Monday, 31 October 2011

Takeover Code make a flurry of open offers from companies








Weeks before the new Takeover Code came into effect, there was a flurry of open offers from companies to buy back their shares. The new Takeover Code is more shareholder-friendly because it has increased the trigger for compulsory open offers and raised the minimum offer size. The minimum size is about 26% now, compared with 20% under the previous Code. Hence, many companies rushed to file their open offer documents under the old Takeover Code norms so that they could restrict their open offer size to 20%. 


Let's simplify this further. If you acquire a stake of 25% or more in a listed company, you are required to give an open offer to the remaining shareholders. This open offer means you are ready to buy 26% more shares of the company at the same price at which you acquired the original 25% stake. The open offer price is generally at a premium to the market price of the shares. This provides an opportunity to the remaining shareholders, especially external and minority shareholders, to tender their shares at the same acquisition price. 


Speculative buying: Open offers often trigger speculative buying and cause the share prices to shoot up temporarily. However, such offers can be tricky if you enter at the wrong time. If a company receives more shares than it plans to buy, it rejects the excess applications. If you have bought the shares, hoping to sell them to the company at a higher price, you may end up with losses after the offer closes and the share price recedes. So, before you decide to participate in the open offer, keep the following points in mind: 
Acceptance ratio: Its tells you how likely it is for your shares to be accepted by the company. This ratio is calculated as the percentage stake in the open offer divided by the percentage stake held by external shareholders. For instance, if the percentage stake in the open offer is 26% and the percentage stake held by external shareholders is 52%, then the acceptance ratio is 0.5. This means the company will accept one share for every two shares held by external shareholders. The higher the acceptance ratio, the more the chances of the shares being accepted in the open offer. 


Tax implications: If you sell your shares back to the company, the transaction will not be routed through a stock exchange and, hence, no securities transaction tax will be paid on it. So, the investor will not be eligible for the exemption available to equity investors who buy shares through a stock exchange. The transaction will be treated as a private deal between two entities and any short-term capital gain will be added to the income of the investor, while the longterm capital gain will be taxed at a flat rate of 10% or 20% after indexation. The investor can opt for any one of these methods. 


An open offer provides the existing shareholders an opportunity to exit at a premium to the market price. Non-shareholders can also gain by engaging in arbitrage buying of shares in the secondary market and tendering them in the open offer at a higher price. However, one must remember that this is a technical subject and any investment by retail investors should be done under the guidance of financial advisers. However, if played right, it can be a good chance for shareholders to make a neat profit in the season of open offers. 



IndusInd Bank:increase the pricing on savings account deposits by up to 200 basis points.








The mid-size private sector lender IndusInd Bank became the third bank to increase the pricing on savings account deposits by up to 200 basis points.
“The savings accounts balance up to Rs. 1 lakh will get 5.5 per cent per annum, while those above Rs. 1 lakh will attract 6 per cent. The new rates will be effective tomorrow,” the city-based bank said in a statement here this afternoon.
The Hinduja Group-promoted bank has also revised its base rate and BPLR upwards by 25 basis points to 10.75 per cent and 20.75 per cent respectively effective today in line with the increase in repo rates by the Reserve Bank.
While ‘Yes Bank’ was the first to hike pricing on savings deposits uniformly by 200 basis points irrespective of the size of the balance, on the very same day, when the Reserve Bank freed it, Kotak Mahindra Bank followed suit yesterday with a dual pricing in the similar manner as IndusInd has effected from today.
Began in 1994, IndusInd Bank has 350 branches and 666 ATMs spread across 247 locations, besides one representative office in London and Dubai.
Savings bank rate was the last of the regulated rates in the domestic banking industry. It was raised by 50 bps in May to four per cent after being unchanged for 8 long years.
Against this, term deposit rates are as high as 8-10 per cent.
While the RBI, for long, has been keen on freeing it, the industry body IBA was opposing it saying any such move would push up the costs of banking services like ATMs charges, money transfers and cheque books to protect margins.
The second largest private lender HDFC Bank head Aditya Puri was categorical in stating that “whether banks increased the SB rates or not, the cost of banking services would definitely go up following the RBI move“.
The RBI move is not good news for larger banks with high savings account balances like SBI, HDFC Bank, ICICI Bank, PNB and Axis Bank or any other state-run banks, Deutsch Bank said in a note.

