Offshore Banking - When It Pays To Go Abroad

While you might presume anyone with ‘money in offshore accounts’ is involved in some scurrilous business affairs, the truth is that anyone can use this form of investment as a totally legitimate way to defer or reduce your tax payments.

Locations for offshore accounts can be held in banks in British waters – the Channel Islands or Isle of Man for example, or you could look further afield to the Republic of Ireland or Luxembourg. As with other investments, there are different ways to send your money abroad, with different levels of risk attached.

Some of the benefits include current accounts with higher levels of interest – check out the high street banks, many of which offer offshore instant access accounts. These are a relatively safe way to invest. There are also ‘notice’ savings accounts which can yield exceptionally high rates of interest.

You may choose to put money into an offshore investment fund, which is similar to the normal onshore type, only you usually find that you pay a performance related fee to your fund manager. This could mean that they have more incentive to make sure your money is working hard for you. Check investment companies like Schroders and Gartmore for this type of fund.

Money funds are a high risk form of investing – your funds will be pooled with those of other investors’ and used to buy international currency at wholesale rates. Your shares will be exposed to the vagaries of international exchange rates, and this can be a nerve-wrackingly unpredictable way to invest abroad.

More and more people are choosing to buy property abroad – whether as future dream retirement home or as profit making venture. In Eastern Europe and the Middle East you can pick up property for remarkably low prices – developments and agencies advertise in the property sections of newspapers, and websites abound. While this could prove a sound long-term way of investing, there are numerous things to take into account – the stability of a country’s economy, complicated legal agreements and the cost of travel to and from the property are major factors.

Different countries operate wildly different property law, and you will need to get sound advice on all the implications before buying abroad. Check things like inheritance law – for example, in France, there are obstacles to simply leaving property to named recipients in your will. If you do buy abroad, you will probably find it useful to open a multi-currency account.

Internet Banking - Which Web Bank is Right For You

Finding information online seems like the proverbial search for the needle in the haystack – with so many sites and adverts vying for attention just thinking about searching for an internet bank is enough to bring on a headache. However, it might well be worth the effort – out of the five best-paying current accounts today, four are provided by internet banks. With a difference of two or three percent, the benefits could be substantial. Enter ‘online banking’ into your search browser, and you’ll pull up several independent sites comparing different banks and accounts. While the special offers can change day to day, there are a few banks that have been performing consistently well – the big three being Cahoot, Egg and Smile. Cahoot is the online arm of Abbey National, and the Co-operative Group runs Smile, but both currently offer better deals than their high street counterparts. Intelligent Finance is also a contender. Shop around to find what suits you best – whether it’s a low rate loan or a high performance current account, the right choice will depend on your individual needs and situation. Take into account things like customer service as well as the terms offered – it’s important that you can contact your bank easily when you need to, and that dealings with them are not an unpleasant ordeal. Even if you conduct most of your business online, there are still likely to be occasions when you need to speak to a human being, and friendly, well-informed staff can make a vast difference to your banking experience. First Direct is now planning to introduce a ‘virtual’ bank clerk to make online banking more customer friendly. Ease of use is another factor – a bank with a website that is easy to navigate will help you plan your finances with the least amount of hassle. Online banking has now come a long way from the days you could only view your account online – you can now pay bills, set up direct debits and transfer money between accounts at the click of your mouse. Egg have recently introduced a service called ‘Egg Pay’ that lets you securely send money to friends and family via email, and in future we can expect ‘account aggregation’ – an overview of all your financial dealings on one web site that will help make your transactions more efficient. . ‘Moneywise’ and ‘Which’ magazines are good sources of information to compare banks with – check out their websites.

Internet Banking could help with your tax retuns

One of the most useful things about Internet banking is that once you have your account information on your computer, you can export it into financial programs such as Microsoft Money and Quicken, to better manage your various household accounts. This can be particularly useful at tax time, if you export your account details into a tax calculator program such as TurboTax. However, getting the software and your Internet banking to talk to each other can sometimes be easier said than done. While many banks (especially Internet-only banks) are good about this and offer an easy download link to save your online statements onto your computer, others offer only a very basic Internet banking service. If your bank doesn’t produce export files, you may have luck with asking your software to access your Internet banking account directly, giving it your username and password (it goes without saying that you shouldn’t give these details to any software you don’t completely trust). If that still doesn’t work, then don’t worry. Search the web for the name of your bank followed by ‘export software’, and you will often find that someone has produced a free script that you can use to save the information from your bank’s website. These scripts generally work by first asking you to save pages from your Internet banking using your web browser’s Save button or menu option, and then taking the files produced and converting them into a format that your financial software can understand. If all else fails, call up your bank and ask them to help you. If they refuse, and it is really important to you, you might consider opening an account at an Internet bank, where they will be much more understanding towards these kinds of requests. You might also want to complain to the company that makes the financial software, as they may be able to persuade (or even help) the bank to do something about the problem.

