Saving Bonds

Saving Bonds are issued by US Treasury Department. These are not tradable anywhere in the market. The bonds are non-marketable securities. For any buying and selling activity, you need to go to the agents authorized by the government. These agents are called Issuing and Paying agents. The saving bonds are registered securities. This means that they are registered and held in name of the person who owns them.

Generally there are three series of interesting saving bonds. They are, I Series, EEE series and H HH bonds.

Series EE Bonds : They replaced the Series E bonds. You can easily buy the EE bonds at a discount of half their face value. They come in denominations of 50 to 10,000. There is however a limit. There is a ceiling of 30,000 (on the face value) during any calendar year. These bonds increase in value as the interest accrues accumulates. They will generate for you interest for 30 years. When EE bonds “mature,” or are due for maturity, you get your original investment back plus all of the interest also. They are the accrual type of marketable securities.

Series HH Bonds: They are available for purchase only in exchange for Series EE or E bonds and Savings Notes. The other way is to procure the proceeds from a matured Series HH bond. They are quite different from the usual EE bonds. Series HH bonds are purchased at their face value and are available in 500 to 10,000 denominations. But there is no upper limit on the amount you can invest. These bonds dont increase in value and have a maturity period of 20 years.

Series I Bonds : These bonds are available at face value only. They grow with inflation-indexed earnings for maximum period of 30 years. You can buy Series I bond in 50 to 10,000 denominations, the limit being 30,000 in any calendar year.

Bonds and Series EE Savings Bonds are of similar type as they are accrual securities. They will give you some earning, that is, accrue interest monthly at a variable rate and the interest is compounded semiannually. You receive your earnings when you redeem an I Bond or Series EE Savings Bond.

Series HH Savings Bonds are current income securities. You receive your earnings semiannually and you receive the face value of Series HH Savings Bonds when you redeem them.

The benefits of parking some savings in these saving bonds is two way: first you get a cut in the taxes thereby some tax benefits are there. The other benefit is that they are more secure then other securities as their value almost always rises. It never fluctuates much so the usual ups and downs that other securities see, is not a regular feature in this bond.

Another great thing is that they are registered securities so in case you loose these bonds (paper bonds etc), all you have to do is get in touch with the authorities ands you will get a replacement soon. Thus there is no issue of their being lost, destroyed etc.

The bonds are very affordable as you can start purchasing them with as less as USD 25.The bonds are available right from denomination of USD 50 to USD 10,000.So all you have to do is to analyze your needs, financial goals and then purchase them.

In case you are tied up, no need to fret, these bonds are valuable online also. So all you have to do is few clicks on the site and you have bought them electronically, without moving anywhere from the comfort of your chair. There more then 40,000 financial institutions that sells these bonds.

You can sell them anytime you wish to, once the initial holding period of 12 months is over.

Saving Bonds are safe and secure securities to park savings for good returns. They are easy to buy and come in small as well large denomination also.

Personal Accounts Choosing Your Bank

While many people are with their bank because theyre used to them or because it seems like an unwanted hassle to change accounts, there can be benefits to shopping around. And just because you keep your main account in one bank, theres no need to keep all your accounts or credit cards with one firm.

If you have a poor credit rating or a large overdraft, you may find it harder to change banks, but some banks will buy your overdraft from you, or offer to convert it into a loan. For a small fee you can request details of your credit rating from Equifax or Experian the two leading credit reference agencies.

Convenience

Depending on your circumstances, you may find youd be better off with one of the new internet banks, like Smile or Cahoot. These can give better interest rates, because they have lower overheads than high street banks that have to run branches in real time. On the other hand, you may rather stick with a large bank you know and trust perhaps you have a good relationship with your branch manager and can expect extra support when you need it. The larger banks also have plentiful local branches, which could be a plus point if you need to, say, pay in cheques frequently.

Terms

While interest rates are an important consideration, there are other factors to take into account when choosing a bank, such as bank charges. Some banks will charge more than others, for example, if you exceed your overdraft limit or if a cheque bounces. Others will charge extra to provide you with copies of statements. Check that the bank complies with the Banking Code, a UK body that promotes best practise in the financial sector.

Bear in mind too, that some banks will offer excellent terms for new customers in order to attract your business, so it may be worthwhile swapping just to take advantage of these. You may find a lower-interest loan, for example, with a new bank.

