Banking refers to the collection of activities that comprises of collecting deposits in fixed, recurring, current, and savings accounts and investing the sum accumulated from the various deposits in to securities and other forms of investment and pay interest for all deposits as agreed upon to the client or the account holder.
Banking also uses a part of the treasury in giving loans to people and earning interest revenues from them. To be precise, banking deals with every facet of money and transactions between accounts of the same bank and between accounts of different countries.
Banking is becoming a global activity after the coming of the internet. In fact, banking money is becoming easier and quicker after improvement in technology. Previous to the coming of the internet banking was practiced globally with transferring and exchanging currencies between countries, but all proceedings were cumbersome, time consuming and involved a lot of waiting. Banking is no more a waiting process these days.
All of the banking proceedings ranging from making payments, withdrawals, money transfers, currency conversions, availing a loan, paying back a loan is all revolutionized and quick. And record maintenance has never been so easier than now.
The cornerstone of banking is mainly the accurate recording of transactions being made. All one requires is to have an internet banking user id and password. You need to just log in to your account and have your statements printed out. Traditionally, it was lot of requiring a requisition letter and waiting and approval and paying money for statements and kind of things.
Banking in terms of fund transfer is becoming easier too. You need to just log in to your account, register the payee account information, key in the money you would like to pay them, type in your transaction password, followed by a captcha code and there your money gets transferred instantly and your deposit confirmation comes to your mobile as SMS or to your email and also it gets automatically updated in your account information sheet.
Modern banking has facilitated online loans to a major extent. The electronic payment system is another big gift of modern banking where you can automate your payment towards you loans without suffering the pain of forgetting to pay. Also, you can register for bill payment schemes to pay your utility bills for free. All you need to do is deposit money in to you bank and you bank takes care of paying your bills and dues on time. You can monitor everything right from home! And, that is modern banking all about.
Sunday, September 13, 2009
Mortgage
Mortage is the process by which the selling rights of any property like the home, estate or property is given to a bank or a lending body for a said sum of money, which is normally half or three-fourth value of the mortgaged property. The borrower who takes such money tends to pay back the money on an agreed amount of interest. Once the borrowed money is re-paid in full, the borrower resumes the selling title to the property over again.
The borrower cannot sell the property as long as the loan is not repaid. The bank or the lending body takes the right to repossess the property in mortgage if the said amount against the property is not repaid on time. However, such has to be done by legal proceedings by filing in the county courts for money judgment.
Every kind of mortgage is supported by a legal agreement, which states all kinds of clauses and phrases associated with the mortgage ranging from the property value of the collateral, the interest rate levied in the mortgage, the time period during which the property will be under mortgage, the consequences of not repaying the mortgage and every kind of information will be stated in the mortgage agreement.
Prior to having the property done in a mortgage the bank checks for the following:-
Title holder of the property.
Encumbrance certificate regarding the title for the property.
Legal opinion from the attorney of the bank
Processing of the papers
Signing up of the mortgage agreement
The interest rate for mortgage loans varies between high street banks and private lenders. Of the many considerations for any mortgage, the following are the most important:-
Should the property be really put in to mortgage
Is the purpose for mortgage truly indispensable
Is the lender reliable, mortgaging to group lenders can turn out to be headache
Read in between lines of the mortgage agreement, be sure that the mortgage is not one-sided
Guarantor is another important aspect of any mortgage, if the primary borrower does not pay the money, the lender tried to get the money from the guarantor, if he fails too, then the property is taken for money judgment. Making sure that you get a reliable guarantor is important and even important is that you do not put someone who had been vouching for your mortgage need in trouble.
The borrower cannot sell the property as long as the loan is not repaid. The bank or the lending body takes the right to repossess the property in mortgage if the said amount against the property is not repaid on time. However, such has to be done by legal proceedings by filing in the county courts for money judgment.
Every kind of mortgage is supported by a legal agreement, which states all kinds of clauses and phrases associated with the mortgage ranging from the property value of the collateral, the interest rate levied in the mortgage, the time period during which the property will be under mortgage, the consequences of not repaying the mortgage and every kind of information will be stated in the mortgage agreement.
Prior to having the property done in a mortgage the bank checks for the following:-
Title holder of the property.
Encumbrance certificate regarding the title for the property.
Legal opinion from the attorney of the bank
Processing of the papers
Signing up of the mortgage agreement
The interest rate for mortgage loans varies between high street banks and private lenders. Of the many considerations for any mortgage, the following are the most important:-
Should the property be really put in to mortgage
Is the purpose for mortgage truly indispensable
Is the lender reliable, mortgaging to group lenders can turn out to be headache
Read in between lines of the mortgage agreement, be sure that the mortgage is not one-sided
Guarantor is another important aspect of any mortgage, if the primary borrower does not pay the money, the lender tried to get the money from the guarantor, if he fails too, then the property is taken for money judgment. Making sure that you get a reliable guarantor is important and even important is that you do not put someone who had been vouching for your mortgage need in trouble.
Credit Cards
Credit cards are useful tools that were created for better money management. But, the initial purpose of the creation of credit cards is being rarely implemented. People are simply abusing the usage of these cards. If one is wise enough to learn how to use credit cards there can be nothing heavenly like it for any emergency help.
Living within means! Credit cards were designed to help people make their ends meet. In fact, they were meant to bridge money gaps that occur to meet up expenses for their basic food, clothing and shelter and for some emergency needs. However, people tend to use it for the reverse. Lavishing out to purchase two when they need just one, it is simply not possible to live without credit cards these days. Indeed it has become a second behavior.
