Currency Banking

ATM charges

Another way that you can save money when banking is to use free ATM machines. Some ATM’s charge you a fee to take money out, either for the convenience of because the ATM does not belong to your bank. If at all possible you should stick to ATM’s that don’t charge you money. If you do this regularly then you could save yourself £100 a year or more.

Overdrafts

Perhaps the most expensive fees that you can get charged by your bank are for using an unauthorised overdraft. Even if you never go into the red, it is advisable to agree an overdraft amount with your bank. This will save you a lot of money in case you do ever go into the red, and it costs you nothing if you don’t use it.

Online banking

Online banking can save you money by helping you to pay bills on time and avoiding late payment fees. It can also help you to manage your money better and so budget more effectively thus reducing your spending. However, some banks will charge you for the privilege of using online banking. You should definitely look for a bank or account that does not charge you for using online banking, as there is no need to pay for basic online banking these days. Although the fees might be minimal, any money saved is good.

Borrowing money

Perhaps the area you can save the most money on is when you borrow money. Make sure that you get the best deal possible on any credit cards or loans you take out, and remove any unnecessary features that are costing you money.

Change banks if you have to

If your bank is still costing you more money than you would like, then don’t be afraid to look elsewhere. There is no reason why you should be loyal to a bank if they don’t serve your needs, and other banks may offer you better rates because you are a new customer. Even if you are currently happy you should look at the competition every few months to make you that sure terms are the best you can get.

Different banks give different types of benefits to their account holders. A depositor of such an account can do multiple number of transactions and the banks also do not charge extra fees for such transactions. One can open a current account by depositing a minimum amount of money as decided by banks.

There are banks which even allow free bank drafts to certain amount of money. It saves lots of money for businessmen as they have to make multiple drafts on a monthly basis. Furthermore, some banks do not even charge membership fees from their current account holders.

During festive seasons banks give attractive offers which are beneficial for bank customers. Some of these offers are like no processing fees and partial deposit of minimum amount. Apart from these, one can also win free gifts like travel bags, DVD player, iPods and lots more. These are delighting offers through which one can take away his favourite entertainment gadgets.

It has been reported that these current accounts are quite profitable for big corporates and companies. They need a bank account which can give them maximum freedom for doing international and national transactions. For banks, such giant companies are the prime customers as these customers deposit hefty amount of money and the banks in return give them maximum profits.

Opening current accounts means getting better loans. Companies often need lots of money for developing their projects and banks help these companies by providing them with attractive financial aids. If these companies deposit more money in this account then there is a possibility of getting maximum amount of loans.

In the future, this may become the trend. Online banking that people will do exclusively on the internet is not out of reach. These days, people can look into investing, opening up other accounts, and taking out loans without leaving their computer. There are many advantages to this form of banking. Money is transferred faster, people can check their balances within minutes, and people will no longer miss bill payments.

There are also disadvantages to operating solely on the internet. Sometimes it is necessary to talk with a banking representative in case there is a problem with the account. Being able to talk to a person face to face will help the situation. Online banking services would require that people speak through email or over the phone. Another problem is that errors concerning the amount of money that a person has in their account. Without a paper trail, the situation could be dire.

Online banking services still have a long way to go, but those who use them now say that it is very convenient and easy to use. People will continue visiting their bank and conducting business by talking with others. While internet banking may be more convenient, most people still feel more comfortable speaking with a person rather than typing an email or talking over the phone.

Granted, some have questioned the security of online banking, however it has proven itself to be one of the most valuable assets banks can offer their clients today. Increased security measures such as encryption have made it one of the safest methods of conducting business with a bank. The development of Personal Identification Numbers (PINs) and/or passwords have allowed bank clients to authenticate and protect their accounts. As features have become more sophisticated and user friendly, banks have seen tremendous growth in online services, which many bankers can be attributed to increased clientele confidence, as well as the appeal of choices online banking provides.

One of the largest areas of growth is online bill pay. While many first-time users come to online banking to access and manage their accounts, a large majority then begin looking into the online bill pay service offered by their bank. Banks are witnessing more and more users who are receiving their bills electronically. Recent studies show that users who pay their bills online report not only being satisfied with the experience, but with their specific banking institution, suggesting that users have strong confidence in their bank's ability to secure identity. Good news to banks with online services, similar reports also show that those who pay bills online retain their business longer at a particular bank than those who do not use a bank's online service. Clearly, the options provided by Internet banking create a win-win situation for banks and their clients.

Another boon to online banking has been the ability to shop for a loan. Applying for a loan is quick and convenient when done online. Everything a client needs when completing the application is located on the bank's Web site. Clients even have access to instant online assistance. These types of services have been hugely successful, allowing consumers the ability to seek the best terms while bringing about a new level of competition between banks who are seeking to expand their bottom line.

With the use of personal finance programs such as Quicken, Microsoft Money or Turbo Tax, data can be easily imported. Some banking programs even provide users with the ability to monitor all of their accounts at one site regardless if they are with the main bank or with another institution.

Benefits of Online Banking:

1. Because conducting transactions online saves the bank money, those savings may be passed on to clientele in the form of lowered fees and high-yield savings rates, for example.

