Savings Accounts - Professional Advice

Summary:
When it comes to savings, you may well find yourself daunted by the sheer variety of ways to invest your money. Particularly if you find yourself with a substantial amount to invest, and are less than confident at dealing with things like the stock market, bonds and trusts, you’re likely to gain from professional expertise.


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When it comes to savings, you may well find yourself daunted by the sheer variety of ways to invest your money. Particularly if you find yourself with a substantial amount to invest, and are less than confident at dealing with things like the stock market, bonds and trusts, you’re likely to gain from professional expertise. The main issue here is trust – you want to be sure your money is being used to its full potential and whoever you entrust it to must be someone you have total confidence in.

If you have a basic understanding of how savings and investments work, however, it will be a lot easier to make judgements about the reliability and efficiency of individual advisers.

Independent Financial Advisers

Usually you will not be charged for general advice, but the adviser will gain commission when he or she sells you particular products. Don’t be afraid to ask about commissions – a good adviser should be open and transparent about such matters. They are duty bound to find out all relevant information about you and then give ‘best advice’ – which means selling you the products that are most suitable for your situation.

Accountants

Accountants normally advise on book keeping and tax, but sometimes also give advice about investments. If involved with investing, they must belong to one of the Recognised Professional Bodies responsible for regulating their business. These include the Institute of Chartered Accountants and the Association of Chartered Certified Accountants.

Stockbrokers

If you are dealing on the stock market, you will need to buy and sell your shares through a broker. If you want advice on your investments, choose a traditional stockbroker. On the other hand, there are brokers that offer a dealing-only service, and this is a cheaper way to buy and sell shares. Stockbrokers charge a commission on deals, and a traditional brokers service should include advice. www.londonstockexchange.com provides detailed advice and ways to locate a broker.

The Financial Services Authority regulates all these professionals – if you are unsure about the credentials or dealings of someone check with them to verify that they are legitimate and are operating fairly. The FSA website also has details of what to do if you are unhappy with the service you’ve received from a finance professional – check www.fsa.gov.uk. Once again, the government’s advice site has sound information on the basic principles – and links to other information sites. www.direct.gov.uk

Savings Accounts – An Overview

Summary:
Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous.

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Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous - most people would struggle to exist on a basic pension alone.

Furthermore, our ageing population face an uncertain future as demographics change – by the time today’s thirty-year olds reach retirement there’s no telling how the economic situation will look. Aside from planning your retirement, you ought to have something to fall back on in case there’s a sudden change in your circumstances – how would you manage if illness or redundancy curtailed your earnings?

Although these issues are serious ones, there are many ways to ensure that you and your family will be well provided for and finding them need not be a nightmare. Start today by considering how much you can afford to put by. Be realistic, but try to allocate a fair proportion of your budget – aim to save at least 10% of your monthly income if you can. Secondly, look at your options – this guide provides a general view of some of the more common ways to save and resources for finding more information.

How you choose to save will depend on your age, circumstances and the amount you want to invest – but remember it’s never too late to start, and never too early to plan for your future. Even if you can only afford to put a small amount away every month, it could make a huge difference in the long run.

There are vast amounts of different ways to save and invest, and there are also tax benefits to take into account. In an effort to urge people to save, the government offer various incentives – such as tax-free savings plans and children’s savings accounts.

Savings accounts often attract higher interest rates than current accounts, so you could be earning money daily without expending any effort. For those willing to diversify, there are offshore accounts and investments to consider - these are explored in more detail below.

Considering your family’s financial security is often a high priority – check out the sections on children’s accounts for ideas. The last section offers ways to find more information, with listings of bodies that may be able to help you.

Finally, enjoy the feeling of taking responsibility for your own future!

Savings Accounts

Summary:
The most traditional way of saving money is through a savings account at your local bank. There are two types of savings accounts: passbook and statement. You usually don't have a choice between the two, most banks offer one or the other.

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The most traditional way of saving money is through a savings account at your local bank. There are two types of savings accounts: passbook and statement. You usually don't have a choice between the two, most banks offer one or the other.

A passbook account comes with a little booklet that you use to keep track of your deposits, withdrawals and interest. You are responsible for all of the necessary math. With a statement account, you receive a monthly or quarterly statement that details the transactions. Most savings accounts are insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) or the Nation Credit Union Share Insurance Fund (NCUSIF).

A savings account is a liquid savings, which means that you can withdraw your money at any time. Federal regulations only allow you six electronic, telephone or preauthorized transfers each month. No more than three of the transfers can be made by check, draft or debit card. But you can usually make unlimited withdrawals through the teller or ATM. Certain savings accounts have a limit of, for example, three free withdrawals per month if your balance falls under a minimum amount. Make sure that you read and understand the savings policies before you open an account.

Most savings accounts have very low balances to open an account - sometimes just a dollar is required. But they may charge a monthly maintenance fee on accounts that fall below a minimum balance, such as $100. The fee can often be as much as $10 a month, which will quickly eat up your account. If you are looking for a savings account for your children, there may be special accounts that waive or lessen the fee.

There is a big difference in the amount of interest earned on savings accounts compared to other forms of savings. Most banks pay very little interest on savings as count, often as little as 0.25%. There are higher interest payments available through high-yield savings or money market accounts that are found online. Many high-yield money market accounts allow you to write checks, though high-yield savings accounts usually won't offer that feature. There are some high-yield savings accounts that will allow you to link to your checking for faster and easier deposits and withdrawals.

Online accounts are easy to open, but aren't for everyone. Many people are concerned about entering personal information online. You may feel more comfortable being able to walk into a local bank and talk to someone face-to-face if you have a problem with your account. You simply have to weigh the customer service of a local bank with the higher interest available through an online institution.

