Modern money mechanics, as described in the banking handbook with this same name, is a system whereby money is created out of debt. This system is used in nearly every civilized country and as of late has been the biggest contributer to the credit crisis. I will explain this system in detail in the following sections, but as a quick foreword, your financial problems are not your fault.

Money, that pretty green piece of paper with official looking seals all over it, doesn’t exist. Money is created out of the need for more money. I’ll give you an example. The government electronically sends the federal reserve a request for ten billion dollars. The federal reserve replies and then starts to print the money and these bills become federal reserve notes. The government in turn begins to print out some official looking pieces of paper called government bonds. A 10% reserve is held out of the ten billion and the nine billion is the excessive. Because that nine billion is consitered the excessive, new loans can be created based off of that amount.

(more…)

Protecting your savings from Inflation:

With RPI hitting 5% in September 2008 i thought it was time to see what accounts allow a real positive return and it is not good.

RPI at 5% means a basic rate tax payer needs a gross return of 6.25% and a 40% taxpayer needs 8.33%. If you are not getting these rates on your current savings accounts your savings are losing value in real terms. Even many ISA’s are paying less than 5% so also bad news.

The best of the bunch for ISA’s is the Post Office paying 6.25% on £1 minimum. If you don’t have that amount consider the HSBC ISA paying 6.25% on minimum £1.

The best of the fixed rate bonds are ICICI 7.2% requiring £1000+ and the AA paying 7.21% on minimum £500+ . These will give inflation beating returns for a standard tax payer but not if you pay 40%.

(more…)

Though most banks offer at least some internet options, there are some banks that have an internet banking service quality that is much better than the others available. This is especially true when you consider those who have accounts that are exclusively accessed on the internet. For those who are interested in the best internet banking service quality, there are some banks that should be checked out. For those who are looking for the best overall internet banking service quality, Citibank has been ranked as having the best online bank.

Citibank online banking has the most options and is very competitive. If you meet certain conditions you can get free checking and you can make withdrawals for free at Citibank ATMS and at 7-Eleven stores. They even have a high interest savings account, though it doesn’t have the highest interest rate of any online bank. If you are interested in having good ATM access, then the internet banking service quality award goes to Bank of America, who has the online banking with the best ATM access.

(more…)

Check cashing and money transfers involve the process of paying using negotiable instruments and transferring of funds through banks or other companies using different transfer systems. Check cashing can be done in banks as well as in check cashing stores. Money transfers, on the other hand, generally refer to cashless modes of payment or different payment systems which include wire transfer and electronic funds transfer among many others. Check cashing and money transfers are convenient ways of sending and receiving payments for payroll, bills, merchandise, services, and other bank-to-bank transactions.

Check cashing involves the use of negotiable instruments which also include bank notes and commercial paper. These automatically instruct a bank or other financial institutions to pay the specified amount in the specific currency from a specified demand account under the maker’s or depositor’s name. Checks have been in use since ancient times when the banking system first started. Bankers during this time issue orders as requested by their customers to pay money to identified payees. This was called the bill of exchange which gave convenience to merchants. They were able to go about their business without carrying large amounts of currency to buy goods and services. This is still quite true at present times that business people as well as individuals who have checking or current accounts use checks for different transactions.

(more…)

With the increasing reputation of the Internet, most businesses are finding new interesting ways making use of this interesting medium of Internet to cope with the ever-varying preferences of clients.

Nowadays, almost anything is possible on the Internet, right from shopping for provisions to making a long distance free call anywhere on the globe by the means of your computer. Yeah, there seems to be no end to the possibilities with the Internet at hand. The banking industry, in line with the revolution, has determined that it would not be left behind in the race for giving the best to their customers with the help of the Internet wizard.

While many of us have heard about Online banking services, there are still many who have not experimented it as yet. Probably it could be so since we are comfortable working with people, real money and paper, instead of having to deal with virtual paper or money. Probably it made transacting over the Internet a very impersonal matter. Whatever the reason, a number of benefits and disadvantages are attached to Internet banking services.

(more…)

Finding lost bank accounts can not only result in money for the account owner, but you can make a few dollars in the process too. Unclaimed property locators are individuals who take on the task of reuniting folks with money that they’ve become separated from. In the case of unclaimed bank accounts your job is to match up dormant accounts with the rightful account holders. In the case of a deceased account holder, your goal is to find the next of kin or heir to the estate.

Bank accounts go unclaimed for a variety of reasons. Many parents decide to open up a savings account for their child when they’re small with the intention of gifting it to them when they enter adulthood. For whatever reason, many people simply lose track of those accounts. So they sit untouched for years. Eventually the bank hands those accounts over to the government where they’re kept until the owner comes along. An unclaimed property locator speeds up the process by finding lost bank accounts, matching them with the owner and then negotiating a fee to help with the claim process.

(more…)

Although the old saying goes ‘time is money’, today’s hectic lifestyles mean many people actually find it inconvenient to have to find the time necessary to managing their finances. For most of these people, it necessitates a trip to the local branch during lunch-hour; but with so many others in the same predicament, it can often mean lengthy queues and a wasted lunch.

However, such a scenario need no longer be the case as with the evolution of internet banking into everyday life, managing one’s finances is made much simpler and quicker. Although still a relatively new concept, it has nonetheless become a welcome facility for those who are unable to attend their bank in person for whatever reason.

There are many advantages to banking via the internet, with the most attractive point being convenience. The fact that users can perform banking duties at anytime 24/7 and anyplace where an internet connection can be made makes it an attractive proposition for many. What’s more, with the most common functions associated with their high-street counterparts, such as arranging a loan or paying a bill, being readily available online, internet banking could spell an end to lunchtime queuing altogether.

(more…)

Offshore banking can be somewhat of an enigma for people who think foreign accounts are for the seriously rich. This article discusses the merits of offshore accounts – and find out who uses them, why they use them and where.

What is offshore banking?

Having an account in a country other than where you normally live is known as offshore banking. Various sectors of the population use offshore banking facilities, including individuals, corporations and State departments.

Why would I have an offshore account?

With the financial climate at home being a little unpredictable, you may prefer to bank in a country that has a steady economy. Or perhaps you regularly travel abroad and would like to have the convenience of a bank account in the country you frequently visit. The majority of people, however, use offshore accounts to manage money in the country where they own a property – such as a holiday home.

(more…)

While most people struggle to make ends meet as they live life paycheck to paycheck, over $1 billion dollars of unclaimed money is sitting in an account waiting to be claimed. Sounds insane, I know. You’re thinking, who wouldn’t go get their money? Don’t they want it and if not, can I have it? That’s the problem though. Most people that are owed money don’t know they are owed. So while you’re sitting here thinking you wish you can have a slice of that billion dollar pie, a slice might already be yours.

The question is how has the bureau of unclaimed money actually accumulated all that money? Usually “deposits” come from bank accounts that are inactive or forgotten about or from utility companies that owe back money or deposits. It can also come from tangible items that were left in safety deposit boxes. Legally all that money is owed to you even if you’re not there to claim it so it’s forwarded to the bureau of unclaimed money until someone can either track you down or until you find out it’s waiting for you. If you think there is a possibility that you are owed money you can do a search on the internet at no cost. Each state will have their own database so if you’ve moved around a lot make sure you check all the states you’ve lived in.

(more…)