Mukesh Ambani gets Bank of America shares as director fees

Bank of America has given shares worth nearly Rs 11 lakh to Mukesh Ambani as part of annual retainer fee to the billionaire industrialist, who joined the US banking giant's board last month.

Ambani may get a total of over Rs 1 crore of annual compensation in cash and stocks, going by the bank's director compensation policy.

However, the bank has not disclosed its specific director fees for Ambani, chief of energy giant Reliance Industries.

Emailed queries sent to Bank of America and Reliance Industries remained unanswered on what would be Ambani's exact remuneration for his role as a director.

Ambani leads one of India's biggest corporate groups with presence spanning across energy, retail and telecom businesses and plans underway for financial services entry.

As Chairman and Managing Director of RIL, Ambani was paid Rs 15 crore for the financial year ended March 31, 2010.

He has decided to take a lower salary than his eligibility of Rs 39.36 crore, as per shareholders' approval, to reflect "his desire to set a personal example for moderation in managerial compensation levels." The salary figure for the fiscal ended March 31, 2011, is not yet known.

Bank of America has informed the US market regulator SEC that it has allotted 1835 Bank of America shares, worth over USD 24,500 (about Rs 11 lakh), to Ambani as a "portion of the annual retainer" payment to its directors.

Bank of America appointed Ambani as an independent director on its board on March 16.

Ambani is the first non-American to join the board of one of the world's largest financial institutions, which currently commands a market value of over USD 136 billion and had a revenue of more than USD 111 billion last year.

Zong Finds Merchants Pay Higher Mobile Payment Fees If Sales Rise

The mobile payments provider Zong Inc. says that merchants are increasingly willing to pay higher transaction fees in exchange for higher sales.

Zong's platform lets organizations such as Facebook Inc., Sony Online Entertainment and Sulake Corp.'s Habbo Hotel that sell digital goods to offer their customers the option to pay using their mobile phone number, Hill Ferguson, Zong's vice president of product and marketing, said in an interview.

Of the 500 Zong users who responded to a company survey in November, 34% said they chose the mobile payment option because it is "fast and easy," while 23% said they chose the option because it is "fun."

"Consumers will always choose the option that is easier for them," said Todd Ablowitz, president of Double Diamond Group LLC. "If consumers are buying something online or on their mobile phone, the fewer keys they have to press, the more likely they are to complete the purchase."

Carriers set the transaction fees merchants pay, which typically are much higher than those for debit and credit card transactions.

The fees vary by carrier but usually are between 10% and 40% of the sale, Ferguson said. By comparison, merchants may pay up to 3% of the sale to accept credit and debit cards, Ablowitz said.

Many merchants, however, are willing to accept the higher transaction fees if it means more sales, especially if they sell goods with a high margin, such as virtual currency, music videos and other digital content, Ferguson said. The profit margin for merchants from sales of digital goods may be as high as 80%, he said.

Ten Largest Banks in the World

Although signs of recovery appear to be on the horizon, the financial crisis continues to plague the global banking system.  Banks are being shut down on a regular basis and interest rates continue to fall, making it harder and harder to find a reliable and trustworthy bank, that also has a high savings account rate.

As shown below, European banks have appeared to fare better than their American counterparts. Below are the world’s ten largest banks, determined by the amount of assets and a description of each.

BNP Paribas (BNP) – This French bank comes in at No. 1 with $3.21 trillion in assets.  BNP is one of the largest global banking networks in the world with operations in 84 countries.  BNP has four domestic retail banking markets located in France, Italy, Belgium and Luxembourg.  In April 2009, as a result of BNP’s 75% purchase of Fortis Bank, the Belgian bank is now the largest Eurozone deposit holder.

Royal Bank of Scotland (RBS) Group – RBS Group ranks as the number two bank in terms of assets held. Currently, the British government is the largest owner of the bank.  As a result of severe losses and the conditions of a government backed bailout, RBS Group has halted dividend payments. RBS Group is the largest banking group in Scotland and operates a wide variety of banking brands including personal and business banking, private banking, insurance and corporate finance throughout its operations located in Europe, North America and Asia.  As of May 2010, RBS Group had $2.99 trillion in assets.


Barclays PLC (Barclay’s) – Barclays, with $2.54 trillion in assets, is a British financial services firm operating worldwide. It is a holding company listed on the London and New York Stock exchanges, is a component of the FTSE 100 Index and until 2008 was also listed on the Tokyo Stock Exchange. Barclays operates through branches, offices and subsidiaries in the United Kingdom and overseas and provides retail banking, credit card, corporate and investment banking and wealth management services. Its two major business groups are: Global Retailing and Commercial Banking, and Investment Banking and Investment Management.

Deutsche Bank – Deutsche Bank, the largest German bank with $2.43 trillion in assets, has a strong presence throughout Germany and Europe and continues to grow in North America and Asia. As of March 31, 2010, Deutsche Bank had approximately 2,000 branches in 72 countries.

HSBC Bank – HSBC Bank has more than 460 bank branches throughout the United States, with the majority (380) in New York State. Coming in at number 5 on our list of the biggest banks with $2.42 trillion in assets, HSBC offers its 4 million customers access to global markets through its personal financial services, private banking, retail banking, commercial banking and global banking and market segments.

Credit Agricole – The second and final French bank on the top 10 list with $2.3 trillion in assets, Credit Agricole is a retail banking leader in France and throughout Europe. It is part of the CAC 40, a benchmark French stock market index. It has 11,500 branches throughout the world, more than 160,000 employees and 59 million customers in 70 countries.

Bank of America (BAC) – BAC is the largest bank holding company in the United States, by assets, with $2.25 trillion. The company serves clients all over the world and has a relationship with 99% of the U.S. Fortune 500 companies. In 2008, BAC acquired Merrill Lynch making it the world’s largest wealth manager.  It is listed on the New York Stock Exchange (NYSE) and is part of the S&P 500 Index and the Dow Jones Industrial Average.

Mitsubishi UFJ Financial Group (Mitsubishi) – With $2.07 trillion in assets, Mitsubishi is Japan’s largest bank holding/financial services group. Part of the Mitsubishi Corporation, the company provides a wide variety of financial and investment services including commercial banking, trust banking, international finance, and assets management services.

J.P. Morgan Chase – One of the two so-called “too big to fail” banks, along with Bank of America, J.P. Morgan Chase is the 10th largest bank in the world with $2.02 trillion in assets. The company provides products and services to its clients in 100 countries including asset management, investment banking, private banking, treasury and securities services, and commercial banking. J.P. Morgan Chase is traded on the NYSE under ticker symbol JPM.

