Online Financial Tips

Archive for January, 2011

Today, internet banking has become a popular method to manage one’s money and finances. When using internet banking accounts, more consumers now feel empowered to take control of their money. Internet banking, or banking by way of the Internet, offers numerous advantages for banks and consumers.

The following is a list of the advantages of internet banking:

Easy to Set-Up: It is easy and fast to set up an internet bank account. All that users have to do to create an online bank account is complete a short form and then set the security features such as a password and username. Finally, they just print and sign a form and send it in to the bank.

Fewer Costs: There are fewer costs associated with internet banking because online banks do not have the overhead like traditional banks. Because there are fewer costs, internet banks pass the savings on to consumers such as reduced service charges and increased interest rates for savings accounts. They can even offer reduced lending rates for their loans.

Easy and Convenient online Bank Comparison: It is easy to research many internet banks online allowing you to compare such features as interest rates, available credit cards and their interest rates, FDIC bank rating, and terms and interest rates of their loans. You can then pick the best internet bank that meets your needs.

Easy Bank Account Monitoring: You can track your internet banking and money 24 hours a day, 7 days a week. You can track such things as deposits, clearing of checks, and your account balance. It allows you to keep your account from going into the negative.

Maintain Accurate Financial Records: You can keep track of your financial records by using software programs such as Microsoft Money or Quicken. This will allow you to budget more efficiently and track your spending.

Bank Account Security: Along with bank internet security features, you have the ability to monitor you account any time which helps to detect any fraudulent activity. You will know immediately if someone has written a check or withdrew money from your account. You will then immediately be able to start resolving the problem before there is too much damage to your finances.

Convenient Banking Online: Traditional banking has always been slow. With online banking, you will no longer have to stand in long lines to obtain financial information about your account. As well, there is less paperwork and applying for loans is faster, easier, and more convenient. You can even transfer funds from one account to another in almost an instant and you can carry out such investment tasks as bond exchanges, stock trades and other investment activities.

Today, the internet has made many daily tasks much easier and more convenient. The economic and convenience advantages have now made internet banking a popular choice for millions of consumers. Internet banking gives consumers more control over their internet banking and money. No matter your location, or the time of day, with internet banking, your money is only a few clicks away.

An interesting sales strategy that is being marketed by dealers and lenders is zero percent finance on auto loans. Buyers are getting actively attracted to this concept as this would end up saving thousands of dollars towards interest. However, the entire concept is not as simple as it is shown. It is just a strategy that is adopted by dealer so as to attract the customer.

These sorts of loans are not available to every customer who walks into the show room. In order to qualify for a zero percent financing auto loan, there are several criteria that one requires to fulfill. The most important requirement is to have an extraordinary credit score of more than 700 without any history of bankruptcy or delayed bill payments. An average borrower has at least one bad remark in his credit history which is sufficient to make him ineligible for a zero finance loan.

Zero finance auto loans are offered only on selected models of cars. These vehicles are usually those which are not in demand or those which are showing troubled performance in terms of fuel economy or mileage or efficiency. There are even situations where the vehicle is of desired model but is not available in desired colors or does not have the desired interiors. Dealers offer loans with interest on models with all desired features.

Another interesting tactic opted by dealers while providing zero percent auto loans is that these loans are offered for a very short duration. Dealers usually fix a maximum term of 36 months before which the loan has to be repaid back. This results in paying higher monthly payments.

The bank gives to its customers a pass book or a statement of account. Pass book or statement of account is a copy of the customers account in the books of the bank. The bank keeps the customer informed of the entries made in its books. The customer is expected to compare the pass book with the cash book (bank columns) and to inform the bank immediately regarding the errors that may have come to his notice.

The statement of account is similar to the pass book with the only difference that it is on loose sheet. The statement of account is sent by the bank to the customer of its own whereas it is the customer’s duty to send the pass book to the bank for being written up-to-date. Recording banking transactions Banking transactions are recorded in three column cash book. However, jf the triple column cash book is not maintained the transactions would be journalized.

The journal entries are as follows:

Current Account

When cash is deposited in the bank
Bank account … Dr
To Cash account (for cash deposited into bank)

When cash is withdrawn from bank for use in business.
Cash account …Dr.
To Bank account (for cash withdrawn.)

When payment is made to creditor by cheque to settle his account.
Creditor’s account …Dr.
To Bank account (for cheque issued-to settle his account.)

When an expenditure is met by the issue of cheque.
Expense account ….Dr.
To Bank account (for expenses paid by cheque)

When cheque is issued to meet the personal expenses of the proprietor.
Drawings account …Dr.
To Bank account (for cheque issued to meet personal expenses.)

