Mortgage advice will often involve tips on saving for that rainy day, for the unexpected or for the rise in interest rates to cover leaner times. And many people who followed this advice expected the current climate to be just the time when they were glad they followed that mortgage advice and that now would be the time that these savings would see them through.

However, the longer term savers are being quietly hit with interest cuts on their savings while mortgage rates continue to rise. It doesn’t take much to see that the gap is growing and even people who had taken precautions against being in financial straits find themselves at the mercy of their bank anyway.

The irony is that new savers are being encouraged by the high street banks in a bid to bring in more revenue for, what is essentially, this huge money making business. The best savings rates are being offered to new savers at seven per cent while long term savers rates were cut to a mere five per cent.

Are they not cutting off their noses to spite their faces? I know that if I saw my bank employing these strategies and not looking after their loyal customers, I would soon be taking my savings elsewhere. It is also a good indication for new savers of how they might be treated in the future.

The same establishments that are cutting savers rates up to half a percent are then offering low interest deals on re-mortgages. However, this is not the way with all banks and some are passing on a reduction in interest rates on loans and mortgages to their customers. They would do well to remember, when they have finished grabbing all they can, that this is still a business and people will not forget how they were treated during the more difficult times. Taking their business elsewhere will be the price banks pay for bad treatment of its customers it the long run.

And it’s not just the small saver that is paying. Private banks who have savers regularly investing amounts up to half a million pounds will lose over 2,500 pounds over a period of one year thanks to these unscrupulous moves by bank officials.

For those banks that value their customers a little more than this, they themselves are experiencing problems in the form of administration. For the customers who have taken heed of the savings aspect to their mortgage advice, they are queuing up to invest in a better deal at these banks and are facing waits of up to one month while they wait for their money to be transferred – all the while losing money on their accounts where interest rates have been dropped with no warning.

Of course, this is all good news for new savers. If they have taken good mortgage advice that has secured them one of the new deals that banks are offering to encourage more money into their particular bank then they will have their pick of the new savings accounts also, some of which are offering up to 7.01%. This rate applies to those saving up from 1 pounds but suggestions are that a minimum for the best deal would involve a deposit of 1,000. pounds The rate reduces slightly for those investing 30,000 pounds and good advice suggests that a personal limit be set at 35,000 pounds to make your money work as well as possible. Just take note of how your chosen bank is treating long term customers because it’s very possible you will be one of them some day soon.

Financial expert Catherine Harvey looks at the way mortgage advice should warn against unscrupulous bank tactics.

Mortgage brokers are the best way of quickly finding the best deal and this is becoming increasingly important in this time of financial difficulties. Banks have been through a time of refusing mortgages to the majority, particularly those without large deposits and home loans have been increasingly difficult to come by. A change is occurring at the moment with banks now offering new borrowers better deals but, unfortunately, at the expense of current customers who have felt the weight of sudden interest hikes.

When discussing finances with your mortgage broker, make sure you know the ins and outs of the finer details for that rainy day. When the unexpected financial pressures come along, you will need a contingency plan, especially if you have no significant savings.

For those who believe their financial setback to be temporary, you mortgage broker will hopefully have secured you a deal that means you can take full benefit of a payment holiday. The conditions will vary from lender to lender and it is essential you know what they are before you commit yourself.

Some lenders require that you make overpayments during the more secure times to take advantage of a mortgage payment holiday. The amount of the overpayments will equal the amount you can take a holiday from paying. This is, of course, for those who have had their loan for longer and have had chance to pay some off in advance.

For other more fortunate borrowers, a payment holiday is possible as long as you have had the mortgage for three months or more. This period will stretch between three and twelve months depending on personal circumstances and can bring welcome relief, possibly giving you time to get back on your feet to ride out the current credit storm.

These mortgage payment holidays are available one or two times through the life of your mortgage and can bring serious welcome relief. I experienced this on a personal level when I was going through a divorce. Unable to afford the mortgage payments after my husband left, and without an amicable arrangement with the ex, I had to find a way of keeping the house until I was able to sell it.

My mortgage broker advised me to take a payment holiday which was agreed for six months. I kept up the insurance payments and the house was put on the market with a sale completed days before the mortgage payments were due to kick in again. Needless to say, this worked out well for me as I didn’t lose money on a repossession which is what I would have otherwise faced.

