When making bank transfers, it is important not only at what point an electronic transfer is made but at what point the transfer will be affected.
Therefore, it is necessary to learn, among other things, the rules applied in individual banks in the field of making transfers. This allows you to be sure that the transfer will be completed within the prescribed time.
In each bank, there are different rules for booking transfers. In this regard, you can talk about both hours when transfers are carried out in a given bank as outgoing transfers as well as incoming transfers booked on banks ‘clients’ accounts. Most banks during the day perform two or three times both the booking of incoming transfers and the execution of outgoing transfers. When you have an account at a specific bank, it is worth checking exactly which hours are valid in this respect at the selected bank. Individual banks have different hours of both incoming and outgoing transfers. The first outgoing transfers are carried out in the banks in the morning, that is between the fifth and the sixth hour. At about the same time, the first postings of incoming transfers are also carried out. Last transfers are booked or carried out in the late afternoon hours.
Why is it worth knowing when transfers are posted?
When you want to make a transfer on a given day so that the money reaches the other person’s account on the same day it is necessary to have knowledge about the time of bank transfers in which you have an account and you must know at what times the bank, in which is the account of the person to whom the money is sent, performs the booking of transfers. When you make a transfer in the morning, it will be easily accomplished on a given day when you have enough funds on your account. However, the problem may be the implementation of transfers in the afternoon. Then you need to check exactly whether it is possible to execute a given transfer on a given day from the point of view of the time of posting transfers and sending transfers at banks.
Operation of the banking system
One should also take into account that banks use a special interbank system, which is also part of the international system of transfers. This system allows you to make transfers only on business days. Therefore, the bank transfer, which is ordered in the evening on Friday, will take place only on Monday morning. The same applies to all weekend transfers, which will be carried out at the bank where the account is only on Monday morning and they will be credited to another bank on that day. The only option to make transfers on Friday evening and weekend, which allow you to send funds to another person’s account without using the system of inter-bank ordinary transfers, is the use of express transfers.
Having a personal bank account is already a standard. We can set them up in any bank serving individual clients. However, not all of them can offer us an account for free. Sometimes, in order not to pay, we must meet a number of conditions. What should we remember when looking for a good bank account?
A bank account allows the customer to dispose of the funds collected on it. We can deposit and withdraw, pay with a card, use it to create a deposit. Now, access to account information is even easier than years ago, because we can do it online. We will also perform a number of operations related to our account via the internet, for example, we can order transfers. A bank account, especially that with online access, is today a standard.
In the last year, most banks have raised fees for using the account or introduced additional conditions required to meet when we want to have an account for free. Finding the perfect account is therefore difficult, but not impossible.
Account for free – under certain conditions
In a number of banks, we can still find basic accounts for free, but many of them make the lack of fees dependent on meeting specific conditions. The main of them are defined incomes on the account, for example, 500 or even 2000 PLN per month. If no such amounts are deposited on the account, the bank will charge a fee of a few or even several zlotys depending on the price list.
Opening and closing an account is free in the vast majority of banks. The same applies to online transfers, but it is worth checking if the bank limits free transfers to a certain number, for example, 10 per month. Also, transfer fees often apply to savings accounts. The first transfer from such an account is usually free, and the next ones are quite expensive, for example, they cost PLN 5 each.
Payment card to account for free – when possible?
Subsequent fees are associated with the use of a payment card. Today offers with unconditionally free cards are virtually unheard of. In order not to expose yourself to a monthly fee for having a card, we must usually perform a certain number of operations or pay a specific sum with our card.
Additional fees are associated with withdrawals from ATMs. Withdrawing from a bank ATM or cooperating ATMs is generally free, although some banks have started to introduce fees in the case of low payments, for example below PLN 100. We will pay for withdrawals from other ATMs.
The perfect account is an account tailored to you
Therefore, finding an account that will not be associated with any fees is possible, but usually, we have to meet certain conditions. It is best to look for such a bank account, whose requirements we will be able to implement.
When we do not have an overview of current offers, we can help online rankings to find good bank accounts, which present the full range of offers on one website.
Together with the growing awareness of Poles about entrepreneurship, as well as the growing willingness to look for new paths of self-realization, we can note the growing popularity of established business activities. No wonder that the Polish Internet is constantly flooded with countless questions on topics related to starting a business. What is worth knowing about this topic?
