Teens, Credit Card Debt and the Truth

We've all seen the commercials for credit card companies: Well meaning parents give a credit card to a college student for "emergencies," and either while showing up for an impromptu visit or getting a
heart-stopping bill find out the card has been "maxed out."

While shopping, at church and eating in fast-food places I have heard children and teenagers ask, plead for and beg their parents for credit cards. "I'll only use it in an emergency!" yeah. Seldom have I heard a parent ask the interesting question: "Exactly what do you consider an 'emergency?'" The answer might come as a surprise.

A few years ago I did a survey of teens in my church, then sat down with their parents with the results. These folks were getting hit with the "I need a credit card" petition. Amazingly, the top answers were not: paying for a tow when the car breaks down, an emergency gas-tank fill up, missing the last bus and needing a taxi or anything an adult would choose. The top answers turned out to be: dinner at the mall perhaps including friends, clothes, food delivery for parties and other non-emergency items.

I wondered who these teens were. I thought I knew them, having watched them grow up from birth. Did some metamorphosis take place and turn them into different people? I thought they had sense.

Speaking with them and their parents, one theme presented itself: the perception of credit cards as opposed to reality. Small wonder. Media ads everywhere give the impression anything can be had by using plastic. And had now. No mention is made of the reality that shows up in a month: the bill. No matter, the payment is miniscule, just make that.

Using one parent's credit card bill, I pointed out the credit limit- a high figure- $1,500. Some of the teens cheered. But wait-there's more. Moving down the bill, the monthly payment was only $45 a month. Teens cheered. But wait-there's more. Continuing down the bill, I pointed out the principal (the amount actually applied to the whole balance due) being paid was a paltry $9.52 on a balance of $1,257.85. No one cheered.
Credit card companies are there to make money. Period. They are NOT going to help anyone pay the card off and get out of debt. They make the majority of their money on the interest payments (the majority of that
"minimum" payment) and on late fees. They have no incentive at all to helping anyone but themselves.

I finally had the teens attention. Up until that moment, the meeting had been treated like a joke. "I'll get a job and pay it off myself," "All I have to do is make the minimum payment, right? No problem." The question was asked: What do we do?

Until the United States Congress convinces credit card companies to raise the minimum payments to at least 10 percent of the balance and add interest to that amount, those swimming in credit card debt could drown. Instead of waiting, I offered the following advice:

Before using a credit card, look at the interest rate. For example, if a card has a 20 percent interest rate, add a zero to it. Two hundred percent is what you'll pay back by making the minimum payments only. That means for a $20 pair of jeans, not only paying back the $20, but nearly an additional $40 in interest. Or before each use of the card, sitting down on paper and using the math formula I=PRT. Interest= Principal multiplied by the Rate multiplied by Time. The formula comes very close to the same amount. No one seemed willing to pay $60 for a $20 pair of jeans.

I had credit card debt until I paid off my last card 2 years ago by taking the bill and adding a payment of 10 percent of the balance to the existing "minimum payment." I saw the balance start to drop dramatically. When I could afford more, I paid more. On the glorious day of zero balance, I cut the card into little pieces and sent it in with the last payment. I patted myself on the back, bragged to friends at work and was proud of myself.
Now that I had that monthly payment still in my budget, what to do? There are all kinds of offers for "pre-paid" credit cards. I suggest reading all the print, fine and otherwise. You give them your money,
then use the card to spend only the amount you've paid in. If you don't use the card, the amount builds up. Who gets the interest on that account? Not you. The credit card issuer gets that interest, along with any other fees for "managing" the account, processing the purchases, etc. That didn't sit well with me. The whole idea of paying off credit cards is to have more money, not give it to someone else.

I solved the problem easily by going to my credit union and opening a second checking account. This account has a debit card with a credit card logo on it. It can be used as a debit card or as a credit card. I simply make the payments to that account that I was making to a credit card company. And who gets the interest on the account? ME. I manage the account, track the purchases, everything.

The parents and teens both realized this solution is not only feasible, but easy to do. A teen can build financial responsibility by getting "that job" and depositing some or all of their money in the account. A college-bound student has the "allowance" their parents deposit. They can only spend what they have, no more. Emergency account? Save money in the savings account and both parties sit down and if necessary, write down what is a true emergency. I suggested parents may want to impose a penalty for misusing the "emergency savings."

I was asked about younger children. How do they not lose their heads in a "plastic world?" With a family of children I that I used to watch, I asked the parents if I could try an experiment in money management training after a trip to the store. I would give each child an allowance. Not cash, I gave store gift cards. Since the oldest child had more responsibility she would receive a higher allowance. The money would be loaded onto their cards, and the children would be given a 3x5 card with their balance on it. We agreed to several rules that would be followed by the children and adults, and put everything in writing, in case the children needed reminders. When everything was ironed out, the children were informed. They were elated. The oldest child was given a calculator to figure sales tax on items to help others realize if they had enough money for the entire purchase. They could not borrow from each other or adults for a purchase.
They had "plastic" almost like adults, but learned quickly that the card is not a spend-all, have-all. They could only spend what they had. Their parents did not allow the children to put their cards together
to buy one toy- avoiding the "who owns it" argument later.