UBS AG – Rounding out the top ten banks in the world by asset type is UBS AG with $1.8 trillion in assets. Headquartered in Zurich and Basel, UBS provides financial services to private, corporate and institutional clients. UBS has a foothold in major financial centers all over the world and has offices in more than 50 countries.

Scotiabank's Waugh Favors LSE Purchase of TMX If Governance Issues Weighed

Bank of Nova Scotia (BNS) Chief Executive Officer Richard Waugh said he favors the acquisition of TMX Group Inc. (X) by the owner of the London Stock Exchange as long as governance and Canada’s national interest are protected.

“My hope is that this deal goes through with some modifications that do protect national and regional interests,” Waugh told reporters at the annual meeting of the Inter-American Development Bank in Calgary today. “They have to negotiate and find solutions.”

Issues of corporate and regulatory governance need further negotiations before the deal should be allowed to proceed, Waugh said. Regional exchanges are important in times of crisis, such as the one Egypt, where the reopening of banks and financial markets was a sign of a return to normalcy, he said.

Canada’s banks, which are usually united on most policy issues, are divided on the proposed C$3.2 billion ($3.3 billion) transaction amid concern about job losses and surrendering regulatory control of the securities industry. Scotiabank, Canada’s third-largest bank, is the last of the nation’s six biggest banks to voice an opinion on the transaction.

Toronto-Dominion Bank (TD), Canadian Imperial Bank of Commerce and National Bank of Canada (NA) said they oppose the sale to the London Stock Exchange Group Plc. (LSE) Royal Bank of Canada (RY) and Bank of Montreal (BMO), which are advising on the deal, support the combination.

“I am head of Canada’s most international bank,” Waugh said. “It’s a very fine line of looking after true national interest and overreacting in a protectionist way. These transactions should get done. It is an important issue.”

The banks opposing the transaction released a letter March 9 outlining their concerns, saying Canada’s clout as a center for mining and energy trading may be diminished.

The transaction is “not the same as two mining companies getting together,” Waugh said. “I think that has to be recognized by all participants including the two that are negotiating.”

Bank Lowers Credit Card APRs for Some, but Adds Fee for Others

The cat and mouse game continues. Americans are beginning to reap more of the benefits of 2009's landmark credit card protection legislation, the CARD Act, even as some banks continue to add fees. The Act ordered banks to review credit card customers' files to determine if their interest rates should be lowered. According to this National Public Radio story, it's apparent that at least one of the "big four" banks -- Bank of America -- is cutting some high-value cardholders' interest rates by as much as half, even as it adds $59 annual fees to customers who are least likely to be able to get another card from a different issuer.

"The divide that's dividing the haves and have-nots has gotten even bigger," Curtis Arnold, founder of CardRatings.com, tells WalletPop. "As we come out of this credit crunch, my concern is it's almost like a disappearing middle class. That's a concern to me as a consumer advocate, because millions and millions of consumers fall into this category," he says.

As per the CARD Act, a hike in someone's interest rate has to be followed six months later by a review to determine if the raise is still justified based on the cardholders' payment history and credit score. What this means for consumers is that if you missed a payment and watched your APR soar into the stratosphere, you could have a light at the end of the tunnel. Right now, the numbers aren't great; according to one analyst cited, only 2% of Bank of America's credit card customers have been granted a rate reduction.

There also are some indications that customers are getting their rates lowered, but only by a percentage point or two. Furthermore, since banks don't have to publicize the details of who's been granted a lower rate, it's possible that they could be going to people who don't generally carry a balance. This would, of course, make for good press without really helping any of the Americans struggling to pay their bills.

To add insult to injury, the Los Angeles Times reports that Bank of America is adding a new $59 annual fee charged to 5% of its credit card holders starting next month -- and the paper claims the 5% are those who can't afford to pay off their balance or go someplace else to get a new card. Of course, a Bank of America spokesperson points out, these people could close the card and avoid the fee, but if the card in question is their only or primary line of credit, this could damage their credit scores, making it even harder to get credit again in the future. The Times reporter, David Lazarus, blasts Bank of America in his article, saying, "Introduction of an annual fee thus skirts the law by allowing a bank to milk extra revenue from an account without raising rates."

Arnold also says banks aren't playing fair. "It's a catch-22. You can't rebuild credit if no one will give you credit, and that catch-22 is stronger than it's ever been. Honestly, my interpretation is the banks still hold all the cards."

Debit Interchange Fee Battle Heats Up Ahead of Fed Ruling

The Federal Reserve is charged with issuing its decision next month on the fees that financial institutions charge stores every time a customer pays with a debit card. These interchange fees, as they're called, were for years a hidden cost borne by merchants who wanted to allow customers to use their debit cards.

A lawsuit settlement last year made consumers more aware of the complicated transactions -- $20.5 billion annually -- behind each swipe. The Fed's preliminary take on the issue would cap the fees at 12 cents per transaction, a fraction of the average 44 cents merchants are now charged per swipe.

Merchants want to keep that money, saying that they have to pass along those costs in the form of higher prices to all consumers. Financial institutions say they need the money to process the cards and implement elements like fraud protection, and some have gone so far as to threaten limiting the use of debit cards if the Fed limits their ability to collect these billions.

Advocacy group the Consumer Federation of America sent a letter urging regulators to consider the impact any new rules would have on financial institutions, especially small banks and credit unions, as well as on consumers.

Travis Plunkett, legislative director of the CFA, tells WalletPop via email "We support the intent of the new law requiring lower interchange fees ... but the Fed's proposed method for lowering these fees may not allow banks and credit unions to recoup their actual costs for providing debit cards," he says. As a result, consumers -- especially low- or moderate-income Americans -- could bear the brunt of the fallout if banks hike fees in response.

The Office of the Comptroller of the Currency weighed in with a comment letter, as well. Part of the problem is that while the Fed is under orders to make sure that debit fees are "reasonable and proportional," there's no single definition for that phrase.

Banks argue that 12 cents per transaction isn't enough for them to recover costs for processing the transactions and dealing with issues like fraud. Giving support to the banking industry's argument, the OCC expresses reservations with the Fed's current proposal and urges the agency to consider an alternative outcome in which the Fed would establish a kind of regulatory yardstick for determining what constitutes an appropriate fee without mandating the actual fee amount.

What to do when the ATM give the wrong money

We explain your rights if an ATM gives you too much or too little cash.

One night in the late 1990s, I was partying in central London, near Piccadilly Circus.

Running short of money, I set off to find the nearest ATM (Automated Teller Machine, or cash dispenser) to withdraw some cash.

