bank account | Money Management Guide

The Purpose of a Kid’s Savings Account

On August 6, 2010, In bank account

To an adult, the concept of a savings account is not exactly something all that complicated. However, to a kid, the concept may seem as understandable as a foreign language. In a way, a savings account is foreign to children because it is not something that they will come in contact with on a daily basis. That means an adult needs to introduce the concept and the process of saving and spending money to them. This is where a kids savings account becomes very helpful.

Some may wonder if the basics of a kid’s saving account are difficult to explain. After all, the subject is complicated, right? Actually, it is only as complicated as it has to be. When dealing with children, you probably would want to strip the subject of a savings account to the most basic components. Namely, you will want to discuss saving money and perhaps interest and how interest compounds over time. In short, need to explain how a savings account will benefit the child. You can easily start by giving them piggy banks and showing them how to save some of the money, perhaps from a birthday or an allowance that you give them.

Saving your money is about increasing value over time. Spending your money with no attention to saving anything pretty much means you will end up with nothing. Explaining the process to your kids on these terms will certainly prove to be helpful in terms of getting the main points across to them. You can also show them that their saved money can be used one day towards something of vale. Perhaps they are intersted in an item that costs 25$ and they can save 5$ each month, at the end the time the reward as well as the lesson learned will be tremendously valuable.

Protecting Your Checking Account

On July 12, 2010, In bank account

Once you have decided to open a checking account from one of the checking account promotions offered, it’s important for you to know how to handle your check book. The hard-earned money that you place in your account can easily disappear via scams or illegal activity without your knowledge. Even banks can commit errors that could affect your account if you don’t balance and reconcile your check book. It’s a simple step to ensure that everything is in order.

Each leaf of a check book is attached to a little stub called the counter foil. This should be filled up with the necessary information every time you issue a check. There, you will record the date, the name of the person or place it is addressed to, the amount, and what it’s for. You will use these stubs to verify every transaction you have done at the end of each month when you receive your bank statement.

Bank statements will also reflect your ATM transactions which should be accounted for as well because theft can be committed through it. The magnetic strip of a card contains information that can be copied using a cloning device which can then be transferred to a cloned version of your card. Once that is done, offenders will have full access to your account and withdraw funds and perform transactions. What you should do is to obtain and keep every slip from your withdrawals and point-of-sale purchases.

On your bank statement, separate your electronic and check book transactions using a hi-lighter pen, if you must, to make it easier. Afterwards, confirm all transactions with your counterfoils and slips one by one, then compute for the total of each and verify if the amount on the bank statement is equal to the total of your counterfoils and slips. This is how to reconcile and balance your checking account.

Checking account promotions (a savings account bonus) offer security and convenience, but you must do your part to ensure your finances are in order as well. Jot down all necessary information on the counter foil for every check you issue and hold on to every slip generated from your electronic transactions. Be reminded that some banks do not address issues concerning your account after a certain period of time has passed. Do your due diligence to guarantee that your account is free from any mistake or any fraudulent activity.

Tagged with: checking account • checking account promotions • checking accounts • savings account bonus

Using Second Chance Bank Accounts

On July 5, 2010, In bank account

Second chance bank accounts can make money-handling much easier. Through them, you do not have to pay for things with cash or money orders, but instead you can use debit cards or checks; financial instruments associated with traditional banks. This goes for both online and offline purchases. However, do not sign up for anything just yet. Like anything else, you should be fully informed before committing yourself to any banking institution.

Fees are one area of concern. In order to protect their financial interests, most second chance institutions will charge slightly higher fees than traditional banks. You may also incur additional fees every time you conduct a transaction. In any case, remember that these fees are nominal. Transaction fees tend to be just a few cents while monthly fees are usually less than $10.

As far as documentation, very little is needed with this type of banking. The only thing they really care about is whether or not you are a US citizen. This is proven through your Social Security number and driver’s license. Nothing else is needed, since neither ChexSystems nor your income are used as a basis for approval.

In fact, the only real difficulty associated with second chance banking is finding institutions that offer such a service. This is because there are many fraudsters in the industry. Some are identity thieves that post phony websites in hopes of gaining your information. Others conduct unethical but “legitimate” second chance schemes, where you end up getting an overpriced debit card.

To prevent getting scammed, it is best to check out any leads that you find. Investigate them with the Better Business Bureau. If they have a consumer complaint, or they are too new to generate any type of rating, it is best to look for something else. With patience and diligence, you will eventually find the best bank for your situation.

Tagged with: 2nd chance bank accounts • banks that offer second chances • second chance bank accounts • second chance banking

How To: Choose A Current Account

On April 17, 2009, In bank account

In the modern world it would be impossible for many people to function without their bank accounts, but with such a huge range of current accounts available choosing a bank account can be a bewildering challenge for the uninitiated. For this reason its perhaps unsurprising that many people end up with an account that is totally unsuited to their needs. But for such an important and ubiquitous product wouldn’t it make sense if we all made a little effort to teach ourselves about what’s available to ensure we end up making the right choice?

What is a current account?

A current account should be looked upon as a place to keep the money that you will use in you day-to-day business, the place where your wages will be paid into and the account you’ll use it to make everyday purchases throughout the month. Any current account from a UK bank will usually include a cheque book and a cash card/debit card, giving you easy access to your cash at all times. A current account will pay interest on your money and will usually include some sort of overdraft facility.

Bank Account Interest Rates

Some of the largest banks in the UK also happen to be the ones that pay you the lowest interest rate on your savings so it pays to shop around. The best rate in the UK at the moment is from Alliance and Leicester which offers savers an impressive 8.5% AER (fixed for 1 year) on balances up to £2500. Be aware that many banks are currently paying 0.1% interest, a rate at which you might as well be keeping your money under your bed.

Bank Overdraft Charges

Hopefully you won’t be needing to pay any of these nasty charges but if the unavoidable happens it always pays to be well prepared. Overdraft charges with British Banks at the moment an range from 0% up to around 20% so it definitely makes sense to check in advance how well your bank measures up. The best deal at the moment is the Alliance and Leicester once again which charges 0% on arranged overdraft. This account is the one to choose if you’re in the UK, at least until next year when the 8.5% interest on credit balances deal runs out.

Bank Fees

Monthly fees have become rarity for UK current account holders although it looks as if they may be starting a reappear. Last year Citibank and First Direct began charging customers a £10 a month fee for the use of certain current accounts, justifying the charge by including new services that most customers will never use. Check that your new account doesn’t have any hidden charges before you sign up.

Other Things To Take Into Consideration

Does an account allow you to make “bill payments”, can you use it to set up standing orders and direct debits? You might also want to consider the standard of service offered by a specific bank. This is especially important if you’re setting up an account through a local branch where you will often be dealing with human beings rather than a computer screen in the course of your business.

Tagged with: Bank Fees • bill payments • current account • Interest Rates • Monthly fees

Money Management Guide

Helping you look after your cash

The Purpose of a Kid’s Savings Account

Protecting Your Checking Account

Using Second Chance Bank Accounts

How To: Choose A Current Account

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