On Banks

Copyright 2006 Geoff Gannon Superficially, banking appears to be a commodity business. In fact, it appears to be a particularly poor commodity business, because capacity is not constrained by the need to invest in a substantial physical infrastructure. True, whatever investments are made in tangible assets are usually intended as a means to acquire more intangible assets; however, a branch is hardly comparable to an oil well. A bank’s ability to lend money (and thus produce income) is not completely and inextricably linked to the size of its deposits. In other words, loans are the result of both a bank’s capacity to lend money and its willingness to lend money. It’s hard to find a parallel in tangible commodity businesses. Theoretically, this should make little difference in the long run. However, the lack of physical supply constraints in the market for loans creates the possibility for large, industry-wide mistakes. Pricing in such an industry can get very weak at times. There’s one catch here. The underlying assumption whenever the commodity business label is used is that both the demand for a product and the supply of that product are general in nature. They can’t be specific, because that would destroy the involuntary nature of pricing within the industry. For example, if all pineapples were unbranded, identically tasting fruits the demand side of the business would meet the requirement for a commodity business. However, if most pineapples take eighteen months to grow, but there is one magical plantation where the fruit develops fully in just three months, the supply side of the business does not meet the requirement for a true commodity business. The magical pineapple plantation would produce six times as much fruit per acre and thus the plantation owner would be able to undercut his competitor’s prices. He would earn extraordinary profits, because the return on capital in his business would be much higher than that of the industry as a whole. What does this fairy tale have to do with banking? It suggests extraordinary profits can come from having “sticky” customers or lower costs. The lower costs needn’t be the result of lower marginal inputs. The magical pineapple plantation turned the crop over faster; it didn’t need access to below market prices for any of its inputs. The same is true of a grocery store. Two stores that buy and sell cans of soup at the same exact prices may have very different returns on capital, if one of the stores turns over its inventory more quickly, because the fixed costs will be spread over a larger number of sales. How does this relate to banking? While a quick turnover (or some other form of operational efficiency) is the most common reason for one firm’s unusual profitability in a commodity type business, there are other ways to earn extraordinary profits. Some of them are conceptually quite similar to the idea of owning a magical, one of a kind pineapple plantation. In such situations, the product appears the same to the consumer; but, the producer is actually unique (or at the very least special). All of this helps to explain why some banks are more profitable than others. However, it doesn’t address the question posed by Morningstar. So, do all banks have moats? Before answering that question, it might be best to ask under what circumstances all banks could have moats. What could insulate an entire industry from the ravages of competition? This is the question I discussed in the podcast episode: “Nature of Competition”. Why can some industries support plenty of profitable players, while others merely support a handful, one, or none? Switching costs are one of the most commonly cited reasons for a wide moat. I think the matter is actually a lot more complicated than that. Financially prohibitive switching costs do create moats. However, most wide-moat companies don’t have truly prohibitive switching costs. What they do have is a situation in which it makes little sense to switch to a competitor and/or a tendency for their customers to not actively seek to learn more about competing products. Where the cost of a product is particularly small per cash outlay, consumers are usually apathetic about seeking out alternatives. The key here is that the amount has to seem very small to the buyer at the time the purchase is made. If you buy a cup (or two) of coffee every morning, it does not occur to you that you are spending hundreds or thousands of dollars a year on that coffee and that you could save a lot of money by buying the cheaper alternative. However, if you’re buying an appliance or piece of furniture the difference is immediately obvious and thus price is a major concern. Generally, if a product can be sold over and over again at a very low price per transaction, profits will be higher, because the buyer will not make much of an effort to compare prices. Likewise, if a customer is billed for a variety of different products or services each amounting to only a small charge, the customer’s price awareness will be lower than if the charges were combined and listed as a single item. Where price visibility, comparability, or immediacy is reduced, greater profitability becomes more likely. People are very sensitive to price differences between large, juxtaposed numbers. If tomorrow the federal government prohibited gas stations from posting their prices per gallon, drivers would begin to become less concerned about gas prices. There would be an uproar at first. But, over the years, gas prices would receive less and less news coverage and would fall off the list of consumer concerns. Obviously, a crude oil price quoted in dollars also contributes to price awareness. But, the point remains the same. Where prices are less visible, price competition is less fierce. Compounding is a great way to exploit a lack of price awareness. The differences between various interest rates always seem small when placed side by side. Over time, these differences become quite large. However, the fact that no large differences are clearly visible at the time a decision is made about where to bank helps to minimize price competition between banks. It also increases the relative importance of other aspects of banking like convenience and service. Usually, the cost to make a good impression is very low compared to the size of the assets that could result from attracting more deposits. On the other hand, the importance of making a good second and third impression is minimal. Once a depositor uses a particular bank, they are unlikely to visit competitors. When they need to do their banking, they will go directly to their own bank (or its website). This is very different from the environment found in most consumer businesses. Packaged goods companies have their products placed next to their competitor’s products on store shelves. Retail stores are usually clustered. Whether they are located in malls or in free standing buildings, it’s a safe bet the customer has to pass at least one competing retail outlet to shop at their favorite location. In most cases, the other location won’t compete in every category as the customer’s favorite store; but, it will offer at least some competing products. As a result, the shopper is offered the option of switching every time she makes the trip. When someone walks into a bank, it’s usually their own bank. They don’t have any use for other banks (after all, their money isn’t there). The cost of switching banks isn’t very high. However, the amount of active effort required to make the switch is substantial. Switching banks isn’t as easy as switching toothpaste. But, more importantly, the alternative isn’t as obvious in banking. We all know other banks exist. But, unless we have a reason to consider switching from our current bank, we don’t even bother to check out the competition. The result is a very narrow, very real moat.

Internet Banking - Are you online?