Heading towards Shaftesbury Avenue, I saw a huge queue for one ATM machine, but no-one was using the neighbouring 'hole in the wall'. Assuming that the second machine was broken, I asked one queuing man if it was out of order. He replied: "It's working, but this one pays out twenties for tenners!"

Hence the reason for the weirdly long queue: these folks wanted to 'double their money' by getting £20 notes for each £10 note requested. Being an honest chap in a hurry, I didn't hang about; I simply used the idle machine and walked off.

'Free' money?

Last week, customers took similar advantage of Commonwealth Bank in Sydney, Australia.

Following overnight maintenance, a computer gremlin caused CommBank's ATMs to malfunction and begin paying out extra money, with unrestricted withdrawals. As they were operating in 'stand-in mode', these ATMs did not check account balances. Thus, they allowed customers with little or no cash in their accounts to withdraw large sums that they didn't have.

As word spread of this 'free' money (partly thanks to Facebook messages), queues of up to 50 people formed at more than 40 cash machines across Sydney, with similar scenes occurring in Melbourne, Victoria. After about 5½ hours, CommBank managed to re-boot these ATMs and stop the flood of dodgy cash.

You stole your own cash!

By withdrawing money they didn't have in their accounts, some of these greedy customers have gone heavily overdrawn. News reports indicate that some people were withdrawing as much as AU$2,500 (£1,563) in a single transaction.

Alas, both CommBank and the New South Wales police said that they will use ATM records and surveillance cameras to track down those who took advantage of the error. As all these transactions were correctly recorded, CommBank will immediately begin reclaiming these fraudulent funds.

As Detective Superintendent Col Dyson of the New South Wales fraud squad warned: "People should realise that, even though an ATM has dispensed cash, they are not entitled to that money and are committing a criminal offence if they keep it."

ATM: A Trivial Mistake?

When what happened Down Under happens here in the UK, the banks take a similarly dim view of customers who pillage their accounts by withdrawing money they don't have.

Frankly, doing this is just shooting yourself in the foot, because banks have a record of every transaction from every ATM.

Using this information, banks can and do track down every unauthorised withdrawal and demand immediate repayment. In the meantime, you'll be hit by sky-high charges for creating an unapproved overdraft. Thus, the banks eventually get their own back on cash-machine bandits!

What about overpayments?

What about when you key in a £20 withdrawal and, instead of two £10 notes, you get two £20 notes?

Of course, it's easy to see how this happens. Some harassed bank manager — perhaps at the end of a long day — has accidentally loaded the £10 hopper with £20 notes. Thus, the ATM mistakenly dispenses twenties, assuming they are, in fact, tenners.

In English law (covering England and Wales), you are entitled to keep money paid to you in error "under mistake of fact", but only if you honestly believe that the money is yours. Without any proof of mens rea ('guilty mind'), mistake of fact can be used as a defence against civil and criminal liability, but only for unintentional mistakes.

Thus, if you got £40 when you requested £20, then you have no reasonable argument to believe that the money was genuinely yours. Therefore, you should return the additional £20 to the bank, as you have no legal right to keep it.

However, if you requested £20, got £40 and £40 was debited from your account, then the cash is yours to keep, as neither you nor the bank has suffered any loss.

Clearly, if people get wind of a cash-machine windfall and start queuing round the block, then they know full well that what they're doing is wrong, both morally and legally. Thanks to their prior knowledge and intent, they are knowingly committing a crime. Therefore, the mistake-of-fact defence cannot apply.

Two new inflation-linked bonds for savers

Savers were thrown a lifeline as inflation topped 5% last week by the launch of five-year index-linked bonds.

The Post Office will pay the rate of inflation as measured by the retail Prices Index (RPI) in April each year plus 1.5 percentage points on top.

Its bond requires a minimum of £500. Returns are calculated annually but paid at maturity in 2016.

Interest is not compounded and no additional deposits can be added. Penalties apply if it is cashed in early.

The bond is on sale until April 27 but could be withdrawn earlier if it is oversubscribed.

Yorkshire Building Society's Protected Capital account (PCA) Inflation-Linked Plan 1 pays income yearly, based on inflation over the 12-month period plus 0.1 of a point.

PCA2 pays out the change in RPI over the five-year investment term plus 1.5 points on maturity.

The minimum investment is £3,000 and the maximum £85,000. Yorkshire's bonds can also be put inside an Isa up to the maximum £5,100 allowance, plus savers can transfer £5,100 from an existing cash Isa.

Last month BM savings, part of Lloyds Banking Group, launched a five-year bond that pays a quarter of a point a year above inflation.

Louise Holmes of data compiler Moneyfacts says: 'The products are competitive when inflation rises, but there is risk involved. The Bank of England has said it expects inflation to fall in the next few years.'

Dan Hyde, savings correspondent at This is Money, says: Inflation has spooked savers this year. It's a grating concern, running at double the Government's target. With the official measure at 4%, savers need to find an account paying 5% before tax to beat it.

Outside of a tax-free Isa, that's impossible. The best around is a 4.8% offer from Aldermore Bank, launched last week.

That's where these inflation linked bonds become interesting. In essence, they help you maintain the spending power of your cash while it's at the bank.

But don't get too excited, there are a number of downfalls to these products. Providers such as the Post Office and Yorkshire Building Society are beginning to play on our fears that inflation is sticky. The fact that an 'inflation-linked' bandwaggon seems to have arrived is a clear warning sign.

The main issue is locking your cash into these deals for five years. As Louise Holmes says, inflation may well fall back at the end of this year. If it does, then savers might see their returns fall from a very tempting 6%-7% a year now to something like 3% or 4%. Compare that to Aldermore's 4.8% fix, and the risk is clear: you could end up worse off in 2016 if inflation fears recede.

Given the Bank of England's poor prediction record in recent times, I wouldn't bet on inflation falling, though - it's very hard to predict. But that's just the point: inflation-linked bonds are a gamble.

The key, as always, is to avoid putting all your eggs in one basket. If you think inflation is going to stay high, this could be a good opportunity to take advantage with some of your cash. If you're unsure or rely on savings income, then stick to more certain returns.

Kevin Mountford, a savings expert moneysupermarket.com, offers this piece of wisdom from within the industry: 'As with most products, the devil is in the detail and although inflation is currently high, the benefits will only be in the short term. A lot can happen in five years, so consumers need to be aware that the savings landscape may change considerably over this period.

THE BEST WAYS TO MAKE MONEY WITHOUT SPENDING MONEY

WAYS TO MAKE MONEY: # 1
Make money selling your own product

Yes, you can do this without spending money. This is the path most small business take - and probably the most profitable one.