Bank policy and corporate ethos

Some institutions offer ethical banking, so that you can be sure your money is not being used to fund companies who do not conform to certain criteria. The Co-operative Bank led the way in ethical banking, but there are other banks and investment companies to choose from.

As well as the larger high street banks, there are smaller banks, building societies and friendly societies to consider. While normally associated with savings, some offer current accounts with attractive rates, and many of the new building societies are in fact indistinguishable from banks.

Online Banking Security Requires Several Layers Of Security

Online banking can also be called Internet banking and is used to describe when individuals carry out transactions, payments and other bank dealings on the Internet using their banks secure web site. Many people have already discovered the convenience of banking online and the flexibility it offers as opposed to traditional banking at a local banking company. People who use online banking enjoy being able to access their bank account, account information and other features without time restrictions from just about anywhere. Those who are not using online banking services most likely dont because they have concerns about online banking security.

Any online banking security that offers only password authentication like a simple Internet retail web site is simply not secure enough for the type of business and information involved in Internet banking. Online banking security should be far more complicated. Online banking ports should be secure sites, many times using the https prescript that is encrypted. Encryption is simply the process of converting plain text into code. Online banking security measures that include encryption makes it very difficult for hackers to access personal information in a home computer by intercepting a password as it is entered on the site (also known as keylogging.)

Most online banking security measures include a second step to ensure customers security. The most popular method used in online banking security is the use of transaction numbers, which are also known as TANS. These TANS are basically passwords that are intended for use in a single session online. Other methods of online banking security measures that can be used include using a chip card unique to each customer, using two passwords entering only random parts and using digital certificates. The most common method using in the United States for online banking security remains single password protection.

Another online banking security concern many people have involves fraud. Some people believe that online banking security isnt secure enough to prevent their person information from being used in fraudulent situations. The truth is that identity theft, credit card fraud and signature forgeries are much more common that bank fraud. In fact, bank transactions are highly traceable and penalties for this crime are quite severe.

Despite concerns over online banking security, more and more people are enjoying the convenience of online banking every day. With features like electronic bill payment and instant access to account statements have become a valuable way for people to maintain their accounts without the restraints of traditional banking hours.

Online Banking Explained

Life has become so busy and so hectic that we find ourselves rarely having time to eat, let alone visit the bank. The vast internet has made it possible to do our banking right online. Many banks today offer the capability to do your banking on their website; additionally, there are some bank institutions that are online only. While banks that only exist online have begun to offer extremely competitive rates, they cannot even begin to be able to replace the personal customer service you can obtain at regular bank.

So let us delve deeper into the realm of online banking, it does have many advantages and the biggest, most popular one is the flexibility it can offer. Online banking offers you quick access to your account twenty-four hours of the day, seven days of the week, and three hundred and sixty five days of the year. With this flexibility, you know longer have to live within the constraints of specific hours of banking and you do not have to worry about holidays. Online banking is open at all hours, every single day.

Even as interest rates soar with traditional banking, typically an online bank can offer you amazing deals on different banking aspects such as mortgages, credit cards, and personal loans. So what is it that online banking can offer you? Good question, you can view all your statements and balances right online, without having to deal with telephones, ATMs, or ten different pieces of paper. You can also view any type of transfer of funds, standing orders, and bills you have paid. You still get the traditional checkbooks and debit cards with these online banking institutions.

The first step is choosing the right online bank for you, you can find many different banks all around the internet. You will want to research them fully, to all possible extents to ensure that they are reliable and secure. You will have to fill out an application form that will likely require you at some point to sign and send back to the bank. You will also likely be required to show some form of identification for account activation.

Ensure that the banking website integrates SSL (secure sockets layer) for security as well as many other types of security measures set in place to keep your transactions safe. Once you have your online banking account set up outside of the secure website, it is up to you to keep your personal information just as safe. For instance, never write down your password, user name or Pin number. If possible, make each of these things something you can easily remember. Keep each of these things to yourself, do not give them out to any other person, if this person decides to access your account they can have full control over your funds. Do not send your information through the e-mail these can be intercepted easily. Additionally, use a password that is unique and not an obvious one like 12345. Finally, always end your banking session by logging out and closing the browser, this will prevent anyone who has access to your computer from accessing your account.

Offshore Banking Terms All You Ever Wanted To Know

Many investors are puzzled by the various terms used by bankers in describing ways to protect their money. Here is a short list of some of the most common ones.