Internet banking has changed the way we manage our money forever. Instead of having to call the bank, go there or wait for a statement to find out how much money we’ve got or where it’s all gone, we can now just log on at the bank’s website and find out instantly. It’s a huge money and time saver, for both the customer and the bank. Yet Internet banking has had a bad press recently, primarily due to concerns about the security of accessing your bank accounts over the public Internet. Stories abound of hackers stealing account or card details and going on exotic shopping sprees, with the unsuspecting customer left to chase their bank for the money they lost. These fears have contributed to many people switching back to phone banking, for fear of becoming a victim of identity theft. Many fears of Internet banking are unfounded, however. The most common way fraudsters get account details is not by hacking the bank, but instead by sending out scattershot spam to millions of people telling them to click a link and enter their account details for some reason, in the hope that a few will. There’s always someone who knows little enough about how the web works to enter their details into an untrusted website, not even realising anything happened until the fraudsters drain their bank account. Very basic education can stop this threat in its tracks, however, and make your Internet banking experience almost 100% safe. The easiest piece of advice is not to click any link in an email that claims to be from your bank: instead, use your web browser and type in the address of the bank’s website yourself. Also, when you are asked for your account details and password, make sure to look at the address bar in your web browser, to check that you are looking at your bank’s website and not an impostor. If you’re still scared, remember that Internet banking fraud makes up a tiny percentage of all bank fraud. You’re much more likely to become a victim when you hand your credit card over in a restaurant than you are when you bank online. Just like any other kind of fraud, your bank should cover you for any money you lose, but it’s really very unlikely that it will ever happen.

Internet Banking - How Secure is it?

The biggest concern that people have when they start using Internet banking is security. The media is full of scare stories about foreign hackers breaking into thousands of bank accounts and draining out all the money, leaving some poor old couple missing their life savings. Many people have even been scared out of signing up for Internet banking at all by these kind of stories, thinking that it somehow puts them at risk. However, as long as you take the time to learn a little about the Internet, nothing could be further from the truth. Before we go any further, there is one thing that is absolutely the most important thing you can know about Internet banking security. It is this: there is absolutely no guarantee that emails are from who they say they’re from. E-mail was designed back before people were concerned about Internet security (that’s why you get so much spam), and if you know what you’re doing, it’s really very easy to make an email look like it came from absolutely anyone, anywhere. With this in mind, you should simply ignore any email that says it comes from your bank, and never click any links that the emails may contain. That’s the biggest risk out of the way, but there are still a few other things to watch out for. When you go to your bank’s website, make sure that you’ve really ended up at the right place by looking for the address in the address bar towards the top of the screen – it should be the address of your bank’s website, not anything strange. Also, make sure to look for the padlock icon in the bottom-right of your screen, as this tells you that your connection is secure. If you’re ever in doubt, close your web browser and start again, copying the bank’s website address carefully from a letter they sent you.

So why has Internet banking taken off in such a big way?

Internet banking is becoming more popular with each passing day. Fewer and fewer people are ever going to their banks, preferring instead to use the Internet to manage their money, check how much they have and pay bills. You can even pay in cheques by post, removing the reason most people go to banks. More and more banks are being established as ‘Internet banks’, working entirely online with no physical branches and customer service by email and telephone only, and many people report good experiences with these banks. So why has Internet banking taken off in such a big way? Most of the answer is to do with the adoption of broadband. Back in the days of dial-up, few people wanted to their banking on the Internet, feeling that if they had to dial then it was easier to just call the bank and not have to go through so many security checks. Since broadband came on the scene, though, more and more people have been able to check their bank account any time, both at home and at work, and have started to find the Internet to be the most convenient way of dealing with their bank account. As Internet banking saves the banks money on branches and staff, they have been keen to get as many people signed up for it as possible, sending out regular letters and trying to get people to sign up for it in the branch. They see it as a win-win situation: they make more profits, and the customers are happier at having quicker access to their accounts. Internet banks, even if they have few customers, are very profitable indeed, which allows them to offer higher interest rates to their customers than high street banks, enticing gradually more people to move away from ‘real world’ banking altogether.

How to get started with Internet Banking

The specific ins and outs of how your Internet banking will work vary depending on which bank you’re with. However, there are many things that banks do the same or very similarly, so it is worth taking a second to learn about how Internet banking works in general as well as reading the information your bank sends you.

To begin with, you have to register for Internet banking, if you didn’t do it when you set up your account. This is generally a matter of simply walking into your bank or phoning them and saying “I’d like to sign up for Internet banking”. They will then send you a series of letters with various PIN numbers and passwords (occasionally including a physical security device with a numeric keypad), along with instructions on how to use them to access your Internet banking.

Once you’re in, you should be presented with a list of your accounts (if you have more than one) or a list of your recent transactions. This allows you to quickly see the status of all your accounts and what has happened to them recently. From here, you can access pages where you can make various kinds of one-off payments, and set up or cancel regular payments.

To make a one-off payment, such as a bill payment or sending money to someone else’s account, you will need the person or company’s bank account number – some banks will have a list of utility bills already built in to the website. Simply type in this information on the payment screen, together with the amount, and click ‘pay’. The money should reach the other account within 2-3 working days.

Setting up regular payments is a little more complicated. Again, you need the numbers and amounts, but you also need to know the start date, end date, and how often you want the payment to be made. Be careful of exactly when you set your payments to leave your account, as the bank will often charge you a large fee if there is no money in the account when the payment is scheduled to be made.

