14th Jun2013

What Is A Savings Account And Types Of Savings Accounts?

by Ucoly.com

Savings accounts are one if the ideal ways to save money. Interest rates on savings accounts have to be high so that you can have a sturdy income. In this world, saving money for future is an important and most essential task to be done at an earlier stage when you are earning well. We cannot predict as to when recession occurs. We cannot wait until a bad time occurs. We have to be well prepared even if disaster like that happens. Many different types of savings accounts are available but you need to pick the right one that suits our needs. This article explains clearly about what is a saving account, its types and the interest rate of saving account.

What is a savings account?

 types of savings accounts

  • Retail financial institutions maintain an account known as savings account were an interest is paid and it cannot be used as money directly in medium of exchange.
  • Savings account make customer in earning monetary return by keeping their liquid assets aside. Interest will be paid for the cash lent out by the bank.
  • Local bank savings account is most traditional way in saving out money. Passbook and statement are two different savings account types and most of the banks offer either passbook or statement account.
  • Only low balance is required to open an account in saving account.

Important data to be checked on identification of interest rate

The data to be used for identification of higher interest rates are as follows

  • Check the terms:  Saving account interest rates offered by some bank will be better. But due to terms the interest rate will also goes down. Before signing up of any document we must check the terms that are used for investment.
  • Compare the rates: Interest rate offered by bank will be in APY and APR. Before making any investment we have to compare and check the interest rates of both APR and APYS.
  • Value Added Services: Value added services offered by various banks should be considered.
  • Bonus rates: Bonus rates are also offered by some bank for opening an account. We have to check whether we will receive any benefits from this bonus rates.
  • Customer service and hidden charges also must be considered on opening savings account.
    • Saving account interest rates is not only to be considered as a factor on saving accounts opening.  Best rates will also helps in setting up reputation of financial institutions along with policies of accounts and reasonable services.
    • On keeping the freedom for withdrawal of the money at any time will help account holders to earn a lot in high interest rate savings account than the other investments that helps people in earning higher return for the committed funds.

Following are the different types of savings accounts:

1. Normal saving account: No special features are available for these accounts. Maintenance of daily minimum balance or average balance in per quarter can be used for operating this account. Daily balance required for government bank is 1000 and average balance that for private bank is 500 per quarter.

2. No frills account: This account is mainly a zero balance accounts which usually for people from deprived classes. Rules and regulations required for this accounts is highly large. No frills accounts are offered only by the institutions like HDFC, Axis and corporation bank.

3. Salary account: Salary of an employee will be deposited in this account types. Balance of it will be zero. Overdraft facility is also available in this account, in which it is calculated by remembering amount of salary drawn.

4. Pension account: This is also a zero balance in which pension amount will be deposited. Pension account with zero balance is offered by Axis bank.

5. Woman’s account: Special account or specific demands for women will be kept in mind by institutions like Axis and the corporation bank.

6. Child account: This account in nature is of zero balance. It is mainly structured in a view to have saving habits for our growing children.

14th Jun2013

What Should You Know About The Best High Interest Savings Account?

by Ucoly.com

Saving has become a necessity for today’s living. You can save money through many ways. Investing in mutual funds, bongs, high interest savings account can help you to a great extent during recession or when you are extremely in need.

Interest on savings account

  • Savings account is the best way to save our money. Interest rates on savings accounts specifies about interest rate provided by bank for the fund deposited by us in bank.
  • For obtaining interest on savings account, it is important that you pick the best source.
  • Customers can also compare the interest rates of various banks including service fees, balance requirements, minimum fee requirement for opening an account etc through comparison websites. This will help you show some best banks out there in the market that offers good services.
  • There are certain banks and credit unions, which offers various facilities in order to provide best high interest savings account to customers. It is essential that you do some research before you pick one.
  • There are certain banks, which offer interest at high rates, but they also will charge inflated fees when there is a falls in your minimum balances. If your account balance is lower than their minimum requirements, then penalty is obvious.
  • Almost all the banks charges maintenance fees on a monthly basis. Ensure how much the charges are. If they are too high, then pick another one.
  • Downtime occurs because of charging maintenance fees. It sometimes costs more than the customer’s monthly earning interest. This becomes a major drawback. Therefore, check with this.
  • It is necessary for customers to seek banks, which provide high interest on savings account.
  • Saving account rate, liquidity, market rates, and requirement of minimum balance are important criteria, which has to be noted during opening up a savings account.
  • Higher the investment, higher will be the interest rate. Gradually increase your investment once you begin to acquire adequate returns.
  • Minimum balance is minimum money, this balance is required to keep your account alive and it is needed. Make sure you deposit it accordingly and never make it less.
  • Liquidity has high advantages on savings accounts; it helps to move money very easily and also helps in gaining high interest rates.
  • Bank accounts with high yield provide high interest rates on savings account when compared to other conventional banks.
  • Many online bank accounts also provide high interest rate for the amount deposited on comparing brick and mortar banks. Prefer hunting for online bank offers for savings account. This will help you yield high.
  • American Express Bank, Ally Bank and HSBC Bank are popular and important online savings providers, which gives higher interest rates.
  • Following are the important factors needed to be followed on opening savings account.

