Banking Services in India Get Friendly With Low Current Account Interest Rates

If we have close look at the scenario of Banking services in India, we would be amazed to know that the entrepreneurs, willing to invest their money in India, have been encouraged to every extent by low current account interest rates. The market trends are also same for the banking segment, especially for the high interest saving accounts.

One cannot deny the fact that the Indian economy has benefited from favourable market trends since the day the Indian government started its journey towards economic reforms. Nowadays, it is very easy for an entrepreneur to get a current account to fulfil his immediate financial needs for his existing or new business with low current account interest rates. The business start-up loans, a term used to denote loans for a new business, have also been in demand since the last few years.

The low interest rates associated with current accounts have helped people to take command as entrepreneurs and help themselves and thousand others to earn a living and make a contribution towards overall economy growth.

With many banking and financial institutions such as HDFC Bank, Punjab National Bank and State Bank of India etc. to name a few projects and start implementing guidelines to appease their customers and enhance profit margins, the stage is well set for the economy to withstand the fallout of any world economy. It would be a delight for every Indian to be aware of the fact that India has transformed itself from a debtor to a creditor with the International Monetary Fund (IMF).

In the earlier years, the foreign investors were somehow reluctant to invest in India due to lack of organised economic reforms and laid down attitude of the Indian government and companies. But, now things have changed for their delight. With more and more Indian companies being able to appear in the list of Fortune 500 companies and government finally paying a heed to economic prosperity, investors are now standing in long queues to kick-start their businesses in India.

The advent of Internet and Online banking services has helped the banking and financial sectors to groom themselves and stand tall amidst market fluctuations. One can deny the fact the banking services with help of the Internet such as balance enquiry, statement request, cheque book request, funds transfer, e-cheque, demand draft and Online applications for all types of loans, fixed deposit schemes and high interest saving accounts are possible these days. Things that used to consume a lot of time are now handled with a high degree of sophistication, speed and reliability these days with the help of Online banking services.

With banks striving hard to create and maintain a niche for themselves, the Indian banking customers cannot have asked for anything more. Low current account interest rates being the norms for the present day market have stimulated overall prospects of the Indian economy. One thing that cannot be just left out of the discussions is the supremacy of the Indian rupee against the United States Dollar, a dream that saw the ray of light after some positive acclaims by the world markets and entrepreneurs.

Business Banking Services Made More Convenient

Due to lack of time banks have devised ways to make more of it for their clients and that is one of their business banking services. They have thought of ways to extend their services to their clients by opening their banking hours to an hour each working day, banks are now open every Saturday for one whole day and some banks are even open on a Sunday. This is to make sure that all the business and personal transactions one needs to do are done within the required time frame. Aside from extending their doors to their clients as much as they can, they now offer their business banking transactions online which is actually more convenient for their clients. They are actually promoting this now and they offer it to their clients so bills payments, transfers of funds and others can be done online. One no longer needs to rush off to the bank to get them done. Online business banking services help in saving time, money and energy. It also helps to manage payroll and tax payments and it maximizes the earning capacity of the company’s funds.

So now business owners can do their transactions any time they want to even during the wee hours of the morning when all the business meetings have ended. They can do it anywhere in the world too just as long as they have internet connection and their laptops with them. It is such a great thing that technology has afforded us this convenience that we can partake any time we want to.

The Case For Online Banking Services

Online banking is a phenomenon which has become increasingly popular over the last few years. Not only have people become used to the convenience of this, as our lives continue to become more and more involved and hectic, but we have also become concerned at the new issues which this technology driven service brings, namely security matters and identity theft.

Security is one of the chief concerns of any online banking service. There seems to be a trade off between ease of access for ourselves and preventing other people from access to our personal data. The various provisions of security seem to fall into two major areas: legislation and technology.

The legislation is handled by the various government acts which are passed from time to time related to our individual data security such as the Data Protection Act and the various measures which have been put in place (usually lagging behind the very things they are meant to address) like anti ‘phishing’ laws and the preservation of the individual’s data integrity.

The technology aspect is concerned with the efficacy of firewalls, the provision of specialist software to prevent the various malware that is designed to monitor our keyboard usage (thereby emulating the keystrokes which reveal our various passwords) and the whole sale ransacking of our hard drives and our email address books. The water is further muddied in this area because certain types of software are seen as malevolent merely because they are installed to seek out other destructive software, and so may be interpreted as ‘spyware’ by normal procedures of virus scanning, when in fact they are perfectly harmless applications usually installed by the computer owner.