Don't Bother With The Banker

Bankers are seeing less and less new faces at their desk every day. The Internet has taken their clients and provided them with cheaper, easier and more convenient ways to get the money they need. As generations continue to march on, traditional lending companies are being forced to provide newer outlets to get younger people’s business.

Unfortunately, with the lightning-fast expanse of the Internet, they’re failing.

No longer is it required of anyone to trudge down to their local bank to borrow money. Now anyone with access to a computer can apply for loans online. Since most public libraries offer free use of Internet-connected PC’s, nearly the entire world has Internet access.

What’s so great about applying for a loan online? Well, first, privacy. Internet browsing is now more secure than ever, with most websites offering highly encrypted loan applications. Server technology can now decode your personal data after it arrives on the loan company’s machine. These machines, which are only accessible by security-clearance holding individuals, are top of the line, secure, and hack-proof. Your data is safe.

Another great reason people are applying online for loans instead of visiting the banker is the immense amount of information available online. No matter what your question, you can find an honest and sometimes highly valuable answer that can save you money, whereas your banker can’t know it all. Even if he’s highly capable of providing answers, he can’t get them all.

Thirdly: accountability. Online lenders have to provide their potential customers with a large amount of information in order to ‘get the sale’. If they provide bad service, you can bet that Internet users will post that information online. A simple search for a lender can show you if people are happy with their service, or dissatisfied with it. Lenders go out of their way to make their customers happy, and once again that means better service and quality than any banker.

And probably the most important reason why people submit their loan applications online is the sheer amount of options. Online lending companies have to be greatly competitive – which translates into huge savings for people who take the time to look around for the best deals. There are so many online lenders that they are simply forced to provide a high level of service, or people will just not use them.

Online lending has taken huge strides to improve their image, and customers are responding. Borrowing large amounts of cash from an online company is a hugely growing trend. Bankers are not seeing as many faces because they are just overwhelmed with the amount of quality competition on the Internet. Between the advance security, vulnerability and accountability of online lenders, banks just cant keep up.

Continuing Professional Development (CPD) from cpdwise.com

As the business world gets more and more competitive, many professionals are compelled to spend a higher percentage of their time pursuing the daily tasks of their job or profession rather than adding relevant knowledge and skills for the future. Attendance at educational courses, or even half-day seminars, has become prohibitively expensive, not in monetary terms, but in terms of time lost at the desk or with clients. e-learning has evolved as a self-paced educational tool in a bid to use the time available to the busy professional in the most efficient way.

Self-paced online learning is the most relevant and important method available to professionals pursuing the objective of continuing professional development (CPD). However, many e-learning courses on offer take eons to complete and get certified. cpdwise.com, easily the best amongst the current career oriented e-learning portals, offers short and to the point e-learning courses. With modular learning and no fuss procedures, they do not take up too much valuable time. Imparting relevant knowledge through the multimedia route, cpdwise.com’s interactive courses are compiled in an absorbing and pertinent style.

While learning at cpdwise.com is a pleasant and informative experience, enrolling is child’s play. Payment is accepted in Euro, US dollars and Sterling, via credit card or Paypal. Payments are processed online so access to the course material is immediate. cpdwise.com offers courses in a wide range of domains from financial markets and business skills. These genres are the most competitive in any job market across the globe and the completion of cutting edge CPD sets a professional a breed apart.

CPD courses purchased from cpdwise.com are valid for one year giving the learner ample time to complete the course or revise and refresh their knowledge. Course layout is clear and intuitive. Modular and flowing, each course has been designed by professionals from relevant industries, ensuring the content is appropriate and geared towards advancing a professional career. With key concept testing after every chapter and a short test after each module, cpdwise.com’s course design ensures that you understand the finer points and key concepts covered.

Continuing Professional Development is a requirement for many professionals across the span of their whole career. All relevant cpdwise.com courses are structured to meet the CPD guidelines of professional bodies such as ACCA, ICAEW, ICAI (Ireland), ICAS, CPA, ICAS and CIMA. With courses ranging across subject areas such as accounting, budgeting, investment, financial management and analysis, risk management, money laundering, commodities, project management, sales and business skills, cpdwise.com is focused on making the progressive professional the first among equals.

Opting for an e-learning course from cpdwise.com will benefit a professional through self-paced, to-the-point learning as per the CPD guidelines of accredited agencies or bodies, effectively driving your career ahead of the competition, whether in practice, financial services or industry.

Choosing A High Interest Savings Account

It's always prudent to save for a rainy day, and many people with spare cash available prefer the security of placing it in a savings account to the more risky but potentially more profitable choice of other investments such as the stockmarket. Choosing a savings account would at first glance seem to be as simple as going for the one with the highest interest rate, but there are several other factors to take into account too.

The first choice to make is between opening an account with a high street bank, or going direct. High street banks give you the advantage of being able to manage your account with face to face contact with real people, and the ability to deposit cash and cheques easily. However, they have not historically offered the most competitive rates of interest, although this is changing slowly.

Direct savings accounts are operated solely online, by telephone, and by post with no possibility of visiting a bank branch to conduct business. This means they are cheaper to run for the banks, with less admin and staff costs, and so in turn they are willing to offer more attractive interest rates. Indeed, when internet direct savings accounts first appeared, some of them offered ten times the interest of a typical branch-based account, although the gap has narrowed considerably over the years.