While lay-away was available, they were introduced to payments, responsibility, and what happens if those payments were not made. Borrowing from the parents/other adults (only with the parents permission) meant making payments with a small (3 percent interest with consequences if payments weren't made). When Wal-Mart announced lay-away no longer available, I watched as the oldest child asked if she could have a second gift card to save money on when those "gotta-have-it-now" purchases are encountered. She was 10 years old. I was never prouder. No one had mentioned having two cards or a savings account until that day.

Now, each child has two cards, one marked "savings" and one marked "main." They also now can deposit money into their parent's savings account (Mom keeps excellent records) to have money to spend somewhere else. When these children are old enough for checking accounts they will be well-tuned to financial responsibility.

The oldest child is almost in college now (I feel old), has managed a checking account and debit card for almost a year, and is researching scholarships and student loans for college. She does now to read all the print in an application and to ask lots of questions. She's learned to look before she leaps. The rest of the children are learning from her, too.

While these methods may sound simplistic, they really do work. Perhaps the store gift cards will work in some families, in others it may not. Some use "money jars" stored in the parent's closet.

There are many different methods out there. The only true way to find out what works is to give different methods and honest try, say six months.

Whatever method or plan works for you or your family, stick with it. It takes effort.

Here's some incentive: A lot of the adults returning home to live with/off of their parents are doing so because of overwhelming financial irresponsibility. Teaching them to be responsible now will help help them in their future, and parents can have that "sewing room," "den," etc. of their own. And keep it.

Credit Card Debt Advice

If you're looking for credit card debt advice, chances are you've accumulated higher balances on your cards than you know what to do with. If you're like many people,
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.

This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.

Ready? Here we go:

1. Get over the idea that you'll get anywhere paying the minimum payment.

The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?

Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...

2. Pay off your highest interest credit card first.

If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.

To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.

3. You can negotiate a better deal on many cards.

If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.

4. Move your balances to cards with zero-rate introductory rates.

You may have heard this piece of credit card debt advice before, but did you act upon it?

If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt

Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.

Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.

5. As you pay off the highest interest cards, cancel them.

Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.

Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.

A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.

Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!

Get Rid of Credit Card Debt

Credit card debt is no fun. If you are saddled by credit card debt, you are not alone. I read somewhere that the average family in America has credit card debt to the tune of $9,000.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.

1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.

2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.

3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.

4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.

6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.

7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.

I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.

Reasons to Pay Your Credit Card Bill in Full

Do you dread each month when you are looking at your credit card bill? You are like many Americans who are overwhelmed with credit card debt. However, it is vitally important to your finances to get this under control
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.

Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.

Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.

Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.

As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.

Advantages: Automatically Pay Bills/ Donations with a Credit Card

Paying your bills with a credit has many advantages, compared to paying each bill individually, which can cost more money, and provides no rewards. Many utility services provide consumers the option, having their
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.

Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.

When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.

Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).

Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.

6 Tips for Spending Less and Saving More

One of the biggest problems when it comes to financial success is holding on to the money you have. They don't know how to manage their spending habits. With the right habits you will go along way towards paying the
bills and being able to afford the things you want as well. At first it will seem difficult to limit your spending habits but overtime you'll be able to break bad habits and develop new ones.

Credit Cards

Credit cards can be very useful at times but are also often the cause of overspending. It's best to try and avoid using them and pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you must use a credit card be prepared to pay the balance off monthly. This will save a lot of money because you'll be avoiding interest charges. Transfer and already existing card balance to a card with a lower interest rate, and try to find a card that doesn't charge an annual fee.

Phones

Some people will spend hundreds of dollars a month on phone charges alone. Limit your phone use to off peak hours. Check with your provider and find out when you have cheaper or unlimited calls.

Coupons

Check the sales page in you Sunday paper. Don't throw away coupons. Saving a few cents here and there may not seem like much, but once again you'd be surprised how much this can add up to be overtime. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars every time you go to the grocery store.

Pay Yourself First

When configuring your budget, plan for your savings first. You will grow wealthier every month if you set aside money for yourself first. Decide on a set amount that you will pay yourself. It doesn't have to be much. 5 to 10 percent of every paycheck will do. Then, deposit the amount into a savings account before paying any bills.

Do this at the beginning of the month. If you wait until the end of the month, you'll probably end up over spending and you won't have any left to save. Paying yourself first will give you an organized way to make your money grow.

Penny Pincher
If you really want to save be as cheap as possible. Don't feel embarrassed to pick up pennies off the street. Put all the spare change you accumulate in a can or jar. After a period of time count it and roll it up.
You may find that you have an extra 30 or 40 bucks just in spare change.

Get all you can out of any product you purchase. Turn bottles upside down and drain them to get every last bit out of it.

Don't buy name brand items just because you think they're better. For the most part they're really no different and you can save a fortune.

Try and use everyday household items as replacements. Try using ammonia instead of fancy floor cleaners. If your furniture needs some polishing, a mix of white vinegar and vegetable oil makes a great polish replacement. For a freezer bag, use empty chip bags and close with masking tape or any bowl with a lid, such as a margarine tub will due in a pinch.

Often overlooked

With many things in life it takes time to see significant results and most people just don't have the patience for it. If you learn to become patient you'll see the results and you'll be much happier in the long run.

When creating a budget don't think you can set it once and forget about it. Things change and some times it needs to be adjusted. A budget is created using a set of expenses and income figures that are subject to change. As the figures change, so should the budget

While everyone remembers the holidays they forget to plan for them. Set-aside some money for presents, food, parties, etc. These items should be factored in when making a budget and saved for throughout the year.