ICICI Bank beat street estimates with a 21.6 per cent rise








India's No. 2 lender ICICI Bank beat street estimates with a 21.6 per cent rise in second-quarter profit, led by higher income from interest and investments, and lower provisions for bad loans.
The bank said its net profit in the September quarter rose to 15.03 billion rupees ($308.3 million) from 12.36 billion rupees a year ago. Its net interest income grew nearly 14 per cent to 25.1 billion rupees, in line with estimates.
A Reuter’s poll had projected net profit at 14.3 billion rupees. Its net non-performing assets as a percentage of total loans fell to 0.93 per cent at end-September from 1.62 per cent a year ago.

US investments in India



A spokesman for the visiting U.S. industrialists told Pressmen here today that the “high taxes” levied by the Government of India both on company and personal incomes would not be a major factor in deciding on further American investments in India. The major factors were business stability and business prospects and these were pretty good in India, he added.
Today, the US businessmen went into the details of the Indian economy and taxes with officials of the finance ministry and the members of the Central Board of Revenue. The subjects they discussed included tax and high dividends, deposits in Indian banks, the provision of working capital for the growing needs of industries by banks, the utilisation of PL 480 funds without causing undue inflation, the working of the capital issues department and the premium to be charged.


Indian business operating over china social tax



A weekly on Indian business, featuring the stories on the latest issue and breaking stories. Indian businesses operating in China are upset by China's decision to impose social security obligations on foreign employees, which will push up the wage bill by over 40%. It has affected expansion plans of some companies as new investors may have to reconsider their plans. 



"It will upset our cost calculations and affect business prospects. This will be on top of our existing expense on medical insurance," M V Rabade, chief executive officer of Adani Power China, said. China has extended the social security system to cover foreign companies and their employees. Under the law, employers are expected to contribute 37% of salary and employees 11% into the social security pool. The maximum amount to be paid per month varies between 9,000 yuan and 11,600 yuan ($1,415 to $1,837) in various cities. 


The plan has several components with employers and employees expected to contribute towards pension and insurance for medical, unemployment, maternity and work-related injury. "Indian companies will think twice before bringing in more personnel at senior levels. This will affect knowledge transfer between both Indian and Chinese staff," E B Rajesh, head of China office of the Confederation of Indian Industry, said.


Friday, 28 October 2011

Take a final decision to refer the financial issues on Air India board by Union cabinet




