rules laid down by Visa and MasterCard International - such cards are usually only available to residents in the country the bank operates from. So, for example, if you have a bank account in an offshore jurisdiction, their Visa card may only be available to local residents - not you.
A good alternative is a Visa or MasterCard debit card - which is directly linked to your offshore bank account. When you spend money using it, the funds are immediately withdrawn from your current account. You can't get credit with this card, but you do get full Visa and MasterCard functionality when travelling internationally - like hotel check-ins, airline bookings etc. These types of cards are not readily available offshore, but a few major offshore banks issue them to their international clients.
7. The Advantages of Accounts in Various Currencies
One of the benefits of banking offshore is the ready availability of multi-currency accounts - where you can open more than one account at the same bank, each denominated in a different currency.
Now, why would you want to do that? The answer is simple - for hedging. In this volatile world currencies are always changing value. And as I write this, the USD is deemed to be heading downwards in value over time.
Most offshore banks that provide multiple currency accounts will allow you to move funds quite easily between them, as and when you see fit. So if you have a substantial amount of cash on deposit, then spreading your cash risk by holding different currencies is a sound financial decision - one made a lot easier by having an offshore bank account.
Conclusion
Opening an offshore bank account could be the best thing you ever do. However, many people find the process daunting - not least because they need to overcome the irrational fear that somehow their money won't be as safe as banking at home. Of course the truth turns out to be the opposite. If you bank with a reputable offshore bank, then your money is much safer than before!
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How to Save Like a Bank - By: karla Jo Helms - PR
In these hard times it can be challenging to consider making money, let alone saving money. But regardless of your current financial situation, and in good times and bad, money matters and the more you know about how to save money, the better you’re able to take the good times with the bad.
And while banks aren’t in the habit of writing financial books to help you save, one community bank wants you to know that saving money doesn’t have to be as hard as you think.
According to Robert Sumner, CEO of First National Bank of Pasco (FNB Pasco) near Tampa, Florida, “Saving money is the founding principle of the modern banking system, and should be a founding principal for a successful family savings account.”
Sumner adds, “For too long people have been told to ignore their savings account for various and supposedly ‘more lucrative’ funds, and while it does make sound financial sense to diversify you won’t have much to diversity with if there is no savings account to start with.”
Sumner suggest refocusing your family’s energy on creating a basic savings account and offers the following advice on how to do just that, based on FNB Pasco’s sound investment principles and the core fundamentals that make up their own lending – and saving – policies:
• Principle # 1 – Start where you are: We often sabotage our savings plans because we feel that “we don’t have enough to start saving yet” or “there won’t be enough in checking if we move this over...” But you’ll never begin if you don’t start somewhere. Banks, too, come in all shapes and sizes. As Sumner explains, “A local community bank isn’t made of money; we can’t ask corporate to approve a loan that’s too big if we don’t have it on hand.” Don’t wait for someday to start your savings account; start from where you are, even if it’s just a few dollars. By committing to this amount, even this small of an amount, every week, you can and will have a savings account to be proud of.
• Principle # 2 – Begin with a goal: Believe it or not, banks are not made of money. They have limits on spending, on borrowing, on lending and on what they can and can’t have as cash on hand. What are your limits? Where is your budget? Don’t start a savings account with some pie-in-the-sky dream of having a million dollars by the end of the year (especially if it’s already October when you begin!), but instead have a specific goal in mind
• Principle # 3 – Commit to succeed: Banks are famous for making long-term commitments to your financial success. Every time you see a “Come in and ask about our 4.5% savings CD,” you are looking at a commitment from your bank to honor your money and repay you, generously, for a set limit of months or even years. In short, you can’t save money if you don’t commit to success for a set period of time.
• Principle # 4 – Automate to accelerate: Banks have sophisticated, automated systems in place to regularly produce returns on their investments. By rolling over profits into the principle, banks accrue interest at an accelerated degree and provide profits upon profits. Your savings account should also be automated, not just to ensure that you regularly contribute to it but also to ensure that it continues to “roll over” as it profits. (Talk to your banker about how to set up such an account.)