Finally when planning a vacation people remember to factor in the cost for travel and accommodations but they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.

Top Internet Banking Tips – Staying Safe

Set a strong password for your internet banking account

Prior to setting up your internet banking password, ensure that you come up with a strong password that only you can remember. A strong password ideally has at least 14 characters or more – essentially the more the better. The password must be made up of letters, numbers, punctuations (if possible) as well as other symbols. Make use of capital and small letters to enhance the complexity of your password. Avoid dictionary words, names written backwards, repeated sequences and passwords derived from personal items such as your driving license or identity card. Once the password is set, ensure that you memorise it rather than to write it down on a piece of paper or store it somewhere in your computer. Additionally, change your internet banking password frequently or ideally after every three months.

Ensure that the correct internet banking address is typed in

Always access your internet banking account by typing the address in your browser. Never access your account via a link included in an email or other form. Make sure that the correct URL for your internet banking is typed in so as to not enter your log in information in a fraudulent internet banking website that will later use the information to access your real internet banking account.

Review your statements

Request the bank to send you weekly or monthly statements or alternatively make use of the ones drawn up online. It is important to check your statement on a monthly or weekly basis so as to check for any irregularities. If you notice anything unusual or transactions that you did not execute or authorize, it is important that you contact your bank immediately.

Keep informed of the latest developments by your bank

It is important to check your bank's website on a regular basis in order to keep abreast of the latest changes, notifications and other communication messages. This will keep you informed of the latest information on staying safe when using your bank's online banking website. Banks usually introduce new security features such as the one-time-pin and cellular phone notifications.

Install computer protection software

It is important to keep your computer system safe. Owing to the fact that your computer or laptop system is connected to the internet, local or wide area network, it is important that you make use of antivirus firewall software. Once you have installed and configured your antivirus firewall software, it is important to keep it updated as new virus, malware, spyware are introduced on a daily basis. This will ultimately minimise the threat of someone gaining unauthorised access to your computer system and internet banking information.

Article by: Antivirus Firewall Software South Africa

Read more: http://www.articlesbase.com/banking-articles/top-internet-banking-tips-staying-safe-2197432.html#ixzz18cAoLkiy
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Business Banking Tips

Should you have chosen to begin your own small business, you will likely have quite a few questions that you’ll require answered. The most important question that lots of start up business undertakings target can be which is the right business bank? It is very essential to compare and contrast the banks accessible to you so that you can decide on the best possible banking service. Here are some beneficial questions you should ask when you deal with every single financial institution about their business banking products and support available..



This would be a great place to begin looking for the best business bank account ideas.

Exactly What Will The Costs Be?

Finding out just how much your new business banking account will definitely cost is among the biggest questions that you should question. It really is good business to carefully weigh in addition to examine all the associated charges and costs. The fine detail will frequently can be found in PDS (product disclosure statement ) and terms and services information. It is a wise decision to ask a specialist associate, like an accountant or lawyer, to be able to examine these details. It is possible to business banking institutions offering totally free business banking accounts for just a specific period of time. Make sure that you discover how much your business account can cost you following this honeymoon period has expired.

Suppose I Need An Overdraft Account?

Should you be starting a new business enterprise, the right business banking institutions can provide funding to help with the development in addition to expansion. Nearly all banking institutions require security whenever supplying credit to new business ventures, since there is a greater possibility the business could go wrong. Think diligently prior to applying for a overdraft and know that you might need to offer security, such as your house and/or other assets, in order to gain access to a overdraft facility.

What If We Need Insurance?

Should you invest in stock or chattels for your business, for example computer equipment or maybe stock, it’s worth considering to insure these kinds of property. The majority of the best business financial institutions will give you business insurance coverage for a marked down rate. The simplest way to arrange your insurance is to put together a number of different insurance quotes so as to discover the right accessible premiums.

What Additional Help Am I Going To Receive?

The very best business banks will provide a dedicated business manager that can personalise your business banking experience. Your business account manager can provide basic business tips as well as individualise this advice so it is valuable and also applicable to the particular business needs. Additionally, your business accounts manager should be able to provide you car loans, auto leasing, finance, fiscal planning and pension planning.

DBS Singapore Internet Banking: Tips for iBanking at DBS.Com.Sg

Internet Banking helps their customer to access products and services. Internet Banking is also referred as online banking. Internet banking is really easy way to get their financial services at their doorstep. Via online channel of internet banking user will able to view their statements and accounts, transfer funds, and get other details. With operations in fifteen markets, DBS is one of the largest financial services groups in Asia. The headquarters of it is in Singapore. DBS.Com.Sg is Singapore website of DBS bank; the website also provides internet banking. Get tips for iBanking below.

Screen shot of homepage of DBS.Com.Sg

Formerly, DBS Bank Limited was known as The Development Bank of Singapore Limited. In July 2003, DBS Bank Limited was adopted to reflect its changing role as a regional bank. As a development-financing institution, the Singapore government set the bank in 1968. Compare to other Asian larger banks, DBS Bank is the largest bank in South East Asia by assets. It has market-dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund-raising in Singapore and Hong Kong.

Through China, India, Indonesia, Malaysia, Thailand and The Philippines operations, corporate, institutional and retail customers are served by DBS beyond the anchor markets of Singapore and Hong Kong. At internet banking system of DBS, they provide various special features to their customers because customer requirements are understood by then as an Asia banking expert.

