10 Different Types of Banks To Choose From

The banking world has evolved a lot over the last couple of decades. Now in 2025 approximately 90% of Americans have a bank account and reap its many benefits. Customers have a safe place to store their savings alongside accessing loans, making investments, and checking finances anywhere in the world. This is especially important after the recent bank failures around the world and the key FDIC insurance level of $250,000. 

Build Up A Bigger Bank Account And Cash In Here

A lot has changed since the First Bank of the United States was established in nearly two and a half centuries ago. Now many types of banking have emerged in the modern global and digital economy. No banks are changing a lot each year with new laws, economic volatility, fintech innovations, low interest rates, investment options, and cryptocurrency expansion. 

It can be challenging to choose the right bank in the modern age, especially with rampant inflation right now. There are also big banks that are struggling that have been around for decades or even centuries due to scandals, macroeconomic issues, and sluggishness to adapt to the modern digital era. Banking has been reimagined in the new digital economy, and the consumer has benefited for the most part.

Not sure how many types of banks there are to choose from? Don't worry, we have got you covered on all the different types of banking in 2025. 

Top 10 Types Of Banking To Choose From


1. Central Banks

This type of finance serves a governmental role as they help the country meet its economic goals through controlling monetary policy and the flow of currency. Central banks, sometimes called federal banks, also supervise commercial banks and set interest rates.


2. Commercial Banks

Commercial banks support small to large businesses compared to individuals. Mom-and-pop stores can open checking and saving accounts, loans, get access to credit, and transfer funds to companies in foreign markets.


3. Retail Banks

Retail banks are consumer-based where you go for everyday banking and other financial services. You can access different types of banking accounts, loans, credit cards, and insurance.

They often provide financial advisement services so you can get personal loans and mortgages. Retail banks are now offering more high yield savings accounts (HYSA) with interest rates in the 4% to 5% now, so take advantage! With HYSA options booming, you may be able to earn more than you are paying on a loan or even a mortgage depending on when you locked in your rate.


4. Private Family Banking

Private family banking funds whole life insurance policies to develop cash value. This lets customers borrow money to help pay off debt, mortgages, or to fund other aspects of your life.

These different banks offer protection so the policy owner can access the line of credit and receive a death benefit so the family has financial protection.  


5. Investment Banks

Think Morgan Stanley and Goldman Sachs.

Investment banks trade stocks and bonds between companies and investors.

They also focus on advising individuals and corporations who need financial guidance, reorganizing companies through mergers and acquisitions, and managing investment portfolios.


6. Private Banks

Private banks offer exclusive types of bank accounts to those who have $1 million of net worth. A wealthy individual owns the bank and offers a useful service to high earners so they can get advice from people who understand their financial situation and connections if they need a loan.


7. Cooperative or Mutual Banks

Cooperatives fall under retail and commercial banks. They are distinguished by their local or community-based associations who control how business is operated.

They offer loans and bank accounts, often active in a single community.


8. Savings and Loan Association

These are financial institutions that use deposited savings to create mortgages, refinance loans, and access other loans so customers can build or renovate their property.


9. Shadow Banks

Shadow banks are less regulated, known for running money market funds and hedge funds. They get their funding by borrowing, connecting with investors, or making their own funds instead of relying on the central bank.

10. Swiss Banks 

While Swiss banks aren't necessarily different from the other types of banks mentioned above in terms of products and services offered, they do offer one major well-known advantage: privacy and discretion. 

There is a reason why so many wealthy individuals and businesses have used Swiss banks for decades. They provide the trust and anonymity from governments, media, or businesses. Sometimes this is used for questionable financial activities, but other times it just provides a type of banking for bank customers and corporate entities that just want to be left alone.


These Are the Top Different Types of Banking

It is important to understand the various types of banking as they all meet different needs. Private and investment banks are useful for high earners whereas commercial banks are perfect if you run a mom-and-pop store. 

There is a financial institution for everyone, so it is important to learn how each one helps. And be on the lookout for new crypto banks and exchanges that are becoming more of the norm each month. Good luck with your better banking!

Why Are Swiss Banks Famous and Popular?

So many people trust and use Swiss bank accounts that Swiss bank assets are worth almost five times the entire gross domestic product of the country.

Swiss banks are very strong contenders for the safest place in the world to keep your money. But why are Swiss banks famous, and what makes them so attractive to those who are careful with their money? 

This quick review will show you everything you need to know about Swiss banks, and how you can use them yourself.


Why are Swiss Banks Famous?

People keep their money in Switzerland because the banks focus on privacy and security.

Privacy means they won't even disclose whether you have an account with them. Security means that they won't let anyone take your money out of your account, not even at the request of the government.

Unless you have committed a crime or are holding your money in another improper way, your account is safe in Switzerland.

In almost any other banking system in the world, the government would be able to control your account much more easily. In other banking systems, even loan companies and other groups can potentially access your money. This is even the case in the European Union (EU).


How to Open a Swiss Bank Account 

Secret bank accounts in Switzerland play a glamorous role in movies and on TV. This might make you think that the Swiss only provide private banks for millionaires. It may surprise you how easy it is for almost anyone to open a safe, secure Swiss bank account.

Opening an account in Switzerland is almost as easy as opening a bank account in your own country. As long as you are 18 years of age or older, you are a candidate for a Swiss bank account.

