Sleeter Accounting Conference 2010 – Mardi Gras Photo 40


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Jeanne Tarazevits and Kathy Coffman celebrate at the Sleeter Accounting Conference award dinner

FBAR – U.S. TAXPAYER REPORT OF FOREIGN BANK & FINANCIAL ACCOUNTS – FORM TD F 90-22.1

On April 2, 2009, the IRS announced they will reduce the penalty for not filing a Report of Foreign Bank and Financial Account, known as a FBAR Form.

The current penalty is up to fifty percent (50%) of the highest annual balance of each account for each of the last 3 years.  The 50% penalty is imposed annually.  After 2 years of the 50% penalty, the account can be “wiped out” and the investor may still owe taxes (and interest).

The IRS announced they will not generally prosecute Taxpayers who come forward voluntarily, provided they are not drug dealers, arms merchants or others with “ill-gotten gains”.

The IRS will not asses a 35% penalty (due under Form 3520) on money secretly transferred to foreign trusts (i.e., tax evasion).

The IRS will reduce the penalty to 5 to 20%, depending in part on whether the wealth was inherited.  The IRS will levy the penalty just once, on the highest balance in the accounts over the last 6 years.

Under the IRS plan, Taxpayers will be required to pay any taxes and interest owed over the last 6 years.  The IRS will assess either the standard, accuracy-related penalty of 20%, or a 25% penalty for filing tax returns later.  Taxpayers in the program must also file amended tax returns for up to the last 6 years.

U.S. Taxpayers:

Have 6 months to accept the IRS plan (i.e., by 10/2/09) Under criminal investigation for tax evasion are not eligible Are not required to provide information about the bankers, lawyers and accounts who assisted them

The IRS plan was developed amid widening investigation into American clients of UBS but will apply to clients of other banks.  According to Douglas Shulman, the IRS Commissioner, the goal “is to get Taxpayers who have been hiding assets offshore back into the system.”

The following is a summary of tax returns due for Foreign Bank Accounts:

I.   Returns Relating to Foreign Bank Accounts

A.   In General

1.  Each U.S. person having a financial interest in, or signature or other authority over, any foreign financial accounts with an aggregate value exceeding ,000 at any time during the calendar year must report such relationship by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”),

2.  In addition, they have to disclose the foreign account filing requirement on Schedule B of Form 1040 and including the income from these accounts on the United States person’s U.S. federal income tax return.

B.  Who Must File

Form TD F 90.22-1 is required to be filed by every U.S. person for each calendar year in which such person has a financial interest in, or signature or other authority over, any foreign financial accounts with an aggregate value exceeding ,000 at any time during the calendar year. The test is based in the alternative – financial interest in or signature authority over the account.

1.   Definitions

For purposes of FBAR, the term “United States person” means (1) a citizen or a resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.  

The term “financial account” generally includes any bank, securities, securities derivatives or other financial instrument accounts, (including any accounts in which the assets are held in a commingled fund, and the account owner holds an equity interest in the fund), savings, demand, checking, deposit, time deposit, or any other account maintained with a financial institution (or other person engaged in the business of a financial institution).

Any of the financial accounts described above is considered to be a foreign financial account for purposes of FBAR, if it is located outside the United States, Guam, Puerto Rico, and the Virgin Islands.  The situs of a financial account is determined by the location where the branch is, not the location of the institution’s home office.

2.    Ownership of Accounts

Under the instructions to Form TD F 90-22.1, a U.S. person has a financial interest in a bank, securities, or other financial account in a foreign country under either of the following circumstances:

A U.S. person is the owner of record or has legal title, whether the account is maintained for his or her own benefit or for the benefit of others including non-U.S. persons. If an account is maintained in the name of two persons jointly, or if several persons own a partial interest in an account, each of those U.S. persons has a financial interest in that account. A U.S. person has a financial interest in each bank, securities, or other financial account in a foreign country for which the owner of record or holder of legal title is:

a) A person acting as an agent, nominee, attorney, or in some other capacity on behalf of the U.S. person;
b) A corporation in which the U.S. person owns directly or indirectly more than 50 percent of the total value of shares of stock;
c) A partnership in which the U.S. person owns an interest in more than 50 percent of the profits (distributive share of income); or
d) A trust in which the U.S. person either has a present beneficial interest in more than 50 percent of the assets or from which such person receives more than 50 percent of the current income.

