529 Plans - Best College Savings Plans

No matter how cautious you are, there are still unforeseen circumstances that can affect your checking account and one of which is checking account closure. There are ways to protect yourself and your checking account from being closed.

But first let us try to understand the issues that can cause closures. By knowing these issues you can immediately protect your checking account and have a solution ready when the inevitable occurs.

First you need to understand that checking account closure can be the result of a client’s mishandling or misuse of his/her account. As a client, it is your responsibility to understand your bank’s policies on checking accounts. You should know these policies beforehand to avoid any concerns that can result to your account’s closure.

One of the main reasons why checking account closure happens is due to overdraft or there are not enough funds available for collection. Banks or any other financial institutions will close an account immediately if this is the case, and a 30-day written notice will be given to the client.

Another reason why checking account closure happens is when a client gives out his/her account number to unauthorized people. Avoid giving out your checking account number to telemarketers, unfamiliar email addresses or spam mails and others that are not supposed to know it. By doing so, you are protecting your checking account from being hacked and robbed by unauthorized sources.

The Consequences Of A Checking Account Closure

The worse thing that follows a checking account closure is being blacklisted or considered as an unwanted client for the next five years. This makes it impossible for anyone to open a checking account from any financial institution or banks.

Blacklisting is done by the bank or institution you have a checking account on. They will report your financial mismanagement to the database that handles numerous unwanted clients. These database systems were developed to protect the interests of financial institutions and banks from being drained of funds due to the irresponsibility of their clients.

You can only recover from being blacklisted by reimbursing the bank for overdrafts and clearing all your financial and non-financial obligations. Though this usually takes time, it should be enough reason to start a checking account with responsibility in mind.

The best way to stay out of these blacklisting databases is to keep a clean record of everything. Responsibility is the key to this concern.

Important Points

• As much as possible avoid misuse of checking (or any other) account.

• Avoid overdrafts and keep a steady flow of funds into your checking account.

• Avoid giving out your checking account number to anyone who doesn’t need to know it.

• Avoid being blacklisted into one or any of the database systems that banks and financial institution that monitors the behavior and accounts of misbehaving clients.

• Take full responsibility of monitoring your checking account by making regular updates and queries from your bank.

To simplify all these information, a client only needs to be responsible in taking care of his checking account. All other aspects of checking and banking follow the same general principle of taking control of your account.

admin :: Jun.12.2008 :: CD Rates :: No Comments »

For individuals who are looking for ways to keep their money other than a regular savings account, opening a checking account is another way to do it but better. It is better because you can access your money easily from a checking account. On the other hand, with a savings account, there are some options that restrict easy access on your money, which is quite beneficial to you if you are after a secure account.

Opening a checking account needs some thought. There are things you need to consider before opening one.

1. Choose the right bank. It is important to take your time in choosing the bank for your checking account. You may find a lot of beneficial options and offers from different banks, but always ask yourself if these options are really the right ones for you.

You may choose from a land-based bank or an online bank. If you already have a savings account from a land-based bank, it’s either you apply for a checking account from the same bank or if they have an online facility, you may opt for it instead. Just make sure to check their options and these options will benefit you in the long run.

A tip to get the ideal options for your checking account is to search and compare. You will always hear this advice from anyone who is looking to find a good checking or savings account because it is the best opportunity to learn what other banks offer.

And don’t stick to just one bank. Not because you have a savings account in one bank, you are obliged to open another account in the same bank. Broaden your options by choosing the bank that is ideal for the type of account you are seeking.

2. Establish how much money you should have in order to open a checking account. As always, each bank has its own requirement- opening funds, minimum/maximum deposits, maintaining balances and others. If you need to open any account from a bank, money is an essential factor.

While scouting for a bank, always check the required funds to open an account. As mentioned, each bank has different requirements for every account you will open. If you can find a bank that requires only $25 to $50 as initial deposit and maintaining balance, you need to understand next if there are monthly fees.

3. Are there fees or are they for free? Take a good look at the offers from each bank you will search. There are certainly fees to be paid when you open and maintain an account from a land-based bank. As mentioned above, there are monthly fees for minimum balances.

Beware of these “free” fees. Most of these “free” offers are only temporary, so try to read between the lines, or better yet talk to the customer service representative of the online or land-based bank.
4. Other requirements. Documents that support your identification and capacity to maintain a bank account are just a few of these. Make sure to get all the information you need from the bank to be able to prepare all the requirements for opening a checking account.

Opening a Checking Account - Points to Ponder

Opening a checking account online is a faster and convenient. You can also get higher interest rates with an online account. With a land-based bank, opening a checking account is also easy, but there are different options, offers and requirements to satisfy.

Whichever option you choose, it is a good way to compare all the information you get from different banks prior to submitting your application form and requirements. Apart from noting the 4 important factors, take your time in studying all the possible pros and cons for each bank.

admin :: Jun.12.2008 :: CD Rates :: No Comments »

We often hear about securing ourselves with enough funds for urgent needs and one way to do so is have an emergency savings account at hand. If you are to talk to a financial adviser or if you have read tips about emergency savings, chances are you may have come across information about saving 6 months worth of your salary to ensure there is enough money during financial crisis.

Any financial emergency could be disastrous particularly for those who do not have enough funds or savings in the bank. The toughest situations could be a medical emergency, a natural disaster, immediate house repairs, debt and other situations that call for huge amounts of cash.

If you do have some funds in the bank, ensure that you are depositing once a month to increase the amount of your savings. It is also advisable to open another account, and this will be your emergency savings account. And no matter what you do or what happens, do not withdraw money from this account, lest it is really an emergency.

An emergency savings account is just for emergency money issues. Once you have established an account solely for this purpose, you should set your mind that it is another expense that needs to be paid for all the time.

You can use the funds, but only for the most important financial needs. If you need to pay for an important expense that cannot wait, you may use your emergency savings account to pay it off. But make sure to return the funds as soon as possible and keep on putting money if you can to ensure that you will have enough for bigger financial emergencies.

Tips In Building Up You Emergency Savings Account

• As mentioned above, a 6 months worth of your salary is an ideal amount to start off. Some people find it difficult, particularly those who are earning less and those who are sole earners of their household. You can always start small; any amount that you can salvage from your own salary will be good. Start with $10 per payday and keep going.

• No matter what you do, do not withdraw from this account. Just keep on putting in $10 or any amount that you can afford to spare to ensure that you have funds for the more serious situations.

• If you are just planning as of this point, make sure to look for a bank that offers high interest rate on short-term savings. Banks may offer a 2 to 4 years savings tenor for a time deposit, and the interest rates usually vary from one bank to the other. Make sure to inquire from several banks and compare the rates.

• If you can afford to open a regular savings account and a separate emergency savings account, by all means, do so. Both accounts should be maintained and withdrawals should only be done once there is an important or emergency expense.

An emergency savings account should not be hard to establish. Once you get the hang of things- saving at least $10 per payday or per month and avoiding unnecessary withdrawals- you will be able to maintain a financial safety net for you and your family for a long time.

admin :: Jun.12.2008 :: CD Rates :: No Comments »