Internet Banking

Now access anytime, anywhere with DBS iBanking. With iBanking, pay bills and transfer funds in minutes without waiting. Customers can apply for DBS iBanking online and get their UID & PIN on the spot because it is an improved service. For Internet Bank it gets best rate by Global Finance for 2007 & 2008 with more than 85 services.

Services of iBanking

With iBanking services apply online, save online, pay online, invest online, transfer online & track and manage online.

Apply online

With iBanking, open new accounts like – DBS Savings Plus (minimum initial deposit of S$500 is required), MySavings, SGD Fixed Deposit, and Foreign Currency Fixed Deposit. You can also give the application of new debit card. If you are existing DBS/POSB account holders, then you can apply for a DBS Visa Debit Card and/or POSB GO. With the new DBS Visa Debit Card and/or POSB GO, your existing DBS/POSB ATM Card may also be selected to replace by you. If you want to buy your dream car and if you need some loan for car, then you are able get car loan. Apply car loan, home loan, DBS renovation loan online. You can also give the online application for DBS Secured Overdraft, DBS Cashline, and ATM Card.

Online Investment

The users of iBanking can invest online. If Initial Public Offerings (IPOs) launched on the Singapore Exchange, then users can apply for it. IBanking users are able to invest in unit trust funds managed by DBS Asset Management Ltd.

Electronic Payment for Shares (EPS)

Via EPS, you can pay for your shares to brokers. Your outstanding contracts may be viewed and payment can be made by contract or in lump sum. Request for Dividend/Payout/Maturity Instructions of Unit Trust: (Purchased with cash) you are permitted to submit a request to change the dividend / payout / maturity instructions of unit trust purchased with cash by this service. By choosing either to reinvest* your existing personal account funds or choose to credit* the funds into your preferred account, your instructions may be specified for your existing unit trusts by you.

Online Trading Services

Through iBanking, DBS is Singapore’s first bank which offers access to Online Trading Services. DBS Vickers Online is the internet trading platform of DBS Vickers Securities. DBS iBanking links you directly to DBS Vickers Online. After login to iBanking, following trading services can be gotten by you:

Monitor market trends and research potential stock investments using the decision support tool DBSVOClarity and more
Access research reports on companies listed on the Singapore Exchange from DBS Vickers Research;
Get the latest stock prices and other market information;
Trade in Singapore and selected foreign markets;

You can also settle via cash upfront other than settlement via cash when you trade using iBanking’s Online Trading Services. You are allowed to fund your trading account by transferring funds from your DBS or POSB account to your DBS Vickers Online trading account, in real-time by cash upfront.

Online Payments

Without standing in queues, signing cheques sorting out the postage to mail payments, the bills of more than 130 corporations electronically and easily can be paid by customers with DBS online payment service. Customers may make payment to participating organizations anytime, anywhere by selecting various channels such as Phone Banking and Internet Banking. Customers can take control on things like – Who to pay, how to pay and when to pay.

How to make payments?

To pay your bills via iBanking by following steps:

• Select “Payment Services”
• Select “Bill Payment”
• Select any of the participating organisations or select from your own personalised list of bill payment records
• Enter the payment details, and confirm the transaction

D2pay

Customers are allowed to pay participating merchants from their web-sites by directly debiting the payment from customers’ accounts (DBS/POSB Savings and Current account) by D2pay, an innovative online payment service. The industry, like the 128-bit Secure Socket Layer (SSL) encryption adopts highest security measures for using DBS d2pay so these payments are safe. Total peace of mind and maximum protection is gotten by customers’ personal information. Now customers can shop on the Internet without a credit card and merchants can look forward to increased sales.

MEPS Payment

MEPS stand for MAS Electronic Payment System. MEPS Payment is an online Singapore Dollar (SGD) inter-bank payment and settlement system. Instant and irrevocable transfer of funds and securities are allowed by MEPS. It is the fastest way of remitting SGD funds in Singapore.

PayEasy

A fast, easy and efficient way can be discovered to pay with PayEasy, the latest service by DBS iBanking. By clicking few clicks of your mouse, you can pay anyone, anywhere. If you want to get personal online door-to-door payment service, then PayEasy helps you. For buying demand drafts, do not require to mail cheques or queue anymore. By using iB Cheque service of DBS mail a local cheque. Use Demand Draft online service of DBS, to mail a foreign cheque.

You can send an Online Cheque with PayEasy to:

1. Pay your car and home loans.
2. Settle your credit card bills.
3. Send money overseas.

How to use PayEasy?

• Login to DBS iBanking
• Click on “PayEasy” on the left navigation bar under “Payment Services”. Decide if you want to mail a local or foreign cheque.
• Select the payee and type in the amount.
• DBS will mail the cheque/demand draft.

GIRO

For all regular bill payments like telephone bills, income tax, utility bills, season parking fees and many more, GIRO is a convenient mode of payment. You do not have need to worry about missing a payment, paying penalty fees or waiting in line to make payment because by maintaining sufficient funds in the designated DBS/POSB bank account(s) for deduction on the payment dates.

MotorPay

MotorPay service is a convenient way to pay for your ERP charges using your DBS credit or debit card. This service is brought to you by DBS Bank, in partnership with the Land Transport Authority of Singapore.