3.  Signature Authority

For purposes of Form TD F 90.22-1, a U.S. person is considered to have signature authority over a foreign financial account if such person can control the disposition of money or other property in the account by delivering his or her signature (or his or her signature and that of one or more other persons) to the bank or other person maintaining the account.

In addition, a U.S. person has “other authority” subject to FBAR reporting if such person can exercise comparable power over an account by direct communication to the bank or other person maintaining the account, either orally or by some other means.

4.  Exceptions

Notwithstanding the general rules, Form TD F 90.22-1 is not required to be filed under the following circumstances:

An officer or employee of a bank which is subject to the supervision of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, or the Federal Deposit Insurance Corporation need not report that he has signature or other authority over a foreign bank, securities or other financial account maintained by the bank, if the officer of employee has NO personal financial interest in the account. An officer or employee of a domestic corporation whose equity securities are listed upon national securities exchanges or which has assets exceeding million and 500 or more shareholders of record need not file such a report concerning the other signature authority over a foreign financial account of the corporation, if he has NO personal financial interest in the account and he has been advised in writing by the chief financial officer of the corporation that the corporation has filed a current report, which includes that account. As noted above, a U.S. person is not required to report any account maintained with a branch, agency, of other office of a foreign bank or other institution that is located in the United States, Guam, Puerto Rico, and the Virgin Islands.

C.   Mechanics of Filing

Reporting on Form TD F 90-22.1 is required for each calendar year that a U.S. person maintains such interest or authority over foreign financial accounts. Persons having a financial interest in 25 or more foreign financial accounts are required only to note that fact on the form (i.e., a general statement indicating that information on all such accounts will be available upon request). (31 CFR § 103.24. Such persons will be required to provide detailed information concerning each account when so requested by the Secretary or his delegate.)

The Form TD F 90-22.1 is filed with the U.S. Department of the Treasury, P.O. Box 32621, Detroit, MI 48232-0621, or it may be hand carried to any local office of the Internal Revenue Service for forwarding to the Department of the Treasury in Detroit, MI.  The Form TD F 90­-22.1 must be filed on or before June 30 each calendar year. An extension for filing one’s U.S. income tax return does not extend the deadline for making a TD F 90-22.1 filing.

D.   Additional Issues

Each U.S. person subject to this reporting requirement must also maintain records showing, (1) the name in which each such account is maintained, (2) the number or other designation of such account, (3) the name and address of the foreign bank or other person with whom such account is maintained, and (4) the type of such account, and the maximum value of each such account during the reporting period (31 CFR §103.32).  These records must be retained for a period of 5 years and must be kept at all times available for inspection as authorized by law.

E.   U.S. Trustee Foreign Non-Grantor Trust

Report of Foreign Bank and Financial Accounts – Form TD F 90-22.1

      A U.S. trustee of a foreign nongrantor trust must file Form TD F 90-22.1 if the Trustee has a financial interest in or signature authority or other authority over any financial accounts, including bank, securities, or other types of financial accounts in a foreign country if the value of such accounts exceeds ,000. A person has a financial interest in any such account if she has legal title to it.

Trustees generally have legal title to accounts in which trust funds are invested. In addition, if legal title to an account is held by a corporation or partnership and the trustee owns more than 50% of the corporation or partnership, the trustee will be treated as having a financial interest in such account.

A person has signature authority over an account if she can control the disposition of account property by the delivery of a document signed by her and one or more other persons. A person has other authority over an account if she can control such disposition by direct communication to the person with whom the account is maintained.

Form TD F 90-22.1 must be filed by June 30th of the year following the year in which the U.S. person had such financial interest or signature or other authority.

F.   Form TD F 90.22-1

A willful violation of the Form TD F 90.22-1 requirements (i.e., failure to file Form TD F 90.22-­1, failure to supply information on the report, or filing a false or fraudulent report) could result in the imposition of civil and/or criminal penalties.  (The instructions for Form TD F 90.22-1 specifically provide that criminal penalties for failing to comply with FBAR are provided in 31 U.S.C. § 5322(a) and (b), and 18 U.S.C. § 1001. In addition, civil penalties for failure to comply are generally provided in 31 U.S.C. § 5321.)

