banking - Savings at Your Bank - 5 Ways to Cut Costs

It seems that no matter where you turn, banks are coming up with fees on top of fees, but that does not mean that you cannot save. The key to saving money at the bank is doing your homework. Does Your Bank Offer Incentive Programs? Banking is a competitive industry, and with people becoming more and more fed up, many banks are offering incentives to their customers. For example, Bank of America recently came out with a great little savings program called "Keep the Change". It works in conjunction with your checking account and debit card. Let's say you use your debit card and spend $2.31. Well, the bank would round this number up to $3.00 and the $.69 would be transferred from your checking to your savings account. It helps you save without any effort on your part, but you must remember that this occurs to avoid overdraft fees in your checking account. Plus, they match your "Keep the Change" savings at 100% for the first three months and 5% thereafter. You have got to admit that beats that paltry interest many other banks give you. Free money is always great, so take advantage of it. The point is that you should check to see what incentive programs your bank may offer. Check Ordering Never purchase checks directly from the bank. It is always going to be an expensive proposition. There are many companies out there that offer great deals on check orders, such as Check Gallery, Checks in the Mail, Checks Unlimited and many more. You can often pick up 200 checks for as little as $8 or $9. Just do some quick research online and you will be saving in no time. Credit Unions Credit Unions often charge much lower fees than standard banks. This may be an option you would like to explore, especially if there are conveniently located branches in your area. No Fee Checking Many banks offer some variation of this particular theme. If you qualify, by all means, sign up, but pay attention to the stipulations. Some banks will offer no fee checking if your paycheck is directly deposited into your account. This is a pretty good deal. Many banks also offer free checking to students. You may want to take advantage of this one, whether you are an undergrad or if you are pursuing post graduate studies. Some banks offer no fee checking if you maintain a savings account with a specific minimum balance, but charge if you go below this balance. Be careful with this one. The monthly fees are often higher than the fees on regular or basic checking accounts. So if you know that you will constantly dip into your savings, then this may not be such a great deal for you. ATM Fees Be sure to choose a bank that has lots of conveniently located ATMs if you visit the ATM frequently. Always try to use your bank's ATM to avoid the ridiculous fees you are charged for accessing your money from an out of network ATM. If you must use another bank's ATM, try to locate one with no surcharge. At least, in this way, you are not charged twice - once by that bank's ATM and once by your bank for using another bank's machine. There are countless ways of saving money at the bank if you really put your mind to it. So be a smart consumer and be sure to shop around when choosing your bank. If you would like to discover how to totally eliminate your debt and reclaim your finances, grab your debt reduction kit today. You will also receive a copy of our exclusive debt reduction software. You may include this article on your site or in your ezine as long as this information remains intact. Article Source:http://EzineArticles.com/?expert=Deirdre_Jones banking - Avoiding the Myths of Offshore Bank Accounts Offshore bank accounts may be touted as the solution to every legal, financial and asset protection strategy but the myth of the working of an offshore bank account are often much more exaggerated than the reality. That said, offshore bank accounts do have benefits for individuals and companies but before you go out to open an offshore bank account either for yourself or for your company you must not only be aware of the facts but of a lot of other ancillary issues as well. The first thing any individual should consider before rushing out to open an offshore bank account is their purpose of doing so. Read about offshore bank accounts and their benefits and look at your situation and see if you stand to benefit directly in your way of life and the nature of your business by opening one of these bank accounts. Opening an offshore bank account for the hell of it or just as a reason to crow to your friends is simply not worth it. Another issue of concern with the offshore bank account is the location in which the bank account is being opened. Make sure the individual or company which is helping you open the bank account is well informed about the legal factors that may concern you in the country where this account is being opened. Also make sure the country the bank account is being opened has a stable economy and not one that is bound to collapse and seize your money along with it. The third factor of concern about offshore bank accounts is the offshore bank itself. Individuals and companies should make sure that the bank they are about to maintain an account with has a history as well as a good reputation. Most offshore jurisdictions require low costs for people who wish to purchase banking licenses. This may result in unscrupulous individuals opening a bank without a reputation with the sole aim of taking advantage of unsuspecting customers.

