Why Buying Bonds Can Increase Savings Rates

Putting your money to work for you means getting the best return on investments as possible. Unfortunately the best rates also bring the highest risk. If you aren’t in a position to handle a loss of your capital or if you just prefer to play things safe, savings bonds can offer a decent return with next to zero risk.

Bonds almost always outperform other savings rates such as savings accounts and money market accounts. With an average interest rate of 5%, bonds pay nearly double the interest rate of the average savings account. Purchasing these bonds is easy and offer many advantages to investors.

Where to Buy Series EE Bonds?

All government bonds, including Series EE, can be purchased at most banks and other institutions such as brokerage houses. These days, many employers, especially various levels of government, offer easy payroll deductions to purchase bonds. This is a good technique in that you never see the money and thus don’t miss it. Soon, you’ll have a sizable investment.

The U.S. Government offers bonds for direct sale through Treasury Direct, their online bond merchant. Treasury Direct allows buyers to manage their bond holdings online and even sell them electronically from one’s account.

Value of Series EE Bonds

Series EE bonds come in a variety of redemption or “face” values. The most popular are $50, $75, $100, $200, $500, $1,000, $5,000, or $10,000. An individual may purchase up to $30,000 worth of EE bonds each calendar year.

Benefits

EE bonds pay one of the highest interest rates of any government bond, almost always staying ahead of inflation. A weak economy rarely affects these bonds due to the perceived strength of the US Government. The best time to purchase any bond is when they are paying the highest interest rates. One of the advantages of bonds is that the interest rates are fixed and guaranteed.

This article was written by Gordon Kincait of Ratelines.com. Gordon is a junior financial planner and enjoys following and predicting trends. Ratelines has been a reliable source of information since 2004, check out the site for infomation regarding certificates of deposits and current insurance quotes.

What Is Your Bank Charging You? A Guide To Bank

What Is Your Bank Charging You? A Guide To Bank Charges

When you’re shopping around for a bank account there are a lot of factors to consider. Many people go for up-front incentives, such as money paid into the bank account, vouchers or a gift. However, it is worth looking at bank accounts in more depth to find out what you might be paying for various transactions. Here are some of the transactions that banks might charge you for.

Authorised Overdraft

An overdraft is like a short term loan. The bank gives you permission to spend more than the funds you have in your account. This amount is usually fixed in consultation with the bank and may be reviewed at stated periods. Some banks have a free authorised overdraft up to a certain limit and charge for any balance over that limit. This is the best way to arrange an overdraft.

Unauthorised Overdraft

When customers spend more than they have in their accounts without arranging an overdraft limit, this is known as an unauthorised overdraft. Banks penalise customers heavily for this by charging an unauthorised overdraft fee of more than 35 in some cases. The excess spending will also be charged interest at a higher rate than normal.

Cheque Services

Some banks charge for clearing cheques more quickly than the standard period (this can range from three to seven days depending on the banks involved and the day of the week). There may also be fees for processing cheques in a foreign currency.

Taking Money Out

Sometimes customers need to set up direct debits, where companies take certain sums from a bank account each month. They may also wish to set up standing orders, where they arrange to pay a certain amount to another bank account or company each month. Some banks charge a setup fee for these services. . It is also worth looking at the daily withdrawal limit on a current account. This can vary widely depending on the bank you choose.

Other Bank Charges

Banks may also charge for other services such as:

1. setting up a loan facility
2. changing or issuing foreign currency
3. writing cheques that exceed the cleared balance in an account
4. stopping a lost cheque

Banks will also charge customers if they have to write to them about an infraction of bank rules, such as exceeding the overdraft limit or defaulting on loan repayments. This means that defaulting customers have to repay the debt as well as the additional charges.

Doing some research could save consumers a small fortune in bank charges. In addition for looking for incentives, consumers should look for banks that keep their charges as low as possible. With a bit of digging, it is easy to find banks with:

5. an automatic overdraft limit for which there is no charge
6. free standing orders and direct debits
7. free transfers between banks
8. low unauthorised overdraft fees
9. low charges for other bank transactions

Choosing a bank that fits this profile will help with overall financial health.

What is a Bank Savings Account?

Most people at some point in their lives will find that they need a bank account in order to manage their finances. A savings account is even more important, as this allows the account holder to manage their finances and keep their savings in a safe place until they need them. Currently in the United Kingdom there are thousands of banks and building societies that you can open a savings account with, and each one will offer something different, the market is very competitive.