Although the bureaucracy and the amount of time devoted to the business registration process are still being criticized, it is worth noting that starting your own business in recent years has become much simpler. It is also worth to learn the basic features that characterize running a business, ie the stages that we must include, that the process of setting up your own company, for example, is effective and efficient, without causing unnecessary troubles and complications. How does Polish law define a business activity, how it defines its objectives and what it requires so that it can be legally assumed? Let’s look at the issue of economic activity in Poland comprehensively.
Economic activity according to Polish law
Economic activity is defined first by the Law of Entrepreneurs Act as an integral part of the sphere connected with them. In the third article, we read that economic activity is organized gainful activity carried out in our own (our name), keeping the continuous mode. It is conducted by an entrepreneur, in the letters of the regulations referred to as a natural person. There is one important condition – the income it receives from operations cannot be less than half (50%) of the minimum wage in any month (currently PLN 2,100 gross).
The second definition of economic activity exists in the Tax Ordinance. We read there that activities defined in the Act on the Law of Entrepreneurs are included in the business activity, adding their own definition. We read in addition that the term in question is: free professions and other gainful activities, which we perform on our own behalf and on our own or someone else’s account.
The Act on the social insurance system gives the right to be a business owner: artists and musicians, entities running private schools, partners in partner companies or limited partnerships or running a business as a freelancer
The Act on the tax on goods and services is an economic activity called all activities of service providers, farmers, producers, traders, and freelancers. In the case of the last group, it deserves the title of business, even if any activity within the scope of a free profession was taken only once.
In turn, the Act on income tax is an economic activity as a gainful activity of a productive, construction, service and mining nature. It must only be done in an organized and continuous manner.
What are the business objectives according to the legal letters?
The objectives that guide entrepreneurs running a business under the law are divided into two categories.
External objectives – paying taxes, fees and tributes to the state treasury, creating the Gross Domestic Product (GDP) and paying insurance premiums to ZUS
Internal goals – the fulfillment of financial assumptions, profitability, development, etc.
The rules assigned to the business
The principle of freedom of conducting
The principle of fair competition
The principle of self-responsibility for obligations
The principle of legal equality of all economic entities
The principle of respect for consumer rights
The principle of state support for small and growing enterprises
Who can set up a business?
No specialist qualifications are required to successfully set up a business. We do not have to be qualified specialists in the field of the market in which we want to act. However, people who want to employ better, to have adequate – although partial – education. An important condition is only the action within the limits of the law and compliance with the principles of health and safety both by the entrepreneur and the employees employed by him.
The process of establishing a business
In order to establish our business activity turned out to be efficient, effective and not incurring additional problems, it is worth getting acquainted with the chronological process of creating our own company and preparing for the below-mentioned collection of documents and visiting relevant offices.
First, we determine the nature and form of our business, find the industry and market section in which we will operate and select the path of one-person activity, or in cooperation with others on the basis of, for example, a joint-stock company or a limited liability company
It is worth creating a business plan in which we will consider the potential costs that we will incur during the setting up process and what we will want to do
It will be necessary to determine the amount of financial contribution that we will allocate for the “start-up” of our activity
Once we’ve decided everything, it’s time to register in the Central Register and Information System on Business, that is, to register all the information about our future business. They will be publicly available, e.g. in the Public Information Bulletin. This process is described in more detail in the above-linked text.
If the registration process in CEIDG is successful and there are no disqualifying reasons, we have a free hand to implement our business plan. The first will be to set up a company bank account. If our company will operate large amounts in the future, we have no other choice – from January 2017, each company transaction over PLN 15,000 must be paid by bank transfer. We do not necessarily need to set up a previously unused account – we can also rename our private one. However, it will be necessary to inform the tax office and ZUS about this fact.
Offices, which we must visit:
The next stage will be a visit to the Tax Office. We will have to create our tax identification number (NIP) in it, register as a VAT payer, as well as the tax settlement method.
Then we will have to go to the Central Statistical Office (GUS). There, we get another ID number, this time – REGON. If we are a public company, we receive it immediately. If not – he will be sent by mail to the month from submitting the application to the CEIDG database.