Best high interest savings account

Fund transfer time should be noted and has to be compared among different banks. Fund transfer will not be a problem for best high interest savings account in online. Minimum balance requirement and savings account rate of banks are listed as follows:

APY refers to Annual percentage Yield.

  1. EVER BANK offers 2.25% APY and Minimum Balance is of $1,500.
  2. EBSB offers 1.55% in APY and Minimum Balance is $5,000.
  3. NEW DOMINION DIRECT offers 1.50% and Minimum Balance is of $1,500.

Interest rates on savings accounts

Interest rate of savings accounts can be classified into two types: Static and variable. Static is the interest rate, which does not change. Once it is fixed in the beginning. It remains until you close the account whereas variable is the rate which changes with the market trends. It may rise as well as fall. Though fixed is more preferred, people these days are moving towards variable as well. In variable Interest rate that is offered in beginning will not be the same as after specified period, so it is necessary for the depositor to check both introductory, bonus and normal savings rate.

Limits on withdrawals:

v  Some banks sets up a restriction on amount on withdrawal, so select for competitive accounts where restriction or penalties are not much. Hunt for an account, that offers no interest rate while withdrawing cash.

14th Jun2013

How To Look For Best Mutual Funds To Invest In?

by Ucoly.com

Mutual funds are the best place in investing our money. Before knowing deep about it, you must know as to what are mutual funds. Investing in mutual funds will offer us a higher rate of interest and the amount received will be high when compared to invested amount. It also helps in buying securities to investors and gather amount from them.  Money can be invested in stocks, short-term investment, bonds, assets, securities and combination of above investments. Portfolio is holdings of combined mutual funds. Share represents ownership as well as profit earned by that particular shareholder. Professional managers will run a mutual fund and they identify stocks, risks and their performance.

best mutual funds to invest in

Best performing mutual funds allow time for the investors in paying the amount. Options will be based on investor preference. Investors have to choose the best and profitable schemes available in market for investing in mutual funds. Advantages of investment include the following:

  •  Easy in trading
  • Transparent and highly managed industry for investments
  • Time and money will be saved, as experts are involving in trade activities, which in turn will help us in making higher returns.

Different types of mutual funds include Income, money market, growth and balanced schemes. Before investing, best performing mutual funds can be tracked easily by viewing their previous performance records, interest rates. You can literally know about the risks and benefits of the mutual fund you pick up. Fund manager helps in tracking those results by comparing the annual report of various companies. Three important factors needs to be considered while purchasing a mutual fund. These are cost, tax treatment and risk.

Three ways for earning money in mutual investment are given below:

  • Dividend payments: Income will be earned by fund through dividends and security interest in its portfolio. Income earned by fund in form of dividend will be paid to its shareholders.
  • Capital gains distribution: Security price owned by a fund may increase. Fund will have a capital gain if it sells the security of whose price has increased. The capital gain will be distributed to investors at the end of year by fund. Capital gain will be subtracted if any capital loss has occurred.
  • Increased NAV: After deducting expenses and liabilities if there is increase in fund portfolio market value, it will leads to increase in fund value and its shares. If NAV is higher, then our investment value will be higher.

How to look for best mutual funds to invest in?

If mutual fund account is opened, the best mutual funds to invest in can be tracked easily by comparing our needs and financial objectives with that particular fund. The best investment will helps us in providing security and safety to our investment and regular return can be expected throughout an investment period. During emergencies and unexpected activities in cost, the best performing funds can be used. Following are the way to find best mutual fund.

  • Best scheme can be found by tracking the allotted ratings of particular fund company. CRISIL, CARE and ICRA are the agencies, which awards ratings to mutual fund companies. On analyzing market factors, trends and parameters of mutual fund Company, ratings will be provided to them.
  • Finding mutual funds potentialities towards adjustment of market risks, without leaving their customers to face huge loses.
  • Researches can be made on various available funds. Our own assets can be managed by creating portfolio. It helps us in studying about NAV of fund to find which is making profit and which is getting continuous loses.
14th Jun2013

What Are Mutual Funds And Types Of Mutual Funds?

by Ucoly.com

Mutual Funds are the best and biggest instruments for investing our money and getting a gain in return for our investment. Mutual funds also offers higher rate of interest for the amount invested and the amount received at last will be more when compared to amount offered by banks and financial institutions. Mutual funds gather money from investors and help them in buying securities. What are mutual funds is the term, which is used for collective investment schemes and is made available to public, it is open ended. Apart from mutual funds, real estate agents are earning in huge. You can read some information about How to get a real estate license as well.

