Analysis of Articles about Banking - Assignment Example

Banking Scared Of The Stock Market? Try Investing In Consumer Debt Clements, Nick . "Scared of the Stock Market? Try Investing in Consumer Debt." DailyFinance.com., 28 Oct. 2014. Web. 28 Oct. 2014. . This article by Nick Clement aims at identifying the challenges that rock the two areas of stick markets and consumer debts. The challenges in the stock market have indicated many people seeking other options in dealing with the challenges in the stock market. Among the many assets that the banks have advised people to consider investing in consumer credit facilities. Consumer banking is reported as an alternative in the banking sector and investment platform that many investors consider as an option. The article reports consumer credit as a viable investment due to the increasing number of borrowers that seek money for different reasons. The report also indicates $880 billion as part of the revolving consumer debt currently accumulated by the population. The most interesting aspect of the development is that many people are willing to obtain debt and pay back at very high interest rates with a n average of 15%. Considering the loss rates registered by these kind of facilities and the level of losses involved are very low as at 2.52% in relation to JP Morgan Chase. Banks consider this a very lucrative opportunity and has taken deep into consumer credit. The advantage that the banks have over the other investors is that they obtain savings from masses that they use for the development of the finances necessary for investing into consumer credit. Consumer credit facilities stem in many forms as credit or debit cards, credit facilities for purchase of goods among others. The banks benefit more due to their level of interest earned compared to the interest paid to the owners of the savings. 2. Plot Your Escape from the Big Fees of Big Banks Kopp, Carol . "Plot Your Escape From the Big Fees of Big Banks." DailyFinance.com., 24 June 2014. Web. 28 Oct. 2014. . Carol Kopp explains more on how to escape the huge fees charged by big banks on the different transactions and accounts opened by customers. Basic banking services in major banks in the American financial sense. Escaping these banks would help on save more of their money. The hiking of the fees in huge banks has is known to have originated from the 2008 financial crisis from which many banks suffered losses. These banks especially the big ones hiked fees and basic charges on the simple banking services in order to cover the losses in profits that the crisis had occasioned. The limited marketing that these banks have placed in the services that have low interest and other charges make it difficult for customers to know of the existence of these services. The banks show that they are more interested in the business and profits giving customers more lucrative deals as a way of attracting customers. Comparison of the different rates using the rates and fees monitor can help one identify the charges and scale to see if they are within reach or abnormal. It is reported that many of these banks target customer’s ignorance over the charges as a way of keeping their business going. Many of the options available for the customers range from the credit unions, regional banks, community banks and virtual banks. These have provided options that customers need to consider before approaching a bank for the different products. The analysis has aided many customers find more better and cheaper products for their needs saving a lot in the end and achieving their product needs. 3. You Need a Savings Account and You Deserve A Better One Lenrer, Michelle. "You Need a Savings Account - and You Deserve a Better One - Daily Finance." DailyFinance.com., 11 May 2014. Web. 28 Oct. 2014. . Michele Lerner explains the different aspects to consider before considering a savings account in any banking field. The many banks have interests rates attached to their savings account and the many have the interest at nearly zero percent. Customers are attracted to savings accounts as a way of saving for emergency cash. Many people have thought of involving their funds in stocks or mutual funds as a way of saving their cash from benefiting the banks with the customers obtaining little interest rates. Considering cash for handling emergencies is one reason that makes people find saving accounts convenient for aiding protect the customer’s money. Many customers have had their funds attached to their saving accounts and transferred into the investment accounts or mutual funds as a way of keeping the money away from consumption. The challenges that these accounts accumulate includes the penalties, taxes or other fees. The difficulty of obtaining these funds when need arises is what makes people consider taking saving accounts as the best option for saving these funds. This works as a backup plan for customers. As per the article, surveys conducted by MagnifyMoney.com indicated that most of the American population saves their funds in normal saving accounts. 