We will also not avoid a visit to the Social Insurance Institution, during which we report our company as a new contribution payer. In print, which we place in the office, we enclose our tax identification number, REGON number, our personal data, company bank account number, as well as the number of the entry in the company records and the number of our ID card.
We visit the offices of the National Labor Inspectorate and Sanepid if we plan to hire employees. For the first office in such a case, we have time to go up to 30 days after registering the activity, and to the second – 14 days (two weeks).
Next, we need to obtain a license (see next headline) or permit our business to be fully legal and comply with applicable laws.
The last important step in setting up the business will be to decide who will deal with the accounting – we can settle it with the help of a person employed for this role, an online accounting program or going to the office offering services in the accounting.
The state has provided for an additional concession authority for a selected type of economic activity if it is of particular importance to the public interest or the state’s good and security. It is granted for a period of 5 to 50 years. It belongs to this group:
Running a casino or a games room
Providing chwilówek and loans
Offering air transport
Dissemination of radio and television programs and programs
Running a security company offering services in the protection of people or property
Extraction, exploration or processing of deposits from mines
Manufacture of weapons, ammunition, explosives
Manufacture of goods for the needs of the army and police
Production, processing, and distribution of fuels and their trading
As you can see, setting up a business is a time-consuming piece of bread, but with the right luck (to hit the right niche in the market) it can be our best decision in life, which we will never regret. It is only worth properly preparing for the complex process of setting up our business, remembering relevant documents and costs.
What type are you when it comes to spending money? Do you like to have a stack of thousands of files hidden under the mattress for bad times? Or did you empty your Dankort before reaching the fifth of the month?
Whichever type you are, there is good learning in understanding your own habits and patterns of action. You behave in a certain way, both because you are the one you are, but also from what you have learned from home or by looking at others.
By understanding why money doesn’t make you big or you can’t keep the nails from a bargain, you can get better at changing the habits and patterns you don’t like.
Now to the venture …
It’s been three years since you started a small IT business. Business is absolutely brilliant. So good that you are going to invest in an extension. You see your business for your inner look grow big and with it follows big money.
For you, the entrepreneurial adventure is not just about providing IT services to the customers. It is also very much about making money and raising more money on them.
That’s why you rarely look back. You also storm with an intense look aimed at the next investment that can make you rich.
You are not afraid to take the risks involved. Time is too precious to go into detail and analyze too much before making a decision. If you have a good stomach feeling, then you go after it.
You actually get a kick out of chasing the good trades and investments. It is a great satisfaction for you that you have been able to start from scratch and reach where you are today in a relatively short time. So much so that you have a hard time holding back. You want more.
It has gone wrong a couple of times. But where trading is, there is also wasted, is your motto. Because if you just stared at all the many chances of making big money, then nothing happened.
You hope your company will be so valuable in a few years that it will be bought for a staggering amount of a big player in the market. Not that you would stop and retire to a small South Sea lake with the family for that reason. No, it would just be the start of a new and wilder entrepreneurial adventure.
But for now, you spend all your waking hours on the company expansion. You’re sure the millions are waiting ahead if you keep chasing them.
Don’t you use all the mobile data you pay for? Do you pay for team training in the gym, even if you only use the exercise machines? Do you only stream, even if you pay $ 450 for a TV package? Slip on to pay more than most needed for your overheads by scanning your finances for possible savings.
Review the cost one at a time and examine if you can find cheaper alternatives to the mobile bill, fitness subscription, insurance, electricity bill, and TV package. Here’s how easy you can figure out the costs.
Then you only pay for what you need – without missing, settling on a stone. There can be huge savings to be made!
2. Recycle rather than overuse
It is so tempting to go out to buy new when the chance comes. Birthdays, start-ups, parties and a new season always give rise to a renewal of the wardrobe. But do you really know what is hiding in the wardrobe?
Get all the clothes out of the closet and go exploring. You will surely find something you had forgotten you bought half a year ago or something you would like to join here again this year.
Do you want more money between hands for pleasures and things you really want, instead of using them in hasty and irrational purchases? Then recycling is the way forward. Here are a few suggestions that can release more coins in the budget:
Hold ‘change-clothes-evening’ with friends and inherit each other’s clothes
Become the owner of others’ made-up clothing items or sell your own
Stop over-consumption and try out ‘non-shopping’
3. So stay with the food plan
Success with a food plan is easier said than done. It requires you to feel like it and energy for it. Don’t you want to decide what to eat for the whole week? Can’t you go shopping for so many days? Or is it just too organized and boring? Then the food plan is not a good match for you.
