Online Financial Tips

Archive for April, 2010

Although the thought of receiving free gas, travel, or yet cash back in exchange for faithful credit card usage is alluring, it requires some research to obtain the complete benefits of a reward card, Stick to these tips to get the most out of these types of credit cards.

Each month, you should pay your full balance. If you do not pay your card off in plenty of time each month, a reward credit card may not be right for you, since nearly all of them have more elevated interest rates than conventional cards. In addition, you usually have to pay your full balance to be able to receive reward points. If you hold debt, take a crack at a reward debit card as an alternative. The Cash Bonus Visa Check Card, for instance, permits you to be paid cash back at a limited grouping of merchants.

Remain faithful. Substitute your present card with your new reward card, and utilize it as your only card. Using no more than one card aids you monitor your expenditures while you build up points. To acquire even additional rewards, use the card to pay for your everyday expenditures, for example, your utility bills and auto insurance payments.

Make sure it’s worth it.. A lot of reward cards include an annual fee, therefore, make certain that you have it in mind to spend a sufficient amount thoughout the course of the year to balance the cost of using the card. For example, if a cashback reward card has a $29 annual fee for 1 percent cash back on all purchases, you would have to charge at least $2,900 annually to break even.

Locate rewards cards that fit your needs and wants. Most rewards involve or gift or travel certificates, however there are additionally savings-plan cards, such as the Futuretrust MasterCard, that invests 1 percent of your charges into a 529 college savings account. Explore card ratings.com to discover the correct card for your personal needs.

Mobile Homes should be insured like any other type of home. Normally this means hazard insurance. But it also could be for flood or earthquake.

Hazard insurance covers damage from: Fire, wind, theft, vandalism, collision, freezing and pipe burst (leaks from pipes, washing machines, water heater, etc.)

Collision would be from a car or other automobile, or an aircraft. Hazard insurance includes the following categories:

A – Dwelling – this covers the actual structure. Typical cost per year for a normal mobile home will run from a couple hundred dollars to several hundred dollars.

B – Other Structures – this would be any other buildings like a shed.

C – Contents – this would be up to a certain amount for all of the belongings and appliances in the home. Make sure you video tape all of your contents and put the record of this in a safe deposit box.

D – Loss of Use – this would be for any expenses when you cannot use your home for any reason. An example is recently there were some fires in Santa Barbara California. Some residents did not have any damage to their homes, yet they were forced to evacuate. Well, their costs of evacuation would be covered. Not many people know this!

Flood insurance is either Preferred or Normal.

Preferred is when the home is not in a flood zone according to the FEMA flood maps. These maps are constantly changing and it is possible for a home to not be in a flood zone one year, and in a flood zone the next. Now, this is not typical but it can happen.

Normal flood insurance is when the home is in a FEMA flood zone.

Flood insurance is some of the most expensive, costing upwards of $1,000/year for a typical mobile home. To decrease this cost the home owner could get an elevation certification by a surveyor and if the home is high enough, the insurance cost would be dramatically reduced.

Flood insurance would cover dirt and debris from a flood, water damage from an actual flood or from a burst pipe, or any other type of water disaster.

Last, there is Earthquake coverage. This covers the structure from damage from an earthquake. Typically the most damage a mobile home will have from an earthquake is from coming off the foundation piers. This usually is not that damaging and can be righted quite easily by a mobile home contractor with the right tools. But, the plumbing (including gas) and electrical connections would need to be repaired. Check out our other elerts for more about putting a new unit on your space.

With gas prices rising higher and higher each day wouldn’t it be nice if you could get cash back on what you spend? Several credit cards today are offering incentive programs such as these to get your business.

You can search online and find many unique gas rewards credit cards that will give you a percentage of what you spend in gas back to you. You can find ones that give cash back or rebates at the gas station. Each company has their own wording for the gas rewards that you are allowed plus they also vary in the percentage that is given. You will also need to find out if they offer the rewards for any station, or if you have to use a particular gas station in order to receive your cash back reward, or gas rebate.

Many of these gas rewards credit cards may also have high APR, so this is something to take into consideration before you apply. Weight the APR against the percentage you will be getting back on your gas purchases to ensure that it is a really good deal.

If you travel for business or leisure the gas rewards credit card may be a wonderful way to go since you get a percentage for all gasoline purchases. But, like I said, be sure that you use the gas stations that are covered in order to receive your rewards. If you travel, you may find it hard to find certain gas stations that are covered, so you may need more than one gas rewards credit cards.

Along with the gas rewards credit cards, some companies also offer other incentive on other purchases besides gasoline. So, you may be surprised to learn that you can get some cash back or rebates for many of your purchasing needs.