The next choice to make is which type of savings account to go for. Amongst all the other options and features available, there are two basic kinds of account: regular savings, and deposit savings. With a regular saver account, you commit to depositing a fixed amount every month for a certain period, often a year. Most accounts will let you pay in more than this if you are able to, but if you fall below the minimum amount in a month you will likely forfeit interest payments for that month. With a deposit account there are no such restrictions - you can put in as much or as little as you want, whenever you want. On the whole, a regular saver account will offer better interest rates at the price of less flexibility.

Another factor that will affect the rate of interest you can earn is the level of access to your money you need. Basically, you can either choose a fully flexible acount which lets you deposit and withdraw funds whenever you want with no charges or penalty, or a more restricted access account which might require 30, 60, or 90 days notice before withdrawals can be made without incurring an interest penalty. Some accounts go further, locking your money in for a period of years, but these accounts are more like bonds than savings accounts, and are outside the scope of this article.

In general, you pay a price for flexibility, and so accounts with more access restrictions will pay a better rate, and so are perhaps more suited to long term investments than simply serving as a way of earning interest on spare cash that might still be needed at some point.

The other main aspect to consider is how the interest is paid. Most accounts will pay your interest in one instalment, once each year. Some, however, will credit your interest on a monthly basis, opening up the possibility of earning compound interest (i.e. where you earn interest on your previously earned interest). Nothing in the financial world is free though, so once again the flexibility of more frequent interest payments will be paid for with a lower rate.

As we have seen, there is more to choosing a savings account than simply comparing basic interest rates. Of course, you want to earn as much interest as possible, but locking yourself into an unsuitable account might not be the best use of your money.

Children's Bank Accounts - Planning Your Family's Future

Everybody wants to give their children the best possible start in life, and make their future as secure as possible. Two ways of helping them, money-wise, are by encouraging them to save with their own bank account, and by making investments on their behalf.

Children’s Accounts

Most high street banks offer children’s accounts, usually a straightforward bank account with a moderate interest rate. These often come with incentives like free piggy banks that are intended to help children develop a sense of responsibility and prudence about money from an early age. You may like to give your child a financial education by opening them their ‘own’ account – though there’s nothing to stop you using a normal adult account with better rates of interest.

National Savings

The Children’s Bonus Bonds are a tax-free savings account specifically aimed at children. You can invest between £25 and £3000 a year for five years and get guaranteed interest, plus a bonus. Many people choose to give Premium Bonds as gifts for children’s birthdays. If they win, it could give them the best present ever!

Child Trust Bonds

The government have introduced a special scheme to give children a savings account from the very beginning. Any child born after 1st September 2002 is entitled to a voucher worth £250 to be invested in a savings account. Visit www.childtrustfund.gov.uk for details.

It’s a good idea to invest for your children’s’ education as early as possible – whether that means private school fees or supporting them when they go into higher education. Long term investments, such as bonds with a ten year term, are a good choice for this purpose.

Children are taxed in the same way as adults, and have their own personal tax allowances. If you give money or assets to your own child and it produces an income of £100 or over, the income is counted as yours and taxed at your top rate. You can avoid this rule by choosing investments with tax free returns or capital gains, rather than income.

If people other than parents give gifts then the income counts as the child’s own, and in this case it’s a good idea to ask grandparents or relatives to send a letter or card with any money gifts. That way you have proof of whom the money came from in case the tax office demands it. For a detailed explanation of children’s tax issues, look up the Inland Revenue’s website at www.hmrc.gov.uk

Chase Online Banking

Chase online banking is a small business’s most useful financial resource. Most small businesses start with a great idea. The person behind the idea feels confident that the idea is sound and that there’s a demand. He or she then sets out to turn the idea into the latest must-have craze. What many small business owners don’t know a lot about is how to handle the company’s finances. That’s where Chase online banking can help.

Small business owners who enroll in Chase online banking have access to a number of useful features to help them better manage their businesses. The biggest benefit is the ability to log in to any account that is linked to the business (even personal and investment accounts!) at any time, day or night, seven days a week. While certainly useful, managing account balances is just one of many things small business owners can do while online.

They can also view transactions as far back as 90 days or check to see which checks have cleared and which have not. They can pay bills online which is faster and less expensive than manual methods. Knowing that online checks and deposit slips can be printed anytime they’re needed removes one of the fears that people have about Chase online banking.

Small business owners can request to be notified via email, voice mail and even by text message anytime a change takes place in any of the accounts being monitored. They can order checks, wire money, and transfer funds and so much more.

Chase online banking also enables small business owners to download monthly statements straight into the popular small business accounting software packages, which makes the daunting tasks associated with accounting much easier to handle. They can use Chase online banking to set up direct deposit for themselves and their employees and that’s a nice benefit to offer when trying to attract valuable employees. There’s even more and it’s all explained on the online banking demo so take a look today!