Do you, on the other hand, need both financial and mental profits in everyday life? Fewer shopping trips with the rest of the family Denmark, when the clock strikes five? More quality time with the kids or your favorite series on Netflix? Here are a few different suggestions on how to get started:
Haps a food plan online
Buy large amounts of basic goods
Copy paste a month’s meals
Read more here, where we go into depth with the easy tricks for a food plan without unmanageable planning.
4. Happiness moments without spending money
Some can spend 5000 kroner on shopping without having to deal with the bills for the rest of the month. Others have to turn every ear to make the economy stick together. In fact, whether you’re a big spender or a savings shark, there are actually moments of luck to pick up without spreading a single penny.
And in fact you can get this long-lasting feeling of happiness all the way without getting into the next charter flight to Mallorca:
Take a walk in the woods and enjoy the season’s scents and colors
Borrow a stack of good books home from the library
Visit free museums and cultural offers in the surrounding area
Raise your friends or boyfriend out to winter baths
Find the best movie classics forward and low home cinema in the living room
It doesn’t take much to choose the free experiences over those who cost money. But of course, there must also be room for you to spend money on rides in Tivoli, cinema tours and concerts. The point is just that the experiences that cost money do not necessarily give a greater happiness boost than those who do not cost money.
Establishing a fixed and regular deadline for transferring payouts for the period worked is a basic issue raised during the commencement of work. This is even regulated by the Labor Code. In spite of this, many employees regularly face problems related to receiving a salary on a date. What to do if the employer is late with the payment?
The Polish labor market is constantly changing, however, regardless of the period under consideration, it is characterized by a strong differentiation. The work is undertaken under various civil-law contracts – for work, commission, and work. There are also entrepreneurs who run sole proprietorship and self-employed. The gray zone, which despite being outside the law (work without contracts) regularly undergoes regular research, is interesting. In the latest report of the Central Statistical Office of October 2018, 5.4% of the total employed in the labor market work in it.
Delays in salary payment are a common phenomenon
Regardless of the form and nature of employment, a commonly encountered problem in the labor market is the late payment of salary. Thousands of employees complain each year about money reaching long after the set date or passed on to incomplete. According to the National Labor Inspectorate’s report from 2016, the annual amount of arrears reaches even PLN 180 million. On average, employers “are in arrears” to employees with an amount of around PLN 12,000.
In the face of problems with timely obtaining a salary, it is worth being aware of your rights and obligations towards dishonest or inaccurate employers. Timely payments, yes, do not always have to be the result of the intentional actions of the employer. Such phenomena, however, put people who work at serious risk of financial problems and other related problems – health, family, and others.
The employer is late with the payment – and what next?
In the beginning, it is worth paying attention to the issue of the payment deadline itself. Formally, this issue is regulated by art. 85 of the Labor Code. He says that the pay payable once a month must reach the employee’s account by the 10th business day of each month. It is worth adding, however, that another practice has been adopted in this matter. According to her, the employer establishes with his employee his own, agreed by mutual consent day, in which funds will be regularly paid.
In the event of a delay in payment, it is worth considering several aspects.
It should be assessed whether the situation is happening for the first time or is repeatedly repeated.
It is also worth determining whether the employer explained the delay in any way or whether it was not explained by the lack of timely transfer of the payment/withdrawals.
In the case of a one-time delay, it will also be convicted that there is no system failure, technical problems of the bank or too late sending a transfer before the weekend.
In the case of certainty that delays in payment of wages occur due to the fault or deliberate act of an unfair employer, it is worth taking up the fight against such practices – they are a crime. The law provides specific measures for them.
The employer does not pay on time? Report it!
The PIP is a competent office that supervises and enforces compliance with the provisions of the Labor Code against the labor market. Under the abbreviation is the National Labor Inspectorate. You should inform her about the situation, providing all necessary information about the employer and circumstances that result in the lack of timely received remuneration.
If such notification is received, the PIP must initiate the inspection procedure. Finding confirmation of the employee’s allegations, a penalty may be imposed on the employer. PIP has the right to grant it, but the case may also be transferred to the municipal court. At that time, an employer can impose up to 30 thousand PLN fine.