For the most part, if you want to open a full sb account with your local bank then you will have to be over eighteen, but there are also many options for you if you want to open a bank savings account for your children. If you want to start the application process for opening a bank savings account then there are a few things that you need to remember, by keeping these things in mind you are going to be speeding through the process a lot faster.

Firstly, you will need to bring identification to prove that you are who you say you are. You need to be a permanent resident of the United Kingdom so you will need to make sure that you present something that proves that you reside in the United Kingdom. The best form of identification would be something that has a photograph of you, states your full name and your current address. Something that fit’s the requirements perfectly would be a UK driving license.

Nowadays you can start the application process for opening a bank account online, making the whole process a lot faster. Alternatively, you can go to your local bank branch and talk to a member of staff who will take you through the whole process, and set up your bank savings account there and then. If you are opening a for your child then you are still going to need to prove their identification. You could do this with a birth certificate or even a photo passport.

Once this has been done you are ready to start putting money into your account. If you are going to open a standard bank savings account then you should be aware that you are still going to incur income tax deductions on savings, unless you have a tax free account. The deductions won’t be extreme, but they will be there. gives you the opportunity to build a stable financial future, and can ease a lot of worries that come with modern living. The best thing to do is to shop around and take a look at the different plans that local banks offer and decide what sort of bank savings account is best for you.

Wachovia Online Banking

Wachovia online banking is fast becoming the banking method of choice for millions of customers looking to save time. In fact just recently the Wachovia online banking system landed in top place for customer satisfaction as gauged by Keynote Systems Keynote Customer Experience and Service Level Rankings.”

What features set Wachovia online banking apart from its competition? Ease of use is what put Wachovia ahead of the rest. Online banking benefits banks by giving customers a way to help themselves. But online banking also has to benefit customers, and if such a program isnt intuitive and easy to navigate, customers wont use it.

Thats not a problem at Wachovia. Its web site is uncluttered and neatly categorized which enables users to see at a glance exactly where to go to address their immediate needs. Another area in which Wachovia online banking excels is its access to customer service. Even though the site is easy to navigate, there are times when customers wont know where to go or how to proceed. When that happens, all they need to do is click on the Customer Service link. There customers will find several FAQs that have been designed to answer the most common questions. Theres also a site map and a glossary of terms.

If thats still not enough, customers need only click on the Contact Us link. Again, customers will find their banking needs listed by category. They need only click on the appropriate link and in a split second, theyll have complete contact information including a toll-free telephone number in most cases.

So even though Wachovia online banking customers are dealing with a web site access to a human being is never more than a click away. Besides the ease of use and quick access to customer service, Wachovia online banking is offered absolutely free of charge. Better still, many prospective customers claim that the online banking web site is the feature that helped them choose Wachovia as their bank. No wonder Wachovia tops the list!

Useful Tips For Carrying Out Online Banking Transactions

With the internet available in most homes and businesses across the globe, its understandable that consumers are presented with many opportunities such as online banking and even online shopping. In the United Kingdom,millions of people are now using the internet in accessing their bank accounts and millions also are regularly doing their shopping online. But on the other hand, most of these people are still concerned about the security of their accounts whenever they access it on the internet. Using a computer is said to be the safest way in either banking or shopping, but it is also advised not to let your guards down while you are making transactions online.

The possibilities of becoming a victim of online banking fraudulence are said to be very low,and online banks committed themselves in keeping it this way, because most online banks systems proved that they could not be easily attacked, instead most criminals turned most of their attention in gathering many of the information directly from online banking customers. Most often, these criminals are using Phishing where in they send e-mails at random, as if they have seem to be sent by a genuine online bank.

This is the attempt they make in order to convince customer to disclose their personal security information, a ,method seen more on websites run by scam artists. There are some usueful tips, however, on conducting safe banking transactions, the first being to know who you are dealing with. Always remember to type the banks web address into your browser. Never go to the site via a link from an email. Never divulge personal information requested through an email. Your bank would not ask for this information.

In case you are in doubt, try contacting the bank or the building society by dialing the given contact number. Always keep your passwords and PIN numbers safe. Be extremely cautious of unsolicited emails or phone calls asking you to give any information regarding your personal details or card numbers. Always keep this information a secret and be cautious of giving your information to someone whom you do not know.

Your online bank would never call or contact you just to ask you regarding your passwords, PINs, or any personal information. Third is always keep a hold of your money. Do not be fooled by certain convincing e-mails that offer you the chance of making easy money. If an e-mail looks too good to be true, the possibility for it to be fraud is there, and it is difficult to prove that the sender is who they say they are. And lastly always check your online banks website. If you are in doubt, check your online banks website since it is a good place for you to get help and guidance on every transaction on the internet that you make in a safest way. Also regularly look for specific information and guidance regarding on how to protect your PC and also yourself while making online transactions.