Like any other bank, you'll need to provide some identification to a Swiss bank to open your account. Here, things can be slightly more difficult.

You may need to provide your passport, tax returns and more to open your account. Swiss banks have to make sure you aren't taking advantage of the security and privacy they provide. As a result, you will need documentation to show that your money comes from legitimate sources.

There is no minimum balance required to open your Swiss bank account. However, once you have deposited your money, you will probably have to leave a minimum balance in your account.


How are Swiss Bank Accounts So Safe?

The Swiss have almost designed their whole economy and even their whole country around being able to provide safe, stable banking. Their investment has certainly paid off. As mentioned earlier, rich bank accounts in Switzerland are worth many times more than the nation's gross domestic product.

Along with refusing to give up your information or money, Swiss bank accounts offer a 100% reimbursement guarantee to their patrons. 

Many Swiss Banks belong to the Swiss Banker's Association and follow its rules. If one of the affiliated banks loses your money, the Swiss Banker's Association will reimburse your total lost amount.

Most modern currencies have switched away from the gold standard to a legal tender system. While a legal tender system has some advantages, it doesn't have the same iron-clad stability of gold.

The value of Swiss currency is backed by 40% or more in gold reserves at all times. For this reason and others, the Swiss franc has some of the lowest inflation in the world.


A Secure Culture

The Swiss country, in general, plays a safe and stable game that allows it to achieve stable and reliable returns. They have a stable population and stable culture due to slow population growth and low immigration rates. They have kept out of wars and weathered difficult financial times better than many of their neighbors.

Nations around the world have tried to pressure Switzerland to give them access to the banking information of their citizens, but Switzerland has repeatedly resisted. They protect their banks, and that means protecting the accounts of people with Swiss bank accounts.

For many years, it has been a serious crime in Switzerland for a bank employee to disclose the information of account holders. In 1934, Switzerland passed the Federal Act on Banks and Savings Banks to ensure the privacy and security of their accounts. Since then, only 4 people have violated Switzerland's banking secrecy laws.

Even before 1934, the Swiss had strong customs about banking security that extended back for centuries. Over so much time, secure banking has become a defining feature of Swiss culture.

At the level of bank policy, the level of bank group policy, the level of culture, and the level of national policy, Switzerland is designed from top to bottom to provide a near foolproof system to provide absolute safety to its account holders.

While Swiss banks are extremely safe, they are not always the most convenient. Most foreigners who use Swiss bank accounts use them to store their wealth in the long term, not to make their everyday purchases at the grocery store. You may want to have another bank account close to home for ordinary expenses.


Environmental Consideration

Many Swiss banks are also becoming increasingly environmentally conscious. Capital Finance International is a news organization that also assesses banks based on their efforts to reduce their emissions and otherwise act in an environmentally sustainable way. 

Capital Finance International named UBS as the Best Green Bank in Switzerland because of the efforts they have already made to reach their goal of sourcing all their energy consumption from renewable sources.


Quality Banking

Why are Swiss banks famous? They provide what may be the best banking service in the world along with security, privacy, and anonymity.

How To Keep Your Business From Going Bankrupt

The assets of a company are extremely important. Any businessman worth his salt doesn’t need a professional accountant to tell him that assets must be protected by the company. All companies that have gone under and filed for bankruptcy are guilty of improper asset management and lack of resources, which are common reasons why businesses fail. Bankruptcy lawsuits could also occur as well depending on the circumstances, so individuals and companies should have experienced lawyers and attorneys ready.

Assets are essential to a company’s financial survival. They help the company in Revenue generation and increases the value of the company altogether. Without assets, your company would not have any resources to utilize for its improvement and growth. Even your business operations would come to a full halt without any assets to burn. You would not be able to run a company, much less hire staff if your bank is run dry. 

When it comes to running a business and keeping it thriving, you don't have to reinvent the wheel. It truly is a simple process of maintaining a steady level of assets and expenses, making sure that the resources you bring in far exceed the resources you spend. 

Here we have listed some crucial strategies that must immediately be implemented by the company to ensure further asset management and protection. 

How To Select The Right Business Model 

First of all, I need to emphasize the need to choose a proper business model. If your business model is doomed to fail, no matter how you save your assets, it will ultimately fail. Many businesses are operating on an inefficient business model that pushes to lose more money than they are gaining. It is then important that you take the time to check whether your business operations are truly successful or are you just wasting your time and money. Make sure the business model you select is profitable, and if it isn't then you should cut business expenses wherever possible.

Take Care Of Business Contracts 

In an ideal world, just acting on good faith is enough to keep the company alive and running. Unfortunately, this is not quite the case in the world we have today. It is best that you use legal contracts for all your business transactions. 

Contracts are legally binding documents that state the relationship between two or more entities. Stated in it are the expectations and responsibilities of each entity while also providing the ramifications should there be any problems. 

A contract manager must perform a regular contract review to ensure that the performance of every vendor and client are up to par. If you really want to protect your personal assets, especially your contracts, integrating a contract management software would be the easiest way to go about it. This will also ensure that all your contracts are followed. 

A breach of contract is one of the fastest ways for a company to go down. The legal fees not to mention the compliance fees afterwards will run your bank dry, leading to debt or bankruptcy. It should also be mentioned that the hit in your reputation will also make the company struggle with its finances. 

