Choosing the Right Saving Account

For a lot of people in our society, a savings account is the most important form of financial security. Although a savings account is a very reliable sector for investing your money, it is highly necessary that the person chooses the right account to make sure he/she gets the highest return possible.

A high interest savings account is most definitely a very lucrative choice, especially for small investors who want both reliance and a reasonable interest rate. If chosen correctly, it can provide the investor with a fair amount of profit at the end of the investment period.

No matter what your occupation, having some money stored in a bank is possibly your best financial companion when in time of needs. In todays’ world, when the economy is extremely volatile, saving up money in the bank is much difficult than it was before. But still, having a savings account means that when the road ahead gets rough, you have something to rely upon.

The ideal way to save is income less savings equals expenses. But in times this rough, people often take a different approach and that’s income less expenses equals savings.

Savings accounts are one of the most desirable schemes of investment and choosing an account with a high interest rate is even more desired. However, most basic savings accounts only yield up to 4% interest rate. But if you have a reasonable amount of money for savings, it’s highly suggested that you deposit your money in savings accounts that has higher interest rates. Some banks even offer up to 6% of interest rate, given that you don’t withdraw money in a certain time period. These banks offer these savings schemes to individuals only, single persons who can deposit a fairly reasonable amount. However, it’s noteworthy that most of these accounts only offer online transactions. So it’s of utmost importance that prior research should be done before choosing to invest in a bank.

When taking the decision to plan about your financial security, it’s imperative that you don’t fixate upon an offer from the very beginning. Explore different offers, their pros and cons, research about the market to make sure that you know every detail about the offers. Above all, don’t be hasty while making this kind of decisions. Take your time to understand the different accounts and then choose the one that best meets your needs.

The Decline of the Dollar and the impact of rising Political Tension

In recent times, the U.S. dollar has enjoyed a huge resurgence in the financial marketplace. This has been largely driven by the fluctuating fortunes of the Euro and the Yen, which have plummeted against a backdrop of economic decline and reforms.

This trend has finally reversed, however, with the greenback suffering broad losses after previously peaking at an eight-month high against a host of major international currencies. Recent geopolitical tensions have contributed heavily to this, and the dollar may even fall further amid widespread, international tumult.

Why the Dollar falls during times of Political strife

The primary reason for this is outlook of investors and how this changes during times of political tension. Traders initially look to cut long positions in a depreciating market, for example, making the dollar far less profitable or appealing to the majority investors. In addition to those, conservative investors have traditionally turned to the yen during times of aversion, with this currency recently hitting an impressive two-week high of 122.26 in the market.

The same can be said for the Euro, which has also gained a third of a percent over the course of the last two weeks and edged to $1.0676 while climbing from a seven-month low of $1.0592. The growth was compounded by a dollar index decline of 0.2%, and while this is expected to be a temporary fall it underlines how traders amend their outlook as the economic climate fluctuates. We can expect this trend to continue for an indefinite period of time, however, especially given growing tensions in the East of Europe.

The final Word: How long will it take for the Dollar to recover?

Both the Yen and the Euro are considered as carry funding currencies in the current marketplace, which means that investors are likely to borrow low-yield currencies in a bid to sell it and buy a higher-performing alternative once the market improves. This is a common risk aversion strategy in the modern age, especially as high-yield and Western currencies such as the Dollar are often associated with high levels of risk and threat.

Ultimately, there is no doubt that the U.S. dollar will rebound from its current decline, especially with positive data sets expected to be released in final financial quarter. It is simply a matter of time before the market begins to ascend once more, and much will depend on the capacity of leading international governments to manage oversea relations. With this in mind, as an investor you will need to monitor live and real-time market trends as they unfold, so be sure to check the latest forex developments.

Types of Loans – Which is Best for you?

At one time or another, most of us will find ourselves in a situation where we need to buy something but can’t afford the item in question, or would rather spread the costs.

Maybe it’s a new car to get you to and from work or a new computer to help you keep on top of bill payments, banking and so on. Perhaps your washing machine has broken or you need a much-deserved holiday. When such a situation occurs, it is often the case that we will opt to take out one type of loan or another. There are many different ways to do this. What type of loan would suit you best?

An Informal Loan

For most of us, borrowing from a family member or close friend, if possible, would come high on the list of potential options. As long as an agreement is written down that suits both parties, this is an informal, cheap and effective way to borrow money.

Personal Loans

If you have a steady income, then a personal loan from a bank or other financial institution may be the way ahead. Personal loans are usually taken out over one to five years and come with relatively low rates of interest. This means that you get the money you need and can pay it back little by little for a small fee.