Civil Penalties

If any U.S. person willfully violates the Form TD F 90.22-1 filing requirement, such person may be liable to the U.S. government for a civil penalty of not more than ,000 (31 U.S.C. § 5321. Section 5321 generally provides that if a U.S. person willfully violates a regulation, such person may be liable for a civil penalty of not more than the greater of the amount (not to exceed $ 100,000) involved in the transaction (if any) or ,000.

With respect to reporting on Form TD F 90.22-1, a U.S. person is not reporting a transaction but, rather, reporting his interest or signature authority over a foreign financial account. Thus, the maximum amount of potential civil penalty is ,000.):

Criminal Penalties

If a U.S. person willfully violates the reporting requirement, such person may be subject to a fine of not more than 0,000, or imprisoned for not more than 5 years, or both (31 U.S.C. § 5322(a)); and If a U.S. person willfully violates the reporting requirement while violating another law of the United States, or as part of a pattern of any illegal activity involving more than 0,000 in a 12-month period, such U.S. person may be subject to a monetary fine of not more than 0,000, or imprisoned for not more than 10 years, or both (31 U.S.C. § 5322(b)).

If a U.S. person, with respect to Form TD F 90.22-1, (1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact, (2) makes any materially false, fictitious, or fraudulent statement or representation, or (3) makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry, such person may be fined, or imprisoned for not more than 5 years, or both (18 U.S.C. § 1001).

Forensic Accounting Professor Urges Students: “Take all your personal data off Facebook” College students are at great risk for identity theft and fraud by posting personal information to Facebook, says James Bierstaker, an expert in identity theft and forensic accounting at the Villanova School of Business. He urges his students to take “all your personal information off of Facebook.” I interviewed him yesterday on the snowy campus of Villanova, on the outskirts of Philadelphia. Although Facebook has taken steps to stop the controversial “Beacon” program of sharing data with marketers, there is a great deal of public information that can be shared and used for fraud, Professor Bierstaker told me in this interview. Here’s a relevant article about young people and identity theft from Britain’s The Independent — Andy Plesser Full disclosure: The Villanova School of Business is a client of Plesser Holland, public relations. Posted on Thursday, December 06, 2007
Video Rating: 4 / 5

Hong Kong Bank Accounts and Hong Kong Corporations

Hong Kong – Hong Kong offers Anonymous Corporations, Bank Secrecy, No Tax Information Exchange Agreements, No Tax on Offshore Derived Income, No Capital Gains Tax, Stock Brokerage Accounts at the Bank, A Bank with One Trillion dollars in Deposits, Online Banking, Credit Cards, Accounts in 10 Currencies including Chinese Renminbi, Unlimited Government Bank Insurance, and you do not have to go to Hong Kong to have bank account opened. The features and benefits of using Hong Kong are extensive. The material contained below is in depth and was written for a sophisticated investor client. We are eager to answer any questions you may have, just inquire

Hong Kong Banking – We have now made it possible to open up corporate bank accounts in Honk Kong without a need to visit Hong Kong (no personal accounts please). Hong Kong today is one of the best private offshore tax havens in the world. They have not signed any Tax Information Sharing Agreements and have world-class banks. Hong Kong does practice tight bank secrecy with serious criminal and civil penalties for any bank personnel who violates such bank secrecy laws. Hong Kong is actually a world-banking center like Switzerland used to be. It has at least 100 times more bank deposits that countries like Panama, 69 of the world’s largest 100 banks, and a total of more than 1300 bank branches in the territory.

The Hong Kong Bank We Use – The bank we open our clients’ accounts for in has well over one trillion US dollars in assets. It is a massive, quality bank by any standards. It has no legal ties with any bank located in other countries as to avoid coercion by an opposing party using the banks with the same name in other countries to affect this. Various countries have done such things in past. No worries with this bank. This bank is authorized to issue bank notes for Hong Kong.

The bank has full online banking including the ability to launch online wires, check balance and history, switch from one currency to another, move money from one account to another, etc. The bank offers accounts in 10 currencies: Australian Dollar, Canadian Dollar, Euro, Japanese Yen, New Zealand Dollar, Pound Sterling, Singapore Dollar, Thai Baht, US Dollar, and Renminbi (Chinese Ruan). One statement will show your holdings in any or all of these currency accounts.