2. Users have instant access to their account information and ability to conduct transactions 24/7.

3. Ability to link accounts. Linking various accounts to one another makes it easier to move money seamlessly between online bank accounts.

4. Users of online banking have the ability to purchase CDs, apply for a mortgage and pay bills online.

5. With Internet banking, savings is a snap with an automatic savings account that electronically deposits money into a savings or money market account.

These days, offering online banking services to the valued customers have almost become a normal part of every banking module. The people of this present age always try to find out alternative options which have the ability to consume less time. As such, this special online services permit the customers to access any formality from anywhere at ease. These online services even allow the customers to get varied information relating to share market and any type of loan in a very hassle free manner. One can comfortably check his account balance, transfer funds and withdraw money whenever he or she wants. As a matter of fact, these online services have rejuvenated the entire procedure of banking. However, it must be accepted that this aspect has been backed up by the entry of the foreign players in the Indian economy. The liberalised policies undertaken by the Indian government have “almost” forced the alien players to explore and invest into the Indian market. Since, earlier days India has been popular for its potential and rich resources. Furthermore, these liberalised policies had made the entry of the foreign players very easy. On the other hand, this entry of the alien players has proved to be very helpful and fruitful. The economy of India has touched new heights due to the introduction of these new and fresh policies.

In this context, one cannot ignore the fixed term deposit. These days, the rate of interest which is offered by most of the banks is above 9 per cent to 10 percent in fixed deposit. These high rates of interest are not limited due to any complicated issues. As a matter of fact, in other words any person from any age group can avail benefits from such interest rates at ease. The twist in this tale is that intense competition in the financial arena has actually enhanced the rates of interest. However, the senior citizens in this case enjoy little more benefit. The fixed deposits are usually preferred by most of the people because they are meant for very short period of time. Generally, they are offered for a period of one and a half year or just one year. This is basically the main reason why most of the people these days are opting for such deposits.

Just with a click of the mouse, you can access the transaction procedures at ease. These online services have actually simplified the financial procedures to a great extent. This particular boon have easily changed the whole concept of banking services in India.

Look for the best deal

Before you switch banks, it is crucial that you shop around. Just because you are switching banks doesn’t mean you should switch to the first good deal you come across. Look at all the alternatives, including online banks and credit unions, before deciding on which bank has the best deal for you.

Contact you current bank

If you are thinking about moving banks, then before you do so you should contact your current bank and see if they can match the terms you can get from another bank. Don’t tell your bank you are thinking of leaving as they might remove certain privileges you have. Instead, try and negotiate a new deal, as it is often easier to get a better deal from your current bank than move to a new bank. However, if your current bank doesn’t want to negotiate then you know it is time to switch banks.

Complete application process

Once you have found the right bank for your needs, you need to complete the application process. Once you have filled in any necessary forms and made sure that all the terms make sense, your new bank can begin the process of transferring your payments and money from your old bank. If you have fairly regular accounts then this should only take a week or so to complete.

Advantages of switching banks

Of course, then main advantage of switching banks is that you can get better terms on the financial products that you already have. You may also be able to get new features from a different bank that will help you to save money or make banking easier for you.

Disadvantages of changing banks

Although there are advantages to switching banks, you must remember that it is won’t always be so easy. If you have complex accounts or are borrowing money from your old bank, then the procedure might become more complicated. Also, if you switch banks regularly it can seem like you are financially unstable. Although switching banks isn’t always the best option, if you are unhappy with your current bank or want to get a better deal then you should look at what other banks have to offer.

Many of the economists in India say that going for fixed deposit is the right solution, when it compared to all the other sources where you can invest your money. This is the best source to rescue from the present liquidity crisis.

The fixed deposit is nothing but an account that allows the people to deposit their money for a period of some time. Depending on their convenience, people can choose the deposit period that say for a minimum period of 15 days to 5 years and more than that. When the deposit period comes to an end, the depositors will get high amount of interest on their deposited money. Depositing money in Indian banks is safer than other sources as the all the banks in India are under the control of Reserve Bank of India.

The main advantage of going for these deposits is that the depositors get high interest rates than the saving bank account holders. They will get lump-sum of money at a time, after the completion of maturity period of the deposit. Moreover, people do not get any insecure feeling on their deposits. The fixed deposits have been playing a prominent role, since the banking system has been introduced in the Indian economy market. They are one of the beneficial saving methods. Some years ago, people showed great interest for going long term deposits. But, now-a-days, due to the drastic changes that are occurred in the economic position of India, most of the investors want to go for short term fixed deposits.

The interest rates of the fixed deposits vary from one bank to another bank. To extend their services as well as to attract all segments of the investors, most of the banks in India offer many facilities to their customers, who want to deposit money in their banks. One of the main facilities is that the over draft facility which allows the depositors to draw money on the deposited amount, before the completion of the maturity period of deposit. On the request of depositors, some of the banks can transfer the interest amount on fixed money to the current or saving account of the depositor.

The minimum fixed amount can range from RS. 100 to an unlimited amount. If any one wants to open a fixed deposit account in a bank, he should inquire about the interest rates of all the banks. Some of the websites over the Internet help you to find the best bank that offers high amount of interest rates on depositing money.