Guarantor Loans

If you can’t prove that you have a steady income, for example if you have recently started a new job, or if you have a poor credit rating, then a guarantor loan is an option well worth considering. Guarantor loan experts can offer you a loan of up to £7,500, all you need to be able to do is get someone to act as your guarantor. This means they vouch for your ability to pay back the loan and are legally obliged to take over your repayments if you should find yourself unable to do so.

Credit Cards

Credit cards are a sound way to borrow money, many now offer 0% for up to 27 months and so if you can quickly pay back the money you borrow, they are a good option. Beware, however, because once the 0% interest period is over, then the interest rates jump up and can be very high. If you don’t pay back the money you borrowed quickly enough you could be in debt for a long time.

Payday Loans

Payday loans offer short-term loans on relatively small amounts of money and the idea is that you pay back the loan in full at the end of the month, on pay day. These loans carry very high interest rates and are a very poor option. Many people get themselves into spiralling debt as a result of taking out a payday loan with the very best of intentions.

Taking out a loan for an essential item or for a special treat is generally a simple process and most people appreciate the convenience, but before signing your name on the dotted line make sure you are confident that you have selected the best option for you and that repaying the loan isn’t going to leave you in the doldrums.

Borrowing Is Getting Easier For Those With Good Credit History

It has taken lenders an interminably long time to ease their restrictions on lending, but at long last, it is getting somewhat easier to get approved for a loan. The best interest rates have dropped from 7.5% to 3.4% in the last two years, which indicates that the banks are feeling the need to compete for customers again, rather than the other way around. The sticking point is that these discounted rates are only available to lenders whose credit scores fall within the upper half of all loan applicants. A full 90% of applicants find themselves either turned down outright or offered loans at significantly higher interest rates.

So before you begin popping your Christmas crackers early in celebration, you might want to consider checking your credit reports and, if necessary, doing a bit of house cleaning before marching off to the bank to get that long-awaited loan. Those reports, which allegedly detail how responsibly and reliably you have met your prior credit agreements, are available from Experian and Equifax.

What do you mean, “allegedly”?

Both credit scoring companies do an exemplary job of keeping track of millions of people’s credit histories, but there is always the chance that a given report can be less than 100% accurate. Not all creditors are as meticulous as they could be about updating the reports they provide, and some are less than timely in reporting changes to the scoring companies.
In addition, instances of identity theft that damage a person’s credit score often go unnoticed by the customer until they find themselves rejected when applying for a loan or credit card, or even when applying for a job or trying to open a new mobile phone account.
Between these instances and the inevitability of the odd human error when updating an account, it falls to the would-be borrower to ensure that his or her score is accurate, and that it has not fallen victim to plundering by means of identity theft or other fraud. If, upon checking your credit reports, you find incorrect information or evidence of fraud, you need to act quickly to address the problems with the listed creditors to get them corrected. Im the case of fraud or identity theft, you will need to make certain that the authorities have been alerted, as well.

What to look out for beyond errors on the report or cases of fraud

Take it easy when applying for credit – Whatever you do, avoid applying for too many credit cards, loans, or other credit applications in a short period of time. Each application you submit to a prospective creditor is likely to result in them running a “hard search” on your credit history, and each of these searches is itself added to your credit report. If a prospective creditor sees many of these searches, especially over a relatively short period of time, they are likely to reason that you are either desperate for credit or on the path to overextending your finances, and they are just as likely to deny your application for that reason.

Don’t miss any payments – This should go without saying, but unfortunately, it does bear repeating. You add to your credit history with each passing month. While a good report on a debt might not appear until the debt is paid off, missing or being late on payments are reported in real time. While missing or being late on a single payment might not disqualify you for a loan all by itself, it never helps, and a pattern of missed or late payments marks you as a credit risk.

Don’t max out your available credit and apply for more – If your credit card balances stay at or near your approved limit, lenders will usually assume that you are not very good at managing your finances. Keep the outstanding balances as low as possible.

Don’t summarily close out accounts you aren’t using – You would think that paying off an account and closing it would make you a saint in the eyes of prospective creditors, but you would be wrong in thinking so. You are actually better off keeping those accounts open, so long as you don’t incur exorbitant fees for doing so. Using the cards or accounts from time to time and keeping up with payments establishes the very kind of credit pattern that most lenders want to see.

Establish your stability as a customer – Nobody enjoys moving, and people who change their address too frequently are looked upon by creditors as being something less than stable, and inherently poor credit risks.

