Potential Risks Associated with Internet Banking
August 24, 2010 by admin · Leave a Comment
Because internet banking has evolved from its roots and become such a popular option over conventional banking, most people only hear about all the positive things. It is true that online banking is an excellent solution for millions of people, making management of finances easier, faster, more affordable, and more convenient. Without doubt, using internet banking is usually an excellent decision but as with any type of service, it would be important to understand any potential risks associated with internet banking to determine if this particular solution is right for you. Breeze by Standard Chartered alleviates these fears with the very latest in technology
The most important thing to remember is that you are entrusting your money, often to an unknown financial institution. In other words, if you choose to use internet banking connected with the brick and mortar bank where you have been banking for years, then obviously level of concern would be low. On the other hand, if you were interested in an online bank that operates solely on the internet and one that you know little about, then you should be a little more wary. That certainly does not mean the financial institution is dishonest or even fraudulent but it is always better to know.
The greatest potential when banking online has to do with identity theft. In a perfect world, everyone would be safe when dealing online but in reality, identity theft is not just a real risk but also one that is growing. For your identity to be stolen, hackers use a variety of different ploys such as pharming, phishing, hacking, viruses, fraudulent transactions, and unauthorized access. What happens is that once you have been targeted, your personal information would be stolen but also your financial information. From there, these thieves can do serious damage by emptying your bank accounts, making purchases on credit under your name, etc. Unfortunately, trying to find the responsible parties is extremely difficult and once identity has been stolen, it takes many years to recover.
Therefore, when choosing internet banking, the greatest risk is theft and most important decision has to do with online security. Although all ploys are used, phishing is the most common, especially when it comes to internet banking. Typically, you would receive an email that looks like an official notice coming from your bank. The bank’s letterhead might be used, actual names of bank executives, etc. Within the email, you would be notified of some reason that you must immediately provide confidential details or connect to a provided link. For instance, the message may state that someone was trying to access your account and to protect your assets, immediate action is required.
Unsuspecting people will gladly provide the information being requested or follow the link where they are required to complete a form that also gives the crooks sensitive information. To protect yourself and your finances from situations such as this, you have two primary options. First, it is essential that you educate yourself about the various ways in which information is captured. Being aware and recognizing a ploy puts you in control. Second, always choose a financial institution for internet banking that operates a safe website using the latest and best protective measures available.
One way of accomplishing the second option is by not access an internet banking service facility from a public computer. At home, you have virus protection and a secured hosting service but when public computers are used, they go through open or public routers, which means anyone could gain access to that same connection and start capturing information, often through keystroke software. In no time, these criminals would know where you bank, your account number, logon ID, PIN, etc.
Finally, pharming is also very dangerous when it comes to internet banking. In this case, crooks will compromise a non-secure online financial institution so when a customer logs in to manage finances, they are quickly and without knowing redirected to a bogus site that looks identical to the real bank. Of course, as information is entered and money transactions completed, all the information is collected. Therefore, any bank you might be interested in for internet banking should use the highest level of security available, which can be identified easily in the following ways.
• The website address should initially start with https:// or http:// that converts to https:// after logging in. The “S” stands for security so without this, the site is dangerous.
• Icons for security companies would be visible on the home page. While there are many, the most popular and effective is VeriSign. An icon, statement, or the actual company name would be clearly visible.
• Finally, on the bottom of the screen when at the internet banking website, look for a padlock icon
Older Students Can Still Find Scholarships For College
June 6, 2010 by admin · Leave a Comment
One of the trends that have seen changes in the past decade is that more and more middle aged and older individuals are choosing to go to university or college. Often referred to as mature students, these people now have the opportunity to get the education that they may not have had the chance to get when they were a younger person.
Many people make the decision to return to school in order to take a course of study that can lead to a career change. Another reason some people do so is to pursue their academic dreams. Once their children are old enough to take care of themselves or are out of the house the parents can then turn their attention to their own goals. For many people their academic goals now take center stage.
No one wants to rain on anyone’s parade but to attend a college or university takes money and means that the student will be bringing in a smaller income for the duration of their schooling. This is where you should be thinking two words- financial aid.
Financial aid is assistance you can obtain through scholarships and grants in order to attend an institute of higher learning. Financial aid is available to those students who classify as mature students. You would be in a class of your own which means you would not compete with everyone out there who is looking for a scholarship for their education.
