Im 17 and have no idea about banking, interest rates etc. Where online can i find info thats easy 2 understand?
Sunday, June 21st, 2009
at
9:44 pm
Roz_26 asked:
War thanks for the input but i already have a bank account. I’m just trying to learn more. Also, i dont think hsbc’s website is a ‘fake page’ lol.
War thanks for the input but i already have a bank account. I’m just trying to learn more. Also, i dont think hsbc’s website is a ‘fake page’ lol.
Tagged with: Banking Online • Banking Rates • Hsbc
Filed under: Online Banking
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Read this book: “Personal Finance For Dummies.” It’s a great intro to the basics of money management. You’ll find it at amazon.com and in most bookstores.
Online banking is not a good option for someone who have no idea about it
Most new people gets fooled by fake pages etc
Ask your parents to open one account for you
If it regarding personal finance like checking accounts bank interest rates don’t really matter as they are too low to worry about. CD and Money market rates are a little better but you won’t earn any real money on interest unless you buy mutual funds and banks are lousy places to do that. Get a checking account with no fees and a savings account for now and don;t worry about anything else until you have about $10,000 to invest. That’s really about the minimum to do it successfully.
The dummies and idiots guides books are actually pretty good. check those out. it’s really a lot simpler than it seems
The Teenager’s Guide to the Real World…. this could help.
You can do a search on wiki or google.
Im gonna outline the basics for you. In banking, there checking and savings accounts as well as CD and IRA.
Checking account is the account you can use your debit card and write checks and the money will be deducted from your account. Let say you have $500 in your checking account, you write a check for $100 (for books) and use your debit card for $50 (let say for gas) so $500-$100-$50 = $350. That is how checking account works.
Now Savings, CD, and IRA is where you ear interest rates. Savings earn the least amount of interest, while CD and IRA earn more because money you keep in CD and IRA is tied up. Saving is where you place money that you don’t need but need in case of emergency. In that case you can take the money out and cover for your expenses (this is call liquidity).
CD mean certificate of deposit. CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. You cannot touch that money unless it reach maturity at that fix term. Let say you open CD with $1000 for 6 month, you cannot touch that money until 6 month after.
IRA is for retirement, its for long long term but start your retirement early is always a plus. the only thing is you cannot touch the money until your 59 1/2 .
i too am 17 and I went to my local bank of scotland and the guy explained everything. It was great. telling me about how interest works and credit. You should try in the bank but if your wanted on the internet you should see if Wikipedia has a page on UK bank terms.