Finance Guide

Savings accounts are an important part of banking… most people have at least one, and they are a recommended first step in working on a retirement plan or savings and investment strategy.

There are many people who aren’t even sure how their savings account really works, they simply deposit money into the account and interest is paid monthly.

While this is essentially true, there are several factors that can influence the amount of interest that an individual pays… and the difference in accounts from one bank to another can sometimes be quite large.

Below you’ll find some basic information about different features of savings accounts, as well as how to find the best deals in savings that you can get.

Purpose

Obviously, the main purpose of a savings account is to put money aside for later, all the while drawing interest on your deposit. Different accounts may have different features, however, and can be used in different ways depending upon those features.

Some savings accounts are used as security for certain credit and debit cards, and others are used as a buffer to prevent overdrawn cheques. It is important to inquire about the various types of savings accounts available at your bank so that you can find the account that best suits your needs.

Interest

Interest on a savings account is the additional amount that is paid to your account based upon the balance that you keep. The interest rate is paid as a percentage of the total balance, and is based upon rates that are set nationally. The rate that is paid may differ from one bank to another, especially depending upon the local economy and the policies of the bank in question.

Withdrawals

One of the features that are common to most savings accounts is that the number of withdrawals allowed each month is quite limited. In most locales banks only allow you to make 3 to 6 withdrawals within a month’s time before small fines are added onto the transaction fee.

In many cases, these fines are mandated by federal law in an effort to prevent abuse of the higher interest offered by savings accounts and to encourage bank patrons to carry a balance in their savings until later in life.

These fines are often quite low, however, so should you need to make one more withdrawal in a month’s time you won’t severely reduce your balance from the fines.

Account Features

As mentioned above, there are a variety of uses for savings accounts… because of this, different accounts have different features that can be used to make some of the uses easier. They may have a minimum deposit for opening the account, for instance, or the account could be linked to a chequeing account. Make sure you know the features of the savings account that you’re considering before making your final decision.

Finding the Best Deal

In order to find the best deal on a savings account, it’s important to shop around and find the bank that has the best offer on interest rates and features.

Request interest rate quotes and information about the different types of accounts that are offered at several banks in your area… by comparing these quotes and the information on the available accounts, you can make a decision on which savings account would offer you the best return on your money.

When you’re running a business, making sure your customers pay their bills on time can be very difficult and a huge drain on resources; especially if you only have a handful of staff or are a sole operator. Unfortunately, many small businesses are forced to close their doors within 12 months of starting up, and non-payment of customer accounts plays a large part in forcing a business to close.

Non-payment is a serious issue for businesses of any size. Late or non-payment of debts can cause serious cash-flow problems, resulting in your business facing many problems of it’s own – from unhappy staff to not being able to maintain supply-and-demand for other customers you may have. However, if you’re experiencing problems with getting paid then there are several steps you can take to ensure your debt recovery doesn’t impact too heavily on your business.

Trying to contact a customer or client about an unpaid bill can be difficult. Most contact is done either by phone or mail, and there is always the uncertainty about a letter being lost in the post, or a telephone message not being passed on, although in some cases it could be that the person you are trying to reach is simply avoiding you. However, contacting the customer is very important as there could be a genuine reason why the customer hasn’t settled their bill, and you should always try to attempt to discuss the situation and reach an agreement. These could range from allowing the customer to restructure their repayments to writing off part of the outstanding balance.

Sometimes, however, it is necessary to consider legal proceedings against a customer in order to collect an outstanding debt. Taking legal action to reclaim an outstanding debt should be a last resort, and often the threat of legal action is enough to make your customers settle up. For some businesses, however, it can be difficult finding out exactly how to go about commencing legal action against a debtor. As a result, many outstanding debts find themselves passed to specialised debt recovery companies.

In the UK, there are many debt recovery companies available who can help reclaim outstanding debts, and these companies have the time, expertise and resources required to pursue customers who have outstanding debts. If you decide that legal action is necessary to reclaim an outstanding debt, companies such as Capquest offer solutions that can help reclaim your money.

One solution is to commission the debt recovery company to recover the debt on your behalf. For a fee – normally around 10% – the company will act on your behalf to work with the customer in order to find a mutually suitable solution for both you and the customer. Alternatively, many debt recovery companies will purchase the debt from you. In return, they will process the debt as their own and allow you to draw loans against the money owed to your business. This method is commonly used by businesses to improve cash-flow, but is also a useful method of reducing administration overheads.

It’s important to be sure that if you employ the services of a debt recovery company, such as Capquest, then be sure that they are members of an accredited body. Most debt recovery agencies are members of the Credit Services Association, who are the only National Association in the UK for companies that are active in relation to unpaid credit accounts, debt recovery agencies, tracing agencies and allied professional services.