Archive for January, 2013

An idea about financial institution and its role

Tuesday, January 29th, 2013

financial institution, financeFinancial institutions are institutions and organizations that deal with money and monetary issues. For those who are thinking of taking an initiative to start a financial institution, here are a few of the specific roles that one needs to carry out:
• A financial institution’s first role is to take care of its client’s money. People can save money with the help of the institution and withdrawn them when required. Innumerous money deposit and withdrawal schemes should be made available and there should be various options to increase money.
• A financial institution’s role often comprises of lending money to its client’s in their time of need and do it at an understandable rate of interest, keeping in mind the laws made by the government.
• There are many money making schemes, like bonds and stocks that will allow the client’s money to increase many times. A certain amount of risk is obvious but the client should be made aware of them before hand.

Dealing in bonds

Monday, January 14th, 2013

bonds, financial informationBonds are investments. They are traded in an open market. With respect to interest rates of the relevant general economy the values of these bonds are determined. There is a direct cause and effect relationship between the interest rates of the economy and your investment in bonds. Unlike the stocks the success of failure of the company or the corporation whose bonds you have purchase does not affect the interest rate or your return on investment because in case of bonds they are fixed. This fixed rate of return is usually termed as coupon rate. All bonds come with maturity dates.

On the date of maturity the principal amount and the rate of interest becomes fully payable to the investor. Generally if you are dealing in bonds then investing in companies that have a higher credibility are safer bets. Blue chip company bonds or government bonds are examples of what we term as safe bonds

Advantages of Having a Joint Account

Saturday, January 5th, 2013

Finance Management, financial tipsFinancial management is an important part of life and everyone needs to take up extra responsibilities when they have a child or a partner. Financial situations and future plans change if you’re not alone. You need to change your financial plans and savings plans so that both of you are benefited at present and your future is secure as well. The best way to do that is by making a joint account. There are many advantages of having a joint account with your partner or child because it ensures a lot of things for both. If you are making that account with your partner, then you both can take care of the account together.

Making budgets and plans and joint bills are easier this way. You can make budgets and make financial lists on an annual and monthly basis in a shared manner. Also in any kind of bank account if one person passes away, the other person can take over the money and secure the future. There is a huge amount of financial stability provided to both account holders through joint account systems.