It is also the most difficult one of the 4 ways to make money without money. It's difficult and time-consuming. If you're forced to do it without a budget, it will be even more time-consuming. But you're determined to build a profitable, long-term Internet business, right? Hard work is not a problem. Right?

The most difficult part of this method is the product development.

What can you make without spending a penny? Something that people will still buy from you?

The answer lies in information products. We all have marketable skills. You're an expert in something.

Do you know a lot about cars?
Write a mini-book on basic engine maintenance.

Know a lot about kids?
Write a book called "101 Ways To Keep 2-year olds entertained" - you've already got your first buyer right here!

This is really doable. There are people who'd pay to know what you know.

Get nitty-gritty advice on creating your own product. Get the very short, very powerful e-book called "Ways To Make Money On The Net". No hype. Just dead-accurate advice. This document will save you two years of trial and error! Guaranteed.

WAYS TO MAKE MONEY: # 2
Make money selling someone else's product

When you sign up as an affiliate / reseller for someone else's product, you refer people to the "supplier site" and you get a cut each time someone who you referred makes a purchase. It really is that simple. Probably the most doable of the ways to make money without money.

But you will only make money at affiliate programs if you can find a good supplier. One that's honest about tracking of sales and one that will pay on time.

I highly recommend the Biz-Logo.com Logo Design Affiliate Program. It's great if you target small business owners who might be in the market for a business logo or other graphic design work.

You can't believe everything you read about affiliate programs, but they can really make money. A significant portion of my own Internet income is from affiliate programs. There are a couple of things you have to get right though. That book I mentioned above also looks at some of the best ways to make money with affiliate programs.

WAYS TO MAKE MONEY: # 3
Make money selling advertising space

The idea behind it is to offer free information from your web site to pull in high volumes of traffic. Once you've achieved that, advertisers would pay you to display their advertisements on your site. This is probably one of the oldest and most hyped ways to make money without money.
It worked really well until the end of 2000. It's how Yahoo became big. With the dotcom bust in 2000, even Yahoo was forced to look to alternative revenue streams. Advertisers began to realize that, in most cases, web advertising is just not cost effective.

Nowadays most people don't click ads right?

Right?

Wrong! There's life in this old machine yet...

Contextual advertising (like Google's AdSense program) offers a real alternative to traditional advertising - and many web site owners are rediscovering this tried and tested way of making money from their web sites.

WAYS TO MAKE MONEY: # 4
Make money doing what you already do

This is not for you if you're looking to build a serious small business on the Net. It's the easiest of the ways to make money without money, but because it's easy, it doesn't pay much.

Very little in fact.

It mostly involves getting paid to surf the Internet and getting paid to take surveys. It's like stuffing envelopes for money. If that blows your hair back, type "getting paid to do surveys" into the search box at Google and hit "Enter". Take your pick. Don't expect to get rich though.

CEO packages fit for a king (or queen)

Gail Kelly is poised to become the $55 million queen of banking if Westpac shareholders give their blessing to another round of long-term share incentives for the bank's chief executive.

Based on Westpac's closing share price of $21.92 yesterday, Kelly could be worth $55 million once she meets performance targets.

The Westpac board has asked investors to approve $2.7 million worth of options that, if triggered by Mrs Kelly meeting certain financial targets, will convert into shares over the next three to five years.

Shareholders will also vote next month at the annual meeting on an increase in her potential short-term bonus to $3.6 million, up nearly $900,000 on what she has just received for 2010.

The awards will make up the bulk of Mrs Kelly's 2011 package. Take-home pay will account for a third, the remaining 69 per cent will consist of a bonus, restricted shares and rights over deferred options.

Based on Westpac's closing share price of $21.92, Mrs Kelly could be worth just in excess of $52 million once she meets performance targets under the bank's incentive plan. Of that amount, $28.5 million of equity came her way as part of her sign-on deal when she quit her previous employer, St George Bank, mid-way through 2007 to join Westpac in February 2008.

She has since become entitled to more than $23 million worth of share options and performance rights, although these remain off limits to her for a few more years under the bank's long-term incentive clauses.

Despite a 10 per cent drop in the value of her 2010 remuneration, Mrs Kelly, who runs the second most profitable bank of the big four, continues to be one of the highest paid executives in the country. Westpac recently announced record cash earnings of $5.88 billion for 2010.

Details of her pay were disclosed in Westpac's annual report published yesterday and comes just a few weeks after her counterpart at Commonwealth Bank, Ralph Norris, earned $16 million last year thanks to a jump of nearly $7 million in his long-term incentives.

Last night ANZ also published its annual report, showing its chief executive Mike Smith is heading for a tiny cut in his overall pay for 2010, thanks to a lower ANZ share price.

Mr Smith's total earn-out came to $10.85 million, $79,000 lower than in 2009. The ANZ chief saw his actual take-home pay and short term cash bonus rise by $100,000 to $5.05 million while his long-term incentives through deferred stock and performance rights slipped in value as a consequence of a drop in the price of ANZ's shares.

Mr Smith has a shareholding in ANZ worth $10.8 million based on yesterday's closing price of $23.08.

Surfing the net good for workers and for business

Facebook, Twitter and other social media sites, as well as music and online video sites like YouTube, are the most productive ways employees can relax at work, according to new Melbourne University research.

Searching for information about hobbies, reading online news, playing online games and checking personal email was also likely to refresh deskbound employees.

But the ACTU say employers continue to block many online services to employees, including personal email and internet banking, as well as monitoring internet use where there is no need to.

There is also uncertainty, according to the ACTU and human resource experts, as to what constitutes an acceptable internet site for recreational surfing at work. Brent Coker, a lecturer in marketing at the University of Melbourne who carried out the research, said it was an extension of his findings last year that people who surf the internet for fun — for less than 20 per cent of their work time — were 9 per cent more productive than those who don't. The research was based on a sample of 300 workers with access to the internet at work.

"The enjoyable stuff is better for people than the mundane stuff . . . the more escapist, relaxing type of feeling [the better] . . . reading what your friends are saying on Facebook, playing a little Mafia Wars or whatever, and then getting back to the job," said Dr Coker.

"People need those breaks. They need a little bit of time-out so when you go back to work your mind is refreshed and you can really hammer it.

"A fresh mind can do a lot more in a short period of time than somebody's who's tired. It'll take them five times longer to do the same task."

But some sites did not have a revitalising effect, Dr Coker said, particularly shopping websites, auction websites, online banking and sports sites.

The chairman of the Human Resources Institute of Australia, Peter Wilson, agreed that recreational internet use was good for productivity and said that "smarter employers" were setting up social media sites of their own.

"We are humans after all and you want to be part of something else in a balanced life and the evidence shows that you work better if you're part of a number of things.