For those without this option, or who do not wish to use it yet, can take advantage of offset mortgages. These mortgages set the amount of your savings against the balance of your mortgage effectively cutting the size of your overall mortgage. However, they can be adjusted in order to bring lower repayments for a set period to bring you a bit of a breather.

For those who have a stable credit rating and want to take effective measures before facing financial difficulties, it is a good idea to borrow more than needed initially as rates are good for those new to mortgages. This spare equity can then be put in a high interest account, earning you money and being in place for that difficult period, should it ever come.

If your mortgage broker arranged a repayment mortgage for you then the amount you are paying can be reduced by switching to an interest only mortgage. This is best looked at as a short term measure to relieve difficulties and adequate investment taken out to repay the outstanding amount at the end of the term if you wish to continue on this road.

One measure that not that many people consider when wanting to ease the financial burden temporarily is that of switching your borrowing to a currency that has a lower interest rate. This can drastically cut the cost of your mortgage but comes with risks that should be carefully weighed up by your mortgage broker first.

At the end of the day, the trick is to not be panicked into action by news reports of impending financial doom, after all, good news never sold newspapers.

Financial expert Catherine Harvey looks at the way a mortgage broker could help with financial difficulties.

ATMs or ‘cash machines’ as they are more commonly known are extremely handy, and are frequently used to withdraw a quick bit of cash for a purchase, or to save a bank visit. They are available twenty four hours a day, and so allow us to access our cash at any time that suits us. However, there is a downside to these machines, and that is the extra risk they pose to both us and our money.

Banks are relatively safe places. When we visit a bank we are surrounded by staff, there are high security alarm systems in place, security cameras and other features, which mean that withdrawing our money is safe.

On the other hand, cash machines are often situated on the street, close to where people are passing by, and very exposed. Quite often you can be trying to access your money with people almost literally brushing past you on the street. In order to try to protect both yourself and your money, there are a few things that you can do to help ensure that you do not become a target.

The first thing to consider is the location of the machine, and the time of day. A cash machine in a fairly poorly lit area of town, possibly quite quiet and at night is not a good choice, since you are very exposed and liable to draw attention to yourself. Think about where the machine is, and how easily people will be able to see the screen, and what you’re typing in. remember, much of the crime associated with ATMs does not take place at the machine itself. Instead what criminals do is watch you enter your PIN, and then wait for you to leave the machine. You’ll then be followed until you go somewhere fairly quiet and out of the way, at which point your wallet will be taken from you. They already know your PIN, so all they have to do is to visit the nearest machine and use your card to withdraw the maximum possible.

For this reason, when you approach a machine, be aware of who’s around you, and who seems to be hanging around without any particular reason. Is there a parked car next to the machine with someone in? A common trick is to park up near a machine and look as though you’re waiting for someone whilst watching people access the machine. A pair of small binoculars quickly whipped out is all that is needed to get the PIN, and the rest is up to them.

If you are in any doubt, leave the machine completely. It’s also important if you have decided to use the machine to check it carefully before entering your card. Some gangs stick an extra card reader on top of the real one, and this scans your card number as you enter it. A small camera, or a remote viewer watches the PIN being entered, and this is all they need to access all of your bank funds. Without you knowing they will manufacture a false card using the numbers scanned on yours, and then use the PIN to access your account and withdraw or transfer as much as they like.

The golden rule is this, if you are in any doubt, just hit the cancel button and walk away. There are plenty of other machines, and it simply isn’t worth the risk.

Victor Epand is an expert consultant about luggage, cruises, hotels, and shopping. You will find the best marketplace for luggage, cruises, hotels, and shopping at these sites for bags, luggage, hotels, cruise, and shopping, cash machines, security, banks.

Starting a business can be one of the most stressful and difficult experiences to undertake in life. It is due to this difficulty that you should take extra care when considering the business account you should open. The choice of bank account will be one of your first decisions in the progress of your business. As such, it is a fundamentally important that the right decision is made and you open an account that suits your businesses needs and requirements.

