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Think Before Buying A Banking Software Banking software is a sort of a vague term, actually. This is because there are a variety of them available in the market. The only difference is who they are made for - that is - their targeted user base. Thus, it is evident that this will change all the dynamics of the software. There would, therefore, be 2 types of banking software, one for individual users, and the other for banks themselves to use. And of course, one must not forget online banking software, which is becoming increasingly popular. So let us look at the various basic features which banking software must ideally have, depending upon the user type. Banking Software For Individuals Banking software designed for individuals are designed primarily for keeping a record of the banking transactions of that individual. It is more or less like a bank passbook, but it's on the computer. And most of all, it can keep records for several different bank accounts at one time. ...

The Dangers Of Banking Abroad When you’re traveling, the measures your bank puts in place to protect themselves (not you!) are significantly more drastic than those in place when you’re at home. Heading abroad? Watch out—abroad can be dangerous! That’s how your bank feels, at any rate. For U.S.-based banks, capping ATM and teller withdrawals, as well as point-of-sale purchases, is standard practice regardless of where you are. But banks take that practice to a whole ‘nother (potentially criminally liable) level as soon as you leave home, and especially if you travel abroad. An example from my personal life (and no, I’m not going to say who I bank with): When I’m in the States, I’m not actually sure what my daily withdrawal limit from an ATM is—though I’ve had to take out large chunks of cash once in a while, nearly wiping myself out (to buy a car, for example), I’ve never hit that magic number, I guess. I can tell you pretty definitively what my limit is when I’m not in the Stat...

Mobile Banking Services Mobile banking is also popularly known as SMS banking or M-banking. It is the latest development in the banking sector that enables us to conduct banking transactions by using the mobile phone. Mobile phones are no longer a communication device, but can be used for several other purposes including executing business operations. After internet banking, it has added another dimension to banking by enabling any kind of banking transactions like payments, balance inquiry and transfer of funds, just by using your mobile phone. Banking transactions over the mobile phone are usually performed either by sending a SMS to the bank or by using mobile internet. When you send a SMS requesting a financial transaction, it travels to the SMS center of your cellular service provider and from there it goes to the bank's system. Then, you receive the response that is sent by the bank via the service provider, all within a few seconds. Doing Bank Transactions With Yo...

Types Of Bank Accounts Banking institutions offer a wide range of bank accounts to attract deposits from the general public. These bank accounts serve an important purpose by mobilizing savings in order to utilize them in profitable investments. A bank account is a record of the financial transactions between the customer and the banking institution. The banking institutions have provided several types of accounts to cater to the needs of all sorts of individuals. One of the most important functions of banks is accepting deposits, which is aimed towards generating savings for the purpose of utilizing them in profitable investments. People, on the other hand, also prefer to deposit their savings in the banks, as they can earn interest and also avoid the danger of theft. Though, the types of accounts offered can vary from bank to bank, here are some of the common bank accounts offered by commercial banks. Checking Account A checking account is also known as a current account ...

Basics Of Banking Investment The banking sector is one of the biggest contributors to a nation's economy, provided it is managed in an innovative and professional environment. Investment banking is one rapidly growing form of banking. Read on to know more... An investment bank is a type of financial intermediary that performs a variety of functions such as underwriting, facilitating mergers and acquisitions or brokerage services for institutions. The work of an investment bank begins right from the counseling before the underwriting sessions, and stretches right till the securities are properly handled and distributed. Investment banks play a very crucial role in market transactions on behalf of, or for private and public investors, government and corporations. There are a number of investment banks that also provide highly professional services in assisting their clients with industrial know-how on various parameters. Industries from diverse sectors like media and telecomm...

Steps For Account Reconciliation Account reconciliation is the process of comparison of the debit and credit balances of an account, and verifying the tallying of the account. Here, we have provided four easy steps to account reconciliation which will help you compare statements of transactions and accounting records so that there is no divergence. The process of account reconciliation is used when the transactions are recorded using the double entry system. In the double entry bookkeeping system, a single transaction has two effects. The effects of debit and credit are used in the process of the double entry system. The two effects can be cross confirmed by tallying the account. Due to this, all the accounts, if recorded properly, have balancing figures at the end of the month or year (or whenever the account closes). What Is Account Reconciliation Nowadays, this term mostly refers to, what is known as bank reconciliation. The term account reconciliation has a wider meaning...

Future Of  Banking Investment Investment banks have played and will continue to play a very crucial role in market transactions on behalf investors, government and corporations. These were the famous words of Warren Buffett, regarding the downfall of economic system and investment banking. The investment banks generally deal in corporate finance and help their client companies to raise capital through equity, debt or other types of offerings. They also assist mergers and acquisitions and trade in equities or derivatives. After the world faced a major economic recession in the second half of 2008, many scholars and think tanks were skeptical about the restoration of the economy. However, as the market has its own share of ups and downs, the positive aspects and financial strength of investment banks cannot be neglected. The future of investment banking might comprise the following: More Stringent Laws And Restrictions After considering the Wall Street crash and the c...