Asset Protection Trust (APT) is an irrevocable trust, usually created (settled) offshore for the principal purposes of preserving and protecting wealth against creditors. Title to the asset is transferred to a trustee. It is used for asset protection and usually tax neutral. Its function is to provide for the beneficiaries of the APT. A trust is a contract affecting three parties, the settlor (who sets up the offshore trust; also called the grantor in U.S. or IRS terms), the trustee and the beneficiary. A trust protector is optional but recommended, as well. Through the trust, the settlor transfers asset ownership to the trustee on behalf of the beneficiaries.

Business trust is created for the primary purpose of running a business. These trusts are treated as persons under the Internal Revenue Code (IRC). It must have a commercial purpose and actually function as a business.

CARICOM is theCaribbean Common Market. Its members consist of 14 member countries of the Caribbean community, including Antigua, Bahamas, Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent, Surinam, Trinidad and Tobago. The purpose of this organization is to encourage free trade and free movement of labor. Conspicuous by their absence are the Cayman Islands and the British Virgin Islands, the two major players in international banking and finance, which did not wish to be regulated by a small local community because of greater international ties.

Discretionary Trust is a grantor trust in which the trustee has sole discretion as to who among the listed beneficiaries receives income andor principal disbursement. The trustee has full authority over the fund, or it would cease to be a discretionary trust. A letter of wishes, or side letter, can provide guidance to the trustee without having any legal and binding effects. The letter(s) must be carefully drafted, as the trustee cannot be seen as a pawn of the beneficiaries or there is basis for the argument that there never was a complete renouncement of the assets.

Estate is the sum of personal interests in real andor personal property.

Flight Capital is money which flows offshore and likely never returns. It is exacerbated by a lack of confidence in government fiscal management.

GmbH is a German form of a limited liability corporation.

High Net Worth (HNW) Person is any individual with more than 1,000,000 in liquid assets.

International Business Company (IBC) is a corporation formed (incorporated) under the Company Act of a tax haven, but is not authorized conduct business within that country. It is intended to be used only for global operations. It is owned and operated by members andor shareholders, just like other corporations.

Limited Company is not an international business company. May be owned by a resident of the tax haven and is set up under a special corporate law with a simpler body of administrative laws. A Limited Liability Company (LLC) consists of member owners and a manager, at a minimum. It has tax advantages and operational flexibility found in a partnership, operating in a corporate-style structure, with limited liability as provided by the state’s laws. A LLP is a Limited liability partnership, a form of the LLC frequently used for professional associations, such as accountants and attorneys. A LLLP is a Limited liability limited partnership, intended to protect the general partners from liability.

Member is an equity owner of a limited liability company ((LLC), limited liability partnership (LLP), limited liability limited partnership (LLLP) or a shareholder in an IBC.

NRA is a nonresident alien of the U.S. An NRA is not a U.S. person as defined under the Internal Revenue Code (IRC).

Offshore is an international term meaning not only out of your country, but also out of its tax jurisdiction.

PLC is a UK public limited company.

The Revenue Reconciliation Act of 1995 proposed changes to the Internal Revenue Code affecting foreign trust reporting, among other changes.

Securities are shares and debt obligations of every kind, including options, warrants, and rights to acquire shares and debt obligations.

Settle. To create or establish an offshore trust. Done by the settlor (offshore term) or the grantor (U.S. and IRS term).

Settlor. One (the entity) who (which) creates or settles an offshore trust.

TCI are the Turks and Caicos Islands, a popular tax haven.

Trustee is the controller of a trust fund. This person is independent of the settlor or grantor and has the fiduciary responsibility to manage the assets of the fund as a reasonable prudent business person would do in the same circumstances. The trustee must defer to the trust protector when required in the best interest of the trust fund. The reporting requirements of the trustee are defined at the creation of the trust include how often, and to whom, the trustee will respond to instructions or inquiries, investment strategies and fees for the trustee’s services. The trustee may have full discretionary powers to distribute the fund to beneficiaries.

Uniform Partnership Act (UPA) is one of the uniform laws adopted by some states or used as a baseline for other states.

Vetting is the process used by the offshore consultant for evaluating whether a prospective client is a good candidate for offshore asset protection.

World Bank was formed to be the lender and technical advisor to developing countries, utilizing funds and technical knowledge from member nations. It has often been criticized for promoting austurity programs in indebted third-world nations.

Hopefully this short guide will help investors seeking asset havens and offshore banking facilities.

