Global Public Articles

Most people will agree that having a solid financial platform is an important part of being comfortable in life. This is why it is so important to manage finances effectively; an element of this management is to open a savings account as this will generally give the user a high level of interest and a more secure means of holding funds.

For example, while it may be simpler to hold every aspect of finances in a current account due to the ease of use, it is ill advisable to follow this course of action. Savers will be better rewarded with a savings account that has a higher interest rate and actively encourages saving. But what should the average saver do in order to put together a decent financial platform? What type of savings account is worth using?

Fundamentally the answer to this question is down to personal preference and circumstance. There are many different types of savings accounts out there to choose from and it is only by looking at personal finances in detail that the correct account package can be chosen. Having instant access or having a great level of interest is up to you but it is only after taking a conscientious approach that it will be possible to find the most suitable form of account.

At the simplest level are the basic savings accounts available at many different banks. In most cases this variety of account will require the opener to have a deposit; however this deposit can be as little as five pounds meaning that this is an affordable way to save for many people. However the lower the deposit and the amount being saved can often result in poorer interest rates; in the majority of cases it is those who save the most that will receive the best interest rates.

In addition to deciding what type of account to choose there are also options in terms of accessibility of the funds. For instance on the market today there are two predominant forms of bank accounts; these are the instant access and notice variety.

The instant access account means just that and gives the holder access to their funds instantly; however, while this may be attractive it does not exactly ensure that savers save. If you are less likely to control the tendency to pull money out it is advisable to use a notice account instead.

The notice variety of account gives the user a specific timescale when it comes to making withdrawals. In some cases this time period can be as much as ninety days. The reason this is put in place by the banks is so that users are encouraged to save and not dip into the finances regularly. The bonus of this to the customer is that as the bank has restrictions upon the withdrawals that can be made, the interest rate is typically much higher than an instant access variety.

Of vital importance with any savings account is to leave it well alone for anything except bona fide emergencies. This is because there is little or no point in putting money away if it is to be spent on a whim; ideally, whilst it may not always be a possibility to have money spare, any savings should be added to from spare money that is not part of the family budget. Understandably if the money is needed in the first place, the chances of it staying in an account are minimal.

Hopefully this article has highlighted the decision making process needed when selecting a savings account. Additionally it has hoped to show the importance of a savings ethic when in converse with the bank; without one, there is no way to make money work for you.

Financial expert Thomas Pretty looks at the types of savings account on the market and why it is important to have a saving ethic when banking commences.

Naturally many people who find themselves in the fortunate position to have some spare funds at the end of the month choose to open a savings account as a no risk way of making money generate additional income.

But with such a plethora of options on the market today it is difficult for consumers to pick the correct solution; hopefully the following article will make the decision far easier and simpler. Fundamentally savings accounts fall into five distinct categories.

The first of the savings account options is the instant access account. These are the perfect way to have ready funds at your disposal, ideal should an emergency situation arise. This access is available in different ways; some account packages have the option for a cash card that can be used in ATMs although ATMs typically have a limit on the funds that can be withdrawn in any twenty four hour period.

In cases of extreme financial emergency, it may be required to visit the bank in order to withdraw the correct amount. Many online account packages offer the best rates of interest although it should be remembered that online banking will not have the same benefits of being able to visit a local branch to withdraw funds.

The second form of savings account is the notice variety. In most cases an account that has a notice period for withdrawal affixed to it will have better rate of interest. This is because the banks are keen to give savers an incentive to lock away their funds for extended amounts of time.

While the interest rates are great on notice accounts the downside is that to withdraw funds a period of up to ninety days must be fulfilled before the funds become available; typically a penalty charge will be added should the money be needed sooner. This type of account however has become less popular as instant access varieties now offer equally attractive interest rates.

Cash ISAs (Individual Savings Account) have become extremely popular in recent years as they offer the account holder tax free interest, the downside is that only a certain amount of money can be entered into the ISA in any tax year.

ISAs rarely have the best interest rates although losses in direct interest are soon surpassed by the benefits of tax free interest. Subsequently the gross rate on an ISA is typically better than a regular savings account.

The fourth form of savings account is the regular variety. This type of service is specifically designed for people who have a certain amount of money to put away each and every month. Banks are happy to offer high rates of interest, especially to customers who hold current accounts with the same bank.

Additionally some of the regular saving accounts will give the holder an annual bonus for meeting saving targets, in contrast failure to meet the targets can result in penalties.