The most important thing to do in order to make your online banking transactions safe is by keeping your computer safe, because it is the most important tool in making your online banking transactions. Most internet security software is available for download or purchase on the internet, or you may purchase them at your local computer store. This is another and one of the most effective ways for you to protect your computer, your transactions, and also yourselves.

The Basics Of Online Banking

Banking online has become the quickest growing internet activity, with nearly 4 million users already managing accounts, and paying their bills through a virtual bank. With the convenience and ease of online banking, everyone seems to be in on the newest trend. And there are quite a few other advantages, such as avoiding the lengthy aspects of conventional banking. Everyone must educate themselves on the basics of online banking before truly deciding whether or not it is right for them.

Online banking offers a myriad of advantages. Online banking websites are always equipped with secure servers and can perform transactions much faster than any automatic teller. Also, virtual banking sites never close; they are open seven days a week and 24 hours a day. You can access your bank account anywhere. If you are traveling out of the state or even out of the country, you can have admittance to your bank account anytime, anywhere. Another quality benefit is that most online banking sites now allow you to manage a variety of accounts such as IRAs, CDs and securities from just one website.

To perform banking transactions online, you will need a computer, access to the internet, and occasionally software provided by your bank. A majority of the larger banks now offer fully operational online banking for free or a small cost. The most advanced banking websites allow you to examine your various credit card accounts, check out brokerage accounts, and even get stock quotes free of charge. Smaller banks or branches, however, may only allow you to view your account balance and transaction history, but you cannot make payments online. As the online banking business progresses, hopefully so will most banks.

Paying bills online is extremely simple. First of all, you need to produce an address book listing all of the payment recipients. When a bill is received, choose a payment amount, the date it should be delivered, and send it on its way via cyberspace. The rest is in your banks hands. One of the benefits is that a lot of these payment programs let you schedule your payment so you can pay the same time each month. No late fees!

There are a few disadvantages to online banking. Some banking sites can be fairly difficult to navigate at first, especially if you are unfamiliar with the world wide web. You definitely to take time to educate yourself on the many facets of the online banking, and accustom yourself with your virtual surroundings. Another unfavorable point is the time and effort it actually takes to get started with your banks online program. You will most likely have to go to the main bank branch provide identification, and fill out documents. Once this is taken care of, you will finally be ready to begin yo urbankingonline.

Swiss Banks Traditional Leaders In Financial Privacy

When most investors think about offshore asset havens, the first prospect that comes to mind is the traditional Swiss Bank Account. This has become a virtual stereotype of asset protection, probably because Swiss banks have been in this field of financial services the longest compared to other countries.

Switzerland has maintained a longstanding political distance between itself and the rest of Europe; it maintained neutrality through both World Wars (leading to charges it collaborated with the Nazis); it is not an EU member; and only joined the United Nations in 2002. Christoph Meili, a security guard at the United Bank of Switzerland, became a prominent whistleblower by preventing the destruction of Holocaust-era financial records in 1997 and bringing them to the attention of the public. Subsequently, Meili lost his job and received death threats, and became the first and only Swiss national to be granted political asylum in America. Descendants of Holocaust victims claim Swiss banks are still holding onto some their ancestors’ funds, despite disbursements in recent years.

Regardless of its somewhat unsavory past, Switzerland has traditionally had much to recommend it as an asset haven. It is a stable western country with a well established system of laws, so investors will get no sudden surprises after a coup or regime change.

The financial establishment in Switzerland Banking in Switzerland is known for stability, consistency, privacy and protection of client assets and data. The nation’s tradition of bank secrecy dates back to medieval times, but was officially codified in a 1934 law. All Swiss banks are regulated by the Federal Banking Commission,or FBC, which derives its authority from a series of federal statutes. Banking is a major industry in Switzerland, employing approximately 5% to 6% percent of its workforce and generating 14% to 15% of its annual GDP. It is estimated that approximately one third of offshore funds are stored in Swiss banks. The UBS AG and Credit Suisse are the two largest Swiss banks, holding more than 50% of all deposits in Switzerland.

While secrecy of banking data is guaranteed under Swiss law, in practice it is not unlimited. While secrecy is protected, all bank accounts are linked to an identified individual, and a judge or prosecutor may issue a “lifting order” to give law enforcement access to information relevant to a criminal investigation. Swiss law discriminates between tax evasion and tax fraud. If money is not declared, this is considered tax evasion, a misdemeanor under Swiss law. However, tax fraud such as filing forged tax declarations is considered a criminal offence.