Key benefits:

• Track your ERP charges online
• No more top-ups to your CashCard
• Consolidate your ERP charges monthly onto your DBS card

How to Sign up for MotorPay?

Visit www.MotorPay.com.sg and click on ‘Register’ (or login if you already have an account)
Select ‘Register a Vehicle’, fill in the registration form and submit (please remember to have your IU number and DBS credit or debit card details on hand)
Once approved (expected in 3 business days), you are all set to use the MotorPay service!
Or at AXS Stations:
Select ‘DBS/POSB ’
Select ‘Services’
Select ‘Apply for MotorPay’

Transfer service

Enquire on the transactions details of your S$ Deposit and Foreign Currency Fixed Deposit Account. Details may be enquired on selected date up to the past 2 months, as well as choose from five sorting preferences. You are allowed to download your account details by the transaction history download function in Microsoft Excel or Lotus 123 format to your personal computer.

Between your DBS Savings/Savings Plus, S$ Current, Autosave & Cashline, and POSB Savings, Current & Children Development Account, money can be transferred by you. Your credit card can also be used as a debiting account (cash advance interest fees will apply). Transfer date up to 30 days may also be set in advance by you.

Overseas Telegraphic Transfer

From your SGD Savings/Current Accounts via iBanking, you can now transfer funds to an account in an overseas bank. The service is available 24 hours, 7 days a week so you can submit your application via iBanking anytime. All payments will be processed on the same working day (as long as they are submitted before 1400 hours Singapore time). Payment requests submitted on Saturday, Sunday and Public Holidays will be processed by the next working day. The foreign exchange rates used will be the prevailing rate applicable for branch and online telegraphic transfers on the day the transaction is processed. The SWIFT network is used for making payment and generally Payments should reach the destination within 2-4 working days from the processing date.

Online Management

The credit limit, available limit, full payment, minimum payment, payment due date, and perks$ can be viewed and for unbilled transactions, current statement and previous statement of all your DBS credit/charge cards (including your supplementary cards) you can view transaction history. Change your ATM card limit online for your Daily NETS Limit, Daily ATM Cash Withdrawal Limit and Daily ATM 3rd Party Funds Transfer Limit. You can enquire on the status of your issued cheques including Cashline accounts, whether they have been paid, returned or are pending clearance.

How to login for iBanking?

First of all for login, visit DBS.Com.Sg. Three options for login will be given under the heading of “Log In”. The following three options will be given:

• DBS iBanking
• DBS Vickers Online
• DBS IDEAL™

You are able to login from above given options. Click on “DBS iBanking” option. Then login page of iBanking displayed. By entering user id and password, you can login for iBanking.

Screen shot of login page of DBS.Com.Sg

But either you are new customer or want to apply for iBanking, then press “Apply For iBanking Now” option. Then iBanking Online Services Application Form will be displayed. Fill up the form with require information and submit it by using “Submit” button.

Source

Bank of America Alert – Update Your Account Scam!

I must admit that I get very tired of opening my email accounts only to see spam email after spam email, designed to sell me something I don’t want and that I have absolutely no interest in. While these emails are not harmless given that sending spam violates the Acceptable Use Policy (AUP) of almost all Internet Service Providers, it’s the phishing emails that cause me the most frustration.

It seems that more and more often, these days, I get phishing emails in my inboxes all designed to trick me into revealing financial information that can be used to steal my money. This morning was no exception when I received a Bank of America Alert requesting that I update my account information.

If you’re unfamiliar with phishing, it is defined as the act of tricking unsuspecting Internet users into revealing sensitive or private information. It relies for its success on the principle that asking a large number of people for this information, will always deceive at least some of those people. So phishing is considered an opportunistic attack, rather than the targeting of a specific person.

In a phishing attack, the attacker creates a set of circumstances where the potential victims are convinced that they are dealing with an authorized party; in this case, the Bank of America. What makes this particular type of scam so potent is, the average person on receiving an email from an authoritative source, generally lowers their defenses.

According to this email my online banking privileges with Bank of America have been blocked due to security concerns. This looks like an official email to me and the enclosed link makes it simple to get this problem solved with just a mouse click. What could be easier than that?

Clicking on the link would have redirected me to a spoof page, comparable to the original site, and I would then have begun the process whereby the scammers would have stripped me of all the confidential information I was willing to provide.

My financial and personal details, had I entered them, would then have been harvested by the cyber-crooks behind this fraudulent scheme who would then have used this information to commit identity and financial theft.

The reality is of course; your bank or any other legitimate financial organization will on no account, ask you to divulge account information or passwords via email. Credit card numbers, ATM PIN numbers and additional financial information would never be required to enable you to find out the current status of your account.

These types of attacks against financial institutions, and consumers, are occurring with such frequency that the IC³ (Internet Crime Complaint Center), has called the situation “alarming”, so you need to be extremely vigilant.

Be kind to your friends, relatives, and associates and let them know that these types of scams are now epidemic on the Internet. In that way, it raises the level of protection for all of us.

Minimum safety precautions you should take.

