Banker Reviews

A lot of people spend most of their life owing somebody else’s money. And it is quite understandable that they are not totally happy with the way their bank accounts and mortgage accounts are handled. Is there anything which can be done to improve the system?

The one account. Those people just do not fully realize how much money they can save, consolidating their income, borrowings and savings into one single bank account. This type of account is managed like a regular bank account: there are bank cards without a limited number of withdrawals and there are chequebooks. Sure, this is not the usual way people manage their finances having the income going into one account, savings into the other and holding the mortgage in the other bank. But if you have only one account, it helps you to keep the cost of your debts much lower than traditionally.

Possibility of negotiating a loan. Opening a single bank account allows you a borrowing facility that can represent 95% of the value of your home. So, if you own a $100,000 house and need an 75% mortgage you can set up a loan facility of $95,000 having additional $20,000 to call on when you choose. As soon as the facility has been acceded, you can make use of the money whenever you want. Besides, you can settle this debt however you want. But there is a need of proving that you will be able to pay it off until you retire.

Other advantages of the single bank account. Moreover, you have the same or close to the same interest rate for your savings and your borrowings, as the one account keeps the balance of it. And because of the structure of the one account the repayments of your mortgage are made monthly and this helps you to safe some more money, comparing to the way when the repayments are taken off in the end of the year.

Have you ever thought why the identity thieves need the personal data of the citizens? Different hackers, insiders, spy-programs hunt this information. In other words, with the help of this data an identity thief can persuade the third party - in most cases this is a bank, insurance company or lending agency, - that he is a rightful customer and under the other person’s name can take some money on credit or take care of his/her funds.

Wide scope of the identity theft. Nowadays in the States the identity theft can remind us of something epidemic, as to the huge number of this crime committed. Around 28 millions of Americans fell a victim to the identity theft for the last five years. According to different researches a number of these widespread crimes is still very high and it is constantly gaining in scope.

When bad identity theft happens to good people. Once upon a time one guy, coming home to Salt Lake City from Florida via South Carolina lost his social security card. He found out that fact very soon and gave a call to the social security office. They gave him a new card and things quieted down. But in a year he received a bunch of bills on thousands of dollars for the purchases he never made from different companies, banks, etc. And after a while those companies filed a number of suits against him for not paying his bills. The guy had to prove his alibi that he was in South Carolina just for an hour en route. He had to beg his bosses to give various certificates proving that on that very day he could not buy anything in South Carolina, that he was in the office or traveled on business or was attending some courses. Poor fellow had to recollect every hour of the past year. Can you imagine what happened to his life?

Ways out. You can protect yourself enrolling to some identity data protection service, which will create some defense system against identity thieves. For example, you can do it on-line on PrivacyMatters.com. But still you will never be 100% protected, because the hackers gaining the knowledge day by day and they develop their skills to break the systems even in the companies which are paid for providing your security.

There are a lot of kinds of bank accounts offered by banks as well as there are a lot of ways people arrange and repay their mortgages. But how often are the customers totally happy with the way their bank accounts and mortgage accounts are handled? Is there anything which can be done to improve the system? Some banks offer a new type of account – a single bank account. Let us summarize why this very type of account can be useful for you.

You save more money. Consolidating your income, borrowings and savings into one bank account, there occurs an opportunity for you to pay off the mortgage, if you have one, faster and on completely other conditions. This happens because when your savings and debts are put together it makes a cost of your borrowing lower.

Totally different set up of the loan facility. Opening a single bank account gives you the opportunity to negotiate an overall lending facility that can represent much more than the bank can offer when people run their finances in the traditional way, having a number of different accounts.

Different correlation of interest rates. The one account customers fund their mortgages at the same rate they get for their savings. Opening a single account you would not make a common mistake – like putting your money into one bank earning interest at 7% and then lend equal amount from the other bank at 10%.

The term of the mortgage can be cut. If you mortgage repayments are consolidated into the one account the moment they are made, you can pay off your debt much earlier, saving the money. And if your salary is paid into your mortgage account and it rises – you can afford to pay more of your loan and cut the term of the mortgage