But few people would disagree that, on the whole, the online banking services revolution has been of great benefit to modern societies and individuals alike. The ability of ordinary account holders to use banking software to perform what would have been thought impossible only a few years ago is now taken as a commonplace; this is due to the complex software which enables us to search our accounts, request statements, locate individual transactions, transfer money between accounts, make purchases from third party merchants and also take advantage of more esoteric aspects of banking as stock investments, currency speculating and even day trading.

Such activities used to be the preserve only of the corporate data processing professional. But nowadays anyone will be able to perform any of the above activities as long as the software provided the means of doing it. Online banking services are now looking towards an increasingly complex future: it is to be hoped that the security issues will keep pace as well.

Why International Banking Services May Be Right for You

Many baby boomers are starting to look at retirement. In doing so they are looking for ways to get more bang for their retirement buck. One thing many are thinking of is retiring to other countries with a lower cost of living and that are somewhat foreign and exotic to their present lifestyle. This is causing many to look into international banking services to see if offshore banking will be right for them as they seek an offshore retirement life. So just what services do international banks provide?

To speak of international banking, you will find it covers a large assortment of different topics which can range from providing personal bank accounts to business bank accounts to providing foreign currency services and so on. This will allow you to make transactions into foreign currencies from your retirement funds much more easily, especially if the trade takes place between the Euro, the US dollar or even Swiss Francs.

Further services that international banks can have include providing you with traveler’s’ checks, allowing you to have a foreign currency account and even providing you with advice should you desire at some point to begin the importation and exportation of goods or services. They will provide you with investment consultations in foreign countries as well. Beyond this, by managing your finances in an international bank in another country, you may find you can take advantage of lower taxes or even of no taxes as well. This will certainly give you something which can stretch your retirement dollar further.

And even though this article addresses mostly baby boomers thinking about retirement, as a business person you will find that international banking services that are provided may allow you to take your business global. That is no small feature when it comes to growing your business. If you open an account in another country that you wish to do business in and have an account in an international bank with offices in that country as well as others, you will find it much easier to make payments, and receive them as well, in the local currency. This could save you quite a bit in transactional fees. Not to mention that most banks will keep a close eye on the political and economical happenings in the country.

As you can see international banks could be a boon not only to the baby boomer looking at retirement but also to the business person seeking to expand into the global market. However you will need to carry out your research carefully before opening an account to determine just how stable and secure the bank is and how many international banking services are provided by the financial institution you are looking at. Many banks on the Isle of Man, Guernsey and Jersey are considered to be very stable as such institutions are highly regulated there. The political and economical climates are very stable as well.

Online Banking Services – 4 Great Reasons to Use Them

In this modern day of technology, more and more things are becoming computerized, and your banking is no exception. While in recent years you had to go to a bank to deal with your bank account and various other related activities, now days most banks actually provide their customers with online banking services, which takes banking to a whole new level. Now you may be wondering if banking online is really such a great choice, but the following are four really great reasons that you may never want to go back to banking the way it was before you could bank online.

1. Kiss Overdrafts Goodbye – Most people have at some point forgot about something and managed to overdraw their account, resulting in a few fees. With online banking, you can actually avoid those overdraft charges, since you will be able to easily keep track of your account online. If you have accounting software, you can even set that up to work with your online banking account as well.

2. Avoiding Identity Fraud – Although many people seem to think that banking online may actually make them vulnerable to identity fraud, the opposite is actually true. Banks have worked to provide their customers with the best security available, so you can rest assured that your banking and personal information is safe and secure. Using the online bill pay function will also cut down the amount of checks you write, so you will no longer have to send out checks with your personal and banking information through the mail.

3. Saving the Environment – Whether you are an environmental activist or not, no doubt you do want to avoid doing things that will harm the environment. Using online banking services is a great way to help save the environment. You will no longer have to get all those paper statements in the mail, which will save a huge amount of paper, and you will not have to worry about a filing cabinet for your statements either.

4. You Can Bank at Any Time – One of the best reasons to have online banking is that it allows you to do your banking at any time of day, on any day. Instead of having to worry about making it to the bank while they are open, you can access your online account at any time, which is extremely convenient.

As you can see, there are a variety of great reasons to start using online banking services. You can save time, money, the environment, and even start protecting yourself from identity fraud as well. So, why not give this new technology a try and see how it can positively change your life.

An Introduction To Online Banking Services For The Uninitiated

Since the internet has become a popular place to buy and sell goods, online banking services have made their way into most homes. Easier to pay bills, manage money, and transfer money to other accounts, internet banking is a convenient way to handle money. Many employers now have direct deposit, which makes it easier to put money into one’s account. No more trips to the bank every Friday. The money is in the account the night before and is available for use on Friday morning. Most banks now offer some type of banking services on the net. While not all banks have all of the options that people will need, many banks now offer more services than they have before.