The Union Cabinet will take a decision on the issue of additional equity infusion of Rs. 6,600 crore in the ailing national carrier, Air India and also take a call on the airline’s plan to acquire 27 Boeing 787 Dreamliners. For helping the Union Cabinet in the decision making process, it will be given views of the Reserve Bank of India on debt restructuring plan for the cash-strapped Air India.
The decision to refer the key financial issues, plaguing the national carrier, to the Union Cabinet for the decision was taken on Friday at a meeting of a Group of Ministers (GoM), led by Finance Minister Pranab Mukherjee, which is looking into troubled financial condition of Air India.
"A report on (Air India's) debt restructuring prepared by the Committee of Officers will be reviewed by the RBI within a week. Only after that will any decision be taken," Civil Aviation Minister Vayalar Ravi told journalists after the meeting.
The Civil Aviation Ministry has already moved a proposal for additional equity infusion of Rs 6,600 crore this fiscal for the ailing carrier to enable the airline clear its massive dues. Government has already infused equity worth Rs 2,000 crore in the last two years.
The debt-ridden carrier has outstanding loans and dues of Rs 67,520 crore, of which Rs 21,200 is working capital loan, Rs 22,000 crore is long-term loan on fleet acquisition, Rs 4,600 is vendor dues and an accumulated loss of Rs 20,320 crore, latest official figures showed.
Once the RBI reviews the report by the Committee of Officers, the issues pertaining to equity infusion and also the acquisition of Dreamliners would be tabled before the Cabinet, Mr. Ravi said.
Air India Board had in August decided to go ahead with the acquisition of B-787s and sought the government approval for it. As per the original 2005 order, the airline wanted 27 aircraft, the list price of which stood at USD 185.2 million last year. The Minister had earlier said the airline did not have the money to go for so many aircraft at present.
Mr. Ravi has maintained that the government was not considering selling its stake in Air India. "My first priority as a civil aviation minister is to bring Air India in no-profit, no-loss (situation)," he had earlier said. The last GoM meeting was held on August 18 when the airline's credit limit by the state-run oil marketing companies (OMCs) was extended by two-three months.
It is learnt that the GoM was in favour of further extending the credit time limit for the oil companies by another three months. The GoM has also considered the option of either truncating the order of 27 Dreamliners or going for the sell and buy back route. However, the final decision will be taken by the Union Cabinet.




world stock market












For over 20 years, our virtual trading platforms and websites have helped over 3,000,000 individuals learn about the markets and practice their trading skills.
European leaders clinched a deal, they hope will mark a turning point in their two-year debt crisis, agreeing after a night of tense negotiations to have banks take bigger losses on Greece's debts and to boost the region's weapons against the market turmoil. After months of dawdling and half-baked solutions, the leaders had been under immense pressure to finalize their plan to prevent the crisis from pushing Europe and much of the developed world back into recession and to protect their currency union from unraveling.
World stock markets surged higher on the news. Oil prices rose above $92 per barrel while the euro gained strongly - signal investors were relieved at the outcome of the contentious negotiations.
"We have reached an agreement, which I believe lets us give a credible and ambitious and overall response to the Greek crisis," French President Nicolas Sarkozy told reporters after the meeting ended early Thursday. "Because of the complexity of the issues at stake, it took us a full night. But the results will be a source of huge relief worldwide." The strategy unveiled after 10 hours of negotiations focused on three key points. These included a significant reduction in Greece's debts, a shoring up of the continent's banks, partially so they could sustain deeper losses on Greek bonds, and a reinforcement of a European bailout fund so it can serve as a euro1 trillion ($1.39 trillion) firewall to prevent larger economies like Italy and Spain from being dragged into the crisis.
After several missed opportunities, hashing out a plan was a success for the 17-nation euro zone, but the strategy's effectiveness will depend on the details, which will have to be finalized in the coming days and weeks. The most difficult piece of the puzzle proved to be Greece, whose debts the leaders vowed to bring down to 120 percent of its GDP by 2020. Under current conditions, they would have ballooned to 180 percent.
To achieve that massive reduction, private creditors like banks will be asked to accept 50 percent losses on the bonds they hold. The Institute of International Finance, which has been negotiating on behalf of the banks, said it was committed to working out an agreement based on that "haircut," but the challenge now will be to ensure that all private bondholders fall in line. It said the 50 percent cut equals a contribution of euro100 billion ($139 billion) to a second rescue for Greece, although the euro zone promised to spend some euro30 billion ($42 billion) on guaranteeing the remaining value of the new bonds.
The full program is expected to be finalized by early December and investors are supposed to swap their bonds in January, at which point Greece is likely to become the first euro country ever to be rated at default on its debt. "We can claim that a new day has come for Greece, and not only for Greece but also for Europe," said Greek Prime Minister George Papandreou, whose country's troubles touched off the crisis two years ago. "Let's hope the worst is over."
Since May 2010, Greece has been surviving on rescue loans worth euro110 billion ($150 billion) from the 17 countries that use the euro and the International Monetary Fund since it can't afford to borrow money directly from markets.
In July, those creditors agreed to extend another euro109 billion - but that plan was widely panned as insufficient.
Now, in addition to euro30 billion in bond guarantees, the euro zone leaders and IMF said they will give Greece euro100 billion ($139 billion) in new loans. With the banks being asked to shoulder more of the burden, though, there were concerns they needed more money in their rainy-day funds to cushion their losses. So European leaders have asked them to raise euro106 billion ($148 billion) by June.
The last piece in the complicated plan was to increase the firepower of the continent's bailout fund to ensure that other countries with troubled economies - like Italy and Spain - don't get dragged into the crisis. The third- and fourth-largest economies of the euro zone are too large to be bailed out like the smaller euro nations Greece, Portugal and Ireland have already been.
To that end, the euro440 billion ($610 billion) European Financial Stability Facility will be used to insure part of the potential losses on the debt of wobbly euro zone countries like Italy and Spain, rendering its firepower equivalent to around euro1 trillion ($1.39 trillion). That should make those countries' bonds more attractive investments and thus lower borrowing costs for their governments.
"These are exceptional measures for exceptional times. Europe must never find itself in this situation again," European Commission President Jose Manuel Barroso said after the meetings. In addition to acting as a direct insurer of bond issues, the EFSF insurance scheme is also supposed to entice big institutional investors to contribute to a special fund that could be used to buy government bonds but also to help states recapitalize weak banks. Such outside help may be necessary for Italy and Spain, whose banks were facing some of the biggest capital shortfalls.
Using the insurance promise, the euro zone also hopes to attract big institutional investors from outside the euro zone, such as sovereign wealth funds, to contribute to a separate fund that would back up the EFSF. So far, Beijing has promised to help only by continuing business as usual, trading with Europe and stockpiling some of China's multibillion-dollar trade surpluses in the safest European government bonds. On the markets, European trading was buoyant from the outset Thursday on the news. Britain's FTSE climbed 2.1 percent to 5,670.12. Germany's DAX jumped 3.5 percent to 6,227.61 and France's CAC-40 gained 3.6 percent to 3,282.32. Shares in Asia posted solid gains earlier in the day.

