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Bank Account Types

12 Feb, 2008 | Bank Accounts | admin | Comments Off

Banks offer a variety of accounts. So which is right for you? 

Basic Checking Accounts - give you limited services for a price. They may  charge a fee for writing checks over a certain limit or charge a monthly fee. Banks  require a direct deposit or minimum balance avoid fees. These accounts usually do  not pay interest.

Interest-Bearing Checking Accounts - the higher your balance the more interest you get. If your balance goes under a certain level, a fee is charged. These accounts offer unlimited check writing.

Money Market Accounts - pays a higher rate than a checking or savings account. Rates vary according to market conditions. These are insured by the FDIC. Money market accounts have limited check-writing. Minimum balance fees apply.

Asset Management Accounts - a checking account that many brokerage houses and banks offer. They have the convenience of one account for does all of your banking and investing. These accounts give you unlimited check-writing and a statement that documents your transactions. Many banks require a higher minimum balance to open this type of account. Annual fees may apply.

Passbook Savings - transactions are logged in a book. Lose the book and the bank will charge you to replace it. Passbook accounts are offered by banks, savings and loans, and credit unions. They have low interest rates and do not allow check-writing. Minimum balance fees apply.

Statement Savings - bank mails you a monthly or quarterly statement documenting your transactions. Minimum balance fees apply.


Bank Of New Zealand

8 Feb, 2008 | Financial News | admin | Comments Off

The Bank of New Zealand said last week that it looked like New Zealand may be headed for a recession, if not already at that point. With the world wide credit problems it seems inevitable.

People are already battling with the rise of mortgage rates and now the pressure is on with the lack of credit available. The Bank of New Zealand says the impact has only begun to be felt.

The Reserve Bank says it is not going to consider dropping the interest rates until the end of next year. Already, New Zealand has the highest interest rates in the Organization for Economic Co-operation and Development. Despite the dissolving economy, the Reserve Bank has raised interest  rates at least six times since the beginning of last year.

Now the bank is warning of a possible drop in housing prices. They claim that prices are at a point where they are set to go backwards for the rest of the year. The housing market is already at their lowest in seven years and going down faster than the Reserve Bank was expecting.

Finance companies have collapsed, losses are as bad as the share market crash of 1987. The price paid by tens of thousands of small investors is high.


Stock Market News

27 Jan, 2008 | General | admin | Comments Off

The stock market closed Thursday on a high note. Major indices surged over 2% in heavy trading, only to finish near the best levels of this session. Financials led the way higher, Thanks to upgrades and news the Fed is expanding on its earlier announced plan to create more liquidity.

The financial sector was off to a good start after Fannie Mae and Freddie Mac were upgraded.

Financials, as well as the market, got boosted even farther when the New York Fed said it was making modifications to Term Securities Lending Facility. The auctions now allow schedule 2 collateral, not the schedule 1 collateral. Schedule 2 collateral will include collateralized mortgage obligations and AAA rated commercial mortgage-backed securities

The Fed is going to lend banks high liquid securities in exchange for the less liquid assets. The banks are now able to use a greater range of collateral than was before announced. The first auction will be on Thursday, March 27 and offer $75 billion for a term of 28 days. There have been up to $200 billion in loans authorized. This positive development relieves holders with difficult to trade securities at least temporarily.

In a other stock news, Thrifts & Mortgages was a standout for three days in a row. They have jumped 53% from Monday’s. Investment Banks & Brokerages was a leader as well with a gain of 11.2%.


Choosing The Right Credit Card

25 Jan, 2008 | Credit, General | admin | Comments Off

What should you know about APRs when choosing a credit card?

Cards have different APRs for purchases, cash advances and balance transfers. Tiered APRs have different interest rates for different levels of your balance. A penalty is applied if you are late with your payments. An introductory rate is good for a fixed amount of time after opening the account. A delayed APR will give you a different rate later.

A fixed interest rate means the Annual Percentage Rate does not change. The interest on a “fixed rate” card may change after time, but the card company has to tell you before your APR is increased.

Other cards are variable, meaning the Annual Percentage Rate changes at times. The rate is usually relevant to the Prime Interest Rate or the Treasury Bill Rate. If the that rate changes, your rate may change.

What you should know about fees?

Annual fee - just for having the card

Cash advance fee - if the card is used for cash advances

Balance-transfer fee - if you transfer the balance of another card

Late-payment fee - if your payment is late.

Over-the-limit fee - if you go over the limit.

Limit-increase fee - if you request increase to the credit limit.

Set-up fee - for opening a new account.

Return fee - if the check you use to pay your bill bounces.

Other fees - most companies charge a fee for telephone payments. Some charge report to credit bureaus. Other charge just to review your account or provide customer service.



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