"You find companies like Optus and IBM are setting up Facebook sites and they're using social networks to talk about ideas on business for customers. The prohibitionists — the ones who block Facebook — are still around but they're becoming a minority."

ACTU policy and industrial director Joel Fetter said that some employers continued to block personal email and other online personal use like banking, as well as carry out unnecessary surveillance of their employees' online use.

"Some employers will block personal email. We've seen a number of cases where people have been dismissed or disciplined for sending personal messages.

"Many employers ban it because they worry about loss of productive time."

Mr Fetter said there was no Australian data on internet and email surveillance by employers but US data showed that 66 per cent of employers monitor their employees' internet use and 43 per cent monitor their email use.

Chris James, spokesman for the Victorian Employers Chamber of Commerce and Industry, said that "how businesses approach the issue of social networking in the workplace often varies from company to company".

"Some go as far as blocking the sites so workers cannot gain access at any stage on their work computers, others allow browsing while on official breaks, and others have a more liberal policy, allowing browsing as long as work gets done too.

"Finding the right balance is the key — giving employees some freedom is likely to reward a business's bottom line long term."

Browsing on the job

Most productive

Reading non-work blogs (including Facebook/Twitter)
Watching online media (eg YouTube)
Searching for information about hobbies
Writing personal blogs
Reading online news
Least productive
Checking lottery results
Using newsgroups or forums
Organising personal fi nances
Online shopping

Learn How To Trade Forex

Whether you’re new to trading or you are what’s considered a “seasoned” trader, there is a lot of money to be made trading Forex markets. Although instantly trading with real money is not for beginners or people that have never traded before, you can quickly learn the ropes with a little help and commitment.

What is Forex Trading?

Forex trading is the buying and selling of currencies. In much the same way that you’d buy and sell stocks on the stock market, traders exchange currencies they’ve purchased. If you’ve ever traded on the stock market, you should have no problem getting the hang of trading Forex.

The purpose of Forex trading is to exchange a currency that you’ve purchased for another with the hopes that the price of the newly purchased one will go up in value. Whether you’re new to this or consider yourself an old pro, you’ll find it very exciting and a lot of fun. The value of currencies is always quoted in pairs such as USD/JPY or GBD/USD. The reason for this is because you’re always buying one and selling another.

It is recommended, however, that until you get the hang of what you’re doing you should set up a “demo” account where you may be buying and selling currencies but they’re fake. By doing this, you’re learning how it’s done and giving yourself a chance to learn more about it without losing real money.

Signing up for an Account

Signing up for an account is very easy. You can register for one of the training courses on the Forex web site where you can “pretend” trade in a demo atmosphere or you can participate in their workshops where you’ll have real experts teaching you everything you need to know about Forex trading. You’ll also have webinars at your disposal where you can watch demonstrations of Forex trading, take part in discussions with beginners as well as experts in the field. Signing up for an account is not only fun and exciting by the best way to learn the ropes so you’ll soon be ready to begin making money trading Forex.

Getting started is Easy

You’ll find that it’s easier than you thought to get started. Banks and financial institutions have been doing it for years and now with the internet available to everyone, it’s easy for you to make money at home by trading Forex. Because there are so many different theories behind trading Forex, it’s to your advantage to talk with someone that knows what they’re doing and has participated in Forex trading in the past.

If you don’t know anyone with enough experience to help you, consider signing up for some of the online webinars and Forex workshops. They’re very helpful and will take you through any scenario you can imagine and are available to answer any questions you may have. You can continue to be part of a “demo” trading market until you’re ready to strike out on your own with real money. That’s when you’ll see how much money you can truly make trading Forex.

15 Ways People Making Money

In today’s economy, it can be pretty tough to make money anywhere, but some intrepid folks are earning money hand over fist online and they’re doing it in some crazy ways. There’s a lot that can be learned from these people, especially if you’re sitting on your own idea but think it’s too out there. As these people illustrate, there’s no end to the insanity when it comes to making money online!

1 . Virtual Farming – Nearly half a million people in China are making money by playing a game, earning gold and selling it to other players with too much time on their hands and a credit card burning in their pocket! The phenomenon that is World of Warcraft, a massively multi-player online role playing game, has spawned some of the most creative ideas for making money. The game’s currency is gold, but a lot of players don’t want to take the time to earn it themselves. So, these people in China, and all over the world, spend their days playing the game, making gold and selling it in the game for actual cash.

2. Doggles – If there is one thing dogs don’t need, it’s a pair of goggles, but this idea, which got its start online, has made millions of dollars and real stores have opened up all over the world. They took their original idea, of UV protective doggles and continued expanding their product line to include vests, other eyewear and even jewelry. People will spend countless dollars on their pets and this site more than proves it can pay off big time if you have a pet related product or idea.

3. The Million Dollar Homepage – This is probably the most iconic of all the crazy ideas that have ever been born. This guy decided to set up a site and sell one million pixels for $1 a piece. He got a huge amount of publicity and ended up making his million dollars. He has since gone on to other money making projects.

4. WhateverLife – This teenage girl who had a flair for the creative set up a site to offer layouts for MySpace and free tutorials. The idea took off and she now gets around 7 million visitors to her website every month. She’s managed to land some major advertising contracts and has received offers to buy her site that have exceeded $1.5 million.

5. MyYearbook – Two teens had a simple idea; why not create an online yearbook for people? The idea turned into a social networking site and they’ve been able to raise more than $4 million in venture capital. The company now has 45 employees, 3 million members and some heavy duty advertisers.

6. Cameron Johnson – This young entrepreneur got his start at the age of nine making greeting cards, expanded into reselling Ty Beanie Babies on eBay by the age of 12 and finally sold his online advertising company for an undisclosed sum after making $3 to $4 million a month. His latest venture, CertificateSwap, that allows people to swap out unwanted gift certificates just sold for six-figures. He’s now working the lecture circuit and focusing on helping others strike entrepreneur gold.

7. LuckyWishbone – This has to rank as one of the craziest of all time ideas. Why wait around for thanksgiving when you could get a wishbone whenever you feel like it? This company manufacturers and sells plastic wishbones. They are producing 30,000 of them a month and sales have exceeded one million dollars.

8. Steve Pavlina – This guy uses his blog to write about life hacks and by all accounts he makes a ton of money doing it. He covers everything under the sun from personal development to astral projection. He makes at least $300 a day for a few minutes of work.

9. Hungry Pod – Catherine Keane decided to make a business out of loading music on people’s iPod’s and it has paid off big time. She’s making more than $100k a year, after helping out a friend and realizing the kind of market that was out there.

10. Antenna Balls – You know those little things you see on the top of car’s antennas? Jack Wall turned this into a multi-million dollar industry by selling them online.