The final form of savings account is the national type. These are sponsored bonds and accounts that have the security of the national finances behind them. While interest is not great, the funds entered will at least be safe.

Hopefully the presentation of these five types of savings accounts has given consumers a better understanding of which to choose. Through a careful and conscientious approach it is possible to weigh the benefits and downsides of each and then make the correct decision.

Financial expert Thomas Pretty the types of savings account on the market and how consumers can make the most suitable decision when choosing one.

The Fed cut the fed funds rate at the end of October. The rate was dropped from 1.5% to 1%. This is the lowest the rate has been since 2003. Following the cut we saw drops in all the major mortgage products. The 30 year dropped from 6.46 to 6.2. The largest drop was in the 15 year mortgage which fell from 6.19 to 5.88 a drop of .31 points. 5 year arms and 1 years also fell .17 and .13 respectively. Below are mortgage rates for the last several weeks.

November 6, 2008
30-yr 6.20 15-yr 5.88 5-yr ARM 6.19 1-yr ARM 5.25

October 30, 2008
30-yr 6.46 15-yr 6.19 5-yr ARM 6.36 1-yr ARM 5.38

October 23, 2008
30-yr 6.04 15-yr 5.72 5-yr ARM 6.06 1-yr ARM 5.23

October 16, 2008
30-yr 6.46 15-yr 6.14 5-yr ARM 6.14 1-yr ARM 5.16

As we can see from the numbers rates have been moving back and forth over the last few weeks pushed around by different bits of economic news coming out. And this week of course by the recent cuts by the fed. Let’s look at what a mortgage would be this week on a 200k loan based on current rates. We also looked at what the mortgage would be for a 200k loan based on last weeks rates.

November 6th
30-yr $1224.92
15-yr $1674.77
5-yr ARM $1223.64
1-yr ARM $1104.40

October 30th
30-yr 1258.87
15-yr 1708.31
5-yr ARM 1245.77
1-yr ARM 1120.56

So first off my advice would be to avoid the 5 year arm. Since the mortgage is so close to what you would be paying on a 30 year fixed mortgage their is almost no reason to consider a 5 year arm. I would also probably avoid a 1 year arm. With mortgage rates acting so wildly its pretty likely rates could be much higher a year from now. If you get a 30 year fixed and rates drop substantially you can also refinance at the new lower rate. If you get a 1 year arm and rates increase there is not much you can do but simply make higher payments.

So what is going to happen moving forward. I have heard some speculation that rates are going to increase this month. I don’t know if rates will be higher a month from now but I think rates will continue to see the atypical large weekly fluctuations we have seen the last few weeks.

There has also been some speculation that the fed will raise rates if the market starts to improve. I don’t think this is a foregone conclusion. If the economy starts to improve I don’t think the government will move quickly to raise rates. Basically the financial crisis has been so severe that if we start to move beyond it politicians will be worried of raising rates too quickly will botch a potential recovery. Or if the recovery fails for other reasons they will be blamed anyway. Therefore I think priority number 1 over the next year will remain the real estate and mortgage markets and that translates to keeping the fed rate low. Of course keeping the fed rate low does not guarantee that mortgage rates will stay low.

Ki is a realtor in Austin Texas. He writes regularly about mortgage interest rates. His site offers free mortgage calculator html for webmasters and a widget that shows current mortgage rates

People are enjoying new freedoms since they began internet banking from the comforts of home. The checking accounts that are established through online banking facilities are now earning interest everyday and people did not have to ask for that service. People are free to explore various loan rates, and explore all the financial management freedoms that they never were privy to enjoy at the land-based banking institution where they had a checking account for years.

People are even able to explore the delightful freedoms and intrigue of trading foreign currencies through online banking accounts. Online bankers can even consider which currency to trade such as yen, euros or perhaps the British pound, or they can pick any World Bank and trade a multitude of currencies at one time. The interest earned on checking accounts makes peoples money work harder for them without consumers searching for online account offers that make it worth their while to open an online banking account.

People with bad credit have new financial freedoms when they bank online. Bad credit ratings affect interest rates offered at many online banking facilities, but bargains can still be found if people know how to search for them. People can open several accounts that are personal money market types and take advantage of the high yields offered through this online banking method, vice placing the same money amounts in an online checking account that yields fewer dividends.