Maintain a positive balance in your chequing and savings accounts – While the occasional overdraft won’t necessarily disqualify you for a loan, frequently having a negative balance in your accounts is not a good sign of good money management. Ideally, you will want to have enough cash on hand to cover at least one month’s expenses if you want to impress lenders.

Shop wisely for credit – Being accepted for credit by an institution that is well-known for accepting high-risk borrowers won’t be much of a plus on your credit report. Compare the terms you can get from different lenders, and apply first to those who offer the best interest rates and terms, and for whom you are most likely to qualify.

Being circumspect in when, why, and to whom you apply for credit can help you establish yourself as a savvy and reliable borrower, the kind that creditors welcome with open arms. By ensuring that your past creditors and the scoring agencies are doing their part, and by doing your part to maintain a good credit rating, you will not only find it easier to get credit, the credit you get will also end up costing you far less, in interest rates and fees.

The Questions of ‘Save and Spend’

It’s ironic, isn’t it? Families are advised to save money. It is important to have an emergency fund and provide properly for retirement. Yet at the same time there has been concern expressed that there is too much saving and therefore the spending required to boost the economy isn’t taking place. Well not at the levels required even though statistics show there is extensive credit card debt. Perhaps the spending is going on everyday things such as groceries? Whatever the case, there is a definite dilemma. Savers cannot expect too much growth while interest rates are low though the markets should be performing well enough in the medium term. Those who do not save for the future while likely find things difficult as they reach retirement. The Social Security System is no guarantee.
So what is the answer? Ordinary people do not necessarily understand the principles of economics.

Borrowers Are Benefitting
There’s little doubt that borrowers benefit much more than savers when interest rates are low. That is a compelling reason why if you are carrying high interest rate debt like credit card balances you should take advantage because just right installment loans are readily available if you have regular income and your request looks realistic. In essence it is that you appear to be able to afford the instalments for the term of the loan. You need not worry if you have a poor credit score. While some traditional lenders use that as their main focus, today’s online lenders don’t; they may charge a higher rate of interest because of the extra perceived risk but the rate will still be much lower than that applied by credit card companies.
Those who decided that real estate was a good way to build up their assets found that the recession but their hopes on hold. In almost all cases real estate values dropped and those who had bought in the previous few years expecting growth faced problems. Mortgage companies required little in the way of deposit and in some cases mortgages were available where borrowers could obtain more than the current value of the property. The result was widespread negative equity and foreclosures where borrowers could not maintain their payments.

Real Estate for Retirement
Circumstances have improved and growth has returned. In the medium to long term real estate growth should be certain and a family seeking to build assets should rightly expect that it will happen. In this case spending on a mortgage is generating growth in the real estate market though not necessarily in the economy as a whole.
Someone relying on the value of the house to fund retirement however faces a number of issues, not least the fact that the value of the home has to be realized and alternative accommodation obtained. It is great to have money in real estate but in reality people should be looking to contribute to retirement regularly and from an early age. A 401K where employers contribute as well makes absolute sense. Compound interest creates good growth over the years even at single figure percentages.

Start Early
A $100 a month over 20 years at 8% will produce a sum around $50,000; anyone putting that away from their mid-twenties will have that figure by middle age, the time when some are only just starting to think about making plans for retirement. Imagine if that $100 was increased every five years by a further $50! It is a figure that should be eminently affordable for someone in regular employment. While 8% may not be available by putting money on deposit it should be by taking a fairly conservative approach and investing in the S&P 500.
Everyone deserves a comfortable retirement and it is important to remember that people are living longer. While the Social Security System is in place there are a number of issues for the future because the funds coming in will not be able to sustain current benefits without some changes. If the System is just part of the finance for retirement then the chances of a comfortable retirement improve enormously. It isn’t necessary to be an economist to understand the common sense in thinking about the future. It doesn’t necessarily involve sacrifice but it will involve ‘peace of mind.’

How To Take Your Own Business To Another Level

Market data shows that 80% of all businesses fail within the first 18 months. This might be a rather disheartening fact for you if you’ve hit a rut with your own business and wondering how you can take it to the next level. Even if things are going well, at some point, you will have to take a step back to evaluate whether you are heading the right way and if you will be able to reach your long-term goals.

Will you wind up in the 20% that make it? That answer lies in how you plan ahead and what your next steps are. Here are 2 strategies to consider in attempting to get your business to the next level and give it a real chance for success.