On Valley National Bancorp

Valley National Bancorp (VLY) is a conservative bank with a strong position in northern New Jersey and a presence in Manhattan. The bank, founded in 1927, has about $12 billion in assets. Valley has consistently earned extraordinary returns on assets and equity. Over the last twenty years, Valley has averaged a 1.74% return on assets and a 21.12% return on equity. Valley’s worst two-year performance occurred in 1990 and 1991. During that period, Valley’s return on equity dropped as low as 14.54% and its ROA dropped as low as 1.29%. Even in Valley’s worst year (1991), the company still managed to roughly match the average long-term performance of most of its peers. In other words, Valley’s worst year was a close to typical year for many other banks. It was at this low-point in 1991 that the board of directors decided not to increase the cash dividend. That was the only year in the last 37 that Valley did not increase its dividend. The company has 79 consecutive years of profitable operations. That’s over 300 quarters (Valley has yet to post a quarterly loss). More importantly, Valley has a record of earning great returns on both assets and equity over long periods of time. So, what’s the company’s secret? Location Northern New Jersey is about the best place in the world to situate a bank. This isn’t hyperbole; if there’s a better location, I’ve yet to hear of it. As you know, American banks are unusually profitable. The market is large and highly fragmented. So, naturally the best place to situate a bank would be in the United States. But, why north Jersey in particular? In a September 20th, 2001 interview with The Wall Street Transcript, Valley’s chairman, Gerald Lipkin explained why northern New Jersey is such an attractive market: "Northern New Jersey is the single most densely populated area on earth. There are more people per square mile in northern New Jersey than there are in India, China, Japan or anyplace else. We have the highest median family income in the United States in that area. So, we serve a very densely populated and affluent area, which is not dominated by any single industry." Focus Valley maintains a narrow focus both in terms of geography and services. The company’s offices are kept within one hour of the bank’s headquarters in Wayne, NJ. In the same interview, Mr. Lipkin explained why this geographic concentration is important: “We like to make it very convenient for our client base to meet with senior management as well as the other members of our staff." Valley focuses on relationship banking. The company has residency requirements for its directors. The majority of directors are to live within 100 miles of the corporate headquarters. Furthermore, each board member is required to use Valley for both business and personal accounts. Theoretically, these two requirements ensure board members are familiar with the bank’s services and are best able to understand the needs of local businesses. Discipline Valley has a history of highly disciplined lending. Charge-offs are immaterial. Current reserves are adequate to cover many years of future charge-offs with little difficulty. The company’s asset quality ratios and loan to value ratios both indicate Valley has a more conservative approach to lending than many of its peers. Undoubtedly, the local economy is helpful in this regard. Valley does not need to make questionable loans, because there is an abundance of opportunity in the local area. It is possible for the bank to remain fairly selective without forfeiting growth entirely. For instance, despite having $12 billion in assets, Valley only has about a 6% market share in northern New Jersey. Management Banking, like insurance, is a business where a particularly good or particularly poor management can greatly affect long-term results. The current Chairman, President, and CEO, Gerald Lipkin, has served for just over thirty years now. His record is unblemished. Of course, the real responsibility for avoiding mistakes lies with others in the organization. There are few businesses where individual employees can do as much harm as they can within a bank. Valley’s past record and the level of experience of its top managers suggests investors should encounter very few unpleasant surprises resulting from human error. Mr. Lipkin made his management philosophy quite clear with his concluding remarks in the aforementioned 2001 interview with The Wall Street Transcript: "We never bet the ranch – we never put the bank in harms way on any single issue that could really harm it. Lending money is a risk taking business. So, obviously we at times have problems, situations with individual loans, but we try to avoid concentrations that could create major problems." Valuation Valley National Bancorp is a solid, well-run bank operating in a geographic area with excellent economics. The company’s physical footprint and its existing relationships give it a narrow moat in a highly profitable (and increasingly competitive) region. Unfortunately, the company is trading at more than three times book. Three times book is a lot to pay for any bank. Valley’s future growth will likely be somewhat restrained by the company’s conservative approach. Therefore, dividends are going to make up a significant portion of an investor’s total returns. Conclusion Valley is a good bank. It has a real moat, albeit a narrow one. Competition is increasing within Valley’s territory. However, the company has been able to compete successfully with new entrants (who tend to take on far less profitable business). The stock isn’t cheap today, but there is one wrinkle worth keeping in mind. Valley is more dependent upon interest rate spreads than most banks. If the yield curve was to become significantly steeper, Valley would reap outsized rewards. The current dividend yield on a share of Valley National Bancorp is a little less than 3.5%. Considering the company’s limited growth prospects, this is an unattractive yield. If, during a period of general uncertainty within the banking industry, shares of VLY were to trade closer to two times book, investors would have an opportunity to make a long-term commitment in a quality bank.

Business Banking - An Overview

Making a success of your business depends on planning and judgement. ‘The bottom line’ is all about managing your finances wisely, whether that means sourcing the funding you need to start up or keeping on top of your accounts.

Setting up or running a business calls for a separate account. Not only will this make your accounting a lot simpler, but also business accounts are tailored specifically to the needs of business clients. Many have a specialised team to deal with business accounts, and can offer help in the form of start up packs and individual advisers. Business accounts differ from personal accounts in that you will normally be charged for transactions – for making deposits and withdrawing funds, for example.

This guide gives you a broad overview of how to open and manage your business account, including:

1. Getting The Right Account For Your Business

How to choose and open your account – what factors to consider and what information you will need.

2. Finding The Finance You Need

Common ways to source funding to set up and run your business, including grants, borrowing, loans and overdrafts.

3. Keeping Your Accounts Healthy

Good practise for managing your account, including info on online banking and finding an accountant.

4. Professional Advice

How to find expert advice on accounting and tax issues. This section includes web addresses for professional bodies.