Hire Professional Accountants 

If you really want to have a proper visual of all your cash flows, then it would be best to hire a professional accountant instead of having an inexperienced staff member do it for you. A professional accountant will be able to determine whether there are discrepancies in your accounts and thereby sniff out if someone is stealing from the company. They will also be able to tell if there are any financial problems ahead of you. 

Focus On Frugal Finances

While the adage you have to spend money to make money is often true, you still need to maintain financial discipline. Many companies have already failed and rendered obsolete only because they spent way too much without determining whether they are able to earn it back or not. If your company is earning less than you are spending then that means that your company is on the rocks and will be rendered dry in a limited amount of time. Focusing on frugal finance is key to long-term business success.

4 Options To Start A Business With No Bank Loan

An inability to access finance kills off many great business ideas before they even get off the ground. It doesn't matter how great the idea might be, how original the concept is, or how many potential customers might buy your product or service - if you can't put together the money to get started, it is never going to happen. That is a major problem for freelancers and for people trying to leave the world of employment to set up on their own for the very first time. 

The first port of call for anyone looking for a business loan is a bank, but traditional banks aren't always very helpful. If you have no track record in business and, therefore, no way of demonstrating that your business can turn a profit, they are disinclined to lend. They are even less likely to lend if you have had personal issues with cash or credit in the past. You might have the best new business idea anyone's ever heard, but if you defaulted on a credit card three years ago, a bank almost certainly wouldn't give you the money you need to turn that idea into a reality. It sounds crazy, but it is true. 

Perhaps we’re being too hard on banks. After all, if a friend came to you asking for a $1000 loan on the basis that they might be able to pay it all back to you next year if their idea works out, would you give it to them? Lending for a new business is, from a bank’s point of view, like playing UK Online Slots. Most of the money that a player bets on an online slots game is lost. Occasionally you will get lucky and land a winner - and the winnings might even be far greater than the losses - but there is no way of knowing how the bet will turn out until you have placed it. If banks operated like online slots websites, they would all be out of business. They’re usually against high-risk lending, and that’s why it might serve both you and them better to look at an alternative means of financing your business - an alternative means like one of the options we’re about to outline below! 

1. Peer To Peer Lending 

This P2P route still involves borrowing money, but it cuts banks out of the deal. Peer to peer lending is a process that connects people wanting to borrow money with people - or perhaps even groups of people - who are in a position to lend it. Typically these people will be involved in or have an interest in the industry you’re looking to do business in, and so they are likely to have a better understanding of your business model than a bank would. 

Typically speaking, a peer to peer business loan comes with lower rates of interest than a bank loan. They're also open to people who've had credit difficulties in the past - although if you've had credit issues, you can expect your initial interest rate to be a little higher because of it. Go through a reputable broker rather than straight to an individual for your own protection, but there's no reason not to at least give this option a look. 

2. Crowdfunding 

Not every business or business model is suited to this method, but if yours is, this might be the easiest way to get your idea off the ground. Rather than approaching one company or one person for a large loan, you can take small amounts of money from hundreds - if not thousands - of people. The nature of your product or service is of vital importance here because it will have to be something people genuinely want and need for them to be motivated to contribute, but if you can spark their imagination, you might find that the public is more generous than you ever imagined. 

While this method would have been unthinkable a decade ago, it’s become increasingly common during the past five years and is likely to be more common in the years to come. Just remember that you’ll have to ‘reward’ your investors in some way, whether that means a free product or service in return for their investment or a longer-term share in your new company. 

3. Grants 

There might be a grant scheme available to people opening businesses within your chosen sector - and you might not even know it exists. In fact, it's more likely than there is a grant scheme available than there isn't - there are grants and similar programs available for almost every type of business imaginable. Finding the right one might take time, but it's time worth investing. 

Grants generally come from governments, and governments are keen to help small businesses get off the ground because they're the employers of the future. There will be paperwork to fill in, and you might be in for a long wait, but waiting until the money is secure and in place is often better than diving in with borrowed money and being under pressure to make repayments immediately. If you're unsure of where to look, make an appointment with a citizens' advice bureau or a similar service to assist you. 

4. Mortgaged Equity 

We imagine that part of the reason you’re interested in setting up a business alone is that you want to be your own boss. Because of that, bringing in a partner might not appeal to you - especially a silent partner who will take a percentage of your earnings, but won’t be doing any work after their initial investment. You might be able to raise the money you need by, for example, selling 20% of your business to a future investor, but you may not be comfortable with losing 20% of your ownership before you’ve even opened your doors. 

The way around this is to mortgage your equity. You could get the money you need by offering an investor ten, twenty, thirty, or whatever percentage of the company you need to sell to bring money in, and then agree on a deal where you buy them back out of the company over time. It is a form of lending, but there is usually no interest charged as part of the deal because the silent partner is taking a percentage share of profits. You would need to find the right investor to agree to this deal - but they are out there, and the only thing you lose by looking is time. 

Keep Company Costs Low

Other than all of the above, keep your costs low. Start from your bedroom if you can. Don’t hire anyone until you physically can’t keep up with orders on your own. Do as much as you can online and keep overheads low that way. Getting a new business through its first twelve months will be one of the hardest things you have ever done - but it’s possible, and you can do it!

How AI Is Impacting Mortgage Lending Processes

The typical mortgage lending system has become archaic until just recently. For too long, the mortgage industry has relied on manual processes, paperwork, and legacy systems. Even as new technology has emerged to disrupt adjacent sectors, most mortgage lenders continued to lag behind, reluctant to let go of their existing operations. Mortgage brokers and banks are almost always ultra-conservative and afraid of change.

