3 Basic Characteristics of Deposit Product

Minggu, 22 Desember 2013

By Rinto Halawa 

To discuss the bank and its products, looks weird if we do not discuss fix deposit products. This most reliable bank's product is not separated from the life of our investment. Almost everyone associated with the banking surely recognize this product. Few years ago when the investment product has not as many as now, bank deposit product is a main investment tool of almost every person to optimize their funds or financial life.
Now the the question is whether we still eligible to invest in deposits? with all its more or less, what is the proper strategy used in investing in the deposit?
Basically, investing is always associated with the financial goal to achieve in particular. Each person has certain goals will be easier to determine which vehicles will be used to reach it. Deposits is essentially the investment vehicle. So, if we know the objective, then do not be afraid selecting deposit as your investment tool.
Let's find out the characteristic of bank's deposit product:
1. Risk
In some countries, deposit usually could be the only investment product that has kind of government guarantee through institution of savings. The other guarantee given is nominal placement guaranteed same as you disbursement. Many products give high results, but not necessarily guarantee a nominal amount will be the same as first placement, especially when melted before a period of time expires.
2. Liquidity
In particular, a lack of deposit is because having a period of time to disbursement or cashing the money invested before. However during the time being, this product has been modified into a product that can be cashed in a matter of time shorter. Ranging from 'deposits on call' that can be cashed out in a matter of 3 - 14 days, until the product can be cashed each time. Moreover this process done in just in hours or even minutes.
It is true that stocks also can be cashed at any time accordance your wishes, but we must be ready of the risk occurred. The nominal value can be lower than the placement. Property investment also can ensure higher returns from the initial placement, but is is after running more than 5 years.
3. Result
Talking of results, deposit may not given higher result than other any aggressive investment product. However, at this time a lot of deposits (banks) that are 'brave' is published with a higher interest rate of guarantee, for example a foreign banks determine the interest rate up to 12% per year. If we believe in the management of the bank, the strength of capital and assets held, why do not we brave? Because the government bonds also have no written government guarantee beside we believe the government will not be broken a promise.

Security Safe For the Home VS Bank Deposit Box

By Trisha L. Wagner (p)

Most middle-class home owners probably don't consider themselves to be rich. However, a quick inventory of the family home or apartment usually produces easily stolen valuables such as:

• Jewellery - including heirloom pieces.
• Collectibles - stamps, coins etc.
• Silverware - especially small items like cutlery and serviette rings.
• Medals, possibly from past generations.
• Gemstones - for a special gift occasion
• Securities, title deeds, wills etc.
• Family records - birth, marriage and death certificates (targets for identity fraud)

While these items are usually insured in case of loss, most people want to avoid the loss altogether, as the real value to the owners are the memories attached to them.
Home Safe
A home owner looking to protect valuables would enquire about home safes - their cost, security level, methods of installation and placement. Of course, the more valuables to be stored, the bigger the safe required, which increases the cost and difficulty of suitably locating it.
Safe Deposit Box
This is a rental service provided by most banks and financial institutions. It protects privacy as no-one, not even bank officials, knows the contents except the person who signs the rental contract. The deposit box is stored in a concrete or steel safe or vault protected by sophisticated alarm systems and security procedures.
Things to Consider When Making a Choice
Some questions to ask when deciding between a security safe for the home and a safe deposit box:

• What is the most secure in case of fire or natural disaster?
• If I need to get my valuables quickly, what is the most convenient?
• What happens to my deposit box if the bank goes bust?
• Is my deposit box automatically insured by the bank?
• Does having a home safe make my house a target for thieves?
• What would my insurance company prefer me to do?
• If I pay my rental fees on a deposit box, does this guarantee I won't get robbed?
• What if I can't access my deposit box through e.g. illness or incapacity? How can my family get access?

The prudent home owner considers all scenarios before making any decision, but there are several issues that could be considered drawbacks to having a safe deposit box:

• Inconvenience - unable to access the contents quickly, especially over a weekend.
• Not insured - the box is a storage space provided as a service, and not insured by the bank.
• Not guaranteed - robbery or damage in a natural disaster, while unlikely, is still possible.
• Paying twice - keeping things that don't need quick access in a deposit box, and other valuables in a home safe, increases the cost.

Home security safes meet stringent quality standards, are relatively inexpensive depending on size, and installation can be arranged by reputable and experienced people. It is hard to beat the convenience of having your valuables close at hand in a secure environment for a "once-only" cost, and all of it properly insured through your broker.

Is Buying Via Bank Deposit Safe?

