Online Financial Tips

Archive for the ‘Fixed Deposit Accounts & Certificates’ Category

There are many banks in Singapore but in his article we talk about the three top banks which give the best interest rates in Singapore. The interest rates vary periodically and you have to check the latest rates from the bank website. Read on to know more.

One of the top banks is the DBS Bank that is incorporated in Singapore. The previous name of the bank was The Development Bank of Singapore Limited. The new name was adopted in 2003. The role of the bank has changed through out the years. The bank was set up in 1968. They have their offices in China, Dubai, India, Hong Kong and many other countries. They offer their customers the best interest rates. They have various schemes customized to individual customer needs. The customer can deposit a minimum amount of S$1000. The person with the fixed deposit account can also access the ATM card. The account is automatically renewed with the same interest rates unless the customer has instructed otherwise. The best fixed deposit rates over here for twelve months of an amount of S$1000 to S$9,999 is at the rate of 0.45 %. The head office of this bank is 6 Shenton Way, DBS Building Tower One Singapore 068809.

Another premier bank in Singapore is HSBC. It is one of the earliest banks to be established in Singapore. It offers its customer a wide range of services. It was first established in December 1877. Today it is known as the world’s famous local bank. However to open a fixed deposit account over here people have to open an account that has a balance of minimum S$5000.It has got flexible deposit scheme with attractive interest rates. In most cases the deposits are automatically renewed. The interest rate over here for 12 months would be 0.48% for the amount of S$5000 to S$ 49,999. Over here one can get the highest interest rates. For further details you can visit their office at 21 Collyer Quay HSBC Building Level 2 Singapore 049320 from 9.30 am to 5.00 pm from Monday to Friday.

OCBC bank in Singapore is one of the leading financial institutions in Asia. They have got a large range of services for their clients. The minimum amount to open a fixed deposit account is S$5000. The best interest rate for a period of 24 months for the amount of S$5000 to S$20,000 is 0.7000.The rates are calculated in % per annum. For further details anybody can contact 65 Chulia street #01-00 OCBC center Singapore 049513.

The Benefits Of Fixed Term
Fixed term deposits lock your money away and keep it safe, so if you want to save money for a specific reason such as paying back your home loan or saving for a holiday, this type of account is what you need. The interest rate can be quite high and will remain a fixed interest rate over a certain period.

If you have a hard time saving your money, then you may want to consider one of these accounts. You will be able to select the timeframe that your money will earn a specific interest rate, which can be anywhere from one month to five years; plus, the minimum amount to get started can be quite low.

To deter you from moving the money early, you will be charged a fee if you choose to take money out of this account, so if you continue to use fixed term deposits for a long period, you will earn more interest on top of your regular interest.

Many providers are offering easy set-up options when it comes to opening a fixed account, like being able to transfer money online. In basic terms, you can log into your account through the internet, choose the amount you want to transfer, the time period it runs and then sit back and watch it grow.

If you have any questions regarding the account, always be sure to contact the institution you have your money with, as once the term deposit account is opened and your funds are in there, moving them can be costly.

It is absolutely essential to shop around and look at the different deposits available. Some financial institutions charge fees for term deposits, but this is not the norm. Find accounts that do not charge fees and that offer the highest interest rates. If you want a low risk investment, then a deposit is definitely the way to go.

The bank gives to its customers a pass book or a statement of account. Pass book or statement of account is a copy of the customers account in the books of the bank. The bank keeps the customer informed of the entries made in its books. The customer is expected to compare the pass book with the cash book (bank columns) and to inform the bank immediately regarding the errors that may have come to his notice.

The statement of account is similar to the pass book with the only difference that it is on loose sheet. The statement of account is sent by the bank to the customer of its own whereas it is the customer’s duty to send the pass book to the bank for being written up-to-date. Recording banking transactions Banking transactions are recorded in three column cash book. However, jf the triple column cash book is not maintained the transactions would be journalized.

The journal entries are as follows:

Current Account

When cash is deposited in the bank
Bank account … Dr
To Cash account (for cash deposited into bank)

When cash is withdrawn from bank for use in business.
Cash account …Dr.
To Bank account (for cash withdrawn.)

When payment is made to creditor by cheque to settle his account.
Creditor’s account …Dr.
To Bank account (for cheque issued-to settle his account.)

When an expenditure is met by the issue of cheque.
Expense account ….Dr.
To Bank account (for expenses paid by cheque)

When cheque is issued to meet the personal expenses of the proprietor.
Drawings account …Dr.
To Bank account (for cheque issued to meet personal expenses.)

When cheque or draft is received from a party.
Cash account …Dr.
To Personal account (for cheque received)

When cheque or draft received is paid into the bank.
Bank account …Dr.
To Cash account (for cheque received paid into bank)

When cheque or draft is received from a party and is paid into the bank the same day.
Bank account…Dr.
To Personal account (for cheque received and paid into bank)

When a customer pays the money directly to the bank.
Bank account…Dr.
To Customer’s account (for payment made by a customer directly into the bank)

When a cheque or draft is received from one party and is endorsed in favor of someone’ else.
Endorsee’s personal account …Dr.
To Payee’s personal account (for cheque received from – endorsed over to -.)