You can get assigned a private banker with an account of 0,000 or more and then you can also use Swiss Francs for banking in addition to the other 10 currencies. You can buy CD’s in the bank. Rates will usually not be over 2% per annum on USD deposits, generally lower for most other currencies. We have banks in other countries with higher rates and we also offer anonymous bearer bonds paying 8.5% from other countries. Hong Kong is for privacy and security, not high bank interest rates. Another consideration is access to a Hong Kong stockbroker that can provide you with investment opportunities paying significantly higher yields.

Hong Kong Bank Security – Once you are the signatory on the bank account no other signatories can be added or and it is impossible to remove you as a signatory without your written consent. Having share certificates for the corporation is not enough to change the signatories at the bank. Nominees are unable to effect a change at the bank for the signatories. No additions or deletions of signatories without the written consent of the existing signatories. No changes at all without this. Any attempt would be accepted by bank with their ID in a pending state. Then bank would contact you for written permission. You say “No way, I knew nothing about this.” Then they go to jail. Hong Kong banks are very used to nominees and understand how to protect the owners/signatories of the bank account. No worries.

Hong Kong Bank Insurance – This is Hong Kong government-backed bank insurance. This measure is in place until the end of 2010, which can be extended at the option of the government. It was already extended once, after first being put into place to reassure depositors during the worldwide financial crisis. The government is backing all bank deposits to any amount. The insurance covers HK dollar accounts and all foreign currency accounts such as USD, Euro etc. There are certain types of specialized accounts not covered, which are listed as follows:

CDs or time deposits with a term in excess of five years, secured deposits, structured deposits like equity linked accounts, bearer instruments like a bearer certificate of deposit (does not affect corporation having bank accounts that are bearer share corporations). The insurance does not cover stocks, bonds, mutual funds, insurance policies, or unit trusts bought and held by the bank. The funds for immediately (immediately is the word Hong Kong uses) compensating depositors come from a standby credit facility provided by the Hong Kong SAR Government’s Exchange Fund. So the deposits are insured up to any amount until at least the end of 2010 and the deadline will most likely be extended again until the world financial crisis is over.

Hong Kong Bank Credit Cards – The bank will issue you a secured Visa or Master card. The card will have to have your name on it. You cannot not get a corporate name only card. They do not issue anonymous cards. The cards are secured by a deposit exceeding the credit line of the card. The bank is not going to extend to you a line of credit. If you want a card limit of ,000 the deposit will be ,500 typically. This depends on what currency the card is in, if you are a private banking client, etc. This bank has at least 10 different card programs.

Bank in Renminbi or Chinese Yuan – With this Hong Kong bank you are able to bank in Chinese Renminbi also called the Yuan. You can even get a checking account in this currency. You can hold this currency in your account. Much business in Hong Kong is now conducted in Renminbi. You can have time deposits in this currency. You can even get a credit card in this currency which is really only going to work in Mainland China but they do have 370,000 merchants and 60,000 ATM’s taking this card. This card is going to grow, this is the beginning.

You can move up to 80,000 Renminbi a day to an account in Mainland China, if you happen to have a bank account in Mainland China. This is the Chinese currency that is being used to clear international payments but it is not yet fully convertible at this time. It is just starting so you are getting in on the ground floor. To truly diversify your currency holding portfolio hold Renminbi. The Renminbi will soon become a fully convertible currency and then probably soar in terms of exchange rates. It is expected that the Renminbi will soon have its own wire transfer facilities clearing in China or Hong Kong and it is doubtful that the USA will have access to view or affect these wires.

Stock Brokerage Accounts – The bank has a stock brokerage division. Online platform and full service. Play the major markets around the world USA, UK, Canada, Japan, Hong Kong, China, Australia). Bonds, options, futures, forex, and equities – everything including margin accounts. You can also open up a European stock brokerage account through us using your Hong Kong Corporation as the vehicle if you wish access to other additional markets. If you are an American or Canadian citizen or resident you can have a bank account in Hong Kong BUT NOT A STOCK BROKERAGE ACCOUNT AT THIS BANK. This policy is to avoid some new tax withholding laws. We can however get you a stock brokerage account at another stockbroker in Hong Kong with an online platform that allows trading major markets in the world. This will require an extra whole set of certified documents approved by the HK court so we must charge an extra 0 for this service if you are unable to get a stock brokerage account at the bank. When you sue the same bank for the stock brokerage account there is no extra staff time or need for an extra set of paperwork.