Also, in an effort to stop the use of Swiss banks by criminals, The Money Laundering Act sets standards for the identification of account holders, and requires reporting of any suspicious transactions to the Money Laundering Reporting Office. After 911, Switzerland was one of several countries to participate in joint task forces targeting financing of the Al-Queda terrorist organization.

Due to Switzerland’s high profile in the world banking community, it has come under pressure from many nations including the U.S. to alter its privacy laws. European Union members complain that their nationals use its convenient nearby services to avoid taxation at home. The EU is working towards a harmonized tax regime among its member states, and the the Swiss banking officials (and, according to some polls, the public) are against further integration. However, some cooperation has been forthcoming, and since July 1 2005, Switzerland has charged a witholding tax on interest earned by the personal Swiss accounts of E.U. nationals.

In 2001 and 2002, the government of Italy offered a limited amnesty to tax dodgers with Swiss accounts, resulting in the repatriation of 30 to 35 billion euros. In 2003, another such amnesty program was offered by Germany. In 2003, the U.S. announced a new information-sharing agreement under the previously-signed U.S. – Swiss Income Tax Convention, to facilitate more effective tax information exchange.

Swiss numbered bank accounts are legendary to the public as bastions of secrecy, but in reality, the information required to open such an account is the same as that of an ordinary account; completely anonymous accounts are legally forbidden. The only difference between a numbered account and a regular account is that personal data concerning such accounts is restricted to senior bank officers, rather than being accessible to all bank employees. In a criminal investigation, law enforcement can access the numbered account holder’s identification just as easily as that of a regular account.

In summary, anyone who wants to keep a legitimately-gained amount of capital in a safe off-shore asset haven should consider Swiss banks to be a safe bet. However, due to their high profile, these banks may offer less assurance of privacy than some lesser known, and less carefully scrutinized, countries such as the Turks and Caicos or the Guernsey Islands.

Secure online banking

Banking has always been a big part of our lives and will probably be forever.
Banking dates back to the ancient times; the earliest banks were the ancient religious temples. Citizens then stored their gold coins and other valuable belongings in the temples because these places were strongly built, were always guarded, and most of all, were sacred. In ancient Greece, temples were also the place where financial transactions and credit notes were already being used to reduce risks in carrying and carting money to different places.

Since those times, banking evolved in many aspects. Banking regulations were formulated, additional services such as lending became part of banking and things such as adding interest to loans became common bank practices. Now with the latest technology and the Internet, banking has taken a new dimension. People can now access bank account online and transact business with the bank with more convenience and security through the Internet.

Online Banking

Performing bank transactions through the Internet is generally referred to as online banking or Internet banking. This form of banking allows consumers to directly access their bank account online (usually savings account) and obtain any information about their accounts .This direct-to-consumer system is quicker and more convenient for consumers compared to traditional banking systems. Especially if you are to withdraw money after banking hours or do transfers from the comfort of your own home, this banking system may be your easiest and sole solution. All you need to do is connect to the Internet trough your personal computer and access your bank account instantly.

Online-only banks

Most of the popular banks offer online banking as one of their services; however there are also some banks that transact businesses exclusively online, so you have no other choice but to access your bank account online and avail of other bank services through the Internet. The latter are referred to as online-only banks. These banks virtually exist yet they provide services traditional banks offer only that they are done through the Internet.

Benefits

Today as life is more time consuming than ever people in using the Internet in several ways, including getting access to their bank account online, online-only banks proved to be more convenient and beneficial. Aside from the fast transactions, one may also profit from the banks high interest rates and generally cheaper transaction fees considering that online-only banks operate only online. Cost of processing bank transactions is lower so the bank can afford to give consumers high interest rates on savings account and cheaper transactions.

Online Banking Industry

Although Internet is being used a lot, online-only banking industry began to develop only sometime in 2000 when a popular online bank devised much simpler and more convenient banking transactions online and paid consumers higher interest rates. From the earliest banks that tried this form of banking did not succeed because of their expensive transaction fees and lower interest rates. However, procedures in getting access to bank accounts online were more complicated and consumers were afraid of Internet fraud and internet scams. The industry eventually grew bigger and more stable middle 2004 as the use of the Internet got more and more trusted, prevalent and secure .Banking will never be the same and will never look back again.

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Title:
Savings Bonds

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612

Summary:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that …

Keywords:
finance,savings,bonds

Article Body:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that are low-risk and also a liquid savings product. During the time that you own them they earn interest and also protect you from inflation.

I Bonds can be purchased at just about any local financial institution, or also through payroll deduction.

