Financial Safety Advice

The financial asset is usually a legal document that represents an investment or an economic right for who is giving money and is a funding mechanism for those who broadcasts, in other words, getting the money borrowed. There are other types of financial assets that are not necessarily documents.

The entity or person issuing the document named issuer, he acquires an economic obligation to the person or entity that acquires the title, and the latter in turn expect to receive income or return on investment, this is called the beneficiary.

1. Term Deposit Certificates (CDT): This title is freely negotiable with which a natural person or legal entity may deposit an amount of money to withdraw after a certain time, profiting on your investment performance. Terms can be 30 days later being the most common 30, 60, 90, 180, and 360 days. May issue commercial banks, savings and housing corporations, financial corporations and commercial finance companies. The rate of return on your deposit is determined by the amount, term, corporate responsibility and the prevailing market conditions at the time of its formation. Are nominal, ie, its value is listed in the document, and are not redeemable prior to maturity. Read the rest of this entry →

Financial products such as “passive” are those that allow the holder to deposit money in institutions such as banks, banks and credit unions, having these should return the money under the conditions stipulated by the contract. Within these financial products such as “passive” There are three types, the most common: current accounts, also called demand deposits, savings accounts and term deposits. Each of these types of accounts has certain characteristics that make their specificity and are not detailed by law, as defined by the practice of everyday activity. Here, then, what are some of the characteristics of these types of accounts passive.

First, the deposits are defined by the ability of the incumbent has to make money income and the obligation of handing the bank at any time that the holder has. These types of accounts usually have some form of remuneration, but not always, but is less than that of other types. Current accounts are accounts also have what is called a “service box” asset and that helps the operator can use it to make and receive payments in an active form. For example, to make check deposits, household bills, pay checks, cash withdrawals, and others. These operations usually involve some kind of commission. Read the rest of this entry →

At a general level one can distinguish between insurers (that we will discuss in another article) and banks.

In Spain there are four general types of banks:

Private institutions banks are usually publicly traded company, and is used mainly to mortgages and accepting deposits.

Savings. Are virtually identical to the banks except two characteristics:

1. Are public institutions owned by one or more government (municipality, region, county council, etc).
2. They do not pay taxes, but instead are required to distribute at least one third of its profits to works of social interest.

Credit unions. Are very similar to the savings banks, in fact it is often difficult to distinguish because they also adopt the name “box.” The main characteristic of these entities that are not public property, are actually owned by a “financial cooperatives.” Credit unions are often associated with a cooperative association or industrial or sectoral, so for example the Fund is linked to the Lawyers Bar Association. Read the rest of this entry →

Everyone knows that there are many types of financial products. In today’s market is a great diversity of conditions that make that we have an incredible range of possibilities when investing. In contrast to this, there are only three possible guarantees or tricks up its sleeve Frequently, guarantees are saved to grant the rights or money in a financial transaction.

Financial guarantees are considered to ensure compliance with the obligations entered into, and vary depending on what the asset or the exact conditions to be signed between the lender and the borrower.

It is very common for us to know his name but not really know what they are, so let’s try to explain each of the three financial guarantees:

* Endorsement: the figure of the guarantor may be a natural or legal person, raises the most common of all. If a situation of default by the first payer, and therefore does not take over the debt, the guarantor will have to take care of it, and so on with all guarantors who signed the original warranty (can be a or more).

* Mortgage: the financial institution with which we signed our financial asset may be made with personal property as collateral in case of occurrence of a default. Normally we talk about real estate, although sometimes it may be a case of movable or be seized under judicial examination.

* Or surety bond: it is the least used, but it is a security deposit so that prior to the signing of the contract, making a figure similar to that of a voluntary endorsement. Its use is widespread as a sign of confidence for the rental of various types of assets, as is insurance under which the tenant from the first time.

If we value these financial guarantees in modern times must take into account that have a positive side and negative for any financial agent needs to act in an operation and will require a guarantee. Although financial guarantees to cover the needs arising from staff towards safety on the market, why not always good for us all.

Financial guarantees have a positive side because it can protect against some types of financial stocks at some risk, but also a negative side, because if we fail to achieve an economic level sufficient to acquire certain warranties or guarantees required, we may see injured as financial agents in getting a claim that we need.

Normally, we can achieve an improvement in the conditions if we made a deal closed with respect to security with our borrower. In most cases, even when there is an improvement of those conditions will not be able to reach a minimum level of funding required to achieve prior to address the payment of these guarantees.

The securities, therefore, are necessary insurance, located within the free market, but sometimes they can hurt us directly to get some active and we do not have the necessary conditions to sign a financial guarantee.