Having a good relationship with your bank will make a big difference to the success of your business, whether that means extra support when you’re setting up or negotiating an overdraft to smooth your cash flow. Bank business managers can provide a useful source of advice and support – it’s likely they have a good knowledge of the market as well as insight into businesses similar to yours. Based on your individual needs, they should be able to suggest ways to make your business banking more efficient, as well as offer practical solutions to make the most of your account.

As well as your banking contacts, there are a wealth of other sources of help and advice. The government runs several schemes to help businesses get off the ground and keep running – from enterprise loans to business mentors who can guide you through the early stages of your project. Starting a business is a real challenge, but with good planning and sound management, you could turn your dreams into reality!

Business Banking – Professional Advice

At the beginning, you will be offered plenty of advice and support to set up your business – enterprise schemes often run seminars and give out free software to help you manage your accounting, for example. Local mentoring schemes can provide a useful way to make contacts with other people who have set up in business and excellent chances to network.

When it comes to tax and accounting, however, you may want to enlist the help of specialists. Particularly if your business has a large turnover or complicated finances, using an accountant can make a world of difference. While some people are put off by the thought of paying fees to accountants, the costs involved can actually be relatively low, and often your tax bill can be significantly reduced. Taking on an accountant may save you money as well as a lot of hard work! Some offer additional services, such as advice and auditing that could help to make your business more profitable.

If you run a business you are legally required to keep records of certain things. For example, if you employ staff you will need to keep PAYE records, and VAT records if you are VAT registered. All businesses must submit a tax return every year – you can now do this online. If you have an annual turnover of over £5.6 million you are legally required to have an annual audit, which must be carried out by a qualified and registered auditor.

Choosing an accountant is a matter of knowing what you want from your relationship, and finding someone whom you trust to do the best job. While personal recommendations from family and friends are a frequent reason for choosing an accountant, you may also want to consider whether they have particular experience in your sector, how much the practice charges, and what additional services they may be able to offer you.

Qualified accountants must be registered with one of the professional bodies that regulate them:

The Institute of Chartered Accountants (in England and Wales, Scotland or Ireland respectively)
www.icaew.co.uk
The Association of Chartered Accountants
www.accaglobal.com
Chartered Institute of Management Accountants
www.cimaglobal.com

Tax is an immensely complicated subject, but the Inland Revenue do attempt to make it as easy as possible to understand the basics. They offer a starter pack for new businesses, and a helpline for the newly self-employed. Check www.hmrc.gov.uk for full details.

Business Banking – Getting The Right Account For Your Business

While many people turn to their usual bank when opening a business account, it’s advisable to shop around. There can be some advantages to using the same bank for personal and business accounts – your manager may be more supportive if you are known to the bank and have a sound financial track record. However, each bank offers different services and has different bank charges.

Many banks are currently offering free business banking for a set period – six months or a year – as an incentive. There are also a variety of support packages, such as free business software and dedicated advisers to help with your business plan. Choose a bank that will give the best all round deal for your particular business – you may also want to consider corporate ethos and ethical banking when deciding which bank to take your business to.

Choosing Your Accounts

Depending on your business type and size, you may need different accounts. If you are likely to be making frequent transactions, for example, you may be better off with an account that charges a fixed monthly fee, rather than a fee per transaction. If you need to process debit and credit card payments, you will need a merchant account.

For overseas trading, you may want a foreign currency account. As with personal accounts, it may be worthwhile to hold more than one type of account – for example, a current account for day-to-day banking and a deposit account for investing profits. There’s nothing to stop you having different accounts with different banks – although you might get a better deal if you hold all your accounts with one.

Opening Your Account

You will need to set up a meeting with a business advisor to open an account. In order to prevent money laundering, you will need to provide certain information at this point – including proof of identity such as driving license or passport, plus proof of your address and signature. The advisor will want to see a business plan and details of your financial planning. There are many schemes that offer help with putting together a business plan. Make sure you have as detailed a plan as possible when presenting it to your advisor – this will help him or her to offer the best services for your needs.
You will also need an account opening mandate – the bank will provide this.

For limited companies you will need a certificate of incorporation.

E-Banks that Accept US Casino Players

Recently, the US Federal government banned online casinos from operating in America by making it illegal to transfer money to them through any US bank or payment system. As a result of this law, most of the popular online casino networks such as Party Gaming and PlayTech left the United States. Overnight, online casino players found themselves being chased by the Federal government.

But, after a fortnight, the online casino industry came up with a solution and new online casinos started taking root. These began to operate under a different business umbrella, and by doing that, rendered the transfer of money to and from them legal. A major part of this was enlisting electronic banking systems that would accept this new clarification and start doing business with me. Listed in this article are the electronic banking systems that accept players from the United States that wish to play in online casinos.

The Payment Systems You Can Use:
1, 2) MasterCard and Visa:
The most popular credit cards in the world, you can use these for depositing money into your casino account. But, please note that the casinos do not deposit your winning through your credit card. They use one of the other electronic payment systems. This is also the biggest reason why you should refrain from using your personal credit cards today for gambling.

3, 4) Visa Delta, Visa Electron:
These are debit cards that one can use to deposit cash into their casino account. By debit card, it means that the money you pay through the card, is immediately withdrawn from your bank account. This is a comfortable option, but here too, you cannot receive money into it.