When bank debits the customer’s account with the incidental or collection charges.
Bank charges account…Dr.
To Bank account (for bank charges charged by bank)

When bank credits customer’s account with interest.
Bank account …Dr.
To Interest account (for interest credited by bank)

When cheque is dishonored
Personal account (Party from whom cheque was received)
To Bank account …Dr.
(if it was sent to bank)
To Endorsee’s personal account (If the cheque was endorsed)

When draft is purchased from bank and sent to some one. Personal account …Dr.
Bank charges account …Dr.
To Cash account (for draft purchased and sent to-)

Fixed Deposit Account
When amount is deposited in fixed deposit account.
Fixed deposit account …Dr.
To Cash account (for cash deposited in fixed deposit account)

When fixed deposit is made by the issue of a cheque.
Fixed deposit account …Dr.
To Bank account (for cheque issued and deposited into fixed deposit)

When interest becomes due on fixed deposit.Fixed deposit accountTo Interest account(for interest due on fixed deposit account)

When cash is received on realization of fixed deposit.
Cash account …Dr.
To Fixed deposit account (for cash received on realization of fixed deposit)

When the amount of fixed deposit is paid in the bank current account.
Bank account …Dr.
To Fixed deposit account (for fixed deposit amount on realization paid into bank account)

Savings Bank
When money is paid in savings bank account.
Savings bank account …Dr.
To Cash account (for cash paid into savings bank account)

When interest is due.
Savings bank account …Dr.
To Interest account (for interest credited by bank)

When cash is withdrawn from bank
Cash account …Dr.
To Saving bank account (for cash withdrawn from bank)

Bank Loan
When loan is given by bank in cash
Cash account …Dr.
To Bank loan account (for loan withdrawn from bank)

When the amount of loan is credited by bank in current account.
Bank account …Dr.
To Bank loan account (for loan credited by bank in ‘current account)

When interest becomes due on loan. Interest account to Bank loan account (for interest due on loan)

When loan is repaid.

Bank loan account …Dr.
To Cash account (if paid in cash)
To Bank account (if repaid by cheque).

Online Web banking is a department of many financial services organizations and banks around the world. These financial institutions can have three business verticals which are Wealth and Institutional Management, The Retail Bank and The Business Bank.

Customer centric approach should be the motto and driving force of any online banking service. With these views in mind the online banking service provider is expected to suit the changing needs of the consumer. Today’s consumer needs speed, efficiency, effectiveness, accuracy and value for all banking transactions. Time is important for the discerning customer of today.

Just as it is with all other sectors, IT and Internet has revolutionized the banking business beyond recognition. Online banking has made the banking experience simpler and cost effective. Internet offers a host of value added services available at the click of a mouse. A customer has the convenience of making transactions from home or workplace.

Online banking is the most effective way of managing bank accounts. One can easily perform the usual functions without having to spend time in queues or having to personally visit the bank at a designated hour. Online banking provides the customer with a safe, secure and fast banking experience.

There are large companies which offer online customers a lot of benefits. These basic benefits include checking balances and viewing statements, transfering money from one account to another, making payments, paying bills online and requesting for cheque books, demand drafts and statements online. Customers can also download account information, open a new savings account, open accounts for trading in the stock market and request for ATM cards and credit cards. You can also view credit card transaction details online, and set up standing instructions for future transactions to avoid delays and default. Lastly, customers can open a fixed deposit account and apply for other miscellaneous financial products. Those who are into forex trading can access the latest financial information such as the Forex rate and the deposit rate.

The transaction costs are bare minimum and the process is extremely user friendly and transparent. All these functions can be performed without any hassles, from the comforts of your home and at your own time and pace. There is no rush and you have all the time in the world to understand your requirement, analyze data and do whatever you need to do without any external interference.

The advantages of online banking far outweigh the disadvantages. There are very few disadvantages and they may not even qualify as disadvantages considering the immense benefits that one gets from online banking. The three most apparent disadvantages are as follows. Firstly, online banking is devoid of human intervention. If you prefer chatting up with your friendly teller while waiting for cash, you may prefer the traditional way of banking. Secondly, you need to keep your user I. D. And password safely. If this sensitive information gets into the hands of unscrupulous people, they can wreck havoc on your bank accounts. Lastly, online banking may take a while for the uninitiated to get a hang of it. However; with time and practice it will become easier.

It is commendable you supplement and diversify your salary or contracts to give you an extra income to get you closer to your financial goal in your life. This is very appropriate for single persons since they have no extra roles to play with their life. Parenthood comes with a lot of responsibility and obligations that put many people on crossroads on weather to pursue their ambitions or to ignore and compromise their family’s goals.It is recommended that to elude such interface on pursuit of your goals, you have to expedite your efforts when single through enhanced savings and additional sources of cash inflows.