The most tempting option is to purely open a business account with the bank that already holds your personal finances. This is rarely advisable; giving one bank power over all elements of your financial life can be detrimental. More important however is that if you just take this easy course you may miss out on great deals offered by other banks. Other banks may offer an account with lower charges or higher interest rates. Some banks even have unbelievable offers for new customers that are simply not available to existing customers, it here that as a new customer you can get a great deal on your account.

While many will advise to follow the attraction of interest rates, this is not always the best path. While a high interest rate may promise to bring you a percentage of your credit, in the first two years of your business operating it is unlikely the amount of credit in your account will be substantial enough to generate significant amounts of interest. Of more importance to those starting out in business it is advisable to look for an account that has lower charges instead of a high rate of interest. This way, when you are forced into your overdraft you will not be heavily penalised.

In terms of payment systems, you need methods of payment that suit your business. For instance if you predominantly deal with customers who use credit cards, your account should be able to take credit card payments, businesses such as restaurants and shops will benefit form this kind of account. If cash is your main means of payment, an account that does not fine you for many transactions is advisable. By fully researching what kinds of payment methods are included in any particular form of account, it is possible to find an account that will grant your business maximum profitability.

Transaction fees should also be considered to ensure you are making the most of your payments. Normally fees for transactions are based upon either a monthly or pro-rata basis. If you think your transactions will be limited, then a pro rata system of calculating the fees is advisable. On the other hand, an account that charges for transactions on a monthly basis will allow your business to process many transactions. Transaction charges also vary for electronic and paper processes so it is advisable to find an account that will match your business operations.

In terms of access there are a number of options that may suit your company’s requirements. Many banks now offer online banking solutions; this can be extremely useful if you find it hard to visit the bank during opening hours as they allow twenty four hour access to finances. A wide variety of banks also offer telephone banking services for their business account customers, ensuring that transactions can be made and monitored around the clock.

Along with these considerations, taking into account the level and quality of advice you may receive should also a factor in your choice. Ideally you will want a named advisor that will be able to form a relationship with you and will be sympathetic to your business requirements. Failing this however, a team of advisors can do a similarly effective job.

By following this advice you should be able to find an account that perfectly suits your business needs and operations. These factors are of prime importance if you want your business to realize success. Success is the name of the game in business, getting a solid financial base is essential to achieving this success.

Financial expert Thomas Pretty looks into the importance of the right business account in achieving success for your company.

You may not have known this, but the most popular method for paying for things used to be with checks and with it came a variety of different problems.

People could pay for things with money they didn’t actually have and “float” the check a couple days before it actually hit their account. Many people were able to get out of financial binds this way but that is no longer the case.

Today, the vast majority of checks written are turned into digital checks immediately. That means your check really turns into a one-time debit from your account in the same way that it would if you used your debit card.

So, if the funds are not in your account at the time the transaction takes place then your purchase will be declined. You need to keep this in mind when making credit card payments and the like because you no longer have that window of time where you can “float” the check.

In fact, many companies worldwide are choosing to not accept checks anymore. This may seem extreme, but that is the way companies are choosing to go about saving money. Not only do they cost more money to process, but they also carry a higher risk of bouncing than a debit or credit card purchase.

For example, if an individual writes you a check and gives you his name, number, and license number you will be able to track him down should this bounce. But, this will occur after your bank has charged you for depositing it and it will take time and effort to track down the individual.

However, none of this will ever take place with a debit or credit card purchase. You simply slide your card and within seconds you are either approved or declined.

If approved, the funds are immediately withdrawn from your account and you no longer have access to them. If you are declined, then you will not receive the products you were trying to purchase. Nobody will be charged any extra fees and all will be well.

It is for this reason that many stores are choosing to decline checks in favor of cash, debit, and credit payments. Of course, most consumers choose to pay by these methods these days anyway.

That is because writing out a piece of paper to a company takes time and effort that most people don’t have these days. Instead, it is preferable to swipe some plastic money through a machine and sign a voucher. It only takes a fraction of a second and it is preferred by most people these days.

Of course, the older generations are not accustomed to paying for anything in any other way than with a check so it is taking them a bit longer to get used to things. They are coming around though.

The banking world is changing and everyone, young and old, has to get used to the changes being made. Otherwise, they will be left behind the times!