• Principle # 5 – It should be a sacrifice, not a slaughter: Don’t try to save too much, too fast, or so much, so soon that you short-circuit your savings before you even begin. Crunch the numbers safely so that you can save enough for it to be a sacrifice, but not so much that it becomes a slaughter. In other words, yes, you should likely save x amount of dollars per month rather than buy a bunch more CDs, aromatherapy candles or throw pillows that you don’t need, but you shouldn’t go without a couch!
• Principle # 6 – Diversify deliberately: the one thing about banks is they will not allow your money to sit there and grow moss. Banks are a revolving door of investments designed to increase interest on existing capital. Likewise, once your savings account is up and running, it is important to weigh your options to ensure that not just are you saving money, but you’re making money as well. (Your local community banker can help!)
Saving money isn’t easy, especially in these tough and trying times. But for years banks have triumphed over tragedy again and again using these same basic principles. Now that you understand what you need to do to save, and have seen the benefits of a healthy, growing savings account, you can begin sowing the future seeds of your financial success today.
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Debunking the 4 Major Myths About Banking Today - By: karla Jo Helms - PR
If you listen to the news about banking these days, be it on TV, in the paper or from the radio drive-time talk shows, it’s mostly doom with a heavy sprinkling of gloom just for good measure:
• “Banks aren’t lending money anymore!”
• “You’re just a number at those banks anyway!”
• “Online banking isn’t safe; they’ll steal your identity or sell your personal information!”
So many myths about modern banking abound that one bank president has decided to clear the air by debunking the four major myths of banking during lean times. Or, for that matter, anytime at all.
According to Robert Sumner, CEO of First National Bank of Pasco (FNB Pasco) near Tampa, Florida, “Banks do have money to lend; in fact, we’re lending every day.”
Sumner adds, “All banks aren’t created equal. Maybe some of the big banks are in trouble, but try a small community bank and you’ll realize that we operate under a much less stringent set of rules. In fact, not only do we make our own rules but we get to call the shots as well.”
If you’ve been fearful of approaching one of your local community banks for a loan recently, or have doubts about their safety or security, let Mr. Sumner dispel the four following myths for your convenience:
• Myth # 1 – Banks Aren’t Lending Money Anymore: Some of the bigger chain banks, gridlocked with federal red tape or their own corporate lending policies, have cut back on personal and even professional lending as they “restructure.” However, many small community banks are actively taking loan applications and eager to help those customers seeking reasonable personal or professional loans for a variety of reasons.
• Myth # 2 – Bankers Don’t Get Personal with Customers: Community banks are famous for personal customer service. Why? Because they are part of the community. While bigger banks deal in quantity over quality, smaller banks have more time, energy and staff to keep their customers happy.
• Myth # 3 – Banks Have Unlimited Money to Spend: No bank, big or small, has unlimited money to spend. In fact, the bigger the bank, the more systems of checks and balances they have to go through in order to lend you money. A customer requesting a loan from a large chain bank in Florida might have to get approval from a regional or even headquarters office two or three states away. A small community bank can answer you on the spot.
• Myth # 3 – Online Banking Isn’t Safe: Horror stories have happened to online banking customers, big or small. However, online banking is a big customer draw for banks of any size, and they have taken special pains to make it as safe as possible, with a variety of safeguards. With a community bank, of course, the biggest safeguard is walking through the front door.
If you’ve been holding off on either personal or professional banking because of unreasonable fears or mass media hysteria, don’t delay; visit your local community bank today.
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Character Counts - The Value of Knowing Your Local Banker - By: FNB Pasco
What can you do in these trying times when you don’t know which bank is getting bailed out – or going bust? When you’re concerned if your money is safe, let alone confident in some chain bank to extend a personal or business loan?
Have you ever thought of getting to know your small community banker? Now more than ever, local community banks are doing big business while the bigger banks are getting all the bad headlines. But quietly, under the radar and away from the prying eyes of the media, your local community bank is hiding a secret: they’re not just making loans, but they’re playing be a different set of rules – rules that could mean you’re more attractive to them than ever.