banking - Avoiding the Myths of Offshore Bank Accounts

Offshore bank accounts may be touted as the solution to every legal, financial and asset protection strategy but the myth of the working of an offshore bank account are often much more exaggerated than the reality. That said, offshore bank accounts do have benefits for individuals and companies but before you go out to open an offshore bank account either for yourself or for your company you must not only be aware of the facts but of a lot of other ancillary issues as well. The first thing any individual should consider before rushing out to open an offshore bank account is their purpose of doing so. Read about offshore bank accounts and their benefits and look at your situation and see if you stand to benefit directly in your way of life and the nature of your business by opening one of these bank accounts. Opening an offshore bank account for the hell of it or just as a reason to crow to your friends is simply not worth it. Another issue of concern with the offshore bank account is the location in which the bank account is being opened. Make sure the individual or company which is helping you open the bank account is well informed about the legal factors that may concern you in the country where this account is being opened. Also make sure the country the bank account is being opened has a stable economy and not one that is bound to collapse and seize your money along with it. The third factor of concern about offshore bank accounts is the offshore bank itself. Individuals and companies should make sure that the bank they are about to maintain an account with has a history as well as a good reputation. Most offshore jurisdictions require low costs for people who wish to purchase banking licenses. This may result in unscrupulous individuals opening a bank without a reputation with the sole aim of taking advantage of unsuspecting customers. About offshoreXplorer.com: Established in 1999, privately held offshoreXplorer.com serves large and small organizations throughout North America, Europe and Asia with incorporation services, establishing offshore trusts, as well as creating offshore companies aimed at protecting assets to legally reducing annual taxes. The company's primary function is to provide businesses and individuals with the information they need about offshore jurisdictions and how these jurisdictions benefit their businesses legally and financially. Ron Z. Mendelson, Managing Partner at offshoreXplorer, is a leading expert in offshore asset protection and business strategies. His expertise covers various fields including: wealth protection, foreign asset protection, international business corporations, worldwide investing, global banking, offshore online gaming, and international e-commerce. Ron Z. Mendelson Managing Partner offshoreXplorer.com 1 888 249 9430 http://www.offshorexplorer.com Article Source:http://EzineArticles.com/?expert=Ron_Mendelson banking - ChexSystems Banking vs Consumers Today, more than 20 million US citizens are living without a bank account. The primary reason is due to ChexSystems' dominating presence within the consumer banking world. It is estimated that over 80% of all banks and credit unions in the United States, use ChexSystems to verify new customer accounts. Most individuals listed in the ChexSystems database were reported due to mishandling of their checking accounts, while the rest were attributed to abuse, fraud, or errors. Within recent years, many websites have sprung up on the internet offering help for people listed on ChexSystems. Services vary among these sites, ranging from free information to paid memberships. No matter where you turn, there are countless numbers of "victims" venting their frustrations through the use of public forums and message boards. Most of the frustrations shown by "victims" of ChexSystems seem justified, but even then there are always two sides to every story. Most "victims" feel that 5 years of being "blacklisted" is punishment beyond justification. And if reported in error, even worse a punishment. In addition, many have complained that the banks give no breaks when it comes to consumer mistakes, but are quick to cover up their mistakes when the banks are at fault. Banks, on the other hand, justify using ChexSystems to protect their assets. Either way you look at it, ChexSystems is a much needed organization in the banking industry. Without ChexSystems, banks would go bankrupt without this type of asset protection against con-artists and account abusers. The real question is how fair is the punishment for the consumers who innocently have fallen into tough financial situations, and as a result defaulted on their bank account. Is it fair to "blacklist" all consumers the same way regardless of their banking history? These are just a few of the questions that need answering before any proper reforms can be reached.