If planning to open a bank account then look for us. We help you with current accounts, saving accounts and with bank charges.

A business account is fundamentally different form a personal account. This is predominantly because it offers different services and features to meet your business needs. This is why it is important to consider your choice of account carefully, it may not always be the wisest choice to choose the bank who already control your personal finances; have a look to see what else the market has to offer. Part of your research should be enquiring what facilities each account comes with and the charges that will be applicable.

There are advantages however to opening a business account with a familiar bank. A bank that already has your personal finances under their control may be more willing to help you as a trusted and loyal customer. As part of this, a bank that you have a good record with, in terms of debt repayment and other financial transactions is likely to help more than a new bank that has no idea whether you are as good as your word.

That said there is always going to be advantages of shopping around for good deals when opening an account. By doing this it is possible to find an account package that caters for your needs precisely and ensures your business receives the financial services it deserves. As a new customer there are also often preferential rates available to you, at least for an interim period as banks often try to attract new business customers.

When choosing your business account there is a number of factors to take into consideration. It is not always the case that you will need a single business account, if your business needs it; it is possible multiple accounts will service your requirements more effectively.

Your first consideration should be whether your business will need to make frequent transactions. If it is the case that you will be carrying out a lot of transactions it is most advisable to go for a monthly fee rather than charges based upon individual transactions.

Merchant accounts are perfect if your business regularly undertakes transactions by way of credit and debit cards. Shop and retail businesses will benefit from this kind of account most as fees can be kept to a minimum.

If your transactions will be carried out abroad, a foreign currency account may well be ideal. Allowing the transfer of currencies without the charges that would be incurred if performing the task manually, this type of account can save you thousands.

If you happen to be considering taking more than one account it is worth remembering that as a multiple account holder you may be eligible for a wider number of offers and deals. The facilities you receive might also be more diverse with multiple accounts.

When in the process of opening a business account it is worth meeting with your financial advisor before signing anything, they are the experts and will be able to spot any discrepancies in the paperwork. Added to this you will need a number of documents such as proof of residence, age and income. It is also worthwhile to remember that if you are starting a limited company a Certificate of Incorporation will be needed.

It is usually advisable to keep personal and business finances separate from each other, even if you are running your operation from home. This way it is easier to extract business loans form the bank as well as other commercial related facilities. Shopping around is key to finding a great deal and giving your business the best chance for success. After all, starting out in business is an extremely difficult process; if you can create a solid financial platform to build upon it may well be possible to achieve this success.

Financial expert Thomas Pretty looks into the benefits of a business account and considerations that must be made before visiting your bank.

When it comes to choosing a bank there are so many things you need to keep in mind. It really is easy to find the right financial institution for you if you simply do a little bit of research and find the best one for you.

For example, some people are looking for a place that will allow them to earn some cash on their checking account while others are more concerned with low charge on their home mortgages. Some people want to use one banking institution for all of their financial needs while others are happy to search out the best for different areas and use several.

Whatever works for you is what is best, but the following suggestions are some things you will want to keep in mind when you begin looking for a bank.

Tip #1 Interest Rates

When it comes to choosing an institution to deposit your cash, you want to know a place that has the highest possible interest.

Some banks provide high amount CDs or on money market accounts but don’t offer interest checking. Other institutions will give less mortgage interest in addition to low quotations on car loans, high quotations on checking accounts, and more.

So, just because the first place you visit does not have the best rates does not mean that you can’t find a place that will offer you the interest rates you desire. You may even notice that some of the best financial institutions are not the traditional brick and mortar ones but rather online.

Since the overhead is much lower, these online banks are able to offer better quotation most of the time.

Tip #2 Low Fees

No matter where you keep your cash on deposit you will have to pay fees. The goal is to look out for a place to deposit money that does not require you to spend money on every little thing.

Finding fewer amounts of fees is important otherwise you will spend all of your money on little of it here and there. Look for a banking institution that is willing to offer you low fees as a trade off for your banking with them.

Again, a better way to find banks with the lowest fees is to simply search the web until you find a few with low rates and then compare them.

Tip #3 Customer Service

The next important aspect you will be looking for is excellent customer service.