• Consider every email, telephone call, or text message requesting confirmation of your personal and financial information as a scam.
• When contacting your bank; use a telephone number from your statement, a telephone book, or another independent source.
• Don’t open emails that come from untrusted sources.
• Don’t run files that you receive via email without making sure of their origin.
• Don’t click links in emails. If they come from a known source, type them on the browser’s address bar. If they come from an untrusted source, simply ignore them, as they could take you to a web designed to download malware onto your computer.
• Never click on embedded cell phone links.
• Keep your computer protected. Install a security solution and keep it up-to-date.

Time saving With Bank of America and $50 GC Giveaway

Bank of America has made it their priority to save you time this Holiday Season.
They have created tools such as

* Bank on the go: It’s easy to set up mobile banking and secure access to your money wherever you are. Download the mobile banking app and you can check balances, transfer money, pay bills, and locate ATMs. Sign up for text banking and you’ll be able to send a text message to get your balance instantly in a reply.
* Make quick and easy deposits: Holiday means a lot of extra work, so eliminate the labor of depositing checks. With Bank of America’s Deposit Image ATMs, you simply feed checks or cash into the ATM with no envelopes or deposit slips required. You get images of your checks and a list of cash deposited on your receipt as proof.
* Save a trip to the bank: Don’t worry about making an extra stop to the bank during all of your holiday shopping. Keep track of your spending by using Bank of America’s online banking: set up alerts, check balances, and transfer money.

As a Customer of Bank of America I really enjoy Using the online banking. I can check my balance whenever necessary from the comfort of my own home. With so many great deals this season its nice to know what I have available and know I have not overdrawn my account. I also think is is really great that I can make a deposit right through the ATM. This has really helped me save time and enjoy shopping so much more this season.

Check Out www.bankofamerica.com/solutions in your post so your readers can find more tips and information.

WIN IT

One Lucky winner will win a $50 Preloaded Bank of America Gift Card. To help with shopping or extra expenses this holiday season.

1. You Must be a public follower of this Blog.
AND
2. you must tell me What are some ways you get back time during the busy holiday season?
*You MUST include your e-mail so I can reach you if you win*

EXTRA ENTRIES

1. Blog about this giveaway and leave a link to your post so I can check it out. (Facebook does not count as a blog post) (10 entries)

2. Sign up/subscribe to my newsletter (Click the subscribe button on my right side bar above the word sponsors where it says sign up for my newsletter.) If you already subscribe just say so. ( 5 entries)

3. Grab my button and tell me where to find it (5 entries)

4. Follow me on twitter @theethertons or click on the follow me button on my right side bar and leave me your twitter name. If you already follow just say so that counts as well. (5 entries)

5. Tweet about this Giveaway (can be done twice a day) Must wait at least an hour between tweets. Leave the link to your tweet. (5 entries)
"RT #Win a $50 Bank of America Gift Card @theethertons http://tinyurl.com/2bbjdjx #giveaway

6. If you added my holiday button before 9/30 and commented on the extra entries post (5 entries)

Add my holiday button now and leave a link (1 entry)

7. Follow Bank of America Tips on twitter HERE (5 entries)

8. Enter one of my other current giveaways (2 entries each giveaway entered)

Contest ends 12/24/10 at 11:59 PM EST. Winners will be chosen at random and will be contacted by email. Winners will have 48 hours to respond before a new winner is chosen. US ONLY!

“I wrote this review while participating in a blog tour campaign by Mom Central Consulting on behalf of Bank of America and received a Bank of America preloaded gift card to thank me for taking the time to participate.”
This contest is hosted and fulfilled solely by The Etherton's.

How to apply for scholarships and financial aid

Finding the financial help you need for college.

A college education can increase your chances of earning a high income in a job you love. It can also be very expensive, especially if you are attending an out-of-state or private college or living away from home. Here's how to apply for the student financial aid you need to afford a college education.

How much do you need?

If you want to get started figuring out how to fund your college education, our interactive College Funding Tool will help you find the right college financial aid package for you. Start the journey here.

Federal financial aid

Depending on your need, you may qualify federal financial aid. This could be in the form of a subsidized student loan, meaning the federal government pays for your interest while you are in school. With unsubsidized loan, you pay for the interest that accumulates while you are in school, though you may be able to defer all payments until after you graduate.



In order to apply for government financial aid for education, you need to complete the Free Application for Federal Student Aid (FAFSA) each year you are in school. You can find the information about FAFSA and the form at www.fafsa.ed.gov.



Types of federal financial aid



1. Stafford loan

• Taken out by students
• Available both subsidized and unsubsidized
• Don't begin paying back until after you have left college
• Top interest rate set at 6.8% through 2013

2. Parent PLUS loan

• Taken out by parents
• Designed to make up the difference between Stafford loan and the education cost
• No grace period (interest charges and repayments begin after money is dispersed).

3. Perkins loan

For students with greater financial need

Interest rate set at 5%

College Savings Tip #1

If you or your children are still several years away from college, consider saving for education in a 529 savings plan. The principal grows tax deferred and can be used for tuition, educational costs, food and lodging.

Calculating your family contribution

Parents are expected to help pay for their dependent children's education, and student financial aid is calculated to take this into account. The estimated family contribution is based on the size of your family, and your family's income and non-retirement savings. Use this calculator to estimate your expected family contribution.

Scholarships

Scholarships are usually awarded to students with high grades or special skills, and they don't have to be repaid. Even if you cannot find a scholarship to fund your whole education, you may receive smaller amounts that can help you limit your debts. To find scholarships, check with the colleges you are applying to, or search online. Two good sites to check are Fastweb, which has a database of more than 1.5 million scholarships, and the College Board, which surveys 1,200 sponsoring organizations each year to create its scholarship search engine.