Make the Most of Your Savings Interest Rates – Stop

Make the Most of Your Savings Interest Rates – Stop the Bank Putting Your Money in Their Back Pocket

There is a common trend in the banks at the moment which has to do with savings accounts and savings interest rates. If you keep your savings with the same bank in the same account for a number of years, you would expect your bank to look after you. But they do not and actually take advantage of this.

The banks release a savings account. They advertise it, use it to attract new customers or convince existing customers to transfer their savings to them. The customers, being quite happy with the rates and the terms, forget about their savings interest rates knowing that they have the return that they expected.

Then after 6 months to a year the bank get bored of that savings account and decide on the next big marketing push and release another type of savings account. The terms maybe a little different. The savings interest rates is usually different. And the same thing happens again, attracting new customers etc.

But what happens to the old savings account?

Well at first the savings interest rates stay much the same. But gradually over the next year or so they reduce the rates so that in the end the rates offered are much the same as being offered on a current account. Near to 0% in most cases.

And unless you make steps to review your savings interest rates with the bank, they will let your interest decrease and will not tell you about it.

It has been my experience that working in the bank that if I see a customer has an old savings account, where the rate has dwindled away, that I make a point of telling them. At worst I will make sure that they are upgraded to the most recent form of savings account that I can to provide them with the most interest.

I can tell you though, that not all of my colleagues do the same, nor are they encouraged to do so by their superiors. Upon the release of a recent new Cash ISA savings account, we were actually instructed not to upgrade customers from the old Cash ISA accounts, to the new one unless the customer actually asked us.

The reason for this is clear. The bank takes advantage of their position of holding your money. They take your money which they make a profit on anyway. Then they pay you less and less interest over time so that they actually make more and more profit on.

How is that for your continued loyalty!

My advice is to review your savings interest rates with your bank every 12 months. Before you go into a conversation with them, make sure you know exactly what rates they would offer if you are a new customer. Then also find out what the nearest competitor is offering so that if they do not offer best possible option, you have another choice of where to make the most of your money.

For the last 5 years I have worked in a high street bank. During this time I have specialised in helping customers get the best savings interest rates.

That’s why I have created this special page to advise on the things to look out for when you want to get the best interest rates on savings.

Make a Good Comparison of Regular and Fixed Rate Bank

Make a Good Comparison of Regular and Fixed Rate Bank Accounts Will Yield the Better Savings Interest Rates

Keeping a close eye on the savings interest rate offered will ensure that your money works for you, a great way to do this is to regularly check with the banks and building socities.

The two main savings accounts best used are Regular Savers and Fixed Rate Accounts. Regular savers accounts are designed for users to put away so much money each month and with this get a high saving rate. With this type of account the bank tends to put restrictions on the amount of withdrawals and if you go over this barrier you make yourself subject to interest rate reductions You have to be aware of the duration of this high interest rate because the norm is that it will only last for a year then it is up to you to move your funds to a better savings account.

Fixed Rate Accounts usually offers a good saving rate and get a great return but the downside is that you cannot touch your money for a fixed period of time, usually the earliest is after a full 12 months from the start of the savings.

The best savings rate on the market might be as far away as you think. When looking at the savings rates check your local banks and building societies as well as the national rates advertised, the local rate could better than your national and offer benefits for saving with your local branch.

Comparing savings accounts is the only way you can invest your money properly try to get a savings account that has the best savings rate with minimal restrictions. Also before investing be sure to assess your finances and save what you can afford because if you need to access your funds in a fixed rate savings account before the period you agreed is up you will face a penalty on the interest you receive.

Make a Good Comparison of Regular and Fixed Rate Bank

Make a Good Comparison of Regular and Fixed Rate Bank Accounts Will Give You the Better Savings Interest Rates

It is important that you keep a close eye on what saving srates are being offered by savings insititutions this way you will ensure you always have the best savings rate available for us.

Two of the more preferred savings accounts are fixed rate savings accounts and regular savings account, a regular savings account offers you a high interest rate providing you put away x amount each month. But with this there are strict conditions by the banks such as the depositing of money you have to do each month and the amount withdraws you can make. There can be a time limit on the duration of the high interest rate, if this does come to an end then be sure to look for better savings interest rate.

Fixed savings account are very popular because the offer some of the best savings rates available the only downside of this is you have to invest your money for a set period of time and if you take it out before then you will forfeit some – if not all – of your savings interest.