How Does A Money Market Account Work Money market accounts offer the depositor a reasonably high rate of return at low levels of risk. Money market accounts offer competitive rates of interest on reasonably large deposits, thus providing the depositor the benefit of high returns. Money market accounts can be opened at banks and credit unions. Credit unions are cooperative financial non-profit institutions. Both banks and credit unions provide loans and accept deposits. However, bankers are motivated by profit and hence charge a higher rate of interest on the loans. Credit unions, on the other hand, charge a low rate of interest on the loans and any interest earned is either plowed back or distributed among the members (account holders) of the credit union as dividend. Moreover, banks pay federal and state taxes, while credit unions are exempt from taxes. The members of the credit union generally share a common agenda. A money market account is also known as a Money Market Deposit...

The Bank Purpose About Reconciliation Process Wrote a check of $500 yesterday, only to find out that your bank statement shows a balance of $450? Frantic phone calls to the bank may not solve your problem, but a bank reconciliation process will help avoid it in the future. What has happened here, is that, you have ignored the necessity of preparing a bank reconciliation statement. Know the purpose of the process here, and you wouldn't be in such trouble next time. Bank reconciliation is the process of reconciling the bank statement balance, with the book bank account balance in the customer's (client's) books of accounts. The procedure should result in the tallying of the two balances i.e. the adjusted bank balance calculated, must equal the adjusted book bank balance figure. The process of preparing a reconciliation statement is a structured one, where bank reconciliation forms containing pre-printed items leave omission errors out. These forms are found on the back si...

Money Market Accounts And Savings Accounts To know where to park all your extra cash, you need to be aware of the following: money market accounts vs savings accounts vs money market fund accounts. Depending on what it is you are looking for, higher yield, higher security or higher liquidity, this Buzzle article should help you know which account suits you the best. So here is my money market account vs saving account comparison. Considering the current economic instability and the lack of faith of the common man in the financial system, it is obvious that today the financial sentiment is tilting more towards the safety of funds than to the higher yields or returns. The common man is looking less and less at the return on investment figures and looking more and more at parameters like minimum balance requirement, safety of funds and liquidity, today than ever before. Yet, not all are same and not everyone has the same requirements and hence the reason for this article. Here's ...

To Fill A Deposit Slip You want to deposit some cash in your bank account but don't know the exact procedure? Read on to know how to fill out a deposit slip... Every bank has printed form, where certain details have to be filled in for transactions. This form is generally referred to as the deposit slip. A deposit slip is a small form, provided by banks and other financial institutions, that can be used to deposit funds into an account. A depositor has to fill in the details like his name, account number, amount of cash, coins, checks to be deposited and the depositing date. Apart from this he also has to fill out other details in specific fields Instructions to Fill a Deposit Slip One small, but essential step to learn to manage your banking, is to learn to fill out a deposit slip. Follow these simple steps on how to fill out a deposit form Write your name (first and last), date (with the month and year) and the location of the branch on the places allotted on the slip. En...

Difference Between Money Order Cashier's Check The following article explores the similarities and the differences between money orders and cashier's checks. A payee may choose to receive payments via a check, a money order or a promissory note. Accepting a personal check, in lieu of payment, is not prudent, since a personal check is drawn on a depository institution by an individual against his/her own funds that may not be sufficient to cover the amount due to the payee. This is because the payer's account does not get debited for several business days after the check is issued. Hence, people may float checks that may bounce and one may not receive the amount that is due. A cashier's check or a money order is the preferred mode of receiving payments prior to shipping goods since these guarantee the payee of good funds. Understanding Money Orders and Cashier's Checks A money order is a financial instrument that can be issued by a bank, a post office, a gro...

How To Check Accounts For Bad Credit The situation isn't as bad as you think; there are more options for managing bad credit with checking accounts than you think. Here's a look at all your options. If not being able to get loans and credit cards wasn't enough, a bad credit rating can even be prohibitive when it comes to acquiring a checking account. Unfortunately, banks see people with a poor credit score to not be financially strong enough to even pay up on bank charges. Several others have come and gone and in the process defaulted on bank overdrafts on accounts. The banks have now had just enough of it and of late have been referring to the credit history of their applicants before granting them even a checking account. But checking accounts are pretty much a necessity. So if you have a bad credit score, does that mean you won't even get a checking account? Checking Accounts & Credit Score Good or bad credit, a checking account is a necessity these days as...