banking - ChexSystems Banking vs Consumers

Today, more than 20 million US citizens are living without a bank account. The primary reason is due to ChexSystems' dominating presence within the consumer banking world. It is estimated that over 80% of all banks and credit unions in the United States, use ChexSystems to verify new customer accounts. Most individuals listed in the ChexSystems database were reported due to mishandling of their checking accounts, while the rest were attributed to abuse, fraud, or errors. Within recent years, many websites have sprung up on the internet offering help for people listed on ChexSystems. Services vary among these sites, ranging from free information to paid memberships. No matter where you turn, there are countless numbers of "victims" venting their frustrations through the use of public forums and message boards. Most of the frustrations shown by "victims" of ChexSystems seem justified, but even then there are always two sides to every story. Most "victims" feel that 5 years of being "blacklisted" is punishment beyond justification. And if reported in error, even worse a punishment. In addition, many have complained that the banks give no breaks when it comes to consumer mistakes, but are quick to cover up their mistakes when the banks are at fault. Banks, on the other hand, justify using ChexSystems to protect their assets. Either way you look at it, ChexSystems is a much needed organization in the banking industry. Without ChexSystems, banks would go bankrupt without this type of asset protection against con-artists and account abusers. The real question is how fair is the punishment for the consumers who innocently have fallen into tough financial situations, and as a result defaulted on their bank account. Is it fair to "blacklist" all consumers the same way regardless of their banking history? These are just a few of the questions that need answering before any proper reforms can be reached. Steve Baik is a contributing editor for CreditServicer.com, a leading support site for people struggling with ChexSystems. Article Source:http://EzineArticles.com/?expert=Steve_Baik banking - Common Small Business Frauds & Suggested Controls Small businesses are the most vulnerable to some form of employee fraud as they usually place trust in one or two people and therefore have fewer accounting and other internal controls. The festive and holiday period is typically the time of year when many frauds occur as business owners often hand over control of various tasks to more junior or temporary staff and they become less careful about monitoring procedures. Statistically the most likely person to commit a fraud such as embezzling money is a long standing and trusted employee. Business owners can protect themselves by developing reliable accounting and other internal controls and constantly monitoring the effectiveness of these controls. The most common frauds that are committed by employees including some appropriate controls that should be put in place include: THEFT OF MONEY Frauds that involve money can be very costly for small businesses and in some cases can lead to the closure of the business. Examples include stealing cheques sent by debtors directly from the mail, forging an endorsement on a cheque, stealing cash from the till, and falsifying signatories and amounts on cheques issued by the business. Suggested Controls * Separation and rotation of duties between cash/cheque handling, preparing the banking records and recording in the general ledger. * Having at least two persons sign all cheques. * Performing regular bank reconciliations. * Regular observation of employees handling cash or receipting debtors. * Issuing pre-numbered receipts for all monies collected and recorded in the debtors ledger. This notifies the customer that their money has been received and recorded. * Daily banking of cash and cheques and prompt recording of transactions in the accounting records. ELECTRONIC BANKING FRAUD Electronic banking is used increasingly by businesses for payroll, supplier payments and transfers of funds between bank accounts. Whilst this is a more efficient way of dealing with these types of banking transactions business owners often fail to implement appropriate safeguards. Banks will not reimburse businesses from losses arising out of electronic banking fraud where the business has contravened certain conditions (e.g. not keeping the password in a safe location). Suggested Controls * Having at least two persons approve all payments and transfers. * Maintaining security over passwords (i.e. ensuring that they are input without others observing, are not written down and are changed regularly). * Setting appropriate limits on the dollar value of transactions. * Confirming security arrangements with the bank on a regular basis. * Ensuring that bank authorities of terminated employees are removed immediately. * Installing virus and firewall protection to reduce the risk of access by third parties. * Ensuring that staff immediately delete any unsolicited or spam emails that request the banking details of the business. PAYROLL FRAUD This is common where employees are not paid the same amount each week (e.g. shift workers and temporary staff) and the amount paid is calculated on some factor such as the number of hours work units produced, or the volume of sales. Common techniques include extending the number of hours worked and type of work done on time sheets, manipulating the clocking on and off times where a time clock is used and artificially increasing sales on which commissions are paid. Other common payroll frauds include inserting ghost employees on the payroll and where employees lie about their experience and qualifications Suggested Controls * Review and authorisation of time sheets and clock on and off times by a supervisor and/or manager. * Requiring all overtime to be authorised in writing beforehand. * Separation and rotation of duties between employees paying wages and recording in the payroll ledger. * Paying employees by cheque or direct deposit into specific accounts as this can be easily traced in the event that a fraud is uncovered. * Obtain independent verification of the qualifications of