Anonymous Hong Kong Corporations – Hong Kong Corporations are basically private limited companies being very private and limiting liability for shareholders. There is no paid in capital requirement. It is possible to get a corporation formed in Hong Kong that is anonymous. Your name as the owner will not appear in any public registry or database. If the client desires to be an anonymous owner of the corporation he can do so with a trust arrangement having the trustee (the Hong Kong Lawyer) hold the shares for him (as a beneficiary) and the client holds the trust deed, which is conclusive proof of him being a real owner of the shares. This trust law and arrangement is valid and lawful in Hong Kong.

The corporation is formed in Hong Kong, the lawyer is in Hong Kong, and the bank account is in Hong Kong so this structure is all legal and fully enforceable in Hong Kong which is the only jurisdiction that matters in this scenario since everything is located there. This structure makes it impossible to look up the name of the owner of a corporation filed using this trust arrangement. A nominee director, shareholder and founder are used whose name does appear in the public registry but these persons do not know you at all. You wind up with an anonymous corporation and have all the controls plus you control the bank account.

Hong Kong Taxes – Hong Kong does not tax offshore-derived income. There is no VAT tax. No withholding taxes. No annual net worth taxes. No accumulated earnings taxes for retained versus distributed earnings. There is no capital gains tax on bank interest or stock market investments. You can have an office in Hong Kong and still receive money from offshore and have it tax exempt. Unless you conduct business inside of Hong Kong like having a pizza store there, you will not be paying any Hong Kong taxes. It is a true offshore privacy and tax haven.

Hong Kong Corporation Tax Return Filing – One small disadvantage to Hong Kong Corporations is that an annual tax return must be filed at the end of each year. If the person is not conducting business in Hong Kong, there is no obligation to complete the return but as a matter of expediency and maintaining a low profile, the return should be filed with the HK Inland Revenue with a brief explanation as to why the corporation is not carrying on business in Hong Kong. This is something the accountant will do for you.

If a person is carrying on business in Hong Kong but has no profits subject to tax because all their income was deemed to be offshore derived, that person should file a tax return with all the relevant attachments, which should also include a detailed explanation as to why each source of income is not considered to be taxable. This is usually as simple as stating it is offshore derived income from sales commissions, sales of property, brokerage fees, earnings for work conducted outside of Hong Kong, etc. This is to show that there was no onshore Hong Kong income derived for which taxes are owed. If there is no activity in the corporation a return can so be filed showing no business activity. Again the accountant will do this for you.

If the business has not yet commenced then the company can just file a negative or nil tax return and technically it can even not file but later on this could be questioned by Hong Kong Inland Revenue so we suggest doing a simple filing. Again the accountants will do this for you. The lawyer we use to form the corporations in Hong Kong has certified accountants in Honk Kong on staff who will do the annual filing for you and it is already included in the fee. You just supply the data to them and they will do the rest. If you are going to conduct a real business venture using the Hong Kong Corporation and Hong Kong bank account then you will need to file a real tax return even if the company had no onshore income. There will be no tax due but a filing is necessary and the cost of the filing is included in the price.

If you have a serious business it will be incumbent upon you to have the books and records prepared independent of our accountants who are just going to prepare the filing for you, they are not going to be your accountants or bookkeepers in general. If you are just going to use the corporation and bank account for savings or holdings then there really isn’t much of anything to file and the accountant will do it for you. Feel free to ask questions. It sounds more complicated than it really is. For many of you it will be as simple as telling the accountant the corporation has not engaged in any business for the tax year and then forgetting about it.

What Is Included With the Hong Kong Corporation –

I) Certificate of incorporation

II) Business registration certificate

II) Original formation documents and minutes

IV) Minute booklet

V) Share certificate booklet

VI) Two chops and a seal (a chop is a corporate stamp, not a tool for eating with)

VII) One certified copy of formation documents

VIII) Appointment of corporate secretary for a year providing a registered office address for a year. This address can be used for mail and courier receiving of documents but does not include forwarding or receiving of parcels.

IX) A box to contain all papers in.

In addition, to keep the corporation anonymous there is included a private trust agreement for nominee shareholder, director and founding member so the owner is not registered in the public registry yet still has all the control over the corporation while remaining anonymous. This trust agreement also includes a General Power of Attorney executed by the nominees. The firm in Hong Kong will also file your annual return for you at no additional cost.