Finally, the industry may be on the brink of a digital transformation. AI offers a promising solution to reduce costs, accelerate the speed at which loans can be closed, reduce (or eliminate) errors, and improve customer experience. Here is why artificial intelligence can help mortgage lenders and brokers. 

Introducing AI 

Before diving into the potential applications of AI for the mortgage industry, it is vital to clarify what the technology entails. There are three main types of AI to be aware of: RPA, AI, and machine learning. 

RPA 

The simplest type of artificial intelligence is robotic process automation (RPA), which programs a machine to perform a specific function. These bots can’t act independently or make their own decisions; they can only follow the particular commands they have been given. 

You have probably come across them yourself already. Chatbots on websites are a perfect example, as are social media bots that give specific comments to certain keywords like on Reddit, Instagram, Threads, or Twitter. 

AI 

AI is a somewhat broad term that describes a machine that can perform human-like functions. Unlike RPA, it is capable of reasoning, problem-solving, and taking different actions depending on environmental cues. This makes it one step closer to imitating humans. 

In the context of mortgages, AI can read a document and extract relevant information. 

Machine Learning 

Machine learning takes AI a step further. Not only is it capable of reasoning, but it can also analyze information, learn from it, and use that to make predictions and recommendations. In some cases, this can mean it is even more effective than humans. AI and the mortgage industry. 

As anyone who has ever taken out a mortgage will know, the process involves a lot of documentation. Mortgage servicers are responsible for handling all this paperwork manually, which takes up a lot of their time and makes the process slower for customers. Even worse, it increases the probability of human errors, which cause delays and stress. 

The use of automation means time-intensive data entry work can be performed by technology, freeing workers up to focus on more important tasks and provide customer service. 

Thanks to recent developments in AI, like machine learning, technology is now becoming smart enough to do this work with minimal human supervision and a low chance of errors. Tasks it can perform with home loans include: 

• Gathering information 

• Reviewing documents 

• Performing verification checks 

This helps to remove barriers and friction for everyone involved in the mortgage process, bringing down costs and providing a better customer experience. 

Introducing AI Powered Lending Platforms 

AI offers a promising solution to transform the industry, which is why mortgage automation platforms plan to leverage it. The mortgage origination process currently consists of various manual tasks that slow companies down and result in inefficiency and errors. Simply put, comparing the best refinance loan rates or home loans without the use of technology is troublesome. 

These modern day mortgage lenders use machine learning technologies to extract, process, understand, and classify data, allowing mortgage providers to offer better service to more customers and boost productivity. Lenders can then reduce their turn times and costs and scale their operations more quickly.

How To Move Cheaply: Relocating On A Budget

You are planning a big move and it is stressing you out. Whether you are ready to move across the country or to a neighboring town, the cost of moving can become quite expensive. From putting down deposits to other moving expenses, your pocket may take a big hit.

During this time, it is not uncommon for people to look for ways to save.

Knowing how to move cheaply is one of the most intelligent decisions you could make. It only takes a couple of minutes to learn the best tricks and tips, and in the long run, you will be saving big. Are you ready to learn several ways to keep money in your pocket while relocating?

Continue reading below for our full guide on how to move to your new home cheaply. 


Start by Doing Your Research 

Before making any big moves, do your research. Gather up quotes from multiple moving companies and determine who the cheapest company is. However, do keep in mind that you want to find the cheapest yet professional company out there. So, we would recommend you to have a peek at this web-site.

You don't want to get stuck with an unprofessional company who isn't going to offer you ideal service or coverage just to save a couple of bucks. In the same sense, you don't want to end up paying a high rate for a company who isn't any better than the next company at a cheaper price. 

Take the time to find a company that offers the best services for the best price.


Choose an Off-Peak Time for Moving 

You will save loads of money if you plan your move during the offseason. Moving during peak season means more people are in need of a moving company, and when demand is high, so is the price. If you opt to move during an off-peak time, then you may end up finding some amazing deals from moving companies in need of your services.

The peak season for moving is any time between May and September. The weather is warm, and parents don't have to worry about their kids missing time from school. This is when you are going to be faced with the most expensive moving prices.

The off-peak season for moving is any time between October and April. If you are able to move during these months, then do it! You will notice big savings. 


Find Free Moving Boxes

Never pay for moving boxes. There are plenty of places to find moving boxes for free. And although the cost of moving boxes isn't that expensive, it's another thing to save on. 

Go to any local grocery stores and ask them if they have any lying around. If they do, they will have no problem handing them over to you for free. They will be glad to have someone to get them off their hands. 

You can also check in with your local drug stores and liquor stores as these places normally have a good amount of boxes as well. They are also used to people relocating asking for free boxes so it shouldn't be an uncomfortable situation.


Pack Your Items Yourself

One major moving expense is the price you pay to have someone come in and pack your belongings for you. Although this is a nice luxury to have, it is just that, a luxury. You don't need someone to pack your things for you.

You will save a good amount of money packing up your items yourself. You will also have peace of mind in knowing that you are the only one handling meaningful or expensive items of yours. Just be sure to pack with care. 

You can't throw everything into one box and hope for the best. Take your time and pack things the right way. You will save money not having to pay someone to do it for you and you'll save yourself the headache of unpacking broken or damaged items.