employees, check their references and confirm their experience from previous employers. * Conduct regular performance reviews personally on all employees that are listed on the payroll register. THEFT OF STOCK This fraud involves the theft of physical assets (e.g. stock and plant & equipment) from the business and usually occurs where there are large numbers of small inventory items. Examples include false write-off of stock in the accounting records, altering the stock-take records, and falsifying purchase orders or invoices to reflect the stock stolen. Suggested Controls * Limit access to stock and items of plant by physical security particularly after hours. * Independent authorisation of stock write-offs or scrapping of inventory items. * Purchase orders crosschecked to the invoice and appropriately authorised. * Separation and rotation of duties in the ordering, receiving and recording areas. * Conducting proper and regular stock takes using pre-numbered stock sheets. BILLING SCHEMES These schemes attack the payments system of the business and occur as most payments are made by cheque so there is limited scope to steal cash. A typical billing scheme involves the person creating a false purchase invoice from a fictitious business, or an accomplice business and then having this false invoice approved and paid. Suggested Controls * Separation and rotation of duties between the person making the purchase orders and submitting the orders for payment, the person preparing the cheques and banking journals and the person recording the transactions in the accounting records. * Invoices approved by one person and that person should not draw the cheques or have the authority to order goods or services. * Using pre-approved suppliers limits the opportunity of using a fictitious business to conduct the fraud. Any invoice from a supplier that is not pre-approved should be verified before payment is made. FALSE EXPENSE CLAIMS These frauds involve the person inflating expense claims, making false or multiple claims for the one expense, or claiming a personal expense as a business expense. Whilst the amounts are usually so small to be noticed individually they should not be regarded as insignificant as they can have a large cumulative effect on the business. Suggested Controls * Require employees to submit detailed expense reimbursement requests including original receipts and supporting documentation and provide proof that the claim is for business purposes. * Authorisation of expenditure reimbursements claims by the employee's supervisor or manager before it is submitted for reimbursement. * Randomly checking expenditure directly with the supplier and verifying the invoice and payment.

banking - Common Small Business Frauds & Suggested Controls

Small businesses are the most vulnerable to some form of employee fraud as they usually place trust in one or two people and therefore have fewer accounting and other internal controls. The festive and holiday period is typically the time of year when many frauds occur as business owners often hand over control of various tasks to more junior or temporary staff and they become less careful about monitoring procedures. Statistically the most likely person to commit a fraud such as embezzling money is a long standing and trusted employee. Business owners can protect themselves by developing reliable accounting and other internal controls and constantly monitoring the effectiveness of these controls. The most common frauds that are committed by employees including some appropriate controls that should be put in place include: THEFT OF MONEY Frauds that involve money can be very costly for small businesses and in some cases can lead to the closure of the business. Examples include stealing cheques sent by debtors directly from the mail, forging an endorsement on a cheque, stealing cash from the till, and falsifying signatories and amounts on cheques issued by the business. Suggested Controls * Separation and rotation of duties between cash/cheque handling, preparing the banking records and recording in the general ledger. * Having at least two persons sign all cheques. * Performing regular bank reconciliations. * Regular observation of employees handling cash or receipting debtors. * Issuing pre-numbered receipts for all monies collected and recorded in the debtors ledger. This notifies the customer that their money has been received and recorded. * Daily banking of cash and cheques and prompt recording of transactions in the accounting records. ELECTRONIC BANKING FRAUD Electronic banking is used increasingly by businesses for payroll, supplier payments and transfers of funds between bank accounts. Whilst this is a more efficient way of dealing with these types of banking transactions business owners often fail to implement appropriate safeguards. Banks will not reimburse businesses from losses arising out of electronic banking fraud where the business has contravened certain conditions (e.g. not keeping the password in a safe location). Suggested Controls * Having at least two persons approve all payments and transfers. * Maintaining security over passwords (i.e. ensuring that they are input without others observing, are not written down and are changed regularly). * Setting appropriate limits on the dollar value of transactions. * Confirming security arrangements with the bank on a regular basis. * Ensuring that bank authorities of terminated employees are removed immediately. * Installing virus and firewall protection to reduce the risk of access by third parties. * Ensuring that staff immediately delete any unsolicited or spam emails that request the banking details of the business. PAYROLL FRAUD This is common where employees are not paid the same amount each week (e.g. shift workers and temporary staff) and the amount paid is calculated on some factor such as the number of hours work units produced, or the volume of sales. Common techniques include extending the number of hours worked and type of work done on time sheets, manipulating the clocking on and off times where a time clock is used and artificially increasing sales on which commissions are paid. Other common payroll frauds include inserting ghost