The general amount of the fine depends on how long and under what circumstances the employer evades the obligation to pay his employee on time. For each day of delay, interest is charged, and the employee has the right to take several decisive steps in court.
Employee rights in the event of late payment of salary
If the National Labor Inspectorate, as mentioned above, confirms the consumer’s allegations against a dishonest employer, then the employee has the right to redress.
He may apply for compensation in the amount of overdue salary or overdue salary. You can add interest for each day of delay, which amount falls on the employee’s account.
The employee also has the right to terminate the employment contract with immediate effect, recognizing the employer as guilty of the situation.
If the contract is terminated, the employee also has the right to apply for compensation for the period of notice.
Global monetary policy differences in 2015 will give different paths to return generation as well as periods with a higher degree of nervousness and uncertainty, which we saw later in October 2014. As a stock investor, one must, therefore, get used to a lower equity return, but with a continued positive contribution from the US dollar.
For a number of years, the economic development has been dominated by massive monetary policy stimuli through the central bank’s liquidity pumping out. In 2014, wealth management argued that the US companies were in a transitional period when the need for monetary-policy stimuli became ever smaller. The period ended in 2014 by the fact that the US Federal Reserve completely stopped buying US government and mortgage bonds. This means that the US economy is now on its own and must be drawn from fundamental economic improvements more than monetary policy measures. The end of the transition period means a regime change in relation to the return generation on the US stock market, while the US monetary policy is expected to be contractual.
Previously, the return on US equities was primarily offset by two factors. First, US companies have to a large extent adapted costs and streamlined operations in the wake of the financial crisis. The positive development in earnings has thus taken place without the same improvement in demand components and revenue, which is why this development with the current record high-profit margins must be said to be complete.
Secondly, monetary policy measures – primarily through quantitative easing – have increased investors ‘expectations that these would at some point have a positive effect on the US economy and thereby also on the companies’ earnings generated through demand and revenue.
Expectation building has meant that global investors have been willing to price US stocks more expensive on the expectation of its accelerating earnings. Precisely this so-called multiple expansion (shares traded at higher prices measured in relation to earnings) has drawn equity returns since 2012 and has meant that US shares can no longer be characterized as being cheap.
In 2015, therefore, the equity return must be driven by fundamental improvements in demand, which propagate to the companies through an improvement in revenue. With a record high-profit margin, a very large part of this revenue is converted into earnings. Thus, earnings will be the primary driving force for the US equity return. As Formuepleje does not expect the same positive effect from cost adjustments, efficiency improvements and monetary policy measures in the US market in 2015, as an investor everything else must expect a lower return on equities compared with earlier. So, as a Danish investor, one can expect a positive currency effect from the US dollar, I come back to later.
Strong divergence in global monetary policy
Where the US is “back to basics” in terms of return on the US stock market, the situation is different in Europe and Japan. In parallel with the United States, Japan has introduced quantitative easing in the Japanese economy in an attempt to lift the economy out of decades of low growth. The easing has so far had a limited effect on the economy, but also on both equity returns and valuation.
In Europe, the head of the European Central Bank (ECB), Mario Draghi, has in the autumn of 2014 strongly indicated that it will do what is necessary to correct the declining inflation and, in particular, falling inflation expectations. Property management, like the rest of the market, expects this to be interpreted in the direction of the acquisition of European government bonds in early 2015.
Japan and expected Europe have thus moved into the path that the United States left for years to kick-start growth and inflation. The challenge is that where the US is without monetary-policy stimuli, but with a significantly better fundamental health status at both macro and micro levels, Japan and Europe stand with zero growth, pressure on inflation and companies that continue to improve efficiency in trying to find earnings growth. In 2015, the marked difference in global monetary policy will be a central theme where investors must place their money. Are the US companies able to profit from the operational positive developments we see in the US economy? And/or do central banks in Japan and especially Europe manage to surprise those already high expectations in the market of the magnitude of monetary policy stimuli?
Oil price drops and the consequences of different monetary policy
A natural result of the pronounced divergence in global monetary policy has been a sharp increase in the value of the dollar against both the yen and the euro. In 2014, the dollar rose by 13 percent against the yen and 12 percent against the euro. In other words, this means that where Japanese and European companies with US export focus are favored by a weaker currency, it also means that US exporting companies are largely paying for the lack of convergence of global monetary policy through a stronger dollar. Overall, the US is a domestic-oriented economy, but the US export wind will have an impact in 2015.