The best savings rate maybe closer than you think so don’t forget to check your local branches who may offer incentives for investing your savings locally.

Don’t just jump right into a savings account take your time and compare the different accounts you have available. If you are thinking of investing your money in a fixed rate savings account to find the best savings rate then remember that you will not be able to withdraw for quite a long time so ensure you only put away money that you will not need in the near future.

Lifestyle Banking Living For Pay Day

For some people it comes mid-month, for others at months end. Occasionally it comes right at the start of the month just in time for you to watch those figures plummet.

And what am I talking about? Pay day.

Lifestyle banking is the term for a new breed of loan, and its an appropriate moniker as our lifestyles have sped up, digitised, and, ultimately, revolutionised our lives so has our demand for more flexible banking services. Services such as the Payday Loan (http:www.mypaydayloan.co.uk ) are surfacing to fill this emerging market and provide a new approach to loans.

We all have hectic lifestyles and speed is often the most important factor in any decision. How fast? we ask ourselves of a service – and services such as the Payday Loan are fast. Often, we need to get cash into our account on the same day we request it and this is becoming more and more viable. In fact, generally, cash advance loans costs less and are more flexible than similar products.

Take the importance of credit ratings to our consumer society today its vital to maintain a good rating as the number of products and services requiring it to be good increase in number daily. A new breed of lenders have emerged who appreciate this problem and most of the time their services will not impact your rating in any way.

None of us want to get into problems financially, yet we have all been in a situation where a cash loan or a cash advance would be beneficial. It might be that getting hold of the money owed to you on pay day in cash is the most cost effective use of that money. After all, companies talk of enabling their cash flow so why shouldnt we?

If you need to borrow cash fast, and increasingly we all do, then a cash advance loan is precisely the kind of cost effective product that can enable you to do just that, all the while maintaining your long term financial commitments. Typically you can be offered anything up to your current wage minus rent, bills, and so on – and charges are most often fixed depending on the quantity borrowed. Whatever the precise loan you go for, you can be sure to know exactly what to expect before you finalise your decision.

Typically, we want to keep close track of our finances and we look to pay back our loan as soon as possible. However, as flexibility is the key to modern finance, you can generally find that its possible to roll over your loan payments to a later date if you feel the need.

A personal loan is designed to help keep your finances liquid, not to increase the burden on your pay packet: and you should find a company which subscribes to responsible lending and wont let you overspend or harm your ability to meet monthly payments. So, if you feel the need to access money due to you on your next pay day then a short-term, cash advance loan would be ideal for you.

Disclaimer

All information contained in this article is for general information purpose only and should not be construed as advice under the financial Services act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Internet Banking – Which Web Bank is Right For You

Internet Banking – Which Web Bank is Right For You

Finding information online seems like the proverbial search for the needle in the haystack with so many sites and adverts vying for attention just thinking about searching for an internet bank is enough to bring on a headache. However, it might well be worth the effort out of the five best-paying current accounts today, four are provided by internet banks. With a difference of two or three percent, the benefits could be substantial.

Enter online banking into your search browser, and youll pull up several independent sites comparing different banks and accounts. While the special offers can change day to day, there are a few banks that have been performing consistently well the big three being Cahoot, Egg and Smile. Cahoot is the online arm of Abbey National, and the Co-operative Group runs Smile, but both currently offer better deals than their high street counterparts. Intelligent Finance is also a contender. Shop around to find what suits you best whether its a low rate loan or a high performance current account, the right choice will depend on your individual needs and situation.

Take into account things like customer service as well as the terms offered its important that you can contact your bank easily when you need to, and that dealings with them are not an unpleasant ordeal. Even if you conduct most of your business online, there are still likely to be occasions when you need to speak to a human being, and friendly, well-informed staff can make a vast difference to your banking experience. First Direct is now planning to introduce a virtual bank clerk to make online banking more customer friendly.

Ease of use is another factor a bank with a website that is easy to navigate will help you plan your finances with the least amount of hassle. Online banking has now come a long way from the days you could only view your account online you can now pay bills, set up direct debits and transfer money between accounts at the click of your mouse. Egg have recently introduced a service called Egg Pay that lets you securely send money to friends and family via email, and in future we can expect account aggregation an overview of all your financial dealings on one web site that will help make your transactions more efficient.
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Moneywise and Which magazines are good sources of information to compare banks with check out their websites.