employees on the payroll and where employees lie about their experience and qualifications Suggested Controls * Review and authorisation of time sheets and clock on and off times by a supervisor and/or manager. * Requiring all overtime to be authorised in writing beforehand. * Separation and rotation of duties between employees paying wages and recording in the payroll ledger. * Paying employees by cheque or direct deposit into specific accounts as this can be easily traced in the event that a fraud is uncovered. * Obtain independent verification of the qualifications of employees, check their references and confirm their experience from previous employers. * Conduct regular performance reviews personally on all employees that are listed on the payroll register. THEFT OF STOCK This fraud involves the theft of physical assets (e.g. stock and plant & equipment) from the business and usually occurs where there are large numbers of small inventory items. Examples include false write-off of stock in the accounting records, altering the stock-take records, and falsifying purchase orders or invoices to reflect the stock stolen. Suggested Controls * Limit access to stock and items of plant by physical security particularly after hours. * Independent authorisation of stock write-offs or scrapping of inventory items. * Purchase orders crosschecked to the invoice and appropriately authorised. * Separation and rotation of duties in the ordering, receiving and recording areas. * Conducting proper and regular stock takes using pre-numbered stock sheets. BILLING SCHEMES These schemes attack the payments system of the business and occur as most payments are made by cheque so there is limited scope to steal cash. A typical billing scheme involves the person creating a false purchase invoice from a fictitious business, or an accomplice business and then having this false invoice approved and paid. Suggested Controls * Separation and rotation of duties between the person making the purchase orders and submitting the orders for payment, the person preparing the cheques and banking journals and the person recording the transactions in the accounting records. * Invoices approved by one person and that person should not draw the cheques or have the authority to order goods or services. * Using pre-approved suppliers limits the opportunity of using a fictitious business to conduct the fraud. Any invoice from a supplier that is not pre-approved should be verified before payment is made. FALSE EXPENSE CLAIMS These frauds involve the person inflating expense claims, making false or multiple claims for the one expense, or claiming a personal expense as a business expense. Whilst the amounts are usually so small to be noticed individually they should not be regarded as insignificant as they can have a large cumulative effect on the business. Suggested Controls * Require employees to submit detailed expense reimbursement requests including original receipts and supporting documentation and provide proof that the claim is for business purposes. * Authorisation of expenditure reimbursements claims by the employee's supervisor or manager before it is submitted for reimbursement. * Randomly checking expenditure directly with the supplier and verifying the invoice and payment. Joe Kaleb is a chartered accountant in Australia and CEO of http://www.australianbiz.com.au a website that provides tax, management tools and other services to small business owners. Article Source:http://EzineArticles.com/?expert=Joe_Kaleb banking - Money is Not the Root of All Evil, But Our Money Consigns Us Straight to Hell! If you thought your taxes went towards funding important government services, you are dead wrong! A new understanding of the world banking system reveals the very nasty purposes of taxation, which is to gift the banks a monopoly on the creation of new interest-bearing debt. Once government has stolen from us through taxation, we are forced to replace that stolen liquidity with high interest-bearing debt. With this insight, increased poverty, social and economic polarization, destruction of environment, strangulation of constitutional rights, and rapidly increasing debt are seen to be unavoidable and inevitable under the present tax/banking system. We desperately need a change! The money supply (m3) has increased 1000% since 1996. Not a single dollar of this new money has been issued by government. Every dollar, Yen, Peso, Rupee, Franc, and Deutchmark has been created out of thin air by the banks, and then loaned to you and I as interest-bearing debt. Not only do taxes remove huge liquidity from the private sector-artificially raising interest rates-but when private funds are invested in government loans and securities, they are no longer available to the private sector at low interest. And because a very large part of tax revenue (and banking debt) is sourced from consumptive activities and consumer borrowing, the government then ends up consuming resources that do not exist. Only a portion of the tax take actually represents savings and surplus; and only a portion of the new debt/money that is issued by the banks is secured by new wealth creation. This is why we continue to experience an inflationay spiral that can only end in recession, depression, and/or economic collapse. Our Govt. is totally dependent upon, and subservient to, the banking system; and so are most private citizens. Aside from our obvious loss of financial independence, freedom, and opportunity, there is an even more frightening aspect to the present tax/banking system. As tax destroys the incentive to earn, save, and invest, and govt. continues to fund itself in an unsustainable way, more and more of our environmental resources are consumed each passing day. Civilization trembles in the face of an approaching environmental apocalypse not because of carbon emissions, greenhouse gases, or population growth; but because of taxation. The present tax system destroys the incentives for, and the results of, all our own efforts at positive creativity. To find out more about how taxes are linked to a banking conspiracy, social chaos, and environmental destruction, go to www.truthaboutax.com and/or read "The Zen of No Tax".