With a US central bank expected to raise interest rates in 2015 as a result of the continued economic improvement, it should also be able to expect further strengthening of the dollar against the yen and the euro, although this position is one of the most widespread in the financial markets.
On the other hand, pressure on both European and American oil since the summer of 2014 is estimated to have the greatest effect in the US. This is because the dollar strength relatively speaking makes oil more expensive in Europe compared to the US.
Overall, the oil has fallen by 48 percent and 42 percent, respectively, in 2014, and in reality acts as a fiscal easing. The ordinary consumer of energy – either through house, heating/cooling, gasoline, diesel or anything else – will experience a greater availability as a result of the fall in oil prices, while energy-intensive companies, including the manufacturing and aviation industries, will experience a cost-saving, like everything. Other things to be expected to propagate to earnings growth. Conditions that will support growth on a global scale and to varying degrees.
The global equity investor has put himself on the chair edge
An American stock market, which to a greater extent than previously, is drawn by the companies’ operations and earnings growth, makes quite natural – unlike earlier – that investors in the US stock market will experience larger price fluctuations at times. In recent years, the US central bank has been a natural part of the direct and indirect return generation on the stock market. With the removal of this factor, US companies are back on their own feet dependent on US and global consumers.
This, as was the case in mid-October 2014, will, of course, lead to situations where fear and speculation dominate compared to developments in fundamental conditions. And with a central bank that is no longer a permanent component of the US bond market, one should, therefore, expect a number of situations where the stock market will be challenged as a stock investor. However, wealth management still believes that equities as an asset class are attractive both given the fundamental conditions and in the relative perspective so that the equity portion of the wealth management associations’ equity portfolio remains maximally utilized within the given investment limits.
The ultimate proof of the global monetary divergence will be when the US central bank is expected to raise its key interest rate during 2015. The central bank raises interest rates because the economic development is positive and that, as a result, inflation pressure can be recorded or expected. Notwithstanding the fact that interest rate rises in the wake of high economic activity, these have historically tended to increase volatility in the stock market, which will of course also be the case in 2015. Over a longer horizon and with limited structural changes in interest rates, it seems that however, it is still possible to generate a reasonable equity return.
Continued positive on equities, but expect lower returns compared to earlier
2015 will be a stock year, where large monetary policy differences will dominate the agenda. Differences that have arisen in the way one as a country or region has chosen to attack the local challenges that arose in the wake of the financial crisis. The result will be, among other things, a continued strengthening of the US dollar against the yen and the euro for the benefit of Japanese and European exporters.
Larger US dependence on each company combined with a contravening US monetary policy will change the risk profile of what we have been used to and increase the likelihood of nervousness, fear, and corrections as was the case in October 2014.
The expectation of a positive global growth trend led by the US and China, fundamentally strong companies, a global consumer in recovery and tailwind from a declining oil price and currency conditions, means that at the start of 2015, the wealth management associations will continue to be exposed to maximum shares within the current investment framework. However, return on investment must, as an investor in 2015, expect a lower equity return than in previous years. Basically, 5-10 percent measured on the global index, but with a positive dollar effect on the top as a Danish investor.
In recent weeks, interest rates have generally risen in Europe and thus also in Denmark. This has negatively affected the bond portfolios in the short run. In the future, however, the return will be improved precisely as a result of the higher interest rate level.
In recent weeks, wealth management has received inquiries from investors who have asked for the sudden increase in interest rates and the resulting negative returns on the bond portfolios. However, even though interest rate hikes, which also hit medium-term mortgage bonds, had a negative impact on the return in the short term, the difference between the loan interest rate and the investment rate has actually improved over the past few weeks, which means that the forward-looking return potential has increased.
Two reasons for price falls
There are two reasons why bond portfolios have been affected by the current interest rate increases/fall in prices. Firstly, the long-term interest rate has risen, which has also raised the interest rate on the medium-term bonds – not as much as they are long-term, but enough to give a negative effect. On the other hand, long-term Danish mortgage bonds have been hit harder relatively speaking. However, since the peak of the interest rate increase in early May, these effects have slowed down slowly.