Adjust to meet changes in the market
Progressions in technology are changing the way how people do business every day. While it is counterproductive and probably impossible to keep abreast with every trend, you should be aware of significant shifts in consumer behaviour and be willing to make the relevant changes in your own business. For example, many people are doing business straight from their mobile devices; you may have to set up a responsive mobile version of your current website to make it easier for mobile users to do business with you.

Find ways to eliminate waste and improve efficiency
Inefficient business processes and wasteful practices can bleed your business dry, regardless of how big your profit margins are, so you should find a way to reduce these as much as possible. One area where some businesses often waste money is payment processing. A reputable payment processor facilitates debit and credit card transactions between the business and customers and choosing the right one is very important. To choose a payment processor that is right for your business, you should look at their fees, the countries they can do business in, whether they support recurring billing and if they allow mobile payments.

While there is no panic for quick success in business, you need to plan ahead and strategise in order to give your firm the best chance of making it. The strategies above and others may prove disruptive but will be worth it.

What To Look Out For When Choosing A Short Term Loan

Short term loans can serve a genuine and viable purpose, as long as you are sensible with how you use them and ensure that you repay them on time. For students, a short term loan can be used to bridge the financial gap until your next student grant check or student loan check is paid, enabling you to meet necessary bills, buy books, or cover any unforeseen expenses. However, there are some factors to consider when choosing a short-term loan.

Look Beyond The APR

Loan companies, including those offering short-term loans, are required to advertise the APR associated with a loan. However, these short-term loans are designed to be used over a short time frame, and even a small fee can attract a huge APR because it is calculated over the space of a year. If you need the money, have the means to repay it, and can stick to the agreement, then borrowing money in this way can prove less expensive than missing payments or failing to have the money you need.

Interest Caps

APR does not take interest caps into account either. A few companies have now set an interest cap on the loan, which means that you will never have to pay more than this amount, even if you run into financial difficulties and are unable to make the repayment as expected.

Most online lenders have to offer a 100% interest cap, although Smart Pig has a much lower 50% cap. This means that, if you do run into trouble, you will never have to repay more than half the money you borrowed.

Check For Hidden Costs

Whichever loan company you use, and whatever type of loan or credit you take out, you need to pay attention to hidden costs. For example, if you want to repay a loan early, you may find that there are fees for doing so. Late payment fees, extension fees, administration fees for sending out debt chasing letters, and various other fees may be levied by some lenders. Even £20 fees can add significant sums to a small loan of £250, and you should ensure that you are aware of any potential costs and hidden costs before taking out the loan. Read the small print, ask for confirmation, and look elsewhere if you are unsure of the responses you receive.

Ensure You Will Have The Money To Repay

Short term loans and student short term loans are designed as a means of borrowing money for a short period of time, typically up to a month from the date that you receive the money. They are best used for emergencies, and should only be used when you know that you will have the money to meet the required repayment.

Here Is What You Should Know Before Delving In the World of Online Trading Using the Different Platforms

Here Is What You Should Know Before Delving In the World of Online Trading Using the Different Platforms

Over the past few months, online day trading has become very popular and common among expert investors or even those looking to make some quick money. The reason behind this popularity is that literally anyone can become their own online money manager, while the ease and convenience that an online trading platform, such as Trader Pro or MT4, provides to even beginner level investors, is also an attractive feature.

After all, the only thing that is required when it comes to online trading is to have some spare cash and the desire to invest that amount. This being said, the world of online trading is not free from some disadvantages, even though the process is fairly simple and open for everyone. This is why, before trying your hand at online day trading using any platform, it’s important to know the good points as well as the bad ones, related to online trading.

The Disadvantages of Online Trading:
* For first time users of any trading platform, it’s very easy to forget that they are using real money and not just tinkering with the technology involved.

* Some trading platforms don’t provide a support center to online trading account holders, which means investors are left to make their own choices.

* Beginners in particular, can make mistakes that can cost dearly, if they don’t know the ins and outs of a particular trading platform.

The Advantages of Online Trading:
* An increased ability to manage stock portfolios.

* When it comes to the type of transaction chosen to be conducted, you will have far more control and flexibility in the matter.

* The commission costs for trading while using online platforms are significantly less as compared to the services of professional brokers.

* Greater access to lower fee mutual fund investments

* Online trading platforms and programs offer investors a wide range of tools and additional services that can prove to be really helpful.

* Investors can trade using the platforms and programs 24/7.

* All you need to manage your investments is a device with an internet connection and you are all set to go. Many popular online trading brokerages provide free access to research reports of the highest quality to their clients, created by none other than the best financial players in the market, i.e. the Standard and Poor, as well as other predominate ones.