Do your research into scholarships and grants. There are plenty of resources online and off. You can seek out financial assistance at the national level as well as the state level. Many colleges also offer their own brand of funding to mature students. To qualify as a mature student you must be over the age of 25. For some scholarships the age requirement is 30 and over. Some also stipulate that you must have been out of school for a specific number of years to qualify. The government has an initiative to make education as accessible as possible to anyone who is interested in it. Mature students fit into this category.
Local governments offer grants to mature students as do individual colleges. The amount you are eligible for is related to what your family’s yearly income would be minus the amount you would lose once you started attending school. Some people may qualify for grants that cover their tuition and all related costs while other may receive a much smaller grant. However any money to help with education costs is beneficial. To learn more about the financial aid that is available to you as a mature student visit College Scholarship Sources.
What Expenses are Covered With College Savings Plans
March 22, 2010 by admin · Leave a Comment
Essentially there are four types of college savings plans used to invest money for higher education related expenses. Most people refer to these plans collectively as college savings plans. you are going to want to know what expenses are covered with college savings plans.
Within that definition are several different types there are 529 savings plans, prepaid tuition 529 plans, and private 529 plans. In addition there are Coverdell education savings accounts. The term 529 college savings plan is named for the section of the Internal Revenue Service code that established them.
The most notable difference between these plans is whether they allow plant owners to invest money in tax-deferred accounts or to buy tuition at favorable rates.
Most people who invest in college savings plans choose one account and contribute to it exclusively. However, it is also possible to use a combination of plans simultaneously to accomplish your cards savings plan objectives.
Choosing which type of college savings plan that works best for your family will require you to have an idea of how much college education will cost in the future. Within that formula college expenses can be broken down into, pre-college costs and actual college costs.
Expenses that occur prior to you actually attending college are known as pre- college costs. Items such as standardized test fees, test prep courses and materials, college application fees, campus visits, tuition deposits, moving expenses and personal expenses all are under the umbrella of pre-college costs.
Standardized test fees for SAT, ACT or AP exams cost generally $15-$85. Some students may warrant or qualify for fee waivers and reductions. These expenses qualify under pre-college costs.
Test prep courses and materials are also covered and include preparation for taking standardized tests. This could include tutoring, special classes and books, and can be rather expensive. However, these also qualify under pre-college costs
College application fees cost between 50 and $250 and are generally nonrefundable. Most colleges have programs to offset this cost if you can demonstrate financial need and qualify for fee waiver. If not these expenses are covered under the pre-college costs.
When the time comes your potential student may want to visit different campuses to make a decision on which college they want to attend. Expenses for such trips including airfare, hotels meals and other related travel expenses are covered under the pre-college costs category.
Tuition deposits can cost upwards of $2000 or more. Tuition deposits guarantee a certain spot any college to which he or she gains admission. Depending on how many schools or colleges your student applies, the expenses can be minimal or significant. Tuition deposits are covered under the pre-college costs category
Actual college costs include tuition, room and board, books and supplies, transportation and personal expenses. These personal expenses differ from the pre-college expenses in that actual costs are considered to be things like everyday expenses while attending college.
When people think of going to college in the costs associated with going to cause the first thing they will think of this tuition. Tuition is an actual college costs. What the tuition will be for the college of your choice or your student’s choice will vary from institution to institution.
You can expect state universities to be less expensive than private colleges. The difference can be substantial between the two, where as a four year university may average $21,000 per year a private college or university could average $85,000 per year.
Either way the cost of tuition is significant.
Room and board is generally the second-biggest expense in sending your child to college. For the record room refers to the place in which her costs to will live either a dorm room or an off-campus apartment and board refers to the cost of meals. Room and board is an actual college costs
Books and supplies for college student average $800-$1000 per year. Many times the cost is much more than that. Again these are actual college costs and are covered under that category.
Obviously your child will have to have some mode of transportation while at college and those expenses are considered an actual college costs as well. Car insurance or municipal transportation such as buses are covered under the actual college costs category.
The total cost of a college education in a word is expensive. These are just a few of the expenses you can expect once your child reaches college age. Contributing to a college savings plan as early as possible will help relieve the stress brought on by the additional expense of educating your children.
Money Market Accounts a Good Option in Struggling Economy
November 7, 2009 by admin · Leave a Comment
The secret to compounding interest is to get your money into savings or an investment as soon as possible since the longer money “compounds”, the more you end up with at the end. This is why people who start saving even a little money at a time in their younger years will almost always have more money than someone who waits until they’re fully established in their career to begin saving. The younger person’s money has more time to compound and grow than the older investor.