So, check out the different gas rewards credit cards that are available today and save get money back the next time you fill up.

If you have a car or a motorcycle, it is essential to stop your car at a gas station every now and then. There is absolutely no doubt about the fact that purchasing gas is unavoidable for all vehicle owners. But, it is another fact that not everyone can afford to buy gas because of the overwhelming increase in its price. And, this particular increase has made people to avoid using their cars on more regular basis.

If you are also one of those people who have restricted them to use their car on regular basis only because of the gas price, you must stop doing so as there is something that can help you to have great driving experience without worrying about gas prices.

This particular option is about using gas rewards credit card. These credit cards are issues by different companies to allow their holders get some benefits and discounts while purchasing gas. These cards are getting popular on a rapid pace but there are quite a few reasons behind this overwhelming increase in popularity. For instance;

* One of the obvious reasons of the popularity is the increase in the gas price. The gas price gets affected on regular basis and as it has reached to zenith there remains no other choice for people but to look for some discount option. That’s the point where gas reward credit cards come into the picture as a savior.

* Generally people think that gas rewards cards are just like other cash back credit cards. Though it is true in the sense that you get a specific percentage of money after making every purchase but there is a basic difference. In cash back credit cards, you have to wait for a year to get the rebate check but that’s not the case in gas reward cards where rebate check is offered once a month. This is another reason why people love to use these credit cards.

* Another reason behind the popularity of gas reward credit cards is the availability of high reward for introductory period. Generally, the rebate percentage is 3% but most credit card issuers let their customers enjoy a rebate percentage of 6% for introductory period. It means that person can save more money during this period.

* Another great point is the availability of brand specific cards. What it means is that these credit cards can be used at specific locations. Though it may not be suitable for all but if you frequently use a same gas station, you can get some extra bit of discount.

So, these are few of the biggest reasons why people don’t become able to stop them from using gas reward credit cards. Still, there are many other pros and cons that need to be considered before opting for this particular credit card. But, if you will use this card sensibly, pros will outweigh the cons.

If you’re operating, or planning to operate, a business online, you need a merchant account. Studies show more than 900 percent of online shoppers use credit cards to make their purchases, so the need for a merchant account is obvious. Consider the following tips when selecting an account for your business:

What types of Internet merchant accounts are available for my business?

There are essentially two types of Internet merchant accounts: delayed processing accounts and real-time accounts. Delayed processing accounts are less costly than real-time accounts, but they require a business representative to intervene in the sales process, meaning they are a good choice only for businesses with lower sales volumes and those that do not mind the daily interaction with the online sales process.

In the delayed processing system, credit card information is entered via your online shopping cart system. But rather than being processed immediately, it is stored until later in the day, when you or your representative must retrieve the information and then re-enter it manually for processing.

Real-time or automatic processing is much more convenient, but you pay for that convenience with higher fees. In a real-time system, information is gathered by the shopping cart system and then transmitted instantly and automatically to the card issuer via a portal known as a gateway provider, which also offers added security for online sales.

Once the information is transmitted to the card issuer and the card issuer approves the sale, a virtual receipt is issued and the card issuer transfers the amount of the transaction to your merchant account provider. At the end of the business day, the account provider adds up daily sales, subtracts the cost of any maintenance and account fees, and deposits the remaining money into the business bank account that’s tied to the merchant account. No intervention is necessary by you or your representative in these systems.

In addition, today many merchant account providers offer mobile account processing, which uses wireless Internet connections to facilitate sales anywhere, via a cell phone or other mobile device, or a laptop computer. If you anticipate sales on the road or at trade shows, fairs or conventions, a mobile account can be a good add-on to your Internet account.

What type of equipment will I need?

In addition to your website, you will need a shopping cart system capable of accepting credit card information and other sales information. For real-time accounts, you will also need a gateway provider. Often these services are provided by the merchant account, but in some cases, you will need to find your own gateway provider. Be sure the provider you select uses software that is compatible with the merchant account provider system you choose.

What should I look for in an Internet merchant account provider?

Ideally, you want to select a merchant account provider with extensive experience handling Internet businesses. An Internet business has vastly different needs than a retail business, and is also at a higher risk for fraud. Why? Because online sales are essentially anonymous; that is, they don’t require the buyer to be face-to-face with the seller. As a result, you want to choose a merchant account provider that can deal with issues of fraud successfully.

In addition, you want to be sure the company you choose has the technical staff and expertise to handle any problems that can arise in maintaining the services required to process payments over the Internet. If the company is not experienced in speedily resolving technical issues, it could result in a significant sales loss – and even a loss of customers – for your online business.

What costs can I expect?