* Trading using online platforms such as Trader Pro, Binary Options, or the MT4 has been made easy and convenient for investors, whether they are in the beginning stages or have been in this business for years. This doesn’t mean that you, as an investor, shouldn’t do some research and planning before diving into this world. This will only give you an additional advantage when it comes to trading using online platforms and programs.

The First Stages To Effective Investment

Most people understand that saving and investing are important. Whether you have just stepped out of university, or you have a decade of earning behind you, it is never too early to consider your financial future, and rather than putting every spare pound you have in a savings account, there are alternatives. You can invest in stocks, in funds, bonds, currency, and even in gold and real estate, but before you start putting all of your money into a stock that your inexperienced eye has spotted, ensure you know exactly what you are doing and that you are in the best possible position to benefit.


Before you start to consider investing, you should pay off any debts you have, especially credit cards, personal loans, and other high interest debts. There are exceptions to this, but most debts cost you much more than you can make through saving or investing the same amount. Mortgages and student loans typically have low interest rates and can require a lot of capital to repay, while the opportunity to invest in a pension fund that includes generous employer contributions are exceptions.

Your retirement may seem a long way off when you’re 20, or even when you’re 30, but the sooner you start investing, the longer your money has to grow and multiply. Even if you can only squirrel away a relatively small amount, it will become a much larger amount by the time you are ready to retire.

Seek Advice

Regardless of your investing experience, you should consider getting professional guidance and help to ensure the best possible results. Companies will listen to your goals, work according to your personal circumstances, and can help you invest your money how you want to; whether you want to take minimal risk, or adopt a riskier approach to your investment strategy.

Outline Your Goals

Even before you approach a wealth management company, however, you should have an idea of what your goals are. Do you want to become debt free and then start putting away a little for the future? Do you want to save enough for the deposit on a property? Are you looking to protect your wealth so that your children and family are cared for when you go? Do you want to retire early, travel the world, and own numerous properties when you do? These are all reasonable investment goals according to personal circumstances.


You should also consider forms of wealth protection like insurance, because this can protect you from losing your greatest money making asset – you. Ensure that you have the right insurance policies for your needs, that you have appropriate coverage levels, and that you will be able to access ay settlements relatively quickly and easily if they are needed later.


The financial aspect of the shipping industry

The shipping industry is an important industry, though not one that is necessarily easy to make money in. In fact, some experts have said that the shipping industry may have to shed assets if it is to survive. The recent financial crisis has hit the shipping industry hard, and after investing heavily during the good years, many people are now left with large debts. The industry has also failed to capitalize on the fall in oil prices. Many goods are transported by ship, and currently there are roughly 6,000 liner ships carrying mountains of goods around the world. These huge ships can be up to 1,300 feet long, and they are able to carry large containers to permit easy movement of goods between ships, trains, and trucks.

It might seem that large tankers would benefit from being able to move such vast amounts of goods, but in recent years, the price of moving raw materials by sea has fallen to an all-time low. Containers have also become increasingly cheaper, which is good for end users but not so good for the carriers. Many companies have been struggling, with 2014 seeing a number of companies, including the Danish shipping company Copenship, filing for bankruptcy. Demand is slowly recovering, but demand can be very variable from route to route and from year to year. Investment is down in the shipping industry, and many shipping companies will have to shed assets to stay in business. Cutting back to their core activities could help them stay afloat in these difficult times. Many are shedding port assets and trying to become more efficient in their data management.

A shipping agency can handle the shipments and cargos in the ports and harbors, leaving the shipping company free to concentrate on its core business. A shipping agent that is able to reduce the time spent in port will save a shipping company money. Maersk is one of the few shipping companies to heavily invest in new ships. There may be too much shipping capacity in the industry as a whole, but large container ships make sense if the company can fill them. New technologies can also help. Improving hull and propeller design can reduce fuel usage as well as environmental impact.

The shipping industry needs investment, and traditionally it is an industry that needs large cash flows to operate. In the past, this money came from the banking sector, but with the financial crisis, alternative forms of finance were useful to those who had no other options. Bank financing was attractive because there were few strings attached, but new partnerships were being forged between shipping people and financially interested partners. In recent years, it has not been the big European banks that have provided the finance for the shipping industry; European banks were too concerned with the existing loans and bad debts. It was funding from countries in the East, such as China, that provided the finance. Private equity firms may also be a good source of finance for some shipping companies.

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