73.4% of the population is involved in this with interest rates close to zero. The average savings on the accounts stood at $28696. The survey also showed online savings as a way of saving resources for many people with 28.2%. The savings on online have an average pay of 0.9% while the banking institutions range to 0.01% (Lerner). A switch from normal saving accounts to online savings would have one save more on an annual consideration compared to the normal saving accounts. 4. 4 Tips For More Secure Online Transactions Smith, AJ. "4 Tips for More Secure Online Transactions - Daily Finance." DailyFinance.com., 27 Feb. 2014. Web. 28 Oct. 2014. . Many American people are embracing online activities ranging from banking to even buying and selling of goods. Online banking is a risky activity that has had many people suffers identity theft each year. According to the surveys conducted, $21 billion accumulated in loss as per 2012 alone affiliated to identity theft showing the high risk that all people stand using this service. The article is developed in a sense that develops knowledge on the different ways that one can handle identity theft and protect themselves. Among these ways of preventing identify theft include the following: use of the right card, defend those digits, retain records and avoiding social media mayhem. On suing the right card, the author reports on how the right cards can offer protection to the consumers compared to the debit cards. Understanding the agreements in relation to the protections and different limitations that the card has helps in the protection of the clients from identity theft. Defending the digits from unauthorized personnel, helps protect the customer from identity theft. Protecting one’s personal information by always ensuring that their accounts are logged out from the bank websites, credit card activities, the different merchant sites and other sites that involve the use of personal information. Retaining records on the transactions and careful involvement on the transactions builds customer protection. Transacting while doing other things like TV or simultaneously running other things would have transactions registered wrongly and hence availability of the information aids in verifying transactions performed on eth cards. Obtaining a card report too can help. Lastly avoiding social media mayhem helps one stay out of the reach of identity theft. Information provided on the social media sites requires careful consideration to avoid passing information that would provide access to banking information. 5. Bank Online or the Old Fashioned Way? Here’s How To Choose Durisin, Megan . "Bank Online or the Old-Fashioned Way? Heres How to Choose - Daily Finance." DailyFinance.com., 6 May 2013. Web. 28 Oct. 2014. . Meagan Durisin details the different means through which one considers whether to bank online or the old traditional way. Online banking is considered the way of banking in the future and the different banks around the world have embraced this approach to banking. Relatively high interest rates for saving accounts, better customer services, low fees in the banking world and access to ones account on a 24/7 basis. Many banks have started competing online banking facilities and traditional banking as an option for many banking clients. Many aspects require consideration before transacting online. These include security concerns that are growing more often to scare online banking activities. Many fraud activities have scared people from handling online transactions and have become an essential consideration on online banking or traditional banking. Considering the fees too would help in deciding whether to transact online or not. It is identified that online banking activities are becoming cheaper as a way of encouraging them. ATMs also require considering in taking options whether to bank online or traditionally. Deposits and interest rates too require considering if one is to make better decisions on online banking and traditional banking activities. The customer service accompanied with the service is also key to eh decision. People aim for when approaching banks for banking services the service. The need to ensure that the right services are obtained in the banking transactions provides customers with more satisfying services. Works Cited Clements, Nick . "Scared of the Stock Market? Try Investing in Consumer Debt." DailyFinance.com., 28 Oct. 2014. Web. 28 Oct. 2014. . Durisin, Megan . "Bank Online or the Old-Fashioned Way? Heres How to Choose - Daily Finance." DailyFinance.com., 6 May 2013. Web. 28 Oct. 2014. . Kopp, Carol . "Plot Your Escape From the Big Fees of Big Banks." DailyFinance.com., 24 June 2014. Web. 28 Oct. 2014. . Lenrer, Michelle. "You Need a Savings Account - and You Deserve a Better One - Daily Finance." DailyFinance.com., 11 May 2014. Web. 28 Oct. 2014. . Smith, AJ. "4 Tips for More Secure Online Transactions - Daily Finance." DailyFinance.com., 27 Feb. 2014. Web. 28 Oct. 2014. . Read More