When cheque or draft is received from a party.
Cash account …Dr.
To Personal account (for cheque received)

When cheque or draft received is paid into the bank.
Bank account …Dr.
To Cash account (for cheque received paid into bank)

When cheque or draft is received from a party and is paid into the bank the same day.
Bank account…Dr.
To Personal account (for cheque received and paid into bank)

When a customer pays the money directly to the bank.
Bank account…Dr.
To Customer’s account (for payment made by a customer directly into the bank)

When a cheque or draft is received from one party and is endorsed in favor of someone’ else.
Endorsee’s personal account …Dr.
To Payee’s personal account (for cheque received from – endorsed over to -.)

When bank debits the customer’s account with the incidental or collection charges.
Bank charges account…Dr.
To Bank account (for bank charges charged by bank)

When bank credits customer’s account with interest.
Bank account …Dr.
To Interest account (for interest credited by bank)

When cheque is dishonored
Personal account (Party from whom cheque was received)
To Bank account …Dr.
(if it was sent to bank)
To Endorsee’s personal account (If the cheque was endorsed)

When draft is purchased from bank and sent to some one. Personal account …Dr.
Bank charges account …Dr.
To Cash account (for draft purchased and sent to-)

Fixed Deposit Account
When amount is deposited in fixed deposit account.
Fixed deposit account …Dr.
To Cash account (for cash deposited in fixed deposit account)

When fixed deposit is made by the issue of a cheque.
Fixed deposit account …Dr.
To Bank account (for cheque issued and deposited into fixed deposit)

When interest becomes due on fixed deposit.Fixed deposit accountTo Interest account(for interest due on fixed deposit account)

When cash is received on realization of fixed deposit.
Cash account …Dr.
To Fixed deposit account (for cash received on realization of fixed deposit)

When the amount of fixed deposit is paid in the bank current account.
Bank account …Dr.
To Fixed deposit account (for fixed deposit amount on realization paid into bank account)

Savings Bank
When money is paid in savings bank account.
Savings bank account …Dr.
To Cash account (for cash paid into savings bank account)

When interest is due.
Savings bank account …Dr.
To Interest account (for interest credited by bank)

When cash is withdrawn from bank
Cash account …Dr.
To Saving bank account (for cash withdrawn from bank)

Bank Loan
When loan is given by bank in cash
Cash account …Dr.
To Bank loan account (for loan withdrawn from bank)

When the amount of loan is credited by bank in current account.
Bank account …Dr.
To Bank loan account (for loan credited by bank in ‘current account)

When interest becomes due on loan. Interest account to Bank loan account (for interest due on loan)

When loan is repaid.

Bank loan account …Dr.
To Cash account (if paid in cash)
To Bank account (if repaid by cheque).

This credit squeeze is bad; not only are many banks not lending at-all, but the ones that are lending are being ultra conservative. LTV (loan-to-value) ratios have dropped significantly; it is nearly impossible to get a loan for more than 75% of a properties value now-a-days, and underwriting standards have tightened across the board.

To have any hope of securing funding from a bank or other conventional, institutional lender a commercial real estate deal must posses all of the following attributes, good location (not in a particularly economically depressed area), good quality (not a-lot of deferred maintenance), low LTV, good sponsor (borrower must have a net worth at least equal to the loan amount and must have a track record of success in commercial real estate), and good cash flow. (Underperforming buildings, raw land and construction deals need not apply.) The traditional lenders (banks, Wall Street & insurance companies) are worried about their own survival. Regardless of what their ads say, they will not fund your loan unless they are absolutely sure they can sell it into the secondary market if they need to.

So where can investors seeking commercial mortgage loans go to get the financing they so desperately need? The best chance a commercial property owner, investor or developer has of securing an approval and ultimately closing a deal is with a “portfolio” lender.

A portfolio lender is a unique funding source that actually lends its own money for its own account and holds the loans is makes in its own portfolio. A portfolio lender need not be concerned with the CMBS (commercial mortgage backed securities) market or with the day to day swings in the mortgage debt prices. Portfolio lenders are not constrained by any lack of liquidity in the overall credit market; they are not dependant on any markets for their liquidity.

Most lenders borrow money, using their depositors’ assets as collateral, and then lend the borrowed money to you. They then sell the loan to the secondary mortgage market in-order to recover their capital and pay their bills. That’s how a bank with $1,000,000.00 in it can make $25,000,000.00 worth of loans. They need a liquid, flowing credit market to survive. Portfolio lenders, on-the-other-hand, only lend money they have on deposit; no leverage, no selling of paper, no securitization, just plain old-fashioned lending.