Commercial and industrial loans







U.S. banks' commercial and industrial loans increased $1.8 billion to about $1.31 trillion in the week ended Oct. 12, the latest week for which data are available, the Federal Reserve said Friday.
That followed a $9.1 billion increase the previous week.
Jumbo certificates of deposit fell $11.2 billion to about $1.531 trillion in the latest weekly data, after falling $36.7 billion the previous week. Revolving home equity loans fell $1.1 billion to $553.1 billion after falling $1.5 billion the previous week.
More weekly Fed statistics on the banks' assets and liabilities will be available on the Internet 



The new business in New York State








NY State Online
To start a new business in New York Sign up for courses, financial assistance and counsel at New York City Business Solutions. This is a government organization that helps New Yorkers start their businesses efficiently, effectively and in an informed manner. Go to the NY State Online Permit Assistance and Licensing website. Choose your business formation, and using OPAL, register your business with New York State. Recently, New York City Business Group, a metropolitan-area insurance agency, is offering free Medicare-plan counseling to the public in its new Staten Island headquarters at 3971 Victory Blvd. in Travis. 


The Open Enrollment period for Medicare runs from Oct. 15 through Dec. 7. During this time, current or newly eligible Medicare beneficiaries can review health and prescription drug coverage, compare options available and make choices that best meet their needs. 


"Serving established and eligible Medicare recipients in the New York region is a major part of what we do at the NYC Business Group, and I'm glad the relocation to our newly purchased building has been completed in time for this year's federal Medicare Open Enrollment period," said company president Carmelo DeFranco. 