Reduce the Amount of Items You Pack

Speaking of packing, don't feel like you have to bring everything with you on your move. 

Moving is the best time for a deep cleaning out of personal items. Reduce the number of items that you pack by throwing out junk and selling no longer wanted items. 

Another great way to save is to not pack anything at all. If you don't have much of an attachment to your personal belongings, then consider selling them privately or to consignment shops. You can then use this money to purchase new items for your new house.


Consider a Relocation Loan

Relocation loans are ideal for those needing extra money for a move but don't have good credit.

Relocation loans also offer same day cash in hand without the high-interest rates. You will need to provide proof of income and then you will be all set to go.

These loans make it easy for people who are moving to cover all of the moving costs without having to pull from their savings. Once you're approved for a relocation loan, you can use the money for the move and then make monthly payments on it.


Ask Your Employer to Cover Costs

If you are moving for a job, then you should consider asking your employer to cover some of your moving costs. The worst that will happen is that your employer will say no. And if they do, then remember that you can deduct these moving expenses on your taxes if it was for a job. 

Just be sure to keep all of your receipts so you will have proof of moving costs. 


Learn How to Move Cheaply on Frugal Finance

When making a big move, it is important to learn how to move cheaply. Following these top tips above is the best way to save big during a move! 

Need more helpful information on moving finances or loans? Visit our blog daily to keep up with the newest posts on frugal finances!

5 Mistakes When Applying For A Business Loan

A business loan can make or break a company. The pandemic left the UK’s economy in shatters, and some industries are struggling to recover. As the world starts to recover from Covid-19, businesses are returning to their day to day operations. Recovery is the primary aim of most SMEs and some larger corporations. 

The Coronavirus pandemic most impacted the airline, restaurant and oil and gas industries. Flights were grounded, and restaurants closed for months on end in 2020 and the start of 2021. Businesses within these sectors may need a loan to help them recover from the pandemic and get back on their feet. 

There were temporary financial assistance programs for businesses from governments, but most of those have ended by now. Small businesses are back seeking more loans to keep themselves afloat or to adapt to the new economy.

Business loans tend to have looser screening standards than bank and public loans. However, even the smallest mistake on an application can result in the refusal of a business loan. If you are looking to apply for a business loan, here are a few common mistakes to avoid. 

Not Knowing How To Use The Loan 

A business loan can be a life raft for your company, but only if you use it effectively. Plan exactly how you are going to use the loan and map out every penny. You need to prove that you are responsible and equipped to receive a company loan. 

Have A Clear Business Plan 

Make a detailed business plan to give the potential lender a better grasp of your company. You could identify how much funding you need, how you will use the money and how you intend to repay the loan. 

Applying For Multiple Loans 

If you apply for multiple loans, lenders may be concerned that you cannot repay the amount you borrowed. Remember, lenders want their money back, and you need to prove that you can afford to take out a loan. Choose your potential lender wisely and avoid sending out multiple loan applications. Also think about what could happen if you are approved for multiple loans with high interest rates, especially if it is compounded with private loans and/or credit card debt. You will need to stay very organized and on top of payments to avoid missed loan payments and penalties.

Applying For The Wrong Kind Of Loan 

You need to select the best loan for your company. Do your research and apply for the loan that suits your company, sector, and financial situation. Before closing any loan, you need to make sure it outweighs any other potential option. A business loan is a big commitment to make, so take it very seriously. 

Poor Financial History 

Missed payments on previous loans can have a detrimental impact on your credit score. Look at your financial history and assess whether you need to improve your credit rating before applying for a loan. Credit scores can range from 300 to 900, and any number above 700 is considered a high credit score. A strong credit rating can make it easier to find low-interest rates on business loans. 

The Botton Line On Business Loans 

Avoid these common mistakes, and you are more likely to receive a business loan. Keep these financial tips in mind to maximize your chance of approval while minimizing interest rates and fees or the need for a loan cosigner.

How to Choose the Best Bank for Your Needs

Are you looking for a bank that can cater to your personal and business finances? Do you wish there were a way to find a bank that you can trust? If so, then you need to learn how to identify the best Idaho bank. 

Doing so can help you find a bank that cares about you, not just the money you're depositing. These days, banks need to have innovative solutions to their largest needs. 

See below for an in-depth guide highlighting the key factors that you should look for whenever you shop around for a new Idaho bank to invest in. 

1. Tradition 

Too many people end up joining a bank just because of that bank's marketing prowess. In other words, they signed up with that bank because they saw it on a billboard or an advertisement on their Facebook page. 

Any bank has the ability to spend money and get in front of your face, but how involved are they in the marketplace that you call home? 

In other words, how long has the bank been involved in the community? Are they from Idaho originally or did they recently move into town to try and feed off the skyrocketing market in Idaho right now? 

We'll give you an example. The people over at Farmers Bank pride themselves on the tradition their bank has with the region. 

Their bank goes all the way back to 1918 when J.C. Hamilton first became a cashier at his firm and saw the untapped potential of Magic Valley. Today, Farmers Bank is on its fourth generation of Hamiltons that are running and overseeing daily operations. 

Now that's a tradition that you can count on. These people aren't just in it to make a quick buck off a growing community. They are the community and they take great pride in it. 