When it comes to your money there is no room for error or mistake, and you don’t have a lot of patience for joking around. As a result, you should look out for a location that gives 110 percent all the time and that strives to improve their business.

You want to be greeted and worked with as well as have someone to talk to you about your questions and anything you don’t understand. This is really important and can make up for quite a lot of other things when it comes to choosing a bank.

Open bank accounts with us. We will also help you reclaim bank charges. You can always compare saving accounts for your assurance.

When starting out in business it is usually a prerequisite to open a business account to mange your finances. Unfortunately for many it is uncertain what kind of services your account will need to provide. Here are some of the most common issues that concern small business managers when they are opening an account.

The first issue is the amount of interest your account should provide. More advisable is instead of looking for high interest rates to study the charges that will be applicable to your business account. High interest usually means greater penalties for going into your overdraft, as a young business you may be in and out of the red so try to avoid high interest accounts. If you do however want to pursue high interest rates it is best to look online as internet banks often offer great rates to attract customers.

You may be asking yourself if you will actually need a business account; naturally business is always dependent upon money and ensuring your money is well kept should be a major concern. A business account will help you identify all of your transaction processes and ensure you have clarity. A dedicated account will also provide you with accountability so creditors and the tax man can easily understand your business dealings during audits. It can also give your business some credibility as the bank will usually have to approve your model before managing you finances. That said, it is not crucial to hold a business account. If you are operating as a sole trader there is no need for you to open one, your personal account will suffice.

When you are choosing an account you will be bombarded with services that in reality you will not need. It is best to open a simple checking account that allows you to pay checks and withdraw money. A savings account would be ill-advised as it is unlikely that you will have much to save during the initial stages of starting operations. As a sole trader it is possible to open account that not only presents your name but also the type of business you operate, this can create a far more professional look. As a limited company you will need to open the account in the name of your company rather than your own name.

It is not always advisable to open an account with the bank that controls your personal finances. Shop around as the variety can be amazing; in terms of services, charges and interest. It is also advisable to not give one bank too much control over your finances, if they already manage your personal funds, your company may benefit from using another bank. As a new customer you will also be open to more services than you would be as an existing customer.

When opening an account you will need a number of items. First and foremost the manager will want to see a business plan to see if your chances of success are acceptable. They will also want to know where the start up funds are coming from. Of course a list of signatories will be needed to note who will have access to the finances. While monthly statements are usually sufficient in a personal account, your company will most probably need updates more frequently to assess your financial position accurately. This may carry an added charge but will normally be worth the fee.

By following the advice given in this brief outline it should be possible to find the perfect account to suit your business requirements. Starting a company can be difficult and risky and hence ensuring the safety and efficiency of your finances is advisable.

Financial expert Thomas Pretty looks into the decisions that must be made by small companies when choosing what type of business account to utilise.

What a difference a year makes. Last year at this time Bear Stearns had a high flying stock price of $150 a share and a market valuation of 20 Billion. Having been founded in 1923 they were considered one of Wall Streets most venerable investment houses.

Going back to 2005 Bear Stearns was selected as “Most Admired” securities company in Fortunes annual survey a distinction they retained until 2007. During this time period many of the decisions that would lead to their eventual downfall were being made. In the middle of 2007 their armor started to crack. The subprime problems were beginning to explode. Basically it was becoming clear to the financial industry that many of the subprime loans that had been given out over the last few years were not going to be repaid.

One of Bear Stearns funds, the “High-Grade Structured Credit Fund”, started to falter. In a sign of things to come when Merrill Lynch acquired 850 million of the collateral for the fund they were only able to auction it off for 100 million.

A problem started to develop with two of their funds that operated as hedge funds. The interesting word here is hedge fund. Hedge funds basically operate under the philosophy that by investing in a large number of loans that are somewhat risky you minimize the risk. While a few individuals might go into foreclosure the investor is protected because they have invested in a high number of loans. The problem the financial industry started to realize in mid 2007 was that a large number of these were going into foreclosure. In July these two hedge funds had lost nearly all of their value.

By August lawsuits had started flying as angry investors started to sue over their losses alleging that Bear Stearns had not property disclosed their exposure to hedge funds. A few months later they declared write down of 1.2 billion on their securities.

