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Archive for the ‘Banking’ Category

In the UK, many banks and building societies are attempting to capture a sizeable percentage  of the online banking market share. And it seems that the UK consumers are benefiting from  this competition most. Online banking in the UK is getting big; there is no doubt about it: 6.5  million consumers are online banking customers. And that figure is projected to rise every  year–not because of bank closures–because of the ease that online banking offers. Everyone  can say that it is easy and some people may still be dubious about that. But to anyone who is an  online banking customer, they will know just how easy and simple it is.

Before choosing an online bank to open an account study carefully what services the bank  allows you to do online. Also check the accessibility of talking to a live person. Make sure the  banks internet site allow you send secure emails.

The UK, like any other country, has banks on every street corner. And these banks try to lure  new customers in with big bright signs: “apply now and get a 6.9% APR rate on your card!”  When you are on the Internet, these banks take the same approach. On their websites, there  are banners that banks use for advertising space because they recognize that so many people  are using online banking; and that they need to emphasize their competitive advantages to draw  customers over the Internet.

Some major U.K. banks have opened independent online banks such as Abbey National with  www.cahoot.com. There is also www.smile.co.uk the online bank of The Co-operative Bank.
Despite all of the advantages to online banking in the UK, not everything is perfect.
One in twenty consumers will fall victim to online fraud; and when they do, it will cost them big  time. The UK’s fraud cost last year was £58 million ($101 million), which is quite scary for  consumers looking to join an online bank. To be honest, it is safer to use a brick-and-mortar  bank; however, in order to keep this safety net, you must sacrifice convenience and flexibility.

If you decide to open an online banking account but are apprehensive about the security  issues, you should spend a considerable amount of time selecting a unique and hard-to-crack  password; and in addition to this, you should also use other values for your optional  information that is hard to determine.

Other Online Internet Banking Security Tips:

- Make sure your operating systems OS and browsers is updated with the latest upgrades  (patches).
- Use an anti-virus and anti-spyware programs update them and scan your pc at least once a  week.
- Install a personal firewall and learn to use it
- Always close your browser window after online banking and delete cookies.
- Change your passwords once a month.
- Never reply to emails asking for you to update your password or give your password. The  online banks will never ask for your password.
- Always type in the browser address bar the online banking url. Do not click on a link  especially in an email as this may take you to a scammer’s page.
- Never bank online from an internet café.

There is a common misconception that people who cannot store their unaccounted wealth in their own country open accounts in Swiss banks. Even though this may be true to an extent, Swiss banks are well known for their sophisticated and discreet banking services.

Many of the rich and famous like film stars, business entrepreneurs, top government officials, presidents, etc, are reputed to have Swiss bank accounts. Then again, it is also said one need not be a multi-millionaire to open a Swiss bank account.

Brief Background of the Swiss Banking System

One of the most prosperous and economically advanced nations, Switzerland has the world’s largest gross domestic product (GDP). There are nearly 400 banks in Switzerland, which range from the “Two Big Banks”, to smaller banks, serving single communities or selective clients. Considered as the world’s largest offshore financial center, the Swiss banking sector is renowned for its privacy, stability and protection of their customer’s information and assets. The Federal Banking Commission (FBC) regulates these banks.

Opening a Swiss Account

Often freely available, a Swiss bank account provides total confidentiality, strict privacy, and is tax-free. However, certain documents are required as proof to open a Swiss account. For example, people who are not residents of Switzerland need to furnish their passports, along with a passport size photograph. Depending on the profession, a current bank statement would be required to determine the client’s current financial condition. Along with this, certain personal information, like the date of birth, country of origin, etc., is also required.

A useful feature of Swiss banking is that it can also be done via correspondence as long as the customers follow bank rules and regulations. The bank and customer could interact through the Internet, telephone or snail mail.

However, a drawback of Swiss banking is that non-residents are expected to pay a hefty amount as deposit, and, the smaller accounts are more expensive to maintain. There is a clause especially for US citizens wherein they are expected to refrain from making any business transaction through their Swiss accounts, to keep their account privacy intact.

Deposit

A security deposit is needed in case the customer wants to obtain a credit card. Approximately 1.5 to 2 times the monthly credit limit is demanded, depending on the bank the customer chooses. This deposit is returned when the customer decides to discontinue the credit card, and has paid all outstanding bills.

Confidentiality

There are legends about mysterious numbered accounts in Swiss banks. Some high security bank accounts are given pseudonyms or special names instead of issuing them in the name of the customer, to preserve the anonymity of the customer. This number or name is used wherever the customer is referred. Moreover, even bank employees are expected to respect the customer’s privacy, the failure of which could land them in prison for several months.

However, Swiss banks, being very particular about preventing money laundering, crosscheck the authenticity of the information provided by the customer. If, during the scrutiny, the bank finds the information of a potential or existing customer connected to some criminal activity, a Swiss judge or prosecutor issues a lifting order. These investigations could include international criminal investigation for tax fraud, insider trading, or the infamous terrorist financing of recent times.

Closing of an Account

Despite a few negative notions about Swiss banking, closing an account is said to be easier than expected. No financial penalty is demanded, and neither is the money held hostage, like it is done in other off shore banking.

To conclude, the secrecy and discreet nature of Swiss banking makes them convenient and dependable. This not only helps customers to save money, but also is a viable means of attaining economic superiority in the business world and society as a whole.

If you are someone whose career and place of residence changes a lot, then you might want to keep your banking constant. One way to do this is by using offshore banking, which allows you to keep your money in one country, yet have access to it wherever you go. If you want to know more about offshore banking then this guide has some information that might be useful

Why get offshore banking?

Getting offshore banking can be useful if you are travelling around a lot and aren’t really located in one specific place. If you use an account from one country then you will find it harder to get your money out abroad, and might have to pay fees each time you want to carry a transfer or withdrawal. You might not even be able to access your account in some countries. Offshore banking can help you to have access to your accounts like you were in your home country wherever you are in the world.

Tax exemption

Another reason why offshore banking is popular is for tax exemption. If you have a large sum of money that you don’t want to pay tax on, then moving it to an offshore account might be useful. Of course, you need to make sure that you abide by the tax laws of your country, but there are legal ways to save yourself money through offshore banking

Benefits of offshore banking

Apart from the tax benefits, having your money offshore means that you have equal access to all of the world’s markets, and this makes it easier to invest in a diverse range of products and services.

Offshore banking features

You can use offshore banking simply as a savings account, or you can use it as your main means of banking. You can have a current account with a debit card, and even make investments and buy insurance and loans using your offshore bank. Most of the products and services that your standard bank can offer are available offshore, with the added bonus of being available around the world.

Risks

Offshore banking does use the law to its fullest, and so there are a number of risks associated with it. Firstly, if you don’t know what you are getting into then you could end up in legal trouble. Before signing up to offshore banking you need to consult a lawyer. Also, you need to deposit a large amount of money in order to get offshore banking, and that money could be at risk if anything happens in the country you opt for. You know that your money in your own country is insured, but if something happens offshore then you might be in trouble. Offshore banking does have some benefits, but make sure that you know the details of the system before proceeding. If you do this then offshore banking can help you save money and access your finances wherever you are in the world.