The agency specializes in Medicare, group-health plans for small to medium-size businesses and employee benefits packages. It serves thousands of businesses and tens of thousands of employees and Medicare recipients. 


All of NYC Business Group's services, including those discussed online atwww.nycBusinessGroup.com, are paid for by the agency's insurance carriers and are provided at no cost to clients. 

Thursday, 27 October 2011

If you are planning to open a savings account for your children







Gen an Savings Account For Kids Application and have your Money within an hour.No need to fax a single document. Once you have applied your Payday loan application is processed electronically and Approval takes literally seconds. Savings account for your kids is a fun first step in teaching your kids about banking. Since our bank gives gifts to children when they open an account, we always make sure to bring the kids along to experience the process. They get a new little piggy bank to take home after opening their account and can't wait to take it home and fill it with coins.
If you are planning to open a savings account soon, here are some helpful hints for you:
Before opening the saving accounts:
You explained to your child how to save money. After taking your lessons to heart, your child has filled his piggy bank to the top! Now it's time to find a savings account for him to deposit all his coins and watch the money grow. Before you select a bank to open the savings account, you'll want to consider the proximity of the bank to your house. In addition, you'll need to review the terms and conditions of the account including the fees and interest rates.
Location:
Is the bank convenient for you to get to? If your children embrace the idea of their own savings accounts, they may want to make frequent trips to the bank. Consider a neighborhood bank, one on a common route that you travel, or inside your local supermarket to keep the trips from turning into a hassle. If you frequently go to the bank, it may be very helpful to open your child's savings account at the same bank to coordinate visits.
Fees & Requirements:
Find an account that doesn't have monthly maintenance fees or minimum balance requirements. In addition, make sure there is no limit on the number of small deposits. Also watch out for banks that charge fees for inactive accounts and read all the small print before opening the account. If you are using a bank that provides a free savings account tied to your account, find out what happens if you move your account to another bank. Can your child still keep his account open?
Type of Bank:
The first bank you check will likely be your own bank. If they don't have an account that meets the needs of your child based on fees and requirements, check out your local credit union. Credit unions often have lower fees since they are member owned. In addition, you can explore an online bank if you feel you don't need to make the physical trips to the bank to teach your children.
Ages of Children:
Based on the age of your child, your account needs will have different requirements. For savings account for a baby, you may only deposit gifts of money. For an older child, they may want to put money in and take it out to buy a toy. For a savings account for a teenager they may want the ability to link it to a checking account. Consider how you will use the account when selecting the type of bank and account requirements.
Programs for Children:
Ask about services offered for children at the bank you are considering. Some banks give piggy banks to children to start collecting their coins and provide free coin counters in the lobby. Other banks allow children to go behind the counter and see the safe. The extra services are very valuable teaching tools.
Interest Rates:
Don't forget to look at the interest rates on the account. It will be much easier to explain the power of compounding if the account is earning interest. In addition, two banks may have very different interest rate structures.
Finally, then only you decided to open the savings account for your child, after you discuss all the steps. So it is easy for you to follow the terms and conditions of the account.

Tuesday, 25 October 2011

The new capital investment projects on business


Maine has the lowest capital investment tax rate in the U.S. followed by Oregon and Ohio. These states provide a friendly tax environment for companies wanting to relocate or make capital investments. New Mexico, on the other hand, is the least friendly state from a tax standpoint, for capital investment with a tax rate of over 16%. Maine's capital investment tax rate is only a little over 3%.
There are four major types of capitalinvestment projects. In the capital budgeting function of business, there are new projects that businesses undertake along with replacement projects. All of these types of projects have different levels of financial analysis that is required. Obviously, there is a tax effect on the cash flows that are forecasted for each of these four types of projects.
Unfortunately for the U.S., overseas venues have even lower tax rates on capital investment projects. One of the biggest issues in the U.S. today is the outsourcing of jobs, branches of companies, etc. overseas due to cheap taxes, cheap labor, cheap raw material, and more. Given our own tax rates in the U.S. and the virtual certainty that tax rates on companies will go down to stimulate economic recovery, should U.S. companies move overseas to save on taxes? What's your opinion?