Internet merchant accounts have higher fees than retail accounts, since they are subject to higher levels of fraud. Fortunately, because of increased competition among an ever-broadening number of merchant account providers, many fees and costs have been significantly reduced in recent years, and some have been entirely done away with.

Most accounts have daily fees, some of which are set for the type of account you have, and all have fees associated with individual transactions. Transactions fees are usually based on the amount of the transaction, as well as the number of transactions your business has. In addition, maintenance and service fees cover the cost of reporting and transferring sales funds to your account each day.

You will also be asked to estimate the amount of sales you expect monthly, and to pay a fee based on that figure. If your sales fall short of that estimate, you will likely be asked to pay the difference; however, if your sales are significantly greater than your estimate, you will also have to pay a fee to cover the extra costs associated with those sales.

Regardless of what type of online business you operate, it’s important to find a merchant account provider you can rely on. By using the information above, you can make a wise decision and watch your online business bloom.

A large chunk of Indian Investors look out for Fixed Income Saving Instruments, which comprise of several products ranging from Bank Fixed Deposits, Postal Savings, Government Bonds and Public Provident Fund and Income Funds or Liquid Funds Schemes of Mutual Funds, to name the few. Of all the Fixed Income Instruments, Bank Fixed Deposits perhaps account for more than 50% of Indian Savings. During the past one and half year, Interest Rates on Bank Fixed Deposits (also called as Term Deposits) have come down drastically. Nowadays, the Interest Rates on Bank Term Deposits of Nationalized Banks and Major Scheduled Banks are in the range of 6 to 8% depending upon the tenure and the popular Postal Savings such as NSC, KVP and PPF offer 8%. It is obvious that the Investors would look out for better alternatives in the Fixed Income Products.

If you are seeking higher returns than Bank Deposits and Postal Savings and if you do not want to lock in your funds for longer durations, you might consider investments in Company Deposits, which offer returns in the range of 9% to 12%. Although the returns on Company Deposits are much better than any other Fixed Income Instruments but you must understand various aspects such as risk, liquidity, taxation and returns before you make up your mind to invest in Company Deposits. Here are few salient features of Investments in Company Deposits.

Risk: Company Deposit is an Unsecured Loan for the Company, that is, as an Investor you do not have any lien on the assets of the company. In case the company is facing financial difficulties or it is likely to become bankrupt, Lenders of Secured Assets would get the first priority and your turn comes only after all the Secured Loans have been repaid by the company. As compared to Company Deposit, Bank Deposit is much safer because the repayment of the deposit up to Rs. 100,000 is guaranteed by DICGC (Deposit Insurance and Credit Guarantee Corporation of India). Safety of your Deposit depends upon the overall Financial Health of the Company.

Liquidity: Although the Company Deposits are issued for the tenure ranging from 1 to 5 years but the Company Deposits are neither Listed on the Stock Exchanges nor Transferable. Generally, the conditions for premature withdrawal are not favorable and therefore, Company Deposits may be termed as more illiquid as compared to Mutual Funds and Bank Deposits.

Taxability: Interest Income from Company Fixed Deposits is taxable in the hands of the Investor and the issuing companies are supposed to deduct tax before paying interest to the investors. The interest income has to be shown under the heading “Income from Other Sources” in your Income Tax Return. You must take the decision to invest in the Company Deposits based on the Tax Bracket applicable to you.

Return: Rate of Interest varies with the companies. Many companies offer the deposits with cumulative interest option with monthly, quarterly or yearly cumulative interest in which case the interest earned gets reinvested at the same interest rate and thus resulting in better yields. Options with monthly cumulative interest provide the highest effective yield. At present, the effective yields on deposits of various companies are in the range from 9% to 14%.

How to Invest: Nowadays, many Online Stock Trading Companies and Brokerage Houses such as HDFC Securities, and ICICI Direct offer online and offline investment facility in Company Deposit.

Factors to be kept in mind while investing in Company Deposits

· Know about the financial position of the company:

· Know the Promoters and their track-record.

· Look out for the profit making companies and the ones that regularly pay dividends.

· Check out the ratings given by Credit Rating Agencies such as CRISIL and CARE.

· Keep a watch about any adverse reports or news about the company.

· Ascertain about the servicing standards such as Mode of Interest Payment and Repayment of Principal Amount, and promptness in the issuance of TDS certificates.

· Learn about the penalties and other terms and conditions for premature withdrawal

· Don’t park your funds with one Company. Spread the funds and invest in the Companies engaged in different sectors.

· Risk involved in investing with smaller companies is definitely more than the risk of investing with large corporates of the likes Tata Motors, HDFC etc.