Beginning and experienced investors alike are a little hesitant to invest money while the economy continues to struggle for fear that they’ll lose their investment. Money market deposit accounts are a terrific option for saving and growing your money in a risk-free account.
Money market deposit accounts are similar to your every day savings account in that they are FDIC insured. Just like your savings account, you’re insured up to the stated limits (usually $100,000 per investor) and the insurance eliminates your risk of losing money even if the bank goes out of business.
There are some differences between money market deposit accounts , online savings account rates, and savings accounts that you should understand before opening an account. The primary differences include:
· needing a higher initial deposit to open a money market deposit account than your typical savings account
· receiving higher interest rates with money market accounts in comparison to a savings account
· having a limited number of fee-free withdrawals allowed from a money market account (usually three to six transactions per month allowed, after which you pay fees to withdraw money)
· possibly needing to maintain a minimum monthly balance to avoid fees on money saved in a money market
In addition to having the security of saving money in an FDIC insured account, the biggest benefit to saving with money market deposit accounts is that you can find accounts that compound interest daily. The more frequently an account compounds interest, the faster and larger your money will grow. If you make consistent deposits into a daily-compounding account, you’ll see your money growing much faster than any other type of account that does not compound daily. Each time you make a deposit, the interest earned is based on the new amount. The interest earned is applied to your balance, so that the following day you earn interest on the total balance (including the previous day’s interest).
If you’re looking for a place to save and grow your money where it can’t be lost due to the economic conditions, a money market deposit account is a great option.
Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.
Defining Yourself As An Investor
October 22, 2009 by admin · Leave a Comment
One of the benefits of a shaky economy and a near collapse of the financial markets is it forces everyone to reevaluate who they are as investors. When the markets are going well and everyone is making money many people lose focus of whom they are.
Indeed, many people change who they are. When it comes to money and investing money, generally people can be assigned to three groups. They are, investors, speculators, or just outright gamblers.
If you suffered any losses during the last two years because of economic conditions, job loss, or any other catastrophic financial crisis is safe to assume you have started to adjust and reset your thinking. As with anything, balance in your investing strategy, and your investing philosophy is the key to long-term success.
Let’s look at a few issues that you may have discovered that need to be changed in your own investment style. Most people would rather be known as an investor above all else.
As an investor you would not trade your assets frequently. On the other hand a speculator does. The gambler cannot get motivated unless he is trading frequently, as much as every day. Where do you fit in?
An investor not only invests his or her money, but saves his money. An investor contributes to his investments with continual savings from current income. There is a continuous effort to build assets through savings as well as appreciation.
The investor recognizes the different types of assets and knows that each asset carries with it an inherent risk. This includes cash, which can quickly be affected by inflation. Risk is often less and is neutralized by diversifying assets. While speculators and gamblers may recognize risk, they are not affected.
In individual investor plans for the way he or she they will manage their assets. They will have am investing plan and it will be in concert with recommendations of an investment or financial advisor. Speculators and gamblers go it alone.
If you ever talk to anyone says they can predict market tops and market bottoms, run the other direction. No one can do this. What you can do as an investor is to invest regular amounts every month in rising markets and falling markets.
Investors have an ability to think about their assets long-term. Speculators and gamblers want to be in and out of markets as quickly as possible. While they may hit an occasional home run, the frequency in which their investment strike out will have an adverse effect on their access, in time.
Buying stocks for the short-term is a risky proposition for any person. However, the longer you hold stocks fell more risk is reduced in stocks have outperformed all other traded assets over periods of time 15 years and longer. Investors understand this.
Investors actively make changes at the minimum quarterly to their portfolios. Re-balancing a portfolio is a necessary component to a successfully managed portfolio. You must have a percentage of each asset as a base line and re-balance regularly to avoid being caught with too many assets in one investing vehicle.
How many investors do you know that trade on margin and borrow against their stocks? Trading on margin has advantages for speculators and gamblers. For investors trading on margin it could force sales of performing assets at the wrong time.
Investors have a plan and work your plan. A properly orchestrated plan actually does not need daily maintenance or oversight. Speculators and gamblers often follow the market minute by minute.
Everyone who has ever contributed one dollar to an investment, stock, or any investment vehicle should be able to relate to what was outlined above. Everyone fits in somewhere and everyone must define who he or she is. At the end of the day everyone needs to sleep at night, and identifying and working within the parameters of who you are as an investor will accomplish that for you.