Saving can only be viable if you save across various safe havens and taking caution of the erosion effect of inflation. This can happen if you save your money in fixed deposit. This account can provide interest rate above inflation rate. The meager returns from saving interest can also be avoided by getting a professional (investment expert) advice on how to put money in various volatile markets with better returns, like the stock market.

Joining a Sacco or credit unions which operate as a bank and is non profit organization is also a good idea as you can save your money and give you access to lending equivalent to a third of your saving at a very low interest rate than those given by banks. This loan can help you further your study, start a size able business project or/and buy land and house. Furthering your study means higher pay in future. The land and house bought is predictable since it rarely loose value and can be leased too. Business can create you a stream of extra income if it is doing well.

Other option for those willing to save include mutual fund companies, workers unions, alumni unions and other society savings groups. It is however important to know that with all these options available, a bank is the safest place to stash your cash since your account is insured against loss by the central/reserve bank.

Getting a Shift job inside or outside your work place can also get you extra income to clear your bills. This is better done after your official hours of work. For example an accountant can offer accounting services over the weekend/off-hour to hotels or institutions around their area. You can even opt to be a freelancer worker if you have internet connection or if your work is internet related whereby you bid on various competitive bidding projects when not busy. Apart from your eloquence skills, other talents like sports, arts, etc can also bring food to the table. For example you can sell your photos, articles or even run your marathons as you enjoy your employment benefits.

Safeguard yourself from emergency situation by setting aside emergency funds. This alone may not be sufficient safety net. It is therefore important that you also take insurance to cover some expensive risks you may face. A medical cover for instance is very necessary. Without insurance you may loose all your investments to unknown risks.

As the saying goes “make hay when sun shines”. Do not just take your youth life for granted you will never repeat it. It is not advisable either to put your money under your mattress or get carried away by fancy lifestyles, creating and growing extra income streams is worth considering as it can assist you reach your financial objectives in future and even help you lower your retirement age or see you through unemployment phases . Financial planning however is a lifetime thing, you need to review you plans periodically to achieve you goals of a secure future.

Financial planning means managing your income, expenditure and savings in such a manner that you never feel financially insecure during the ups and downs in your life.

It must be noted that we roughly remain dependent upon our parents during the first quarter of our life and almost become inactive in the last quarter after we retire from active life. So we are left with the middle half of our life to earn to make our living as well as save the money for our retirement days.

Does it mean that we should set some money aside in our lockers or in our saving bank accounts so we can take it out to spend it when we are old? The answer is no. For one, the total amount of our savings will start depleting the moment we start pulling out a part of it for our day to day living.

Again, by the time we retire, the purchasing power of the money may deplete substantially due to the inevitable and continuous process of inflation. Inflation or depreciation in the purchasing power of money is a harsh economic reality that cannot be avoided. It is a historical fact. It is as true that we all become old and our biological powers deteriorate with the passage of time.

Inflation means that while one dollar may buy you one liter of milk in the present times, it may just buy half a liter after you retire. Alternately, you may require two dollars to meet your requirement of one liter of milk.

How do you face this situation especially when you are old and cannot earn?

This is where the financial planning comes in. Financial planning helps you to manage your savings in such a way that you continue getting sufficient supply of money throughout your life especially when you are too old to earn. This can be done only by investing your money so that that it continues to grow and multiply and nullify the effects of inflation.

So, the earlier you start planning in your life for your future, the better. The truth is that you should start your financial planning for your future as soon as you start earning money.

This can be done by saving certain amount of your earnings for investment in such avenues which yield the maximum returns. There are numerous investment options and each one appears more alluring than the other.

But you must go for the investment option that suits your personal financial circumstances.

Some of the popular investment options are putting your money in fixed deposit accounts, mutual funds or stocks and shares also called equities.

While deciding upon any option, you must aim at getting maximum returns on your investment with minimum risks of losses.

The first option is to invest your savings in fixed securities because they offer assured returns without any risks. But since there are absolutely no risks in fixed deposits, therefore, the returns too are not really high enough to meet the contingencies of inflation in the distant future.

The second option is mutual funds. The mutual fund managers invest your money according to their discretion and charge you high fund management fees without guaranteeing you any specific returns. They warn you even before you invest with them that your investment is always at risk. Most of your funds are invested in risky equities and above all you do not have any control over the avenues of investment.

Investment in stocks and shares or equities brings in the maximum returns. But you may be warned of the attendant risks of losses as well.

It is heartening to learn that you can derive the benefit of earning the highest returns from investment in equities without facing the attendant risks.

For this you first need to open an account with a brokerage firm. It takes only a few minutes to open an account. Your broker will offer you numerous investment options in equities such ETFs DRIPS, fractional investment plans, scheduled investment plans, various retirement plans with tax saving options and much more which yield assured higher returns over a period of time. The whole process of investment and making profits is made automatic and hassle free. You only need to study the website of your broker and contact their customer services in case you have any doubts.