what are mutual funds

Taxable income will be passed by mutual fund to its investors. Different types of securities are available for mutual fund investment. Principal investment is used for identifying the mutual funds. Fund manager are also called as fund sponsor or Management Company of fund. He should be the registered investment advisor. Fund manager usually manages fund. Two ways for investment are when large amount of money is present; it can be split into two equal halves for investment for better scheme performance. It helps in reducing our risk factors. Secondly, scheme spotting can be done if we have soma knowledge in fund performance analyzing. What are mutual funds and what are its advantages and disadvantages? These are given below:


  • Liquidity
  • Diversification increases
  • Can be easily managed
  • It is more convenience
  • Comparison can be done easily
  • Participating capacity is high only for large investors


  • Fees are too high
  • No Customization opportunity
  • Income prediction is much lower

Top performing mutual funds will helps us in gaining more amount of money than the amount invested. They also help us in earning higher income when compared to other mutual funds. Top performing mutual funds company in India are SBI, Reliance, Fidelity, TATA and Franklin Templeton. Many popular fund schemes are present in India and some of its types are open end and close end funds, equity funds, value funds, tax saving and growth fund. Different schemes are used for different purpose, which is launched by different companies for various financial requirements. For example in close end funds, specific maturity period is available and on completion of maturity period, the amount can be withdrawn. Deal has to be directly done in open end funds were maturity period is not available.

Different types of Mutual Funds:

  • Money market funds – When compared to other funds, money market funds risk is extremely low. High quality short-term investment can be made only through this fund. These types of investment can be made only in U.S. companies.
  •  Bond or fixed income funds – Risk factor of bond funds is extremely higher than money market funds. Due to higher returns, its risk is too high. Certain type of investment like money market funds is not allowed in bond funds. Risk includes credit risk, it occurs when party does not pay bill, when interest increases, bond value will go down which gives rises to interest rate risks. When interest rate falls, the issuer of bond may decide to repay debt for offering new bonds; this makes prepayment risks to occur.
  • Global equity growth funds – In short period, these mutual funds can fall and rise. Therefore, it can be better in long term.
  • Balanced funds – Balanced fund is one among the types of mutual funds and it contains different investment types like bonds and short-term bonds, stocks. This fund makes an investor to earn income and eliminates risk.
11th Jun2013

How To Become A Succesful Real Estate Agent?

by Ucoly.com

Real Estate is very large as well as varied profession which includes higher opportunities for both specialization and advancement. We should be able to make, if our desire it to become a real estate agent. On how to become a realtor is very expensive because we have to spend some amount of money before getting any profits and the process is said to be time consuming. Ten important expenses must be noted on becoming a realtor for first time are fees to pay for MLS (Multiple Listing Service) and to join for local realtors board. Other general expenses include postage, advertisement, phone calls and some others. On how to become a realtor first involves that we should become a certified real estate agent.

how to boost your confidence

Becoming a real estate agent is a difficult process, but it can be made very simple by preparing us in a proper way. Real estate agent helps us to buy and sell houses. They also help us in buying and selling commercial properties. Commissions will be charged on sales of the property. Real estate agent involves getting a license. Any type of work carried out by a person without a license will be considered as illegal work.

  • For becoming a real estate agent, in some states our age should be 18 years old, while in others 21 years old.
  • A person should do real estate courses and pass the exam, after he will get certified from Real Estate Company.
  • Licensing requirements will vary from one state to another state. In order to get real estate license we should take licensing course and pass that exam.
  • Real property law is compulsory course and optional courses includes principals of appraisal, Mortgage finance and property management.
  • On receiving our license we should select a good broker. Receivable of good feedback from a broker, the broker can be asked to leave us as a registered realtor.

Some money and time has to be spent to become a real estate agent with successful and flourishing career.

1. Get Educated and Licensed: First step involves in taking a licensing class and real estate exams in both state and national level. As the licensing qualification varies among states, we have to check with our state real estate commission before signing for training.

 2. Decide on a Brokerage: Brokerage must be contacted for practicing as real estate agent in prior to training courses. Size, reputation and type of training offered must be in kept in mind on considering the brokerage firm to work.

3. Develop a Budget: Startup fees, money for licensing courses, exams, and advertisement must be decided. As Real estate income depends upon houses sold or bought, it is must that some money has to be saved.

4. Build your Client Network: Real estate agent mentor will helps us in finding a new client and also helps in splitting up commissions. Much number of client and long profession can be achieved in strong interpersonal and network skills.

5. Staying Motivated and Patient: Since real estate agents are the owner, they should keep themselves motivated in doing their work. Patient, motivation, perseverance and hard work will help in tracking up more clients by convincing them to buy houses.

Realtors can be consulted for making real estate investment. License is most important factor for real estate business. The above things must also be considered for becoming a good real estate business man.