2. Proximity 

Granted, proximity doesn't play as big of a role as it used to. These days, banks can offer several services for their clients through their app. 

For example, their app can offer mobile banking features such as: 

• Making bill payments from your app 

• View balances in any of your accounts 

• Transfer funds from one account to another 

• Find active branch locations for the bank 

• Deposit checks virtually 

• Turn check cars on and off 

The list goes on and on. However, the need will always arise for you to deposit or withdraw physical cash. Not to mention the occasional instance in which you want to speak with a representative of the bank itself. 

That's why proximity and accessibility are such a vital component of the Idaho bank that you invest with. 

First, start with the basics. Which banks have branches in close proximity to where you live? We typically recommend there being a branch no further than 10 minutes away, but that's completely up to you. 

Second, do they have a bank close to your place of business? This is especially important if you're a company owner. 

Lastly, look into the number of branches they have. We recommend finding one with no fewer than five branches in the area. That way, you're covered wherever you are. 

3. Services 

Let's say that you choose an Idaho bank for your personal finances with the plan to open up a business here in the next year or two. 

Then imagine the horror of finding out that the bank you signed up with doesn't offer Small Business (SBA) loans. Now, to get the money you need, you have to go find a second bank to invest in a loan with. Not an ideal situation. 

Make sure you understand what services a bank does and does not offer before you open an account through them. 

What kind of accounts do they offer? Do they offer investment accounts? Credit cards? Business loans? Mortgages? Do they have financial planning services available to you? Make sure you know the answer to each of these questions one way or the other. 

4. Digital Prowess 

As previously mentioned, there are a number of different digital services that banks can now offer you through your mobile device. 

In this day in age, it's important to make sure your bank is in with the times. You need the accessibility of your accounts to manage your money, pay your bills, invest, and so forth. 

If a bank seems like they're behind in this department, cross them off your list. You should find a bank that goes above and beyond for the app features they offer. 

5. Chemistry 

This is an often overlooked aspect of choosing a bank, but it's necessary. Ideally, the bank you sign up with today is the one you'll be working with for the rest of your life. 

Needless to say, chemistry is important. Be sure to schedule an initial appointment with every bank you're considering to get a feel for their communication and friendliness. 

Can you see yourself developing a business relationship with their banking reps? Do you believe that owner has strong moral values? Were they easy to talk to? How are they prepared to help you make your money work for you? 

Choose the Right Idaho Bank for Your Situation 

As you can see from this article, you need to find an Idaho bank that rises above the ranks of the rest of them. 

Be sure to use this guide and ensure you're lining yourself up with the right bank for the job. Work with top banks that want to see you thrive and build the market around them, not just make a quick buck. 

Make sure to browse our website for more articles on finding banks, as well as many other topics that you will enjoy. Visit the Frugal Finances or Loan section of the Frugal Finance Blog and learn to bank better!

Tips For Home Loans Whether Private Mortgage Services Or Alternative Lending

A home loan is likely to be the most substantial long-term loan commitment that most people will take out to purchase what will probably be the most significant asset they’ll own. It’s vital to educate yourself on the lending process in an effort to make educated decisions and sign on with reputable professionals, both real estate and lenders, who can assist in the process. 

A mortgage is a loan that you will obtain from a bank or a lender such as geoffleemortgage.com/mortgage-services/private-mortgages/ to assist you with financing the purchase of a house of your choice. In taking out this loan, you commit to repay the funds that you borrow plus the interest rate upon which has been agreed. The house is put up as ‘collateral’ for the loan whereas the lender can foreclose the property if you break your obligation to repay according to the terms of the promissory note. These payments showing principal and interest are broken down for you on an amortization schedule provided by the mortgage company. 

Home Loan Tips 

Buying a new home can be a genuinely exciting time, particularly those who are first-time home buyers. Finding the house that is right for you is merely one piece of the puzzle. Deciding on the home loan that fits your needs is as essential. There are a few tips that you should follow in order to make these selections less intimidating. 

• A down payment has the potential to be as high as 20% of the home’s purchase price, depending on the type of loan that you opt for and the mortgage services. It’s critical when you decide to buy a house to develop a strict monthly budget that will help you put away money towards the deposit. The best way to do that is to have the money automatically taken from your check and put into savings, so you don’t miss it. If having a large payment is not going to be feasible for you, a loan such as an FHA is set aside for those who are only able to provide small down payments. 

• Credit scores follow us, and in this situation, it will establish the best deal for a home loan. Make sure you receive a copy of your credit report before beginning the process. It will give you a head start on what you look like to loan services and allow you time to improve on the credit score if that’s necessary. There is one free credit report allotted each year from each credit reporting agency. For homebuyer finance advice go to https://www.investopedia.com/articles/mortgages-real-estate/08/homebuyer-financing-option.asp. 

• In applying for a mortgage, there is a multitude of financial documents that are required to process the loan. Being prepared with these allows a much faster progression of the loan application. Generally, that includes the last two tax returns, recent W2, and current bank/broker statements. 

• Try to educate yourself on the fact that all mortgages are different, even if the interest rates are the same as there may be something different in the fees or possibly the points to cause more expenses for one over another. Learn the various components that will determine a mortgage price so you can make an intelligent decision on the offers in front of you. 

• Pay close attention to interest rates. They fluctuate nearly every day, and you want to be on top of it as this is going to be among the most critical factors in deciding the cost of your home loan. 

