Banking experts estimate that up to £5bn may be sitting unclaimed in UK bank accounts that have gone ‘dormant’. What does this mean, and could you be entitled to a share in this huge amount of idle money?

A bank account goes dormant when, in the words of the British Bankers’ Association, a bank and a customer ‘lose touch with each other’. What this usually means in practice is that a customer has either passed away or moved house, and the bank haven’t been told and are unable to locate the account holder some time later.

If there are no transactions on an account over a period of around 12 months, the bank will write to the account holder at the last known address to ask them if they wish to keep the account open. If no reply is received, then the bank will change the status of the account to ‘dormant’. This means that from now on, no statements, chequebooks or other correspondance will be sent out to the customer.

The money in the account will still earn interest at whatever the normal rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the holder.

There are two main reasons for an account being made dormant. The first and most obvious one is to save the banks the administration costs of sending out statements and the like when there is no activity on the account from month to month (other than that initiated by the bank itself, such as interest payments).

The more important reason however is to guard against identity fraud. If a bank continues to send statements to an address when the account holder is no longer there to receive them, it is all too easy for these documents to end up in the hands of fraudsters, who could use the sensitive information they contain to begin a campaign of ID theft.

Most dormant accounts will have very small balances, but some will inevitably contain a substantial sum, often those belonging to someone who has passed away. If you think you may be entitled to money held in a dormant account, you can make a claim by filling in a form available from the bank in question.

You will need to give your reasons for making a claim, such as that the account belonged to a close relative whose estate was passed to you. You will also need to prove your own identity, and your connection to the original account holder if applicable.

If the bank don’t agree that you’re entitled to take over the account, you have the right to pursue an appeal, where your claim is re-examined. If the appeal fails, you can take your claim to the Financial Ombudsman Service, whose decision is final and binding.

Nicholas Hunt is a contributing writer for Onestop Finance, where you can find more information on bank accounts and unclaimed money.

I believe the best savings account for kids is an online account linked back to a local savings account. I think it is important very early on to educate children about the differences between rates of return and the usefulness of both types of banks (local and online). Both types of saving and loan banks serve a purpose for families and understanding how the two are the same and different will start your child down a good life long learning path.

There is no doubt that most people find finance and banking utterly boring. It simply is what it is. On the other hand there are a few fundamental concepts to teach children at an early age that will help them intuitively understand more important financial aspects in later years.

First among them is to differentiate between banking offers. Figuring out the best savings account for kids at your children’s ages is a great opportunity to explore the different offerings in the saving marketplace and including the kids in the discussion.

Topics to discuss might include:

• What is an interest rate?
• In what country is this banks’ headquarters?
• What does FDIC mean?
• Which bank has the highest rate?

All of these factors should be a part of parents’ discussion with children about which is the best savings account for kids. It is also perfectly alright to have the conversation more than once, as needs change and the child grows.

Parents who take the time to learn basic business and banking information for themselves become well prepared to teach and demonstrate finance to their children. Given that public education is virtually devoid of teaching of basic home finances any pointers parents give their children are vitally important, because they won’t get that information elsewhere.

While ultimately the lessons of basic money management are dull they are important. Here are some tips to help make the discussion about a savings account for kids more fun and meaningful to them.

If you’re not sure about banking online, here’s a few thoughts on how to open a bank account online wisely.

Jay P. S.

Checking accounts offer people a safe way to store their financial resources but have easy access to the money. It used to be said that ‘cash is king’, however, in today’s financial environment, that is not necessarily true. Much of business is conducted online and with electronic machines operated by debit cards. In both cases, people generally use funds maintained in checking accounts to cover payments.

Checking accounts are so-named because historically, people that wanted to access money in the bank had to either go to the bank, or write a check to do so. It is hard to imagine this scenario today. While some people still use checks to pay bills or make other payments, online bill pay programs, debit cards, and other direct withdrawal methods have eliminated much of the reliance on paper checks.

Opening a checking account is fairly simple with most banks. This is especially true with a basic consumer account. Applicants simply complete a form, often done online, and share some personal information with the bank. There are various types of checking accounts that offer different options. Some accounts are free or basic accounts that charge no fees but offer no extra perks for consumers. Other accounts may provide small interest for money in the account or other perks, but may charge monthly maintenance fees.