Some banks will allow people to send electronic checks to credit card companies and student loan organizations instead of writing out a check each month. This saves time and paper. Some banks will allow a person to see their account at any time during the day and allow them to make changes that they see fit.

They can transfer money into a savings account, open other accounts, or buy items online. Since many people shop online, they will use their debt card to pay for the items that they purchase. This can make money management even easier. Online banks that do not have traditional branches are also beginning to open on the internet. Without a location to visit, people conduct all of their banking online.

In the future, this may become the trend. Online banking that people will do exclusively on the internet is not out of reach. These days, people can look into investing, opening up other accounts, and taking out loans without leaving their computer. There are many advantages to this form of banking. Money is transferred faster, people can check their balances within minutes, and people will no longer miss bill payments.

There are also disadvantages to operating solely on the internet. Sometimes it is necessary to talk with a banking representative in case there is a problem with the account. Being able to talk to a person face to face will help the situation. Online banking services would require that people speak through email or over the phone. Another problem is that errors concerning the amount of money that a person has in their account. Without a paper trail, the situation could be dire.

Online banking services still have a long way to go, but those who use them now say that it is very convenient and easy to use. People will continue visiting their bank and conducting business by talking with others. While internet banking may be more convenient, most people still feel more comfortable speaking with a person rather than typing an email or talking over the phone.

Avoiding Mass Production in Offshore Banking Services

The decision to go offshore is very personal, and is something you should not entrust to mass production. It requires custom tailoring.

In other words, you don’t necessarily want to structure your offshore set-up with the help of the company that pops up first on a search engine. Mostly, these companies are so-called ‘corporation mills’ who have slick advertising but little regard for the financial well-being and privacy of the client.

You probably won’t read this advice anywhere else – because the best, most convincing, well written websites and “offshore” literature is put out by the biggest outfits. But we like to tell it as it is, even if it upsets some people.

It is just common sense to assume that your private financial affairs will invite more scrutiny if you are a customer of an outfit that actively sells offshore banking services thousands of people. And if that offshore banking outfit has problem clients who are up to no good (a typical problem when they take on all and sundry for fast profits) then those people’s problems will very quickly become your problems!

Let me give you a practical example of another typical problem with mass production offshore asset protection. Once upon a time there was a European Private Bank. They employed a special guy who did nothing but appear at seminars for wealthy people. He pitched offshore bank accounts, annuities, and other “tax favored” products of his bank. The bank had a great website where the tax advantages of these products were fully explained. For instance (modified for simplicity), you could put say EUR 100,000 in an annuity that earned 4% a year. You got paid EUR 5000 per year as a “tax free return of capital” until the EUR 100,000 was paid back.

By then, 20 years later, you might be dead! But when you died, your heirs inherited the EUR 100,000 death benefit – also completely tax free. It was a nice way to move assets offshore where they were judgment proof, and killing two birds with one stone, earning EUR 100,000 tax free.

In my opinion, products like this were borderline legal at the time. However, due to the heavy marketing the rules of the game were changed. This business came to an abrupt end. Why? Because the “authorities took notice” and eliminated this particular loophole for annuities.

Are You Eligible For Private Banking Services?

You could have been working really hard, building that business empire of yours, climbing that corporate ladder aggressively or rich because of a recent inheritance. You might not even be aware that you have reached the high net worth status that everybody’s been talking about. Just what is a high net worth person? Are you a high net worth person?

A high net worth person has financial assets of at least SGD$2,000,000 that can be used for investment purposes. For example, one of my clients has around $15,000,000 worth of savings in his personal account and a piece of property that is worth SGD$400,000. In total, his gross worth is about SGD$15,400,000. He is definitely in the high net worth category. Another one of my clients has a string of properties that has a combined worth of about $45,000,000. Large portion of his salary and rent goes into servicing his housing loans and he does not have much savings. He is working with a large amount of debts and is akin to walking on a tight rope. He has to walk really carefully and maintain a high level of balancing act in order to survive. Is he high net worth? He is asset rich but still not in the high net worth category. From the above real life examples, you can see the difference between cash rich and asset rich and how is the term “high net worth” being defined.

After reading this, some of you might have realized that you are already in the high net worth category, so what should you do? First of all, understand the fact that your money does not come easy, except for those who inherited their wealth. Being rich comprises of strategically and effectively making use of two tools: wealth generation and wealth preservation. You have fulfilled the part of wealth generation but to truly grow your wealth, you now need to preserve that wealth. Some of us resort to methods like Feng Shui which I do not disagree with, but it will definitely be even better if you use the service of a private banker.

