下载
5. Fewer Bank Failures
by kim
# Interest amount: Interest is generally paid on capital invested in debt instruments, such as bonds and mutual funds, as well as cash investments, such as savings accounts and certificates of deposit (CD). Interest can be either simple or compound. Simple interest is the interest calculated on the principal amount and does not take into account the time value of money (which refers to inflation/deflation and increases or decreases in the purchasing power of the invested capital). Compound interest is calculated on both the principal and the interest accrued over 12 months.
3. More Bank Loans to Consumers
Ah, see, regular people should also get a piece of the loan pie in 2011, too. Home loans are still probably going to be hard to come by, but analysts have been predicting that auto loans should be an area of growth. But for those who can get a home loan, especially if your credit is stellar, banks are at least continuing to lower interest rates. According to LendingTree.com, a fairly solid indicator of how the mortgage market is doing, the average rates offered by lenders just fell once again in the past week to 5.01% for 30-year fixed mortgages.
4. More Mobile Banking Opportunities
Of course, that was something we were able to look forward to in 2010 as well, not to mention 2009 and 2008 ... well, for the past few years, in fact. But 2011 looks pretty promising. Bank Systems & Technology predicted late last year that "2011 will be the year in which financial institutions will look to capitalize on the full potential of the mobile channel -- moving from basic user functionality to full mobile finance." To look at it another way, your bank will pretty much be in your pocket.
Along those lines, I'll give a plug to CashEdge, which announced that Fifth Third is launching Popmoney, CashEdge's person-to-person email and mobile payment services. It's the first time, according to CashEdge's press release, that bank customers can send money from their online bank to someone else's bank, just using that someone else's (presumably a family member or a friend or a creditor) email, mobile number or bank account information.
The bottom line: Expect 2011 to bring more innovative ways to do your banking more efficiently.
5. Fewer Bank Failures
In 2009, 140 banks kicked the bucket; 157 met their makers in 2010. There will unquestionably be bank failures in 2011, but most analysts predict fewer. We wrote a lot about bank failures during 2009 and 2010 on WalletPop, but as we noted then, many bank customers were hardly aware that their banks had shut down, since the process of transitioning a bank from failing to being owned by a more secure, reliable bank went so smoothly. If your bank does happen to fail in 2011, you probably aren't going to have too many headaches, if any. Still, fewer bank failures mean a better economy, which is good for all of us.
Interest and capital appreciation together form the total return on investment (ROI). For instance, if a bond is purchased at $20 and pays $2 as interest annually and the bondholder sells the bond for $25 after 12 months, then the ROI is $7 ($5 of capital appreciation and $2 as interest).
Different methods are used to calculate interest in varies types of securities:
* Stock dividends, US mortgages and GIC - Simple interest is calculated.
* Bond yields - compounds interest every six months.
* Bond coupons - are accrued daily and measured as simple rate.
* Stock indexes - Interest compounds annually on the price alone.
* Stocks and mutual funds - compound every time cash flows to/from investors.
* US normal mortgage - interest is measured as simple rate..
3. More Bank Loans to Consumers
Ah, see, regular people should also get a piece of the loan pie in 2011, too. Home loans are still probably going to be hard to come by, but analysts have been predicting that auto loans should be an area of growth. But for those who can get a home loan, especially if your credit is stellar, banks are at least continuing to lower interest rates. According to LendingTree.com, a fairly solid indicator of how the mortgage market is doing, the average rates offered by lenders just fell once again in the past week to 5.01% for 30-year fixed mortgages.
4. More Mobile Banking Opportunities
Of course, that was something we were able to look forward to in 2010 as well, not to mention 2009 and 2008 ... well, for the past few years, in fact. But 2011 looks pretty promising. Bank Systems & Technology predicted late last year that "2011 will be the year in which financial institutions will look to capitalize on the full potential of the mobile channel -- moving from basic user functionality to full mobile finance." To look at it another way, your bank will pretty much be in your pocket.
Along those lines, I'll give a plug to CashEdge, which announced that Fifth Third is launching Popmoney, CashEdge's person-to-person email and mobile payment services. It's the first time, according to CashEdge's press release, that bank customers can send money from their online bank to someone else's bank, just using that someone else's (presumably a family member or a friend or a creditor) email, mobile number or bank account information.
The bottom line: Expect 2011 to bring more innovative ways to do your banking more efficiently.
5. Fewer Bank Failures
In 2009, 140 banks kicked the bucket; 157 met their makers in 2010. There will unquestionably be bank failures in 2011, but most analysts predict fewer. We wrote a lot about bank failures during 2009 and 2010 on WalletPop, but as we noted then, many bank customers were hardly aware that their banks had shut down, since the process of transitioning a bank from failing to being owned by a more secure, reliable bank went so smoothly. If your bank does happen to fail in 2011, you probably aren't going to have too many headaches, if any. Still, fewer bank failures mean a better economy, which is good for all of us.
Interest and capital appreciation together form the total return on investment (ROI). For instance, if a bond is purchased at $20 and pays $2 as interest annually and the bondholder sells the bond for $25 after 12 months, then the ROI is $7 ($5 of capital appreciation and $2 as interest).
Different methods are used to calculate interest in varies types of securities:
* Stock dividends, US mortgages and GIC - Simple interest is calculated.
* Bond yields - compounds interest every six months.
* Bond coupons - are accrued daily and measured as simple rate.
* Stock indexes - Interest compounds annually on the price alone.
* Stocks and mutual funds - compound every time cash flows to/from investors.
* US normal mortgage - interest is measured as simple rate..