Under insurance professional is better to do home based business







Most of the women’s prefer home based business. Working from a home office or doing business from your home can be a great way to earn extra income and has a number of intangible benefits: less stress, no commute, time with the kids, etcetera. But it is important to remember that the home business is just that - a business. It needs to be insured like any other business. Many policies have exclusions for "illegal" operations, so it is important to determine if your business is allowed to be a home based business in your community.
If you run a business from your home, it is important to work with an insurance professional and explain all current operations and any potential operations from the home so you can secure appropriate coverage.
What types of Coverage you need:

As with any business, the owner must analyze what types of business will be operated and the components of that business. You can consult 
the checklist on this guide site to help gather the appropriate documents. Consider and answer the following questions:
·         Will t the business supply, manufacture or create a product or foodstuff?
·         Will a vehicle be used in the business for any purpose?
·         What electronic equipment will be used AND will that electronic equipment be used for personal, non-business applications?
·         Will a professional service be provided?
·         Will business visitors come to the house?
Focusing on these questions will help to identify what types of coverage are needed for the home business.
Business Property Insurance
In most instances, your home business will need business property insurance. Business property insurance insures against loss or damage to property used in the business. If, for example, a fire occurs and your home office is destroyed, your computer, fax machine, copier, furniture and printer would not be covered under your homeowners' policy. You need a business property policy to provide that coverage.
Businesses often need to make a decision regarding whether they will buy actual cash value coverage or replacement cost coverage. For the home business, in most cases the business owner should secure replacement cost coverage and verify with their insurance professional that electronics are absolutely covered under the policy. Actual cash value policies may have lower premiums, but most home businesses cannot afford the lower settlement value after a catastrophic loss.
Liability Insurance

Liability insurance protects the business when it is liable for damages caused to another or another's property. This type of business insurance is necessary if business visitors will visit the house. Your homeowners' policy will not protect you from claims made by injured business visitors. Business visitors include delivery people and couriers. If a courier slips and falls on your front steps making a business delivery and you face liability for their injury, the homeowners' policy provides no coverage.
Professional Liability or Acts Coverage

Professionals working from their home still need the same professional liability insurance as professionals working out of an office. As straightforward as this sound, many professionals do not secure professional liability insurance when they work out of their home. It is important that you try and avoid any gaps in coverage. For example, if you are transitioning from a paid position to a new home business and your prior employer provided professional liability insurance, do your best to secure coverage that will be in place the moment the prior coverage lapses. Even if this means insuring a period where you perform no services (perhaps after a pregnancy) your premiums, in the long run, will be less expensive without a coverage gap.
Product Liability Coverage

Product liability coverage protects the business if the business is liable for damages to a person or property caused by a product supplied, designed or manufactured by the company. If you make or supply something, consult with your insurance professional on the need for this coverage.
Finally, the home business must comply with all regulations, health codes, laws, regulations and statutes. A failure to do so may void coverage. Employment laws must be followed. If you will have employees, you will need workers' compensation coverage.

Before start a new small business: bookkeeping and accounting






Everybody has its own idea to start his own business. That is either big or small. So we must know befor starting the small business about bookkeeping and accounting. When you first get started in a small business, you may hear the terms bookkeeping and accounting thrown around almost interchangeably. However, these terms are not same. Small businesses have both bookkeeping and accounting functions.
Bookkeeping is the process of the record-keeping of all financial transactions of the company. Bookkeepers record the sales, expenses, and cash/bank transactions of the company. In a company that uses double-entry bookkeeping, an example of a double-entry transaction is a sale of an item to another organization which generates a sales invoice. That entry generates another entry which is the debt the other organization owes to the company.
The accounting function prepares a record of the financial affairs of the company. Accounting also includes the interpretation of the numbers prepared by the bookkeeper to determine the financial health of the firm. It also includes the presentation and financial health and control functions of the company.
In most businesses, the bookkeeping clerks operate under the accountant. In small businesses, the accountant may be the owner or Chief Financial Officer (CFO) or the accounting function may be outsourced. In some small businesses, both the bookkeeping and accounting functions are both outsourced. Even though, as a small business owner, outsource either or both your bookkeeping and accounting functions, it’s important that you maintain some understanding and control over both of them yourself. You need to understand the process of bookkeeping and accounting in your company. Then only you start the business, it will success for a long.

