BankPromos.Org & BankPromos.Org.UK

Introduction to Banking
The purpose of this section is to cover the basics of banking, especially on how to select a bank and a checking or savings account. Before we begin, here are a few basic facts to get you started. First, a bank account enables you to access your money quickly and easily, such as by writing checks and by withdrawing money from an ATM. Second, a bank is the safest place you can put your money, because funds in U.S. bank accounts are insured against loss by the federal government for up to $250,000 per depositor. Third, you pay for the convenience and safety of banking. Some accounts pay interest while others don't, but those interest rates will be well below the rates offered by mutual fund companies and brokerages. You can earn significantly more by putting it into a certificate of deposit, but to do so you'll have to agree not to withdraw it for a fixed period of time . Fourth, bank fees may seem small, but they really add up. If you're not paying attention, a simple checking account could cost you $200-250 a year, after the monthly fee, the per-check fee and ATM charges are added up. And while many banks offer "free" checking if you maintain a substantial balance, the account isn't free at all, since you could be making a few hundred dollars a year by investing that money elsewhere. With this in mind, let's discuss the specifics.

Things You'll Need:

• Banks
• Pens And Pencils

1. Consider a bank that is convenient to your everyday activities. Look for banks that are easily accessible as you drive to and from work or while you run your usual errands.
   
   
2. Check out different banks' Web sites. There you can get a good idea of the types of accounts, available services and rates offered before you set foot inside a branch office.
   
   
3. Think about what is most important to you in a banking relationship. If you want to be able to develop a personal, long-term relationship with a bank, a smaller, local bank might best suit your needs. If you travel frequently and need access to branch offices while you are out of town, consider a regional or national bank.
   
   
4. Consider how you will be banking. If online banking and ATM banking interest you, select a bank that offers those services.
   
   
5. Visit the branch office where you would be conducting most of your banking business. Are the tellers professional and friendly? Are the account officers and/or managers accessible? Are the hours of operation compatible with the hours when you will do your banking?
   
   
6. Compare interest rates and service charges among banks to make sure you're getting the best deal.
   
   

  Tips & Warnings

• Ask friends and family to recommend a bank.
• Many banks will use the combined balance of all your accounts (checking, saving, money market, etc.) in calculating monthly account service charges, so consider moving all of your accounts to one bank.
• Consider a 'virtual bank.' All banking is done online or by mail, and service charges, if any, are minimal. Some virtual banks will even reimburse you for fees you incur using their cards at another bank's ATM.

Where to bank? Nowadays everyone is running around trying to find the right bank.

1. Do research. Although all banks are the same in a way, they do offer different programs for amounts of money that are greater than 10,000.00
   They give extra benefits to customers that use their bank as their primary account. Every bank has a different stage of money you need to give them before they give you benefits, most banks is $10,000, so ask the associate about it.
   
   
2. Ask. Ask the associate what am I going to get for banking here. Loan discounts? Free safe deposit box? Free of monthly charge accounts? A dedicated banker? Free checks?
   
   All these questions should be asked when speaking to a new accounts representative.
   
   
3. Bank at one place. When you bank at one place the bank offers you more, because if you have business, and personal checking and savings, a loan, your giving them a lot of business, they will be willing to give you more.
   
   

  Tips & Warnings

• Be smart when looking for a bank.
• Don't go for banks offering you a very high yield savings/CD...these banks are not doing so well and they need your deposists.

It is important to do all of your research before choosing an internet bank. No two banks are the same, so you must evaluate each one on various subjects. Here is some criteria for choosing an internet bank that meets your needs.

     1. Find out what the APY (annual percentage yield) is. The APY is usually higher for internet banks than traditional branch banks, however not every internet account has the same APY.

     2. Find out how easy it will be to get to your money. If you need to use the cash, do they have ATMs or debit cards? Where are those ATMs located? Are they in close proximity or on the other side of the state?

     3. Does your existing bank offer internet banking accounts? If so, this may be worth looking into. Most banks will offer rewards if they maintain all of your business.

     4. What else do they offer? Do they have CDs or linkable accounts so that you can transfer money as you please? What are their rates for the CDs?

     5. Make sure that you understand how to get in contact with the bank as well. You are bound to have a question or need assistance sometime, and you need to have easy access to customer service.

     6. Lastly, you ALWAYS need to make sure that the internet bank you choose is FDIC insured. If the answer is no, steer clear of that bank.

Many people choose to do their banking through the Internet. Before making this decision, you need to be aware of both the advantages and risks of online banking.

Function
1. Online banking lets you take care of your banking needs by logging on to your bank's website with a customer number or user name and password. You can access your checking, savings, credit card, mortgage and loan accounts with just a few mouse clicks, anytime and anywhere.

Features
2. You can transfer funds, pay your bills and view your transaction history. These online services are available to both personal and corporate clients.

