One does not simply keep all their money locked up in a safe at home! Banks are where responsible adults keep their money, and it is one of the first lessons you learn in finance management. Banks manage your money, and you can rest assured that it is safe and sound. Moreover, the best banks offer a slew of financial tools that prove indispensable in the different walks of life — planning on buying a new house? The bank will help you with the home mortgage loan; or, thinking of investing extra cash somewhere? The bank offers certificates of deposit with high-interest rates. So, in a nutshell, a bank is the nucleus of your financial world. With the importance of being an account holder being freshly foregrounded in your mind, the next step is to choose the best bank. There are several esteemed financial institutions out there, but choosing the right one can be a difficult task. The bank you choose must cater to your requirements, so here are some easy tips to arrive at an informed decision. Deposit insurance : There is a cardinal rule you need to follow when you are looking for the best bank: do not conduct business with a bank or credit union that does not offer deposit insurance to its customers or bear the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) symbol.

For students, a loan can have a long-term impact on their finances, unless they are careful about it. There are many lenders out there willing to give loans to those with no or bad credit scores. This category often includes students as well. It can be quite tempting to go for these loans as the loan application process is pretty much hassle-free. However, trouble comes later, when it’s time to repay these loans. Most of these loans that should be avoided have higher APRs. These high-risk loans make it quite difficult to get back on stable footing. Some of these, such as private student loans, need nearly more than ten years to repay back. Private student loan Most student loans are federal loans. These have fixed rates and flexible repayment options. A student can avoid default with the help of various alternative repayment programs. Moreover, students can avail of several loan modifications to ease repayment. No such flexible repayments are possible with private student loans. Private loans are offered by credit unions, banks, and other such private lending institutions. These do not the flexible repayment options of federal student loans. Also, these have variable interest rates, which are often higher than the fixed rate of federal loans.

Time to file your tax returns? Make it a happy exercise by using tax benefits to bring down the taxable amount. You can use deductions, exemptions, and tax credits to legally reduce your income tax liability. Reduce your tax liability Your task of filing taxes becomes easier if you keep a record of all your income and expenditures. If you do not have these details in place, sort through the mess and pick out all the relevant records. Do some research online to find out which tax benefits, deductions, and exemptions you are eligible for. Deductions and exemptions reduce the amount of your taxable income. Credits are the dollar amounts that can be subtracted from your computed income tax bill. Deductions Deductions are the most common type of tax benefit you can claim. Everyone can claim tax deductions which can either be standard deductions or itemized deductions, but not both. The standard deduction has been increased for the year 2018. It is now $12,000 for single filers or for those who are married and filing separately. For married couples filing jointly, the standard deduction is $24,000. For someone filing their tax return as head of household, the standard deduction is $18,0000.

About a decade ago, opening a savings account might not have been prudent since many banks were shutting down and the yields were disappointing. However, the situation has now improved and having a savings account can be useful. One should consider certain factors before opening a savings account. Compare and study One should look at the various rates for savings accounts. Along with that, one should also look at the transaction charges, maintenance charges, and the need for a minimum amount to be maintained. There are many savings accounts that do not have extra charges and low minimum balance requirements. One should check for any other features that might be important, depending on individual preference. Credit unions and banks which have been insured by the National Credit Union Administration or the Federal Deposit Insurance Corp., are the safest options. If the union or bank shuts down, one’s deposit up to $250,000 is secured. Checking the bank’s financial profile is always a good idea when opening a savings account. Consider online banks Larger banks tend to have various products with attractive features and many might offer bonuses with accounts as well. But the rates that they offer for savings accounts aren’t very high.

There are times in a person’s life when they may decide to buy a home, but may be discouraged by the lack of funds. At such times, financial institutions like banks can help by providing mortgages or loans. A mortgage, which is an effective and commonly used debt instrument, is known as the funds provided against the collateral of real estate. The borrower is required to repay this amount along with pre-decided interest rate over a fixed time period. Mortgages can be utilized by not just individuals but also companies to purchase real estate without needing to pay the entire value of the acquisition up front. Just like loans, mortgages can be of different types. Under the clauses of residential mortgages, the applicant vows to pledge the property that is being bought using the funds given. As per this, should the bearer of the loan discontinue their payments and violate the pre-decided repayment schedule, the bank has the legal right to claim the property. The process implemented to apply and get approved for a mortgage is called origination. The federal government has established various plans to enable and promote home ownership. A mortgage broker is often involved in the process of gathering financial information and necessary documents from the applicant and forwarding them to the bank.