Monday, 24 October 2011

To manage your finances offer Online banking services








Online bank accounts can provide a quick and secure to your banking and manage your finances. Most banks offer online banking services, and although the features and offerings may vary, they all share a number of similarities. Using online banking can significantly simplify your financial life.
You can open an online bank account with either a brick-and-mortar financial institution or an exclusively Web-based bank. If you open an online account with your current bank, it may offer special rates or other benefits for existing customers. Once signed on to your online account, you can check your balances, view current and past bank statements and transfer money between accounts. Many banks also offer the option to pay bills online, and you can usually set up recurring bills, such as car payments, to be sent to you and/or paid automatically




Online bank accounts are typically offer high rates for web-savvy saver. However, the high returns come at a cost. You need to know what the tradeoffs are to avoid unpleasant surprises. Here are a few reasons NOT to use online bank accounts.


1. Customer Service with Online Bank Accounts
One reason to avoid online banks is that you may run into bad customer service. With a brick-and-mortar bank, you’ll likely have some familiarity with the staff. At a small credit union, the staff might know you well.
Why does this matter? It’s easier to get good service if you know the staff and they know you. You can pick and choose who you deal with. However, if your online bank account offers any phone service, you have to take your chances with the “1-800 Lottery”. You might get somebody helpful and knowledgeable, or you might not.
2. Online Bank Accounts and Speed of Clearing
The internet is supposed to make things faster. However, you might have to wait a long time for checks to clear. You certainly can’t ask for acashier’s check if you’re in the middle of a crisis and you need settled money yesterday.
Likewise, deposits to your online bank account can be really slow. If you get a big check and want to start earning interest, you can expect to wait. Now, the higher APY you earn may still make it worth your while, but it’s just no fun to wait.
3. You Can’t Spend It from Your Online Bank Account
You can’t take it with you when you go, so why not use some of that money? Online bank accounts make it hard to spend your money. You really have to plan on keeping your money in the account.
To manage the problem, use accounts that offer online bill pay or debit cards.



A financial service rewards those who plan for success.




Finance, of course, defines a broad array of businesses. Services mean that the focus of these companies remains on clients and customers. Now, more than ever, serving customers counts. Whether your interests include building a financial practice or growing your existing one, taking care of your customers' interests before your own requires attention, energy, education, and relationship building skills.
Banks, insurance companies, and broker-dealers are stand-out providers of financial products and services to individuals, families, and businesses. Other companies, such as asset managers, mutual funds, custodian banks, trust companies, and credit unions are also financial services companies.
Alternative investment firms--such as real estate funds, strategic investors, hedge funds, and private equity--are financial services companies. Even if individual investors don't see them at work, private equity firms inject much-needed capital into fledgling and small businesses. Large alternative investors occasionally sell exchange-traded shares so that individuals can obtain a slice of upside opportunity.




This is a short list of companies beloved by employees and clients alike:
·         Camden Property Trust operates and develops luxury and middle income apartment developments in 12 states. As a real estate investment trust (REIT), the company's portfolio includes exclusive and syndicate-owned properties. Twenty-five percent of Camden's properties are in Texas (headquarters). The company's hummingbird logo flits into many top housing markets: Houston, Washington, DC, Las Vegas, and South Florida. Camden suffered some job losses last year, though insiders say the company looks forward to a stronger 2011.