• Always pay close attention to documentation and phone calls from your mortgage service and respond immediately to anything that they may need. A delayed response could hold up the closing of the loan, which could, in turn, create an issue with the home. The process has to continue along steadily and swiftly. Follow closely for creative financing. 

When you are in the process of obtaining a home loan, you want to avoid destroying your credit score by buying furniture for the new place, appliances, or, worst of all, a new car. The lender may take the opportunity to pull your credit a second time before closing to take note of any changes. If anything, make improvements.

How To Send ACH Payments Securely

Nowadays, there are tons of ways to give and receive digital payments. There are several apps, websites, and other ways to accept online payments from around the world.

The chain of sending ACH payments or wiring money online goes from the originator through the bank and then to the beneficiary. 


Sending ACH Payments

ACH Payments have been around since the 1970s and may seem like a dinosaur. However, there are more agencies, banks, and institutions that are sending and receiving funds through ACH than ever before.

The most recent numbers compiled to asses this reveal that the ACH network dealt with $23 billion payments adding up to $51 trillion dollars.


What is ACH?

ACH or Automated Clearing House is the main system agencies use to transfer funds electronically. Funds get deposited into financial institutions and payments are made through online transactions. 


How Do ACH Payments Work?

ACH payments go through the ACH Network. Funds go from one banking institution to another by way of a centralized system (ACH). The system then directs the funds to the intended person or business. 

These payments can be set up to reoccur and several employers use them to pay their employees. They offer benefits for both consumers and merchants. Bookkeeping with ACH payments is simple. You just use the feature "send check online".


Who Uses ACH?

As mentioned above a lot of people are using ACH all over the world. If you're an employer and pay workers through direct deposit, you probably use some form of ACH.

If you pay your monthly bills electronically with your checking or savings account, you use ACH. 


The Ins and Outs

If you dig a little deeper into what ACH is all about you will find that large numbers of transactions through ACH can be from several different sources that are batched together. They can be successive payments or just a one-time thing.

An ACH Direct Deposit is different from an ACH Payment. However, it does use the same kind of processing network. ACH Direct Deposits are for things such as tax refunds, interest payments, annuities, and of course payroll. 

ACH payments are categorized in two ways; ACH Credits and ACH Debits. ACH Credits send or push the funds from a customer's account to yours. 

ACH Debits withdraw or pull the funds from the customer's account and put them in yours. Pulls are usually made on mortgages, rent, gym memberships, car payments, utilities, and insurance premiums.


NACHA

NACHA is a not-for-profit association that manages the administration, governance, and management of the ACH Network.

NACHA sets up the rules for ACH. However, the actual processing is overseen by The Clearing House Company and the Federal Reserve.

Credit unions, banks, merchant providers, and any other entity that participates has to adhere to the rules of NACHA.


Make Your ACH Transactions Secure

The best way to make your ACH transaction secure is to follow these four steps.

• Set-up Merchant Specific Registration
• Micro Deposits
• Encryption & Tokenization
• Secure Vault Payments

Look for merchants that have some or all of these features for sending ACH payments safely and securely. You should also avoid using public computers or public WiFi when completing any financial transactions to keep your information safe.


Transaction Approved

It seems almost impossible that something so modern has been around for such a long time. If you ask anyone on the street what is ACH exactly, they probably wouldn't have a clue.

As a society, we have only just begun to fully embrace the world of digital banking, investing, and electronic payments over the last decade or so. Without realizing it, we have been banking electronically by sending ACH payments for almost 50 years.

Looking for more financial information? Keep checking out our site. Visit the Frugal Finances and Tech sections of our financial blog for more information on fintech, payments, banking, and much more.

Personal Loans: What to Know Before You Apply

There are plenty of reasons to need a personal loan at some point throughout our lives. If you're in the process of shopping around for one right now, you're in luck. The good news is that you've come to the right place by reading this article. 

The thing is, it can be easy to find personal loan options available these days. Still, you don't want to make the mistake of choosing one before you do plenty of research. 

Consider how many personal loan options are out there. In the year 2018 alone, the amount granted to personal loans throughout the United State totaled a record of $138 billion total. It's clear that many others just like you have taken advantage of loans to improve their financial situations.

Before you apply for a personal loan, make sure you know what you're getting into. Check out the rest of this article for more details. 


Consider Why You Even Want a Personal Loan

As mentioned above, there are plenty of valid reasons to seek a personal loan. Perhaps life circumstances have recently made it difficult for you to keep up with your bills. 

It might be the case, though, that you're looking for a personal loan to consolidate the rest of your existing debt. If that's the case, know that you're not alone. It's smart to consider this option as it, for the most part, decreases the amount of interest you have to pay every month. 


A Personal Loan Will Affect Your Credit Score

Know that even if this loan is for consolidating the rest of your debt, it'll still detract from your credit score. That credit score, whether we like it or not, affects so much throughout our lives. 

Our credit score is impacted by cars we buy or mortgages we take out. It even gets affected by loyalty credit cards from your favorite clothing brands. 

Plus, whatever your credit score is, it'll impact whether you can get a personal loan in the first place. The fortunate news, then, is that there are a lot of times personal loan options that approve borrowers even with the worst of credit. It's up to you, though, to do the research and make sure investing in a loan with poor credit is worth your while. 