5) Neteller:
Based in the UK and traded on the London AIM Stock Exchange, this e-bank company is one of the major independent electronic banking entities in the world, and it allows players to transfer money to and from an online casino.

6) Neteller Instacash
This is Neteller's version of the Debit Card, and, in fact, it is just like any other debit card with one difference. To use, InstaCash, you have to pay a small amount. But, most casinos will offer to pay this for you, so read their regulations.

7) EcoCard
Based in the European Union, EcoCard offers a wider range of electronic banking solutions than the other e-banks. Other than the regular card and debit system, you can decide beforehand how to create a flexible financial account. Because they use a wide network of banks in Europe, transactions made through EcoCard are quick and efficient.

8) FirePay
This e-banking system is solely web-based and carries out its transactions just like a debit card. You place cash into your FirePay account, and then, you can use that money to pay or deposit into your casino account. While it will not cost you a dime to open an account, you will be charged a minimal amount each time you transfer money from your bank account to FirePay.

9) Moneybookers
All you need to open an account is an email address! This e-banking system uses transactions from your credit or debit card or your bank account to whichever company you wish to move your money to. Regulated in the UK and run by Gatcombe Park Ventures Limited, this is one of the relatively new e-finance companies that allow transferring money to online casinos.

10) eWalletXpress:
Owned and run by Navaho Networks Inc, eWalletXpress is a new electronic payment system that has been created to answer the need for US players to transfer funds to online casinos.

11) 900Pay:
This is a completely different e-banking system. Instead of charging your bank account or your credit card, 900Pay charges your telephone bill for all your financial transactions. This is one of the fastest methods of electronic payment because you do not have to go through a long and detailed sign up process. And, if you were wondering, this does work to fund your casino account.

Banking Online Has A Great Deal Of Advantages.

Online banking is one of the newest internet fad, with millions of users flocking to their personal computers to pay their bills online. With a variety of advantages, such as convenience and simplicity, it is no wonder that so many are enthralled by this current trend.

To pay bills through a virtual banking system, you need a personal computer, access to the world wide web, and in some occasions, software provided by your local bank. A broad percentage of the larger banks now offer completely functional internet banking free of charge, or for a small fee. The more progressive banking websites even give you the opportunity to view your different credit card accounts, inspect your brokerage accounts, and get stock quotes for free.

Small banks will allow you to see your account balance and history, but you will not be able to make payments. Making transactions and paying bills online can be virtually effortless. To begin, you will need to create an address book on your computer that lists all of the the companies that you will be paying. When you receive a virtual statement, select a payment amount and the date that you would like it to be paid.

Then, click; the rest is up to your bank. It is that simple. A positive aspect for most people is that a majority of payment programs will allow you to schedule to pay your bill in advance, according to the billing cycle. What does this mean for you? No more late payment charges!Banking online has a great deal of advantages. For one, banking websites are open 24 hours a day, seven days a week; they never close! Also, you have access to your banking account from anywhere in the world.

All you have to do is find a computer, the web, and click...you are banking. You never have to worry about security. You can be assured that online banking websites are furnished with secure servers. And almost any banking site can perform a transaction faster than your average ATM.

Virtual banking websites now allow you to manage a variety of your accounts such as securities and IRAs.With the advantages come the disadvantages. If you are not familiar with the internet or personal computer, navigating a banking website may be tricky at first. You must tutor yourself, and learn all of the basic aspects of the online banking system.

Another unsatisfactory detail is the time it takes to actually get your online banking account set up. You must first go to your local branch and supply identification and complete forms. Once this is completed, you are given a user id and password for the actual website. Then, you are finally ready to begin your adventure in the online banking world.

Internet Banking – The Pros And Cons

Only a few years ago the concept of online banking seemed like a dubious one – concerns about security and computer glitches were enough to put most people off. But with the continuing success of flagship companies like Cahoot, Egg and Smile, more and more of us are choosing to do business over the net. Sophisticated technology means that your information is well protected, and an online account offers several advantages over traditional banking.


Anytime, anywhere

The convenience of being able to log on and carry out transactions at any hour of the day or night could be a welcome alternative to visiting the bank on your lunch hour. No queues and no bank holidays mean the customer has even more control over their finances. Plus, your account information is displayed as a clear overview – no more riffling through mountains of old bank statements to find the info you’re looking for.

Get higher

Because online banks don’t have the overheads of running branches, they can pass on the savings to the customer, and offer better rates of interest on your money. Not only do they offer substantially more interest on your current account but there are also loans available with very low APRs that will save you money in the long run.

Safe and secure

Some experts consider internet banking to be even more secure than traditional methods – you won’t have pieces of paper with sensitive information lying around, and there’s no danger of your business being overheard by other bank customers. Check that the site is secure whenever conducting business online, never send passwords or account information in emails, and be sure to log out when you’ve finished your session

The downside?

In the past there have been a few cases of computer glitches revealing customers’ personal information, but these have been relatively minor and as internet banking becomes more popular, systems are likely to become more secure than ever. Technophobes probably won’t enjoy banking online. You do need to make sure your computer’s security system is sound, and that you have privacy for your session. Some people may miss the face-to-face contact of their local branch, and most will choose a combination of online banking, phone banking and branch visits. As internet banking becomes more established, it’s likely most of us will end up conducting at least a proportion of our business online, and you could find switching on to the new banks well worthwhile.