If you have accumulated a wealth of at least SGD$2,000,000, you are eligible for private banking services so consider using the service of a private banker to guard and to further enhance your wealth. Try to get some recommendation from your friends or relatives who use the service of a private banker and determine if he or she is the right fit for you.

Zeng Han Jun is the Business Financial Manager of Chan & Partners Consulting Group. He actively contributes articles about business and finance on a weekly basis, so as to share his knowledge with the financial consumers. He specializes in mortgage advisory and business brokering services in Singapore. He has been directly involved and plays a crucial role in marketing and sales of businesses in CPCG. He also provides advice on various kinds of mortgages and construction financing for private individuals.

The Advantages to Using Remote Checking Bank Services

Have you ever heard of a remote checking bank? If you are running a small business, this may be something to think about. Many companies think they have to use a local bank for their business needs because they get checks from their customers that require deposit. However, with modern technology, that is not the case. You can deposit checks remotely today using a special scanner. When you are setup and running, you will never have to run to the bank again.

Here are some advantages to using remote checking bank services if you are a small business owner.

1. No more trips to the bank to make deposits – This is a big one. Many companies do not do much of a cash business. However, they take in checks constantly. That means making trips to the bank daily or at least several times a week to make a deposit. Many small business owners do not have the time to make these trips. With a remote checking account, that is no longer a problem. You can do it all from your office.

2. Free online checking – Despite what the banks would like you to think, it really does not cost them any money to hold your account. They just like making money off of your hard earned money. You can get around that banking greed by choosing a remote checking bank. This type of bank allows you to have your money in secure account without paying the fees of your local bank.

3. Free access to accounts 24/7 – One of the biggest reasons to use an online bank is the fact that you can get access to your accounts 24/7. While many banks offer online access, many limit what you can do with the accounts. With a remote checking bank, that is not a problem. You do everything online whenever you have the time.

4. Free debit cards – You should not have to pay for holding or using a debit card for your business. If your bank is doing that to you, you need to walk away from them. Using a remote checking bank will afford you free debit cards.

5. FDIC backing – The federal government backs the deposits made to any FDIC insured bank. That means if you do business with an online bank with this assurance, your assets are protected up to a certain amount. Make sure your business accounts are protected with this.

A Guide to Banking Services

Many of the important choices that you make in life concern financial matters -from choosing investments to shopping for groceries, money is an important part of everything that you do. When it comes time to make a decision concerning how you want to handle your money, it’s generally best to know all of the options that are available to you before you choose a single option. Here are a few of the different choices that you should consider when looking for financial services from a bank.

Savings

One of the more basic banking services available is the savings account. As the name of the account might indicate, savings accounts are designed to help individuals save their money while increasing it with interest. These accounts are usually limited to a certain number of withdrawals each month before a penalty is imposed, but are usually otherwise free of fees and penalties. The interest rates of these accounts tend to be decent, but are influenced by national and local rates.

Cheques

Along with savings accounts, chequeing accounts are some of the most common account types that banks offer. These accounts work along similar lines to savings accounts, with money being paid into the account over time… unlike savings accounts, though, chequeing accounts allow the account holder to access the funds held in the account by writing cheques or using cheque cards which are like credit cards that draw upon the balance of the account to pay for purchases. Some chequeing accounts offer interest, while others do not. Account fees and the fees that cover buying new cheques may apply depending upon the bank and the average daily balance in the account.

Certificates of Deposit

For individuals who are looking to put aside some money for later but who want a better deal on their interest, there are certificates of deposit. These special accounts are designed specifically for investment, and tend to offer a higher interest rate than most other types of account. Since they are intended for longer-term investments, certificates of deposit only allow money to be withdrawn from the account at certain times usually once per year, or any time after the certificate has reached it’s time limit. While some certificates of deposit allow withdrawals to be made at other times during the year, there is often a fine added for early withdrawal.

Money Market and Investment

When discussing investments for the future, an important type of account that is often overlooked is the money market account. These accounts offer variable rates of interest much like savings accounts, but the interest accrued by a money market account is based more off of rates in the stock exchange instead of the interest rates set by governmental authorities. Often a money market account will also allow the money held within it to be invested in various stocks and bonds as a part of the money market service… this feature makes money market accounts a great option for individuals trying to plan for the future.

Loans

In addition to the various forms of bank accounts that most banking institutions offer, a variety of loans may be available depending upon your financial needs and the purpose of the loan money. Mortgage loans, home improvement loans, automotive financing, and debt consolidation are all common loan types that are offered by most banks… other more specialized loans as well as loans for individuals with poor or bad credit may also be available depending upon the lender.