There are other ways for people to gain more financial freedom while banking online. Limited money amounts have hindered investors in the past from earning a good return on the money in certificates of deposits. Online banking strategies can be utilized to select certificates of deposits that promise to provide a specific return after a period of 12 months. Other people prefer to have the freedom to use certificates of deposits that are fully insured through the FDIC, and others find freedom in using certificates of deposit that are linked directly to the stock market.

Some online banking institutions limit interest rates based on the amount of money that is placed in accounts. This is particularly true with online checking accounts, but if consumers look at all of the banking services information, they can still earn over 5% interest using money market accounts vice checking accounts which could be rated as low as 3% for the same period. After a certain time, the balances might increase to the point where the money will qualify for high-yield returns through better interest rates but until that time arrives, the once idle money has earning power.

Some people think that participation in online banking practices will limit their ability to talk with banking representatives on a one-on-one basis. People are happy to see online representatives that will discuss account information after a brief verification process, and they are thoroughly delighted to see toll-free telephone numbers listed. People like to discuss their finances with a real person and not transact business through email communications because most people consider that discourteous and unprofessional.

Online banking professionals are available around the clock, which is a freedom that most land-based banks cannot offer. This type of service will come in quite handy when people are trading currencies with countries that are in a different time zone. People also welcome the freedom to earn high interest rates around the clock and go shopping with debit cards that have no fees associated with the transactions.

James Brown writes about Quicken deals, Irwin Union Bank deals and Current Labels deals

Credit is a way of life in America. It allows consumers to make improvements on their home, purchase goods, and establish a credit history - a necessity for securing credit in the future. But for those who have chosen to “play now and pay later,” a lapse in credit can have adverse effects, making it harder later to secure a mortgage, car loan or business loan.

Avoiding the bad credit trap in the first place is an important lesson to learn, but for those who need to improve their financial reputation, there are ways to handle debt effectively, re-establish credit, and improve one’s score in the process. Because a person’s ability to obtain a loan is dependent on his or her credit score and past credit behavior, careful management is key to keeping credit in good standing.

The most effective way to maintain good credit is to control spending. Those who are overextended financially need to take a step back, re-evaluate their priorities, and set up a budget to regulate their spending. Debt can beget debt as it gets harder to stay on top of financial commitments or prepare for future expenditures. Living below one’s means creates a cushion to set aside for unforeseen expenses. It can also free up money to pay down debt more quickly and improve credit.

Another step to maintaining positive credit is to pay bills on time. Delinquent payments lead to late fees and accrued interest, which may all be negatively reflected on a credit report. If a late payment can’t be avoided because of an unexpected situation, it’s important to contact the lender or credit card company as soon as possible to discuss the situation.

Often, the lender may be willing to change the conditions of the loan or credit, such as lowering interest rates. Staying in contact with the lender through the situation shows earnest intent to repay the loan. Always contact a lender if an error on a bill is discovered.

The more credit cards an individual owns, the higher the potential for falling behind in payments. Creditors are careful to look at this debt potential in a credit report when considering a loan application. While experts do not necessarily recommend closing all existing accounts, even if they have a zero balance, it’s always a good idea to think twice before taking on additional debt.

Keeping debts reasonable demonstrates to creditors that an individual can handle their debt responsibly as well as pay off loans or credit cards. In fact, experts recommend that non-mortgage debt not exceed 10 to 15 percent of monthly take-home pay. For those who have a higher rate of debt, make a plan to pay off or reduce it before applying for another loan.

It’s always a good idea as well to avoid unnecessary inquiries into one’s credit report. When a creditor, employer or other business is given authorization to check your credit, an inquiry is added to the report.

Often times, a consumer may be shopping for a new home or car and several inquiries may be made in a short amount of time. Creditors recognize we are a consumer society and these inquiries should not have an adverse affect on an individual’s credit report. However, if inquiries are made too often, this can and will affect the score, as creditors may decide the credit is being applied for because of financial difficulties or that more debt is being taken on than can be responsibly handled.

While it’s necessary to handle debt responsibly and pay bills regularly, it’s also important to check one’s credit report at least once a year. Often times, inaccurate account information, an old home address, or misspellings are reported. Every American has access to their credit report for free once a year to review the report and take the necessary steps to correct inaccuracies.

Smart consumers know the best way to keep credit in good standing is careful management that will enable them to build a good credit history, manage money effectively, and avoid debt traps that hurt credit.

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