Before You Apply, Review Your Monthly Budget

There's no exact science to consider when it comes to applying for a personal loan. You'll have to take the time and decide for yourself whether doing so is in your best interest. 

One smart practice to go through before even applying is to review your monthly budget. How much of a monthly repayment can you truly afford? Do you have any other debt that might be paid off soon, lowering your overall monthly expenses?

Answering these questions before an actual loan application might save you some headaches in the long run. You deserve to know your exact financial circumstances before putting them under even more stress.


Applying for a Personal Loan Counts Against Your Credit

Not only will having the loan affect your credit score, by the way. Applying for them often impacts that number, too. 

When you apply for any credit, it shows up on your credit report as a "hard inquiry." Too many hard inquiries over an extended period of time can have negative effects on the credit score. 

Sometimes, you can find personal loans that offer a "preapproval" determination. If that's the case, you're safe from it impacting your credit score. Preapproval isn't an official acceptance. Still, it's considered a "soft inquiry" and can at least give you an idea of whether the lender would approve someone in your financial situation. 

That's why it's important to apply for the minimum number of personal loans you're interested in. Read more in our Loan section about options for instant approval to help safeguard your credit score from a ton of hard inquiries. 


Remember To Check for Prepayment Penalties

It sounds like a great idea to pay off your loan as soon as possible, right? Well, don't forget to check with the loaner regarding prepayment penalties. 

The thing is, credit lenders make money off of interest paid over the course of your repayment plan. If you pay it off too early (in their mind), they miss out on some profits. That's why these penalties exist, and it's definitely something for you to consider when applying for a personal loan.


Don't Be Afraid to Seek Guidance

Remember, there's nothing wrong with asking your trusted friends or family members for advice. When it comes to personal loan financing, it's a good idea to get all of the information you can.

You don't have to share all of your financial troubles to do so, either. Just talk to them about their experiences with applying for loans and what advice they'd give you. 


Continue Investing in the Security of Your Financial Future

At this point in the article, you should be a little more prepared before you apply for a personal loan. It's important that you have a solid understanding of the ins and outs of the industry before investing in it. After all, it's worth taking your financial security seriously. 

It's an unfortunate truth that many people get in over their heads when it comes to personal loans. Interest rates can be difficult to navigate for those who are unfamiliar with reading the fine print. Before you sign anything, make sure you read all the fine print. 

In addition to applying for a personal loan, don't forget that there may be other frugal strategies to consider. Make sure you have proper savings that you're growing, for one thing. Plus, don't be afraid to ask friends or family members for help during those difficult periods in life. 

At the end of the day, you deserve to have the peace of mind that comes from knowing your financial situation is stable. That's why we gather the best guidance concerning the financial practices of the day. We encourage you to browse through the rest of our blog for more expert advice on frugal finances and money management.

Why Your Personal Loan Applications Were Denied

When your personal loan application gets denied, it can be disappointing. Most people are also puzzled why their request for loans were rejected. Even people with strong credit scores can get denied, and it makes them wonder what went wrong. Below are a few common reasons why banks and other lenders deny personal loan applications so the next time you apply for a loan, you’ll know what and what not to do. 

1. Bad Credit Score 

Let’s get the most obvious reason out of the way. When you have a bad credit score, lenders are most likely to deny your personal loan applications. Your credit score is what tells banks the likelihood of you paying them back for the loan. If your track record is not very good when it comes to paying what you owe, chances are your bank will be resistant to granting you loans. 

2. The Loan Amount Is Too High 

Lenders will take into account your capacity to pay back when you apply for a loan. When you fill out that loan application form and put in too high of an amount in the “desired loan amount” field, banks will most likely deny your application. To avoid this mistake, use an online loan calculator. Loan calculators can tell you how much you can borrow given your current income, assets, credit, and other financial factors. 

3. Unstable Employment Record 

Because banks consider your ability to pay the loan off in the long run, they will be looking at your employment record. So if you have an unstable employment record or worse, no employment at all, banks will be hesitant to grant your loan application. Lenders will require certain employment tenure or length of service, which is why banks typically require you to submit a certificate of employment. 

4. Insufficient Income 

When you don’t make enough to apply for a loan, you will most likely not get approved. You need to be able to make the monthly loan repayments, and If you do not make enough money to pay them and at the same time address your basic needs as well, lenders will not grant you a loan. This is because you are most likely to use your income for your basic needs than to pay off the loan. 

5. You Have Too Much Debt 

When you apply for a personal loan, your bank will do a background check to see if you have any outstanding loans. This is so they are sure that you have the capacity to pay. If you meet the minimum income requirement and have a good credit score but have several outstanding loans, they will most likely be hesitant to grant you another one. The more loans you have, the less capacity you have to pay back an additional loan. 

6. Errors Of Inconsistencies In Your Loan Applications 

If you have any mistakes or inconsistencies in your loan application, lenders might not grant you your personal loan. Your data needs to be complete, correct, and consistent. Lying on your application will get you denial and could possibly land you on your bank’s bad side. Consider the list above the next time you apply for a personal loan. Make sure you fill out the application completely and honestly, have a good credit score and enough income to make the payments, and make sure you’ve been productively employed a while.

How To Get Your Personal Loan Application Approved

Getting approved for personal loans isn't always easy. Avoiding the mistakes listed above and getting your overall finances in order is the best way to increase your chances. Read more Frugal Finance articles to keep yourself fiscally fit and ready to save a fortune.