When you are out shopping in the mal, you come across something catchy, you just go about scratching your credit cards with a buy now and pay sometime attitude. It is really not wrong to use credit cards for any purchase, but the mistake is with not repaying it on time.
When to use credit cards for a purchase?
When the need is definite and indispensable you can use credit cards but you need to make sure that you are spending on what you can afford to repay.
Watch for the current APR on your credit cards. If you have a 40% it is definitely a scary number and you need to see some other way to sort out your money problem.
If you are expecting some money coming quickly within a week or two, you can vouch on the sum you are expecting and you can spend it on your credit cards making sure to repay it when the money comes.
As long as one repays the money before the purchase starts to accumulate interest credit cards are a great way to any purchase. There may be stances when we might slip on repaying the total due. At such times, you need to concentrate to finish off the total due as quickly as possible, making sure to make the minimum payment due to avoid late payment fee.
Credit cards can be used reasonably and wisely. Once we master the way to use them wisely there are lot of other benefits like reward points, cash back offers and discounts that we can make the most use of.
Living within means! Credit cards were designed to help people make their ends meet. In fact, they were meant to bridge money gaps that occur to meet up expenses for their basic food, clothing and shelter and for some emergency needs. However, people tend to use it for the reverse. Lavishing out to purchase two when they need just one, it is simply not possible to live without credit cards these days. Indeed it has become a second behavior.
When you are out shopping in the mal, you come across something catchy, you just go about scratching your credit cards with a buy now and pay sometime attitude. It is really not wrong to use credit cards for any purchase, but the mistake is with not repaying it on time.
When to use credit cards for a purchase?
When the need is definite and indispensable you can use credit cards but you need to make sure that you are spending on what you can afford to repay.
Watch for the current APR on your credit cards. If you have a 40% it is definitely a scary number and you need to see some other way to sort out your money problem.
If you are expecting some money coming quickly within a week or two, you can vouch on the sum you are expecting and you can spend it on your credit cards making sure to repay it when the money comes.
As long as one repays the money before the purchase starts to accumulate interest credit cards are a great way to any purchase. There may be stances when we might slip on repaying the total due. At such times, you need to concentrate to finish off the total due as quickly as possible, making sure to make the minimum payment due to avoid late payment fee.
Credit cards can be used reasonably and wisely. Once we master the way to use them wisely there are lot of other benefits like reward points, cash back offers and discounts that we can make the most use of.
More about Home Insurance
Home insurance is meant to protect your building structure and the inhouse contents. The building structure can be a home dwelling or a commercial building structure. Regardless of whether you are using the building structure for domestic or commercial purpose you need to protect it with a home insurance.
The home insurance protects the building structure by the following means:-
Covers for theft and damage due to fire
Covers for maintenance of plumbing and electric systems
Covers for repainting the insured building, compound wall and fences
Covers for maintaining the wooden interiors
Covers for damage due to natural disaster
In addition to the security to the structure the home insurance will also pay for additional living expenses that one will incur during the repair of the home or at times when it is not feasible for dwelling.
The home insurance in part also pays for liability coverage that might arise due to some issues with the neighborhood in the form of lawsuits.
Estimating the real value of security that should be purchased for your home is very essential. You need to consider several factors like:
The square footage of the house
The intricate finishes of the house
The possibilities of natural disaster in your area
Actual cash value protection against replacement cash value protection
Considering the above said factors a well planned home insurance should be purchased. In events where you have made a home insurance 10 years ago, you need to consider revising the insurance value of your home to the current day value. Also, you need to consider adding your newly constructed interiors and additional building structures that were built after the home insurance was purchased to be listed in your policy with suitable underwriting.
Paying your premiums right for your home insurance is very important. If you are going to default with premiums your facilities remain automatically cancelled.
Another consideration with respect to home insurance is the processing of the claims. For any claim that you are likely to raise you need to substantiate it with valid proofs. Also you need to make sure that you report to the respective authorities for processing of the claims. It is always a safe bet to photograph the damages and get the permission of the company before evacuating any damaged remnant in case you are going to claim against the damage. Wait until the insurance company’s evaluator decides on the amount of loss!
The home insurance protects the building structure by the following means:-
Covers for theft and damage due to fire
Covers for maintenance of plumbing and electric systems
Covers for repainting the insured building, compound wall and fences
Covers for maintaining the wooden interiors
Covers for damage due to natural disaster
In addition to the security to the structure the home insurance will also pay for additional living expenses that one will incur during the repair of the home or at times when it is not feasible for dwelling.
The home insurance in part also pays for liability coverage that might arise due to some issues with the neighborhood in the form of lawsuits.
Estimating the real value of security that should be purchased for your home is very essential. You need to consider several factors like:
The square footage of the house
The intricate finishes of the house
The possibilities of natural disaster in your area
Actual cash value protection against replacement cash value protection
Considering the above said factors a well planned home insurance should be purchased. In events where you have made a home insurance 10 years ago, you need to consider revising the insurance value of your home to the current day value. Also, you need to consider adding your newly constructed interiors and additional building structures that were built after the home insurance was purchased to be listed in your policy with suitable underwriting.
Paying your premiums right for your home insurance is very important. If you are going to default with premiums your facilities remain automatically cancelled.
Another consideration with respect to home insurance is the processing of the claims. For any claim that you are likely to raise you need to substantiate it with valid proofs. Also you need to make sure that you report to the respective authorities for processing of the claims. It is always a safe bet to photograph the damages and get the permission of the company before evacuating any damaged remnant in case you are going to claim against the damage. Wait until the insurance company’s evaluator decides on the amount of loss!
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