11. The Laser Monks – These guys really saw an opportunity and turned it to their advantage. Print cartridges are expensive and old ones clutter up the environment. Refills are cheaper and help reduce pollution. Viola! They made more than $2 million in 2005.

12. I Do Now I Don’t – Joshua Opperman got stuck holding the bag, a very expensive one, after his financee returned her engagement ring. Stuck with a ring that he couldn’t get the value back on he started a service online for everyone in this situation. He now runs a very successful home business.

13. SantaMail – Ok, this one takes advantage of little kids, but you got to hand it to Byron Reese for making millions off of this idea. Parents send him ten bucks and he writes their kids as “Santa.”

14. Amazing Butterflies – Selling butterflies and making millions? Doesn’t seem conceivable, but Jose Muniz has managed to pull it off. You can get your very own live butterfly from Jose, who started the business on a bet. I guess it paid off.

15. FitDeck – Playing cards with an exercise theme. Never work, right? Well, Phil Black made $4.7 million off of this little idea. His cards all feature fitness workout vignettes from his personal experience as a Navy SEAL and a trainer. They sell for $18.95 a pack and obviously, people are interested.

Manage Money Wisely

Knowing where money goes can be a tough challenge. But having a plan and doing a budget aren’t difficult. They help get finances checked. Here are money management tips and insights to track wisely where money goes.
 

The Budget Planner

A budget planner is a valuable tool to manage money. It can be weekly, fortnightly or monthly guide. Once the period has been decided, all the numbers or entries written down are for the same time period. It's also important for partners to agree on what they want to do with money. Therefore, it is good to prepare a budget together.

The actual income and expenses should be written down. Once these two factors are realistically worked out, result is taken by subtracting the total expenses from the total income, which is a straightforward formula. What is more significant from financial planning perspective is seeing the result: the regular total income coming in and where the money goes (total expenses).

Spending Money Wisely

Here's the question: Is the result from the budget planner the one expected? The budget can show areas where changes in spending can be effected. One suggestion in sorting out expenses is to group into two, essentials and non-essentials.

Spending can be reduced in the non-essentials. If there's money left over, money should be spent wisely. This is where debt management comes into play, that is, to get debt under control. Some options where the "extra" money can be used are increase in credit card repayments or loan, or organizing a deduction for an investment account or separate savings.
More Tips How to Spend Money Wisely

    Avoid buying take away for lunch, take lunch to work
    Consider pre-paid options for personal mobile or cell phone
    Leave credit card at home
    Prepare a shopping list and stick to a limit

Setting Goals

It's difficult to have a budget if there's no plan what to do with the money. Setting goals will lead to what's being worked towards. Goals must be realistic, specific, and motivating enough for time frame to be followed. They can also have some dependencies like commitments and age, among others. Some of these commitments are:
    Getting debt under control
    Saving for a home deposit
    Savings for retirement
    Providing for Unexpected Expenses (to avoid using credit card or a personal loan)
    Other Savings

By using the budget planner, it can be worked out how much money has been left after expenses and how long it will take to get the amount needed, to save for those deposits.
Teaching Children about Money

For families who have children, parents should teach them the basics of money. Here are some tips to help kids:

    Encourage them to save regularly and as much as possible.
    Set an example by managing money well.
   Set up a savings account with a passbook to help them keep track of transactions in terms of deposit, withdrawal and interest they earn.
    Make savings fun by letting the kids choose their own realistic goals

Change being inevitable, it's advisable to revisit budget and goals regularly in order to reflect changes, perhaps twice a year, or when necessary.

Readers may want to check out these related articles: Basic Investment Tips, How to Make Money Work, Tips to Financially Thrive, When to Avoid Using Credit Cards, How to Prepare for Effective Budget and Strategies to Start Making Money on a Shoestring Budget.

9 Ways How to Pay Off Debt

You can throw the reminders in the Cuisinart or chuck them into a garbage can, but that won't make the debt go away. Debt hovers like a carrion bird over a dying beast, with annual rates of 20% or more compounded monthly, month in and month out. You can't wish it away. But you can pay it down with determination, our free debt-fighting resources, and the good graces of a few wealthy relatives (see tip No. 5). Here are nine ways to get out of debt:

1. Pay more than the minimum
First, break the habit of paying only the minimum required each month. Paying the minimum -- usually 2% to 3% of the outstanding balance -- only prolongs the agony. Besides, it's precisely what the banks want you to do. The longer you take to repay the charges, the more interest they make, and the less cash you have in your pocket. Don't play their selfish game.

Instead, bite the bullet and pay as much as you can each month. If your minimum payment is $100, double that to $200 or more. Examine your normal expenses -- you can find the money. (For a gazillion ideas, check out our Living Below Your Means discussion board.) Skip eating out at lunch, and bring it from home instead. Eliminate desserts. Give up happy hour. We all have "luxuries," and you know what yours are.

Make a few sacrifices, and you will find the extra dollars needed to increase your debt repayments dramatically. Those increased payments will save you hundreds, if not thousands, in interest payments. Plus, you will get out of the hole you've dug for yourself much more quickly. Is it fun? No. But it sure beats living a hand-to-mouth existence, fearing bills each month.

2. Snowball your debt payments
Take a long, hard look at all your credit cards. Pay particular attention to the one with the lowest interest rate. Have you reached the maximum limit on that card? If not, consider transferring a higher-interest bill to that one. Many credit cards permit this, and it's positively Foolish to trade an 18% debt for one at 12%.

If your entire balance is too large to fit on one low-interest card, pay at least the minimum amounts due on all of your cards except one. Funnel the majority of your debt repayments into that one credit card, and pay it off as quickly as possible. When the balance on that card reaches zero, move on to the next with the same aggressive repayment plan.

Lather, rinse, and repeat. This method of repayment is aptly called "snowballing." As your debts decrease, the amount of money you have to attack them increases. Your payments snowball until all of your debt is pummeled. Pretty neat, eh?

Another way to transfer higher-interest debt to a lower-interest card is to take advantage of the promotional offers many banks use to entice you to their line of credit. You've seen the come-ons. "Transfer all your credit card balances to us, and pay just 5.9% until next January." It could be worth it. Moving to 5.9% from 18% interest could mean substantial dollars to you. And the money saved in interest could then be applied toward the principal each month, thus reducing your outstanding debt balance even further.