How To Check Account Should you go in for a joint checking account with your spouse or not? Read on to know the laws that govern these accounts, before arriving at a decision. Joint checking accounts refer to those bank accounts that are co-jointly held and operated by two people. They are mostly opted by lifetime partners, such as married couples or by a parent and a child, so that they can put their funds together, to make joint payments. There are many advantages of opening a joint account. Firstly, opening such an account can save money for the couple, as the bank fees for a joint account is the same as that of a single account. Secondly, if one of the parties has some credit obligations which he has not been able to fulfill, he can utilize the entire money to fulfill that. Lastly, in case one of the partners die, the entire funds automatically become accessible to the other partner, without any kind of legal hassle. These accounts have many advantages. Before opening it though, ...

ATM Inventor Dies Indian born Scotsman John Shepherd-Barron, who invented the world's first ATM has passed away at the age of 84 after a brief illness. ATMs changed the way the world went about doing their banking transactions. And the man credited with being the inventor of the world's first automated cash machine, John Shepherd-Barron, died in northern Scotland's Raigmore Hospital after a short illness. He was 84. Shepherd-Barron came up with the idea of an ATM when he was once locked outside his bank and could not complete the transaction he came there for. He thought about the cash dispenser by being inspired with the chocolate vending machines. This is what he had to say in an interview with the BBC a couple of years back - "It struck me there must be a way I could get my own money, anywhere in the world or the UK. I hit upon the idea of a chocolate bar dispenser, but replacing chocolate with cash." Due to his idea and effort, Barclays PLC installed the wo...

How Can You Check Account Number How To check account?  How to find its associated number on a check?  Read to get all the answers. If you have just opened your first checking account and are new to banking system, you will need to know the checking account number, which is used in many transactions. How To Check Account? Checking accounts are money deposit accounts that an individual can open with any financial institution for the purpose of fast monetary transactions through multiple channels. These accounts are business accounts with a checkbook facility and no limits on the amount of transactions that can occur. Unlike a savings account, the purpose of depositing money is not for earning interest, but facilitate business transactions. How To Find The Account Number On A Check? Every person holding a checking account with a bank has the facility to write checks to pay his dues. These checks are numbered for identification purposes. Every check provided to the ...

How To Transfer Fund Pricing Funds transfer pricing is a method of measuring the profitability of a financial institution. Let's get into understanding this methodology in detail. Every organization, as it grows, needs to keep a track of its profitability and this is an integral part of financial management of any financial institution like banks. Tracing profitability value helps banks to gauge the strength and weakness of funding procedures that they follow. Funds Transfer Pricing is a tool that helps financial institutions in measurement of the profitability garnered by the various source of funds individually. What is Funds Transfer Pricing? Funds transfer pricing can be defined as a method to determine the measure of lucrativeness contributed by each source of funding, which in turn is used to gauge the strong and weak areas of funding within the organization. From the above definition, it is clear as to what this tool is about. But then how does it help to measure th...

Causes Of Bank Runs And To Prevent Them What causes bank runs? What happens during a bank run? How are they prevented? Continue reading to find answers to these and other such FAQs about bank runs, which will help you get a better understanding of the entire concept. In economics, a 'bank run' refers to a situation which arises when a large number of customers try to withdraw their funds from the bank at the same time and cause the bank to become insolvent, as the reserves with it are not sufficient to cover these withdrawals. The customers usually tend to take this step when they feel that the bank is failing, and they will lose their money. During a bank run, the likelihood of default tends to increase with an increase in withdrawal, which, in turn, fuels further withdrawal. As time elapses, these bank runs trigger a financial crisis referred to as 'banking panic', wherein several banks suffer the same fate at a particular point of time. In order to understand wha...

Adequacy Ratio  Read to find out all about  What is capital adequacy ratio? How is it calculated for any bank? Can you imagine an economy functioning without a banking system in place? Without credit lines open, there would be no enterprise or let's say it would be difficult to set up any business. Banks not only provide credit lines, but also have people's saving deposited in them. As the recent sub prime crisis and economic recession brought the banking system to its knees, a need for greater governmental control on banks was felt. One of the crucial binding regulations on banks imposed by law is the capital adequacy ratio. It is one of the several measures introduced by the government to ensure that banks stay solvent and protect public savings. Every financial venture comes with a degree of risk that needs to be taken into consideration. Even setting up a bank and running it comes with a high amount of risk. Risk management is possible if one can calculate and qua...

Difference Between Savings Account And Checking Account A necessary part of an introduction to our banking system is the knowledge of the types of bank accounts. In this article, I have outlined the difference between savings account and checking account, which are the two primary types, you could choose from. Our banking system plays a very important role in the overall functioning of the economy. It is responsible for introducing liquidity into the system by providing credit lines to individuals and businesses. Another important function played by the banking system is that of offering interest on the savings deposited by customers and managing their financial transactions. This brings us to the concept of a banking account and its types. Opening your first bank account is one of the first steps in taking control of your finances. If you are planning to open your first bank account, to deposit your earnings from your first job or need to switch over to a checking account due to t...