Benefits
3. There are a number of advantages to online banking. You don't have to leave your home to do your banking. You can access your accounts online in a matter of seconds. Internet banking is an environmentally friendly option. You can choose to receive your monthly statements electronically instead of by mail and save a lot of paper in the process. You can view your statements in order of date and are likely to find the information you're looking for quicker than flipping through pages of old paper statements. This system can help you stay more organized and save space.

Warning
4. There are risks associated with online banking that you should be aware of. Unfortunately, technology is never 100 percent reliable. You may have trouble connecting to the Internet. The bank's website may be temporarily down. If you have not left yourself time to get to the branch or contact it by phone, then you are at risk of missing payment deadlines, which will result in penalty fees. Online banking can also compromise your security and privacy. Hackers can obtain your account number or Social Security number and make unauthorized transactions on your behalf. Someone may get your security details if you didn't close the browser window or if the password memorization feature is enabled for your bank's website.

Prevention/Solution
5. If you choose to do your banking via the Internet, familiarize yourself with your bank's security measures, such as encryption, firewalls or the use of security questions. Experts suggest always logging off and closing the browser window when you are done with your online banking session. These steps will ensure that managing your money from your office or home is convenient, efficient and safe.

Online banking has added an entirely new dimension of convenience to banking. Customers now have unprecedented access to their bank accounts at all times, and never have to wait for banking hours to perform simple banking transactions fees or to find out details about their accounts.

Function
1. These services are commonly used by banks that are trying to make banking more convenient for their customers. And, as more banks offer this service, other banks must offer it to stay competitive. However, there are also banks that exist as online entities and that have no physical bank branches. Customers of these online banks use nothing but online access for their transactions.

Significance
2. Online banking has made in-person banking unnecessary. This also makes waiting for the bank to open and waiting in line for a cashier unnecessary. With online banking available 24 hours a day, banking has become convenient for anyone with any schedule. It allows customers to see their account balance at any time and to transfer money into other accounts. Online banking can include savings and checking accounts as well as IRAs, securities and other types of accounts.

Benefits
3. Most online banking systems let customers see their account transactions and balances in real time. This means fewer bounced checks because you know exactly what transactions have gone through, which ones are pending and when the next scheduled deposits will occur. It also makes savings easy, as money can be transferred at any time from a checking account into a savings account or an IRA.

Considerations
4. There are some online banking systems that have a slight lag time. Find out whether your bank uses real-time reporting before depending on it for time-sensitive balance and transaction information. Because each bank has its own system, it can be hard to get used to each system and to avoid making mistakes with transactions. Make sure to read the rules of each specific online banking system and never assume that any of them will work the same way as another.

Warning
5. There is some danger in online banking if the account is accessed by someone else. Identity theft remains a problem online. Accounts that are accessed on a shared computer or that are accessed with a simple password are in particular danger of this type of theft. With access to someone's online banking, it is possible for thieves to transfer money out of the account or purchase something online with it.

Banks have quickly leveraged the capabilities of the Internet and Web 2.0 technologies and adopted the online banking model. Every mainstream bank now offers a host of banking services and products to an ever increasing base of customers. Through online banking, banks have been able to reach out to millions of customers not in their geographical area of operations and offer more products and a relatively better, convenient and flexible banking experience than that prevalent in traditional, fixed-location branches.

More Customers
1. Through online banking, better service levels and strategic marketing initiatives, banks are able to reach out to more customers than possible through traditional banking through physical location branches.

Online Only Products and Services
2. Leveragability--and amenability of new technologies, tools and widespread broadband Internet acceptance--has made it possible for banks to offer a whole host of online only products and services to customers, such as CDs, e-bank statements, financial calculators, and personal finance news feeds.

Broader Customer Base
3. Banking online has afforded customers user-friendly features of Websites, robust security technologies, privacy protection measures, and mainstream Internet acceptance. Banks can reach out to a broader customer base beyond the geographical confines of their locations or base operations.

Attractive Rates and Incentives
4. Better management practices, consolidated operations and streamlined savings from managing and delivering online banking services allow banks to offer attractive rates and other incentives to customers.

Cost Savings
5. Banks save a significant amount of operational capital from not having to open brick and mortar branches in new locations and far-flung areas. These savings are passed onto the consumer in the form of reduced or no fees for inter-bank and even intra-bank money transfers, no fees for online payment of utilities' bills, and cash-back options on frequent use of online-applied bank credit cards.

Online bank accounts offer several advantages over traditional, brick-and-mortar banks. For example, many online banks offer free financial services and tools not always offered by traditional banks. Thus, opening an online bank account can help you manage your budget and finances more efficiently. Learn how to open an online bank account with no deposit required to save money and take control of your finances.

1. Contact your local bank to see if they offer an online banking service in conjunction with their local banking account services. Many local bank locations are part of a national bank and have online bank accounts that can be connected with your original bank account.
   