Take care, though, before you act. Examine the offer closely. Look for the hooks. Will the interest rate after the introductory period be higher than you're paying now? If so, you may have to switch again at that time. That, in turn, could give rise to another surprise. Banks have caught onto the charge card hoppers who switch from card to card to take advantage of the low introductory rates. Many of these offers now stipulate that if you transfer balances from the new card within a 12-month period, the normal interest rate will be applied to all outstanding balances retroactively. That proviso could be a bitter pill to swallow for someone short on cash, and it certainly doesn't help the debt repayment schedule. Read the fine print, Fool.

3. Cash out your savings account
You could cash out your savings and investments and use the proceeds toward debt repayment. Yeah, no one wants to do that. But sometimes it's just Foolish to do so. Even when debt interest is at 12%, your investments would have to pay more than 18% before federal and state taxes to equal that outflow of dollars. We doubt the dollars in your savings account are earning anywhere near that rate of interest. Pay off the debt, and it's the same as getting that 18% return without any risk on your part. The higher the interest rate on your debt, the more attractive repayment versus investment becomes.

4. Borrow against your life insurance
Do you have life insurance with a cash value? If so, borrow against the policy. Yes, you're borrowing your own money. But the interest rate is typically well below commercial rates, and you can take your time repaying the loan. Do repay it, though. If you die before it's repaid, the outstanding balance plus interest will be deducted from the face value of the policy payable to the beneficiary. While that seems a small price to pay to get out of debt now, it could be burdensome to your loved ones should you sleep the eternal sleep before paying it back.

5. Finagle family and friends
Perhaps your family or friends could float you a loan. Who else knows, trusts, and loves you like they do? Unless you're really the black sheep of the flock, chances are you'll get a very favorable interest rate. They may even tolerate a late payment or two. But if you want to maintain the relationship, it's best to keep things on the straight and narrow by using a written agreement. You should clearly establish the interest and repayment schedule in writing to avoid misunderstandings and hard feelings. And it goes without saying that you must be scrupulous about adhering to that schedule. Otherwise, you can forget the family reunions and birthday presents.

6. Get a home equity loan
Do you own your own home and have equity that's accumulated through the years as you've paid off the mortgage? If so, now's the time to consider a home equity loan (HEL) line of credit for the maximum amount possible.

A HEL gives you two ways to save. First, by using the loan proceeds to pay down your debt, you trade something like an 18% loan for a 6%-7% loan. Second, if you itemize deductions on your income tax returns, HEL interest is a deductible item under most circumstances. In a 25% marginal tax bracket, the 6% loan really has an effective rate of 4.5%, and that's probably the cheapest interest rate you'll see on personal indebtedness.

The danger here is falling into a common trap. Many get an HEL, pay off existing debt, and then ring up the charges on the credit cards all over again. Now they have the HEL to repay on top of the credit cards. The hole just got much deeper. Fools use the HEL to pay off the credit cards, and then keep them paid off until the HEL is repaid.

7. Borrow from your 401(k)
Do you participate in a 401(k) qualified retirement plan at work? Most 401(k) plans have a feature that lets you borrow up to 50% of the account's value, or $50,000, whichever is smaller. Interest rates are usually a point or two above prime, which makes them cheaper than that found on credit cards. Thus, 401(k) plan loans may be a Foolish option to debt repayment. Not only is the interest typically much lower than that on credit cards, the best part is you pay it to yourself. That's right, every dime in interest paid on a 401(k) loan goes directly into the borrower's 401(k) account, not the lender's.

But there are drawbacks. First, the loan and interest will be repaid with after-tax dollars, but the interest will be taxed again when you withdraw money from the 401(k) years later. Additionally, you must repay this loan within five years. If you leave your employment prior to full repayment, the outstanding balance becomes due and payable immediately. If it's not repaid, that amount will be treated as a distribution to you. You'll be taxed on that amount at ordinary rates. And if you're under the age of 59 and one-half years, you will also be assessed an additional 10% excise tax as a penalty for an early withdrawal of retirement funds. Accordingly, ensure any 401(k) loan can be repaid before you leave your job.

8. Renegotiate terms with your creditors
OK, you've done all you can. Savings are gone; relatives have been tapped out; you don't have a home or 401(k) to borrow against. You feel like you're against that proverbial wall. The money just isn't there. Is bankruptcy the only way out? No way. Try pulling an  ace out of your sleeve prior to taking that step. What ace? The threat of bankruptcy, of course.

Let your creditors know your situation. Tell them that if you are unable to renegotiate terms, you'll have no other recourse but to declare bankruptcy. Ask for a new and lower repayment schedule; request a lower interest rate; and appeal to their desire to receive payment. Faced with the prospect that you may resort to such a drastic step, creditors will do what they can to protect themselves against a total loss.

Indeed, many will negotiate away the farm before they'll write off your debt. As lawyers love to say, everything is negotiable. Therefore, what do you have to lose, except time? It's worth a try. And if you don't wish to do this yourself, organizations exist that can do it for you.

9. As a last resort, file bankruptcy
What if you decide you can't pay down your debt using any of the methods listed above? What should you do? The absolute last resort is bankruptcy. Within Fooldom, we firmly believe everyone has a moral obligation to repay their debts to the utmost of their ability. There are times, though, when repayment may be impossible. In those cases, bankruptcy may be the only available course of action. Nevertheless, be aware of the significant drawbacks.

Your credit record will contain this information for 10 years, thus ensuring you will have a tough time obtaining credit you can afford during that period. Additionally, as odd as it seems, it costs money to file for bankruptcy. Attorney and court filing fees cost in the hundreds of dollars, and they must be paid to obtain the relief sought. Finally, bankruptcy laws have gotten a lot tougher in recent years, so you may not qualify for complete relief.

There are two types of personal bankruptcy relief: Chapter 7 and Chapter 13. Chapter 7 is straight bankruptcy that allows the discharge of almost all debts. Those that aren't discharged are alimony, child support, taxes, loans obtained through filing false financial statements, loans not listed in the bankruptcy petition, legal judgments against the petitioner, and student loans.

While Chapter 7 relieves you of the responsibility of repaying most creditors, you may have to surrender much of your property to help satisfy the debt. However, different states have different laws that grant you exemptions on certain types of property, such as a certain amount of equity in your home, a low-value vehicle, small amounts of jewelry and other personal property, and tools you use in your trade or business. These exemptions usually aren't huge, but they do mean you won't have to start over with absolutely nothing.

Chapter 13, sometimes called the "wage-earner plan," is different. You keep your property but surrender control of your finances to the bankruptcy court. The court approves a repayment plan based on your financial resources that provides for repayment of all or part of your debt over a three-to-five-year period. During that time, your creditors are not allowed to harass you for repayment. You also incur no interest charges on the indebtedness during the repayment period. When all conditions of the court-approved plan have been fulfilled, you emerge debt-free from the bankruptcy.