By Joseph Paul Caparas(e)

Buying via bank deposit is safer than buying through other modes of payment. If you choose to pay for your goods by sending funds through a bank, you are guaranteed that your payment will be sent. Also, by buying via bank deposit, you get to have a proof or an evidence that you have really send the money. You will be given a slip by the bank, proving that you have actually completed a transaction. In addition, you will be assured that you are paying an actual merchant and not some fraudster. Of course, the merchant has to disclose his personal information to the bank before he can open a savings account. Hence, you will be sure that his identity is authentic.
Anyway, a new form of banking is gaining popularity lately. It is known as Internet banking. A lot of people are opening online bank accounts because they get flexible offers and free services such as free account checking. If you realize that buying via bank deposit online is your thing, then you got yourself a great deal. You will not even need to change banks when you move to a new city. You will also be able to pay your bills with just a few clicks of the mouse. Buying via bank deposit online also lets you send funds to merchants in just a few minutes. Everything will literally be just a click away.
Buying via bank deposit online is indeed very convenient. Opening up an account is easy too. Once you have sent your order to the merchant, all you have to do is log in to your online account and transfer funds. This will save you time and energy. You will not need to go out and drive to your local bank. You will even be able to save money because there will not be any transportation costs. You can complete the transaction right in your own home, in front of your personal computer. Buying via bank deposit online is really very simple.
Nonetheless, when buying via bank deposit online, you always have to request for deposit slips upon paying. Then, make sure that you fill in the deposit slips completely. Include all pertinent details. Once everything is ready, you can send in your funds. Buying via bank deposit also helps you avoid thieves. Obviously, you will not need to go to the offline bank and risk being robbed. If your mobile phone supports mobile banking, you can even pay for your goods through it. Imagine carrying a very tiny device. You just need to key in the necessary information and you are good to go. Buying through this kind of system is really good.

Make Bank Deposits to Grow Massively

Selasa, 17 Desember 2013

By Alice Erin 

People should not let their money be stored in the banks which do not even pay good interest to their money. They need to look for those banks which offer attractive savings and current account interest rate. Such banks always provide many benefits which are profitable for people.
Banks are the most important financial institutions which keep money in safe. If there were no banks, then what would have happened to people's money? The answer to this question would be an assumption but surely would point out a disadvantage for the further growth of money. This is because banks not only take care of money but they also pay good interest for the money deposited.
Suddenly, people have started taking great interest in banks deposits. The reason why these people have suddenly started taking great interest in banks deposits is because most of the banks have renewed their savings and current account interest rates. People are getting huge interest on their deposits.
Different banks offer different interest rates on money deposits with them. The kinds of interest rates offered on high interest saving accounts and current accounts differ from banks to banks. So, people should always deposit their money with a bank which is well-known for offering lump sum benefits.
It is known to all people that savings accounts give them more interest than that of current accounts. Both of them give different benefits to different people depending upon their uses. A Savings account is basically meant for those people who would like to get more interest on their saved money. On the other hand, current accounts are specifically meant for people who are into businesses and often need the deposited money for investment purpose or for their urgent business requirements. One thing has to be noted that the current account interest rate is lower than that of savings account.
Whoever is interested in making more money for them can use the savings bank accounts. For businessmen, current accounts should be given preference. If people deposit money for a long term period, then they would definitely get more added money to the amount deposited initially. In this case, high interest savings accounts are the most suitable accounts. Depositing money in a savings account for year or two would definitely earn more money.
There are many banks which offer attractive current account interest rate although businessmen withdraw money frequently. How is it possible to get attractive interest rates if business doing people often withdraw money from their current accounts? Yes, it is surely possible to get attractive interest rates, if these people maintain the minimum balance stated by the respective banks.
How do people come to know about various interest rates offered by various banks? It is quite easy to find out. This is the most advanced age in which people are living in. This is the age of internet technology or the age of World Wide Web. Prospective banking customers, interested to know kinds of interest rates given by various banks, can visit the websites of respective banks or financial institutions. These websites contain all kinds of information regarding savings as well as current interest rate.
Is it possible to withdraw money from current account from any ATMs at any time? Yes, people can withdraw money at any time from any ATMs from their current accounts. However, there are certain things which has to be kept in mind. If a businessmen has signed an agreement with his bank to maintain a minimum balance, then he cannot withdraw this minimum balance without the consent of the bank. In case, people withdraw this minimum balance before the time-period is completed, then these people would be deprived of interests. Hence, current account interest rate suits all businessmen.