2008 brought more problems for Bear Stearns. Rumors started to circulate that they were having cash problems. JP Morgan started to provide emergency funding to Bear Stearns but it did not seem to stop Bear Stearns slide into financial chaos. This led to the final offer of 240 million. Not only was this substantially less than the 20 billion Bear Stearns was worth a year ago, but it was less than the value of Bear Stearns headquarters in New York which is valued at 1.2 billion. The fact that the purchase price is lower than the value of the real estate owned by Bear Stearns is seen as a sign that many of the financial assets Bear Stearns owns have a negative value.

Another interesting point is comparing Bear Stearns to Countrywide. Both were large institutions with exposure to the subprime real estate market. But Countrywide was seen as a free wheeling company that almost ignored risk and rose fast and feel fast. In contrast Bear Stearns was seen as an older company that had weathered through multiple recessions. But in the end the same market brought both these companies to their knees. Basically spreading out risk among many subprime borrowers does not help if the real estate market weakens resulting in a large percentage of borrowers going into default. Hopefully the collapse of Bear Stearns will serve as a warning lesson for future companies. And the warning lesson hopefully will not only be remembered only in bad times, when it is frequently too late, but in good times when the seeds are sown for future financial turmoil.

Ki is a real estate agent in Austin Texas. He works with buyers interested in investing in the Austin real estate market. His site provides a free search of the Austin MLS as well as a graph of recent mortgage interest rates.

The recent government-sponsored bailout of Bear Stearns, one of the top five lenders in the United States, has shocked traders and left investors cold. Despite the chilly reaction on Wall Street, secretly many are breathing a sigh of relief. While Bear Stearns was mismanaged from its upper echelons, its subprime exposure grew until their recent $30 billion-plus losses had to be reported.

Once that happened, their course took a turn for the worse. As their ability to shore up capital faltered, JPMorgan Chase stepped in with a buyout worth a bargain $2 a share, valuing a company worth $3.5 billion down to $236 million. Quite a savvy deal, if obviously designed to ensure continued security in the market more than pure profit (after last year’s hedge funds collapses, Bear Stearn’s lawyers have been busy with sub-prime exposure-related litigation).

With the impact of derivative investments and more sophisticated financial instruments, the notational impact of a Bear Stearns collapse comes at a staggering $10 trillion. Moreover, even at a share price that attractive, the Bear Stearns rival wouldn’t have bought them unless a fundamental shift in monetary and fiscal policy hadn’t occurred: The Federal Reserve’s liquidity offers to commercial banks, which have been numerous in recent months in the wake of the credit crunch, have been offered to Bear Stearns for the purpose of covering billions in frothy investments.

This sets a dangerous precedent against the continued function of American markets by using taxpayer dollars to bail out what is an entirely market-related mistake. By covering bad investments with taxpayer money, the Federal Reserve reverses sixty years of capitalist policy in favor of blatantly socialist takeovers. This could be the worst way to introduce Americans to this form of quasi-socialist government ever conceived.

No one put a gun to Bear Stearn’s collective head and made them spread risk ineffectively and invest in sketchy sub-prime mortgage securities. They did it all by themselves. Yet here we see a government-backed takeover to shore up confidence in a financial system that seems unable to take care of itself. Laissez-faire? Quite the opposite, it appears. What kind of message does this send to other financial institutions? Can they now expect similar access to the “discount window” that had been reserved for institutions that work with taxpayers, not investors?

We now have the dubious half-promise that the Fed will rein in on Wall Street during boom times, but isn’t it a lack of regulation in loaning standards and a subsequent rise in “predatory loaning” what got them into this mess in the first place? And how many more Bear Stearns get the Fed rescue while millions of Americans face foreclosure? The Fed haven’t received much criticism thus far, as their responses have taken a course they have helped the economy weather in past recessions.

However, their break from past precedent will likely draw some flags. Even if no one else will tell the emperor that his clothes are slipping off one piece at a time, hopefully the Presidential candidates will pounce on this new opportunity to compare traditional economic goals with the present shift in policy.

Ki lives in Austin and writes a Austin real estate blog. His site is filled with information about Austin real estate and includes a free search of the Austin MLS.