It is highly recommended to keep an emergency fund in a savings account. You should have enough money in a savings account to pay all of your expenses for a three to six month period. You can also use the money for car repairs, insurance deductions and large appliance replacement. A savings account can often help to see you through a true emergency without ruining your financial stability.

Savings Account Is Important

Summary:
There are many different reasons that prompt people to create a savings account. You may be looking to create a savings account to have some extra money for emergencies or to save up for a vacation. Perhaps you would like to save money for your children’s college education or simply provide them a security net when they enter adulthood. Some people may create a savings account because they want to save money for retirement. All of these reasons are typical for most people. Th...

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There are many different reasons that prompt people to create a savings account. You may be looking to create a savings account to have some extra money for emergencies or to save up for a vacation. Perhaps you would like to save money for your children’s college education or simply provide them a security net when they enter adulthood. Some people may create a savings account because they want to save money for retirement. All of these reasons are typical for most people. There could be thousands of reasons that any one person opens a savings account. The problem is what type of saving account do you open? Well, first things first, you should know that the best benefit of a savings account is that they all earn interest on the money in the account. Typical interest rates are anywhere from .55% to 4.25%.

Banks usually have many different levels of savings account that all require different deposits and balances. These range from regular savings to what may be called platinum savings, money market accounts and retirement accounts. Each will have different fees, deposit and balance requirements. You will want to research different banks to find the one most suitable for your savings account needs.

The internet has made life easier for a great many people and it is no different when it comes to banking. The internet has opened the doors to many more options when it comes to a savings account. Thanks to the internet, it has never been easier to do comparison-shopping with different banks. You can shop and compare the different rates and other benefits, right in your web browser. Talk about convenience! What is even better is that the internet has now allowed people to do their banking right online, in the comfort of their own home. You should consider opening an online savings account.

By opening an online savings account, you will be able to have complete control over your money in an instant. You see, many people have turned to an online savings account because it sure beats going to the bank every time you need to check your balance, transfer money into a personal checking account or just see what transactions have occurred in your online savings account. You can have access to a statement prior to ever seeing one in the mail. In fact, many banks now offer the option of receiving your online savings account statement online or paper through the mail. The choice is yours.

An online savings account has numerous benefits. The first is being able to perform all of your banking duties right in the comfort of your home. Another benefit of an online savings account is that you eliminate or at the very least reduce trips to the bank. With an online savings account, you can check your balance, transfer money to and from another account and review your account history without ever having to leave the house. This saves you a great deal of time and money.

Save Online, Try The Online Savings Account

Summary:
Savings account is account deposited that is only intended to stay in the bank for a relatively shorter time span. This account usually offers much lower interest rates than most bank accounts. But still, like many other accounts, it accumulates interests. The rate of which is largely dependent on the conditions provided by the bank.

Savings accounts are normally maintained by commercial banks, credit unions, loans and savings associations, and some mutual savings bank th...


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Savings account is account deposited that is only intended to stay in the bank for a relatively shorter time span. This account usually offers much lower interest rates than most bank accounts. But still, like many other accounts, it accumulates interests. The rate of which is largely dependent on the conditions provided by the bank.

Savings accounts are normally maintained by commercial banks, credit unions, loans and savings associations, and some mutual savings bank that are offering interests that can never be used as money. However, the account may be utilized by writing a check.

These accounts allow customers to use parts of their liquid assets, which may be used for any transactions. But before a savings account is used, the balances in the savings account must first be transferred to checkable deposits or transaction deposits or currency. But due to the simplicity of transferring the saving accounts, they are often termed as "money".

Though the use of checks is often not allowed, withdrawals are still easier when done using the savings accounts. The Money Market Deposit Account or the MMDAs on the other hand may restrict you on a limited number of transference of accounts and withdrawals.

With the advent of the Internet comes the development of a new system of banking- the direct-to-consumer banking system. This particularly addresses online savings accounts. Direct-to-consumer system allows direct access to savings accounts from the traditional bank online where money naturally transfers by means of electronic bank transfer. There are two types of banking institutions that create and allow this form of transaction- online-only banks and the traditional banks.

Online-only banking is the answer of the entrepreneurs to the growing consensus of the general public of who usually make banking transactions through the internet. These banks tried to accomplish what real banks have done. They offered almost the same spectrum of products that traditional banks have but offered them on consumer-friendly deals- high interest rates and low fees.

Online savings accounts often offer significantly higher rates of interest as compared to the contemporary savings account. This deal may be attributed to the fact that lesser expenses during online processing and that online market is naturally rate-sensitive.

Sadly, the majority of the consumers are not yet prepared to this new treatment in banking. This in effect, brought down most of such banks.

But by the end of year 2000, ING launched an optimized form of online-only banking. This was rather successful and brought great increase in the online banking industry. They created a much simpler savings account transaction that pays higher rates than the traditional banking. But this does not permit the use of ATM cards, checks, and other services. It was only intended as an account for which your money may be safely guarded.

For almost three years, ING had no other rivals in this system of banking. But recently, many other banking institutions have followed suit. Some were the pioneers of the online-only banking who eventually died down during the course yet returned to beat the market share ING has. Some of these banks offer the same services with that of the ING programs. Most have the same principle of high interest rates and no unnecessary frills.

One notable new entrant is the VirtualBank. This targeted the high-end techy society yet they offer much lower rates as compared to the ING Bank. Thus they gained some consumers.

Eventually, the industry expanded sometime in 2003 until 2004. And by the year 2005, savings account virtually revolutionized banking by means of online-only banking.