Many portfolio lenders are private financial firms set up to make a profit by lending money against commercial real estate assets. These lenders can be organized as LLCs (limited liability companies), LPs (limited partnerships), corporations or trusts. Some are actually hedge funds or private equity firms. Other portfolio lenders are really divisions or subsidiaries of regional and community banks or smaller insurance companies.

Portfolio lenders will charge a higher rate and more points than conventional lenders do, but they tend to be more flexible and more responsive to their borrowers. For many borrowers, private, portfolio lenders have become the only game in town and, when faced with the possibility of losing a building to foreclosure or missing out on a great deal, the cost of the loan is a secondary concern.

The key to getting funded is finding the right lender for your loan. The big banks and other traditional funding sources are virtually out of the picture; they just want to make it through this. Identifying a lender that still has the capacity to lend and presenting your loan package in the most advantages manner possible, represent your last best chance of getting a loan closed.

If you’ve been looking to accept credit cards away from the office but have concerns about the costs involved with conventional wireless equipment, then consider using your laptop computer.

All you need is a laptop, Internet access and a USB card reader to create an inexpensive wireless processing solution. It’s best to have a wireless access card from a carrier such at AT&T, Sprint or Verizon as you’ll always know you have internet access but with so wireless hotspots available these days, there’s a good chance you can get by without one.

Most merchant service providers sell debit and credit card desktop software applications that will allow you to process Visa, MasterCard, Discover, American Express, JCB and Diners Club cards for merchants located in the U.S. In addition to replacing all of the functionality of traditional credit card terminal, this software can store credit card information for later processing. That’s especially helpful when you deliver goods and services, either on a one-time basis or multiple times. It’s also great for generating recurring credit card payments in either fixed or variable amounts.

Here’s how it works

Just add a USB card reader to your laptop, open the credit card terminal software, swipe the card and type the amount you wish to charge along with the 3 digit CVV security number found on the back of the card holders card complete the required fields and press the send button.

The information is encrypted using 128-bit SSL (Secure Socket Layer) technology. It’s first sent to a transaction server and then on to the card issuer’s bank. The card issuer’s bank verifies the card holder’s identity and verifies if sufficient funds are available to cover the sale. The information is then sent back to you and an authorization number is issued. When using a virtual terminal, the transactions are automatically settled each day. In addition, you can also check the status of transactions, automatically bill customers for recurring charges, and run a variety of useful management reports.

Most software & USB card reader solutions will cost around $150 to $250 which is a bargain as most traditional wireless terminals cost $450 to $650. Not to mention, the additional monthly wireless connectivity fees needed to send the card data from a wireless terminal.

If you’re not comfortable purchasing software and installing it on your computer don’t worry…

You can even use an internet based virtual terminal system. You’ll still use the usb card reader to swipe the card but rather than open software on your computer, instead, you’d log in through a web browser to access the interface where you’ll enter and submit the card data.

So the next time you bring your laptop on the road with you to make your sales presentation why not just add a USB card reader and run the customers card on your portable credit card processing system the next time you close the sale?

No diagnosis or treatment can be predetermined hundred percent in the field of medicine. No doctor or physician can give an accurate diagnosis for each and every case. And, even if the diagnosis is correct, other factors can come into play that could pull down the health of a person. For instance, a person is diagnosed with flu and starts receiving the appropriate treatment. However, in a couple of days the person stop responding to the treatment all of the sudden because he or she has been infected by some other pathogen. In such a case, the patient may end up suing the doctor to claim for damages. It is in cases like these that medical malpractice insurance comes handy for healthcare professionals.

The way a medical malpractice insurance works is that the healthcare professional has to purchase this from an insurance company. The cost of the insurance usually is based on the nature of practice. The more complex the practice of the healthcare provider, the higher will be the cost. In some States in the US, it is mandatory for healthcare practitioners to have medical malpractice coverage, while in others it is optional. However, all doctors, physicians and healthcare providers have this coverage to protect themselves from financial liability should anything go wrong.

Based on some surveys, it is has been estimated that the medical malpractice insurance costs can be as much as $200,000. However, the cost varies from one state to the next and is dependent on the laws that are prevalent in the state where the medical professional is practicing. Sometimes, a medical professional could have more than one insurance if he or she is practicing in more than one place. This is the norm for specialists who tend to travel all over the country.

If a patient or the family of the patient sues a doctor for medical malpractice, the insurance company will handle the complaint. Based on its own investigation, the insurance company will pay the compensation or be directed by the court to do so. Taking into consideration the increase in number of claims, medical malpractice insurance costs have gone up substantially, some by more than 50 percent. This trend will continue for the time being until proper laws are enacted and put into place.