According to Robert Sumner, CEO of First National Bank of Pasco (FNB Pasco), “When it comes to giving out loans, we look at character before collateral.”
Sumner clarifies: “The bigger banks like Wachovia and First Union have guidelines sent down from corporate that dictate, by the numbers, how large a loan they can offer based on certain criteria that never wavers across the board. At a smaller community bank, we take the time to get to know our customers; we recognize that even though someone’s collateral might be thin on paper, they’ll be able to pay back the note and we’ll be more willing to work with them on securing a loan that’s good for us both.”
What kind of things count for “character” at your local community bank? Sumner listed the following traits his bank looks for, in combination with collateral, to secure a business or even personal loan:
• Reputation
• Community involvement
• Participation in local business organizations
• Strong roots in the community
• Good business practices
• Not just current income but potential income
• Customer relations
• Credit ratings as it applies to paying past debt (part of their character)
• Etc.
Securing a loan may be getting harder in these difficult economic times, but before you give up on the idea altogether do yourself a favor and scout the community banks in your area; make your situation known. Don’t be afraid to talk frankly and honestly with the loan officer, and to share parts of your personal story as well as your professional and financial background.
You never know when the right person might be listening.
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Less is More – Finding Comfort in Community Banks - By: FNB Pasco
The rural region of Pasco County, Florida, may not seem like it should be on the cutting edge of banking services, particularly when the banking system is in shambles, but here one community bank is doing things a little differently than those chain banks you hear about in the news every day (but you’re hearing about them for all the wrong reasons).
The best part is, their customers seem to like it! First National Bank of Pasco (FNB Pasco), “Your Hometown Bank” has been taking their slogan literally ever since opening its doors in 1986. Rather than following the same cookie-cutter national trends that have found bigger, “name” banks in trouble, FNB Pasco has gone back to the basics to give local families what they are looking for.
Ever gone into a bank to find a family room waiting for you? Under the leadership of its forward thinking CEO Robert Sumner , FNB Pasco has turned the workplace into a living space in order to make some of its local customers feel more comfortable and at ease while banking with them.
Launching its experimental “family rooms” in two of its most popular branches, FNB Pasco has redesigned the lobbies of these twin banks to include more comfortable chairs, TVs, coffee, cookies, donuts and orange juice.
Here customers can “hang out” while they do their personal banking, with no rush to get in and out or fill out paperwork in a hurry. While the concept might not appeal to those busy, on-the-go customers in some of its other branches, FNB Pasco avoids the cookie-cutter banking syndrome at all costs.
These two branches appeal to the retired set, those with more time on their hands and less interest in rushing their weekly banking duties. Here everything they need for a pleasant banking experience is at their fingertips; from TVs turned into the latest financial news to a helpful staff eager to answer their every question or even help them fill out their deposit slips.
How is it working out? Better than can be expected, according to Mr. Sumner. The two branches where he installed these "family rooms" have already increased in demand deposits 10 million dollars in one and 5 million dollars in the other. Mr. Sumner feels the response not only warrants the installation of family rooms in all his branches, but directly reflects the current atmosphere of his customers; they want to go somewhere they don’t feel anonymous, rushed or like “a number” when they do their banking.
Not content to limit FNB Pasco’s appeal to the younger market as well, Mr. Sumner has spearheaded a movement to have computers set up in each branch to help first-timers start up their online accounts and get used to the online banking experience.
Sumner feels many people avoid online banking, despite its convenience and quickness, because they simply don’t feel comfortable getting started. At these instillations nervous users can get hands-on experience from trained staff to set up their online accounts, including username and password help, site navigation and even making their first deposit, withdrawal, transfer or bill pay.
So don’t let appearances be deceiving; in one rural community well clear of Silicone Valley or Madison Avenue is making great headway by merging family values with high-tech tools to create a local banking experience like none other!
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