What are they used for? I Bonds savings bonds can be used to finance education, supplement your retirement income, or also given as a gift.

With I Bonds, you are guaranteed a real rate of return since they are an accrual-type security. Each month interest is added to the savings bond, and that interest is paid to you when you cash in the bond.

They are sold at face value. For instance, you pay $50 for a $50 I Bond.

You must own an I Bond for a minimum of one year, its interest-earning period is 30 years, and there are early redemption penalties. Interest earnings are tax-exempt from both State and local taxes, but they are subject to State and local estate, inheritance, gift, and other excise taxes. Interest earnings are subject to Federal income tax, but they may be excluded from Federal income tax when they are used to finance education.

Another type is the EE savings bonds. They are safe and low-risk savings bonds that pay interest based on market rates. As with I Bonds, EE savings bonds can be purchased at just about any financial institution or, if available, through your employers payroll deduction plan.

EE Bonds can be used to finance education, supplement your retirement income, or even given as a gift.

Any EE/E savings bond that were purchased between May 1997 and April 30, 2005 are set to earn a variable market-based rate of return. Those issued May 2005 and after are set to earn a fixed rate of interest.

EE savings bonds are also an accrual-type security, having interest added monthly and paid when it the bond is cashed in. However, unlike I Bonds, EE savings bonds are sold at half of its face value. For example, a $50 bond is purchased for $25.

There is a minimum of one year ownership, a 30-year interest period, and also early redemption penalties. The Tax Considerations for EE savings bonds are the same as those for the I Bonds.

Lastly are HH savings bonds. Unlike both I and EE savings bonds, HH are used only to supplement retirement income. They are available only in exchange for Series EE/E savings bonds or upon reinvestment of any matured Series H bonds.

As with I Bonds, HH savings bonds are sold for its face value. For example, you pay $500 for a $500 bond. HH/H savings bonds pay a fixed interest rate that was set on the day it was purchased. The interest rate will change to the current HH Bond rate on the 10 th anniversary of its issue date.

You must own HH savings bonds for a minimum of 6 months, and the interest-earning period is 20 years.

Interest earnings for HH savings bonds are exempt from State and local income taxes. However, they are subject to Federal, State, and local estate, inheritance, gift, and other excise taxes. Its interest earnings are also subject to Federal income tax.

Savings bond makes life simpler

The modern socio-economic scenario has made life really very complicated for us, as we all have to run after money to make ends meet. In this age of rapid commercialization of economy, we are always running short of cash no matter how much we earn. As the economy scale new highs aggressive consumers are always busy exploring new ways and means to augment their income. For spendthrift people it may however turn out to be an arduous task to save money.

Therefore, it makes sense to invest in saving bonds so that you never reach a stage of bankruptcy and always have some cash to fall back upon in times of need. Industry experts strongly recommend consumers to use saving bonds as a reliable means of letting your money grow at an amazingly fast pace. According to a recent media report, savings bonds currently bring greater benefits than many savings or money market accounts. With savings bond you can solve all your monetary woes. Savings bond takes care of your child’s higher education or even your post retirement ordeal.

Some of the advantages of investing in saving bonds are as follows- -The monthly interest rates on savings bonds accumulate on a monthly basis. Savings bonds offer enviable rates of return in comparison to other bonds.

-Savings Bonds come with a particular registration number so that they can be easily be replaced in case it is stolen or tampered.

-You do not have to dig deep into your pocket to buy a savings bond. You have to shell out as little as 25 to get a savings bond.

-Another unique feature of saving bond is that they are easily exchangeable. You can get cash out of your bond easily in case of an emergency.

-One of the greatest benefits acquired from investing in savings bond is tax exemption. The interest amassed on savings bonds is free from all state and local income taxes.

-Last but not the least, savings bond act as a great balancing factor to your existing investment folder paving a way to start building your own capital. This unique feature of the savings bond gives you enough room for diversification of funds.

There are a variety of savings bonds on offer. You just have to do a little bit of market research to find out which one suits your bill perfectly. Riding on its highly beneficial factor savings bonds have really emerged as a preferred investment option everywhere. Series EE or Series I bonds are the safest bet amongst all categories of savings bonds. Savings bonds have undoubtedly emerged as the best add-on to your investment portfolio.

Therefore, if you want to make your life simpler with little financial worries then investing on savings bond is a must. Your post retirement life or child’s’ higher education expenses may not seem to be at all difficult after investing on savings bonds. So, get ready to outsmart your peers by investing on savings bonds and it will save you from unnecessary harassments and gift you a secured peaceful life in return.