·         Edward Jones, the investment advisor firm, has almost 13,000 offices in the U.S. Advisors tightened their belts a bit over the past two years. However, the firm's profit sharing plan continued to reward the firm's lifeblood: the financial advisors usually established in individual offices throughout the country.


·         Johnson Financial Group with offices in Wisconsin and Arizona enjoys a family-like atmosphere. The company manages money for wealthy individuals and institutional clients. The company is also affiliated with several international banks, such as Banque Franck and Galland & Cie. The company is growing.


·         Umpqua Bank on the West Coast has grown to USD 9 billion in assets while maintaining friendly storefronts in their markets. Clients enjoy banking and evaluating investment products offered there.


·         Goldman Sachs Group in Manhattan trains associates and provides them with a firm mentor. One of the most prestigious names in global finance, the private client group manages some of the world's wealthiest individuals and families.


·         Scott Trade is growing. The firm has opened many new offices in the last two years. The firm subsidizes gym memberships for those who don't work in the home office (St. Louis, Missouri).
All four of the Big Four public accounting firms receives good press from employees and clients:
·         Ernst & Young caters to the hearts of financial professionals by offering a pension plan and a 401K.


·         Pricewaterhouse Coopers has done some downsizing in recent years. However, the company gave existing employees extra paid holidays. The firm appears to be in growth mode for 2011.


·         KPMG gives an average of 24 paid holidays to employees a year.


·         Deloitte’s opening of a 100+ acre campus in Texas speaks volumes to employees and clients. Deloitte University provides continuous training to financial professionals of the firm.

To save the money in safely go Bank Savings Account




The Banks and loan associations provide many types of accounts, such savings accounts for customers who want to save the money without any risk, that keep money safe and easily accessible. Here are some reviews of what savings accounts are and why you might want to have a bank savings account.
What is a Bank Savings Account
A bank savings account is a type of account designed to simply hold money placed in savings accounts is readily available for emergencies and often accessed without penalty. When contrasted with checking accounts, bank savings accounts tend to pay a slightly higher rate.. While your principal, or the amount you deposited, is safe, the interest rates for savings accounts are lower than those for accounts intended for longer-term investments.
Easy Access to a Bank Savings Account
Savings accounts offer easy access to your cash. In other words, your money is liquid (meaning you can make a withdrawal easily and quickly) in a bank savings account. Note that savings accounts are not as liquid as checking accounts, because you can get money from a checking account by simply writing a check.
Bank Savings Accounts Grow Your Money
When you have money in a bank savings account, your money earns interest.
o    This is a nice feature. Your bank savings account pays a rate of return on all the money in the account (you’re APY). That means that you get "paid" for keeping your money in the account. If you were not going to use the money anyway, then getting paid a little is better than nothing.  Many banks post their interest rates or APYs in their lobbies or on their websites. You can request that a bank quote you the interest rate for savings accounts in the form of an APY. Interest rates, which are based on your risk and commitment, vary among banking institutions and may change.

Bank savings accounts pay you more on your money than checking accounts.
Bank Savings Accounts are Relatively Safe
Your savings account is safer in a financial institution that insures your funds through FDIC, or the Federal Deposit Insurance Corporation. FDIC is a federal agency that insures deposit accounts -- which are savings, checking, money market deposit and certificates of deposit - up to $250,000.00 for each depositor. Suppose that you have $1,000 and you're not going to use the money for another 3 months. You could do several things with the money. You could carry it around with you, you could put it under your mattress, or you could put it into a bank savings account.
The safest thing to do with your money is to put it into a savings account. If you carry the money around with you, you might lose it. However, if the money is in a bank savings account, your banking institution is responsible for the safekeeping of that money. If the bank burns down, your money won't go with it, and any reputable bank will not just lose your savings.
Furthermore, you earn interest on the money in a savings account. You don't earn interest on cash that is sitting under your mattress.