Using the HK Corporation for Bank Accounts in Other Jurisdictions – To use your Hong Kong Corporation in a country other than Hong Kong for opening a bank account or a stock brokerage account there is an extra fee of 0. Why this fee? The Hong Kong lawyer will need to issue a full set of notarized and apostilled corporate documents. These documents need to also be approved and signed off on by the High Court of Hong Kong. This is the reason for this extra fee if you wish to use the corporation to open a bank account or stock brokerage account outside of Hong Kong.

Attorney Client Privilege – The formation of the Hong Kong Corporation is done by a Hong Kong lawyer so attorney client privilege flows through the entire transaction from start to finish.

Due Diligence – What is needed is a notarized copy of a passport and driver license. We also need a utility bill for proof of address. This has to be a working address that can receive correspondence. You can tell the bank to hold your statements and not send them but some things like signature cards, online banking forms etc will need to be send physically by courier.

There is no bank reference letter required. In some countries banks will not issue a bank reference letter any more. In other countries a bank reference letter is considered to be a “suspicious transaction” and is reported to the authorities as such because it means an offshore bank account is being opened. Banks inside the same country rarely require a bank reference letter.

Time Frame – It takes 2-3 weeks to form a corporation and have the bank account opened for it. The time clock starts ticking when we have an order form, notarized ID documents, Utility bill and payment.

Hong Kong Shelf Corporations – We have a reasonable supply of shelf corporations on hand. This speeds the process up by a week or so but then you have to accept a name you did not chose. Not suggested for those operating a business but can work for those in a hurry who just wish to use the account for savings or as a holding entity. Shelf corporation fees are the same.

Cost – The fee for the Hong Kong Corporation complete and the opening of the Hong Kong Bank Account without coming to Hong Kong in the above-described bank is 00. This is paid by wire transfer. We do not take credit cards. The minimum deposit at the bank is 00 and should be included along with the wire for the professional fees.

How to Order – First step is to fill out our online order form.

Next send us by email a scan of the notarized copy of the passport and driver license plus a utility bill showing your real address. This can be sent by email as an attachment to: staff@panamalegal.org

If the documents are correct and acceptable we will then provide courier directions to send hard copies.

Next we will send you coordinates to wire the fee to us.

After the fee is received we will begin forming the corporation. After the corporation is formed we will begin the bank account opening process.

Bank forms, signature cards will be sent to you by courier with the corporate documents included and you will have to execute the bank forms and return to us by courier. When the forms are returned the bank account will be opened several days later.

The online banking will come after that requiring 7-10 additional days after account opening. Credit Cards require a security deposit and take about two weeks after the account is open, and the deposit is received.

Questions – We welcome questions, just ask.

http://www.panamalaw.org/hong_kong_bank_accounts_and_hong_kong_corporations.html

Choosing Checking Accounts With the Lowest Bank Fees

Banks make most of their money through convenience fees charged to customers. When you are in the market for a new checking account or want to move to a new bank, there are a number of things you should take into consideration before selecting the bank to open your checking account with.

Insurance

It used to be very rare for a bank to fail. The current economy has increased bank failures though, and when looking to open any bank account, it’s important to take the possibility of a bank failure into consideration. The Federal Deposit Insurance Corp insures deposits from eligible banks and financial institutions in the US up to 0,000 per depositor. Make sure your bank is covered by the FDIC before you open an account with them.

Choosing a Checking Account

Most everyone relies on a checking account in order to pay their bills and hang on to their money before it’s needed for a purchase or expense. You have a number of checking accounts from which to choose, from free accounts (no maintenance fees) that don’t require a minimum balance; to accounts that offer interest if you maintain a certain minimum balance; to money market deposit accounts with higher interest paid but higher minimums required and a limit to the number of transactions you can make in any given month. There are specialty accounts for groups of people, too – like student checking, or senior citizen accounts.

Compare your local bank checking account options with online checking account options to find an account that will charge you the least amount of fees and provide the most interest for how you are likely to use the account.