   
2. Research online bank account options before attempting to open a bank account online with no deposit fee required. Various companies and organizations offer lists of online bank services and tools to compare them. For example, Bank Rate (link in the Resources section at the bottom of this financial article) lists online banks and any fees and interest rates connected to those bank accounts. Sort the list by banks that do not require a deposit, then compare the interest rates.
   
   
3. Choose an online bank account with a high level of interest and no required deposit fee. Various online banks are know to require no deposit, nor a minimum balance. Examples include HSBC Direct and ING Orange (links at the top of this page).
   
   
4. Complete the online bank's required paperwork to open an account. You will need to provide your Social Security Number (SSN), as well as additional personal data (e.g. address, phone numbers, employer name, etc.).
   
   
5. Wait for the online bank to approve the account you are opening. This process may take several days or weeks depending on your application. Accelerate the rate at which you can open an online bank account by ensuring that your application is complete and not missing any details.
   
   
6. Connect the online bank account you've opened with your previous bank account to transfer money between the two bank accounts.
   
   

Banking online offers many advantages such as paying your bills online, having overdraft protection and transferring money from one account to another. So what happens if you have a separate savings account than your checking account and you want to transfer money?

1. Verify that you can indeed transfer money from one bank account to another. If you can transfer money from one account to another.
   
   
2. Find out if there is an additional fee for using this service. Some banks charge you an additional fee for transferring money to another bank since they want to keep your money.
   
   
3. Transfer your money manually. There are several methods you can use to transfer money manually. You can write yourself a check then deposit it into the other account. There shouldn’t be any fees for doing this. You can also withdrawal the funds from one account, fill the deposit slip out and deposit the funds into the other account. As you can see, online banking takes the hassle out of personal financial management. Do your research to see if there are any fees associated with this type of service before you do it. Transferring money should not be a hassle for you. They are working for you, not the other way around.
   
   
4. Sign up for a savings account like ING Direct. This bank connects to any checking or savings account electronically and can help you transfer money between accounts within one or two business days.
   
   

A wire transfer is a transfer of money from one bank account to another. The actual transfer is done by the bank, and neither the sender nor the recipient of the money sees or touches the actual funds. Here are a few steps to transfer money from one account to another.

1. Contact your bank by phone or via the Internet and provide the following information: the name of the person or firm you are wiring money to, the bank's American Banking Association (ABA) routing number (which can be obtained from the recipient's bank), the recipient's account number, the address and phone number of the bank, and the name of the person to whom questions can be addressed.
   
   
2. Determine the amount of money you wish to wire and when it needs to be in the recipient's account.
   
   
3. Complete the transaction through your bank. Some banks allow you to initiate the transaction via the Internet, while others require you to contact them by phone or fax.
   
   
4. Confirm that the transaction took place. Ask for a faxed or e-mailed transfer confirmation or contact the receiving bank to confirm receipt of funds.
   
   

   Tips & Warnings

• The information you give to your bank should be in writing to minimize errors.
• A wire transfer can transfer funds within a day, provided you initiate it prior to your bank's deadline.
• Make sure the funds are in the account you are wiring from, or the wire will not go through.
• Banks charge for making wire transfers; always ask how much before proceeding.
• Wire transfers are not always immediate. Ask your bank when the funds will be transferred and when they will be received.

Wire transfers are the most efficient way to send money to another account. This is important if money is needed promptly and the sender has no way of giving the money to the recipient except through mail. Wire transfers are usually safer than mailing a check or money because it is done directly between banks.

1. Open a checking account at a bank. Inquire about their wire transfer services and if it is possible for you to use your checking account to send money. Sometimes, a bank only allow wire transfers between domestic banks, so be sure to know your needs and if the bank you are choosing is able to meet these.
   
   
2. Get the bank information of the recipient. This includes the name of the bank and the account owner, as well as her account number and routing number. This will allow you to input the information online when you log in to your bank account and the prompt asks you for the recipient information. Knowing these things in advance will help you save time and will allow the process to go faster.
   
   
3. Ask about the fees. Wiring money often comes with a fee at both sending and receiving banks. Be sure that before you wire the money, you are aware of the fees at both banks so you can decide whether or not to go through the process.
   
   
4. Follow the process of wiring money online. Log in to your bank account online and under the area where bank services are listed. If your bank does not allow you to do this, you can open an account with Paypal and transfer money from your checking account to Paypal and wire the money from Paypal.
   
   
5. Contact the recipient. Ask the recipient from time to time if he or she has received the money you sent through wire. Wire transfers may take a couple of days to process, so inquire at your bank how long the wait is so you can confirm with your recipient. Be sure to tell him or her how much you are sending so he or she can anticipate how much to get. This way, you both will be aware of substantial changes between the money you sent and the money they received. If there are any discrepancies that you were not expecting, notify both banks immediately to protect yourself and raise a flag on consumer safety.