Private student loans can help make up the difference if these funding sources aren't sufficient, however the interest rate may be much higher than federal loans. If you want to limit your debt, consider working part time while in school. In addition to the income you'll earn, your job may give you valuable work experience for your future career.

Source: http://learn.bankofamerica.com/articles/money-management/how-to-apply-for-scholarships-and-financial-aid.html

College Student Credit Cards

If you are a student that is looking to build your credit history while earning rewards from everyday purchases then college student credit cards are what you are looking for. Student credit cards are a great way for a student to start building their credit history while they are still in college. These types of credit cards also offer special features to their users such as fraud protection, travel accident insurance, auto rental insurance and travel emergency assistance just to name a few. You can also receive discounts and rewards for purchases made at select merchants and retailers. Rewards can be earned when you shop at select book stores, record stores, video rental stores and movie theaters with certain cards. Select college student credit cards also reward their users for on-time payments and maintaining a high GPA with bonus rewards points that can be for discounts towards purchases.

Citi mtvU Platinum Select Visa Credit Card for College Students

If you are a college student that is looking for a credit card that offers great rewards while building your credit then the Citi mtvU Platinum Select Visa card is perfect for you. The points earn from this card can be redeemed for gift cards, CDs, VIP mtvU Spring Break Passes, tickets to the MTV Video Music Awards, airline tickets and discounts on purchases at the MTV online store and the MTV New York City Store. Users will earn 5 points per dollar spent at participating restaurants, bookstores, record stores, movie theaters and video rental stores. College students using this card can also earn 25 bonus points for making payments on time and up to 2000 extra pints per semester for maintaining a high GPA. This card offers many platinum benefits along with an interest free introductory period and no annual fees.

Citi Driver’s Edge Card for College Students

If you are a college student that drives a lot then the Citi Driver’s Edge Card for College Students credit card is right for you. The Driver’s Edge card allows users to earn points for every mile they drive along with purchases made that can be used towards the purchase or lease of a new or used vehicle. You can earn $1 for every 100 miles you drive and the rebates can be used towards payments, maintenance, service and repairs on your vehicle. Aside from earning points for driving, you can also earn a 3% rebate for purchases at supermarkets, drugstores and gas stations and 1% on all other purchases. The Driver’s Edge credit card offers an interest free introductory offer for six months and no annual fees although the interest rate is slightly above average after the offer ends.

Bank of America – TripRewards MasterCard

If you are a current or soon to be member of the TripRewards program then the TripRewards MasterCard credit card is ideal for you. This card, issued by FIA Card Services, allows it’s users to earn 2 points for every dollar spent on general purchases and 13 points for every dollar spent at participating hotels. Some of the hotels that are part of the rewards program are AmeriHost Inn, Days Inn, Howard Johnson, Knights Inn, Ramada Inn, Super 8, Travelodge, Wingate Inn and Wyndham Hotels. The TripRewards program is fee to join and allows it’s members to earn additional points that can be combined with points earned from the card. The TripRewards MasterCard offers a 0% introductory rate for balance transfers and cash advances for the first 12 months, a low fixed interest rate and no annual fees.

Bank of America Alert: Secure Your Online Banking Informatiom

A pretty clever new Phishing fraud tactic is now being used to trick users into providing their Bank of America login information.

The email itself is fairly standard for a Phish, omitting both the user’s actual name or any reference to the real account number, instead relying on generic terms like “Dear Member.”

There are also are some spelling inconsistencies, including in the Subject line itself which includes “Informatiom” rather than “Information”

The complete email:

Subject: Bank of America Alert: Secure Your Online Banking Informatiom
From: ”Bank of America”

Dear Member,

As part of our efforts to provide a safe and secure environment for the
online community, we regularly screen account activity.
Our review of your account has identified an issue regarding its safe use.
We have placed a restriction on your account as a precaution.

To lift the restriction we will require some further information from you.

If, once we review your further information and we’re confident that the
use of your account does not present a safety risk to our service and
customers, we’ll be happy to reinstate your account.

We have sent you an attachment which contains all the necessary steps in order to restore your account access.
Download and open it in your browser.
After we have gathered the necessary information, you will regain full access to your account.

We thank you for your prompt attention to this matter.

Very sincerely,

Bank of America Review Department

Notice that while the email claims to be from “Bank of America” the headers reveal the message actually comes from hijacked foreign connections and mail servers.

What’s slightly different about this Phishing scam is that the email itself doesn’t contain the malicious hyperlink and the attachment isn’t an executable file, these being to the most common phishing tactics.

Instead, the email includes an HTML attachment to help avoid spam and security filtering, and it is that attachment leads to the Phishing host site.

Once you’re on the site, visitors are prompted to provide just about every piece of account data to the con artists. Directions on the harvesting site include:

Provide answers to the following authentication questions to help us identify you and your account.

To complete verification, you will be taken through the following stages:

1. Input your Personal Information
2. Input your Account Information
3. Input your Online Banking Information
4. Click on Continue

The data that you’re asked to provide includes everything a criminal would need to steal your identity, your money and essentially ruin your life. They’re not just Phishing for your Bank of America account (though they’ll clean that out too) but also ask for:

* Date of Birth
* Social Security Number
* Mother’s Maiden Name
* Bank of America Login/Password
* Credit Card Numbers
* “SiteKey” Challenge Questions and responses

While this Phishing fraud may or may not have a high success rate, the depth and duration of the damage done to anyone who falls for the ruse will be absolutely devastating.