Avoiding Overdraft Fees

People who live paycheck to paycheck often end up paying hundreds of dollars each year in the form of bank overdraft fees. At an average of per occurrence, overdrafts are costly fees that you should do everything in your power to avoid! What happens when your account falls short is the bank will honor the largest debit or check that’s outstanding first, which means each of your smaller checks will result in individual, overdraft fees. Instead of bouncing a single check, you end up paying an NSF (non sufficient fund) on each of the individual transactions.

While many banks will cover the non sufficient funds for you under “overdraft protection” all that means is your money is paid out to the person or business you wrote the check for or used your debit card for; but that the bank will charge you for that privilege. See if you can get standard overdraft protection, and link your checking account to a savings account. If your account is overdrawn they can tap into your savings account for the funds instead of charging you for the NSF.

Some banks hold your deposits for 10 business days for larger or nonlocal checks. Standard wait time for a regular check deposit can be 2-4 business days. This can make it difficult – if you are cutting things close, always find out when a deposit will come available so you know when you can use the money from the deposit.

Understand Your Debit Card

Almost all checking accounts include a debit card, but this is another way for banks to make money off their account holders. Sometimes if you use the debit card as debit at the retailer, you pay a fee – but if you chose credit instead at the same retailer, it wouldn’t cost you anything more than the cost of whatever you’re buying.

Using your debit card in an ATM machine owned by another bank will result in paying fees to the other bank, and your own bank as well. Paying or to take out in cash is never a good idea, but you may not even realize it since the ATM only announces the fees of their OWN bank (not what your bank will add at the end of the month).

Using a debit card to reserve travel accommodations or purchase gas sometimes puts a hold on your account that’s more than what you actually spend. It can take a week or two for the hold to be lifted, and meanwhile you don’t have access to any of those funds which can result in overdrafts if you’re not aware.

Checking Account Vs HELOC


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Advantages of Opening An Offshore Bank Account

While offshore bank accounts are not for everyone, they can offer huge benefits to the right person. For many small businessmen and entrepreneurs, a good offshore bank account has provided the “key” or competitive edge to unlock vast potential wealth. But first I want to dispel two big myths about offshore bank accounts.

#Myth 1 – Only the super-rich can afford offshore bank accounts. You don’t need to be rich to open an offshore banking account. While it is true that a “wealth-management” service with a personal banker might require an initial investment of USMM, accounts with no minimum deposits certainly exist, and smaller minimums of US0-5000 are quite common.

#Myth 2 – Offshore bank accounts are illegal, or used only by criminals. The confidentiality that offshore banking accounts offer has led to abuse by criminal gangs, but in fact these days many offshore banks have stricter due diligence than their onshore competitors. Criminal activity, wire fraud and money laundering will just as likely take place in New York or London (government sponsored or otherwise). Furthermore, ownership of an offshore bank account is never illegal, although not declaring that you have it can be illegal (laws will vary from country to country).

What can an offshore bank account do for you? Here are some of the advantages that have helped investors make their choice.

1) Privacy – Shield your assets from prying eyes. The phrase “If you’re not doing anything wrong, you’ve got nothing to hide” is often used, but the brutal truth is that many citizens from countries all over the world are exposed to corrupt authorities and criminal elements. Even in more stable countries frivolous litigation can decimate a man’s wealth, while he cannot trust the government to rule in his favour. Why take the risk? By shielding your financial identity with an offshore bank account you can escape the attention of greedy lawyers and experience the kind of total economic freedom that a domestic account can’t offer.

2) Asset protection – Wealth held offshore is harder to reach for anyone who might want to get their hands it. Often the physical distance and legal complexity of attempting to seize an offshore account will ensure that a case against the account holder never takes off.

3) Earn tax-free interest – Many offshore accounts will not have interest taxed at source like your home bank account. In addition the offshore account can open up for you some of the best investment opportunities not available in the domestic market .

4) Multiple currencies at your fingertips – swiftly change between foreign currencies at a fraction of the cost of doing it at home. Some offshore accounts will also offer FOREX and Trading accounts, allowing you to instantly buy and sell at the click of a button from a tax-free offshore base.

5) Perhaps the best advantage of an offshore account is that it will allow you to make international transactions with little or no hassle and red-tape. If you try to transfer even relatively small amounts of money from your domestic account you will likely face a barrage of security questions and other invasive queries, but a good offshore account will allow you to make such transactions online effortlessly, and into the many millions of dollars.

Accounts


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Bookkeeping, Accounting, and Auditing Clerks job description