Retrieving cash from the account is often done through electronic ATM machines rather than in the bank. Payments for products purchased in stores are routinely handled through debit cards that directly pull the funds from the account. Online purchases can be made with debit cards or through e-check programs that pay directly from the account. Many banks offer online bill pay where consumers can even have their bills paid directly from the account as opposed to with a paper check.

Putting money into the checking account is easy as well. Most banks have ATM machines spread through their coverage areas so consumers can use their ATM, or debit cards to make deposits without going into the bank. Many people have their paychecks directly deposited into their checking accounts, which makes the funds more immediately available and reduces potential holds placed on a deposited check.

All of these benefits have made checking accounts much more functional and easier to use for consumers. The competitive banking industry has also caused many banks to offer extra benefits with checking that did not use to be available.

Nicholas writes for Your Banking Guide, where you can compare current accounts and high interest deposit accounts.

In the course of its activities, a business corporation may owe fixed amounts to the vendors for the products and services it has received from them on credit. This is usually included in the category of ‘Accounts Payable’. It are meant to be paid in time. In the case of it getting accumulated, it can wreak havoc on the business concern. Businesses that find it cumbersome to keep track of the accounts payable and other such matters can go for outsourcing service delivered by reputed and reliable bookkeeping service Companies. Many a Company thinks that this is the perfect way to tackle these kinds of situations. Keeping track of one’s bookkeeping matters including Accounts payable during busier times can prove to be very demanding and troublesome. However, bookkeeping is one activity in any of the businesses where tasks and processes have to be completed within the stipulated time.

Of late, this service assistance is being offered by a lot many bookkeepers and bookkeeping Companies that are in the finance arena of bookkeeping services. The internet is recommended by many as best way to search for quality bookkeeping services and Companies in order to avail of its outsourcing services. As the internet is a vast world of information, all that one need to do is to search the internet for relevant information by making use of appropriate keywords.

You have to set aside some time amidst your busy schedules and have to conduct a proper research to know about the bookkeeping Companies that offer this service assistance to their clients. Search out an all-inclusive list of all the services offered by the various bookkeeping firms. As you step on the decision making mode, you need to obtain full information regarding the bookkeeping Companies concerned and their rates. One needs to check the security arrangements the bookkeeping firm has installed for the safe up-keep of the financial data of its client Companies. It is always better, if possible, to have some first hand information. Ensure that the security measures adopted by the bookkeeping Company are efficient enough to protect the customer Company and its financial data related information.

In todays world of increasing cyber crimes, online security of Company data assumes importance; and, one should never compromise on this matter. Gather references from their clients to know about the background and history of the bookkeeping firm. See whether they keep to the promises they make, for instance, regarding accounts payable task, well before you entrust your financial data with the bookkeeping Company. By resorting to Accounts Payable outsourcing, a Company gets to enjoy an array of advantages. One is that the Company gets to save considerably on the monetary front. It is mostly to developing countries that the bookkeeping tasks are outsourced. In these countries, there is no dearth of manpower and the available labour comes cheap. And, the accounts payable related tasks are carried out by bookkeepers with years of experience.

In addition to this, the amount saved can be diverted to other key areas of your business.

The author is an SEO copy writer.To know more about bookkeeping accounts and accounting & bookkeeping visit lbks.co.uk.

Here is a list of facts that you should know about second chance banking before you actually sign up for one of these accounts.

No Credit Check

Probably the biggest plus to these types of accounts is that there is no credit check involved. This makes a big difference for a lot of people as having no credit check can mean that your past financial problems won’t impact your ability to open this account. Because of the no credit check clause, many people who are banned from normal banks open up second chance checking accounts.

No Checking

Many second chance accounts don’t offer checking services. This may or may not be a big deal for some people, but it’s important to know at least.

Higher Banking Fees

Second chance accounts may give you the opportunity to have an account with a bank even if no other bank will give you an account, but don’t expect this to come for free – or cheap. You will pay a lot more money in higher banking transaction fees and monthly service charge fees with a second chance account than any normal bank account. If you are already counting your pennies, then a second chance account may not be a good choice.

Internet Only

Second chance banking is internet only banking. That means there is no local branch you can visit to discuss any problems you may be having. Internet banking actually offers most of the services you are accustomed to with normal banking, but you won’t have that face to face interaction of a regular bank.

Restore Relationship with Banking World

A second chance bank account can help you get a normal bank account, in time.

There are plenty of options online for bad credit bank accounts. Just make sure you do your research first.