While the current campaign targets Bank of America, this will no doubt be adapted to target many other financial institutions in the future.

Online Banking

Online banking is a trend that has emerged recently. Learn more about the pros and cons of this easy service.

Have you ever found yourself rushing to pay your bills on the weekend because you were too busy during the week? What if you urgently need to send money to a sick relative late at night? There is a relatively new financial service that can come to your rescue called 'online banking'. Read on to learn more about it.



What is online banking?

Online banking is a service provided by a bank to customers, so that they can access their accounts over the Internet, through a secure website. The simplest thing one can do, using this service, is to view the status of their accounts as well as any transactions that have been carried out. Besides checking your account details, an online banking service also allows you to transfer money between multiple accounts as well as carry out electronic transactions. Many banks even allow you to pay some of your bills online, for a small fee.



What are the advantages of online banking?

Convenience: Online banking saves you the hassle of having to wait in a queue. You can access your account and make transactions whenever you like. This way, you do not have to wait until you get some free time off work, or spend your weekend writing checks and queuing up at the bank to deposit them. It also saves time. Just sit down in front of your computer and open up a webpage with your account details on it. In a span of a few minutes, you can check your account details and carry out a transaction. There is no need to manually go through your chequebook. Moreover, you avoid the bother of requiring stamps and envelopes to mail cheques to different places.

Organisation: Online banking simplifies your job of having to shuffle through stacks of paper every month, trying to tally receipts with bank statements. Instead, you can just create a spreadsheet on your computer and enter your expenses and account balances on it. Using simple addition, the computer can automatically tally up both of them and check to see if they match.

Reduced paperwork: With online banking, you are able to avoid the headache of dealing with the papers that tend to accumulate using a regular banking service. Since you can check your account whenever you wish, there is no need for regular bank statements to be sent to you. If you pay bills or make purchases online, you will not have to sign any receipts.

Confidentiality: You can carry out all your transactions in the privacy of your own home. This means no one is likely to find out your account number or password unless you yourself give it to them. You also do not have to worry about losing your receipts or about dishonest storekeepers acquiring your credit or debit card details.

source: http://nation.ittefaq.com/issues/2008/07/18/news0956.htm

What are the disadvantages of online banking?

Security issues: An online banking system could be targeted by miscreants. Hackers are constantly looking for ways to exploit loopholes in bank websites as well as online stores. 'Phishing' is a term that is used for the scam in which an unauthorised person creates a replica of a website and tricks people into entering their account numbers and passwords. To avoid being tricked, you should always check the security certificate of the website you are using, before you give any details out.

Lack of documentation: When business is conducted online, everything is done through the computer screen and no receipts are given. After you make an online transaction, you should always print out a copy of the online confirmation of your payment. Ensure that details like the amount you paid, product description, terms of delivery, etc. are clearly legible on it. Also, write the date of the transaction if it is not mentioned.

System failure: On a rare occasion, it is possible for an online system to suffer a failure and crash. If it is serious, all your data records could be lost. Prepare for any possible mishaps by regularly backing up your data on CDs and printing out hard copies of any transactions you carry out. Also, have a good anti-virus program installed on your home computer and update it regularly. This will prevent any loss of data at your end.

Online banking is the stepping stone to a future where convenience will be the name of the game. Open your mind to the possibilities of this wonderful service and do not hesitate to explore its benefits.


source: http://nation.ittefaq.com/issues/2008/07/18/news0956.htm

Online Banking in Hong Kong

Introduction
The Hong Kong online banking market is among the most advanced in the world, with online banking portals offering sophisticated features not seen elsewhere. The Hong Kong market is mature with around 3.5 million online banking customers. Hong Kong's close ties with mainland China makes the market an ideal springboard for financial institutions looking to expand into the mainland.

Scope

Includes a comprehensive overview of the Hong Kong online banking market.
Provides online banking customers data and market share of top competitors.
Discusses security issues and two-factor authentication.
Analyzes current trends in the market.

Highlights
There are over a hundred fully licensed foreign banks in Hong Kong, in addition to 23 fully licensed domestic banks. In Hong Kong's three-tier system of banking there are also dozens of restricted license banks and deposit taking companies, which are limited in terms of offering retail banking to the public.

The emergence of banking directly from the mobile phone will change the playing field for security and two-factor authentication. If the banking transaction is performed on the mobile phone, then that device is no longer considered "out of band" as a separate route of confirming identity.

Although not as fast off the mark as some other countries, Hong Kong banks have shown foresight when it comes to realizing the potential of the online banking proposition, as well as being proactive regarding channel challenges. Chekiang First Bank started offering basic online banking in 1997, and Citibank introduced online banking in 1998.

Why you should buy this report

Improve your strategic position using Datamonitor's in-depth analysis of the Hong Kong online banking market.
Understand the unique challenges the online banking market is facing, and benefit from forecasts of future product trends.
Financial services providers hoping to tap the enormous market of mainland China should study analysis of the Hong Kong market first.

source:
http://www.banking-business-review.com/research.asp?guid=DMFS2259