One-fifth of Britons bereft of savings

One-fifth of Britons have no savings, according to Mintel, the consumer intelligence group.

Research by the firm suggests that while the financial crisis and economic downturn have focused attention on the need for consumers to shore up their finances, 35% of adults have less than £500 reserved for a rainy day, while 19% have no savings at all.

Of the totally uncushioned, 22% are women and 17% men, with the findings also suggesting that 22% of Britons with families are without savings.

Forty per cent of respondents believed their financial position worsened during 2010, with low interest rates, repayment of debts and meeting everyday costs the biggest savings barriers.

Mintel’s head of finance, Toby Clark, says: “The accepted wisdom is that low interest rates are stopping people from saving, however we have found that it is only really an issue for the top end of the market and the reality is that meeting everyday costs and expenses is by far the largest savings barrier.”

When asked how to describe their current financial situation, almost three in ten respondents said conditions were “tight”, only just making ends meet.

A further one in ten said they were “really struggling” and in real danger of falling behind with bills or loan repayments.

Four per cent had missed loan repayments or household bills.

ANZ Group appoints global chief economist

ANZ has announced the appointment of Warren Hogan as the bank’s new global chief economist, with responsibility for co-ordinating teams in Asia, New Zealand and Australia.

Hogan joined ANZ six years ago, and since last year has served as chief economist for Australia.

In his new post, he will be directly responsible to Global Markets Managing Director Steve Bellotti.

Hogan will take on the leadership of the Economics and Global Markets Research team, offering economic analysis on national and global levels as well as analysis of financial markets.

Regional economic chiefs in Asia, New Zealand and Australia will continue to hold responsibility for regional economic analysis and will report directly to Hogan.

The basics of credit insurance: Do you really need it?

If you've just taken out a loan, or are in the process of borrowing money or signing up for a credit card, your lender may offer you credit insurance. The policies promise to pay your loan if you die, go on disability or lose your job.  You might wonder if you really need credit insurance.

Credit insurance is optional. However, before taking out a policy, weigh its advantages and disadvantages. Studies by consumer groups suggest that credit insurance may not be a good value for your money. Do your homework before you buy.

Here are some of the basics of credit insurance:

    * You are not required to buy credit insurance as a condition of any loan or financing.
    * You must purchase credit insurance at the institution where you obtain your loan.
    * Credit insurance is most commonly offered as a group policy through a bank, credit union or vendor such as an auto dealer or furniture store, although you may be able to buy a policy individually.
    * Credit insurance benefits are first paid to the lender, not to you, in the event you make a claim. Any excess benefit will be paid to you.
    * The credit insurance benefit decreases as your loan balance decreases.
    * There are two primary ways to pay for credit insurance: monthly premiums or a single premium. Some "single-premium credit insurance" gets added to your principal and financed with your loan when you buy new furniture or a new car. That means you don't have to write a check for the credit insurance but you're paying interest on those premiums.
    * Credit insurance is often sold in a package, which typically includes credit life insurance, disability insurance and unemployment or property coverage. In some cases, your only choice is to buy the whole package or none, even if you are ineligible for benefits under some of the policy types. Some states mandate that you must be offered individual coverage.
    * Credit insurance can be purchased without a medical exam and the premium does not vary according to your age, unlike life insurance.
    * Credit insurance may not pay if you have a pre-existing health condition.
    * A credit insurance application may ask for your medical history. You may not be eligible for credit insurance if you have had a serious medical condition like cancer or heart disease.
    * Some credit insurance will not cover the full amount of your outstanding loan or the full term. For example, in New York the maximum allowable coverage for credit life insurance is $220,000 and you may have a higher mortgage; some policies may cap the amount at less. The maximum amount for all other debts is $55,000.
    * The lender or insurance company can cancel your credit insurance with advance notice if you pay your premiums in monthly installments. If you've paid with a single premium, your credit insurance cannot be cancelled.

Citibank Secured Credit Card

The Citibank secured credit card, which is more commonly known as the Citi Secured MasterCard, may be a good option for you if you're looking to rebuild your credit. You can open one even if you have some negative marks on your credit report because you use a certificate of deposit as collateral. This interest-bearing certificate can have a balance of $200 to $25,000, and your credit limit is equal to the amount you have on deposit, up to $5,000. Using this method, Citibank does not have to assume any risk. It knows that you have the money to repay any balance you owe.

Features of the Citibank Secured Credit Card

This credit card doesn't require a cosigner or have any income requirements, and you get many of the features of a regular Citibank card. These include:

- Purchase Protection - In most cases, you can get items that are stolen or accidentally damaged replaced if you buy them using your cards. This is valid for the first 90 days after you make the purchase.

- Zero Liability - You aren't responsible for unauthorized charges if someone steals your credit card number.

- Car Rental Insurance - If you rent a car and don't use the rental company's collision policy, you're covered by Citibank's rental insurance. Note that this is only true if you use your card to pay for the car rental.

You can also sign up for PayPass if you so choose. This innovative product lets you make charges even when you don't have your card on you. Simply use your PayPass, which you can attach to your keychain, by tapping it on a designated reader. You may not even have to sign anything, depending on the amount you spend.

Additional Details

As of July 2010, this card had a variable rate of 12.24% APR and an annual fee of $29. You have a 20 day grace period in which you do not have to pay finance charges on purchases if you pay your balance in full each month. If you're careful with your spending and don't pay late or go over your limit for a period of 18 months, you may find yourself eligible for a regular Citibank card. You could also notice a significant improvement in your credit rating, as long as you keep up on your other bills as well.

A Word of Caution

Even though this is a secured credit card, it can still negatively impact your credit if you don't manage your account properly. This card has a default interest rate that is substantially higher than its regular rate, so you need to be careful that you don't miss payments. Also, even though you have your Certificate Deposit as collateral, that doesn't mean that Citibank can't ultimately send your account to a collections agency.

Little money, big stress

Little money, big stress !!! Those on the opposite side of the spectrum also have stress. They may love their job, but financially things are really tight. Sometimes it takes thinking outside the box. What are some other ways you can make a little extra money? What are some expenses you really could live without? Work together as a family to make a plan to make things work.

Big money, big stress

Big money, big stress !!!  If you are making good money, that is wonderful. So, stress and money do not go hand in hand for you…or does it? Usually if you are making good money, it comes with some pretty good stress too. In the corporate world, money and stress really go hand in hand. There is a reason the more responsibility you have the more money you make. Then you may get into the situation of not really liking your job, but the money is so good… Then you feel stuck. If you are in this situation, please remember no amount of money is worth your happiness or your health. If you find yourself miserable, there is a way out, you just have to be willing to look for it.