Property management’s overall interest rate strategy, as determined by the Investment Committee, has been and still is that the bond portfolios must be protected against interest rate increases in the long-term interest rate. Therefore, the portfolios are primarily invested in mortgage bonds with a maturity of between three and five years. These bonds are sensitive to interest rate changes in the short and medium-term interest rates. Here, wealth management believes that potential interest rate increases will remain at a low level for the next couple of years, partly as a result of the European Central Bank’s easing monetary policy.
Property management has deliberately kept a relatively low-interest rate sensitivity in the bond portfolio with hedging of the interest rate risk on long-term interest rates through financial instruments. These financial instruments have proven their worth during the recent turmoil and have neutralized the current interest rate increase in terms of long-term interest rates, but not the increase in short and medium-term interest rates.
Although it would seem that banks should reduce their fees, in reality, in the recent past, it is quite the opposite – more and more banking institutions in our country are increasing fees for their clients. What should we do when it also affects our problem?
It’s becoming harder and harder to find a free bank account, i.e. one that will not cost us a penny. Banks are increasingly increasing basic fees for clients. However, we do not have to accept significant costs. There are a number of ways to lower them and at the same time conveniently use various banking products.
Expensive bank account – how to change it for cheaper?
In recent years, banks have primarily raised fees for using the account, which is one of the basic products in their offer. Almost everyone has an account at the moment. Even when it costs us 4 zlotys a month, it’s almost 50 zlotys a year!
Therefore, when you do not want to overpay for a bank account, you should look for this free one. Although accounts of this kind are no longer common, they still happen. Many banks also allow free account maintenance under certain conditions, such as monthly inflows of a certain amount.
Of course, we must remember that, along with the terms and costs of running a bank account, check other bank products, such as fees for using a payment card or withdrawals at ATMs.
The payment card may cost 0 PLN
Payment cards are the second popular banking product – they are now normally included in the basic bank account so that you can easily and conveniently withdraw money and pay in stores.
Here, there are further fees for customers. Currently, finding an account with an unconditionally free card is virtually impossible. However, also when we meet certain requirements, we will be able to use the card for free. Charges can be avoided if we perform a certain number of card transactions within a month or pay it the agreed number of times. Otherwise, we will pay from 4 to 10 zlotys per month for the card.
Payments from ATMs
The use of the card also involves withdrawals from ATMs. In most cases, withdrawals at an ATM belonging to a bank will not cost us a cent. However, it is worth pointing out that some banks are starting to introduce commissions for the payment of small sums below PLN 100.
In addition, there are growing fees for withdrawals from ATMs that do not belong to the bank. We will pay about 7-8 zlotys for withdrawing money from an ATM in the country.
How to transfer to another bank?
When the offer of our current bank does not fully satisfy us, we can decide to move to another. This is not a quick procedure, but it will allow us to save quite a lot of money in the long run.
Remember that we can not transfer the bank account number itself – the account numbers are assigned to specific banks, so we change the account number along with the bank change. In the beginning, let’s get to know different offers and choose the best one. Then, let’s create a new account, and then in the next step, close the old one, when we transfer or select money from it and change the account, we will notify others.
The times when savings in the company scheme could only be placed on deposit accounts or bond investments are long gone. However, there are still strict rules on how you, as an auditor, lawyer or another self-employed person, may invest the money you have saved in the company scheme. By examining the possibilities, you can spread your investments and optimize the relationship between return and risk.
The problem with investing its VSO funds in single stocks is that it is considered a withdrawal. Therefore, the entire amount invested is considered personal income and is then taxed. If, on the other hand, you choose to invest the company’s funds through an accumulating department, you can invest in both shares and bonds. Essentially, it should be noted that the longer you can postpone your withdrawals, the more advantageous it is when the top tax limit increases every year (2018: 498.900).
Postpone raising and lowering the tax
According to section 1 (1) of the Companies Tax Act. 2, the funds covered by the company scheme can only be invested in shares when this is done through investment in tax-free investment companies.
It is good for the long-term investor who wants the savings in the company scheme to be invested wholly or partly in shares because it can often be a really good business to examine its opportunities.
If, for example, one chooses not to raise the entire profit in the company, it is possible to save the remaining amount in the company scheme. However, it requires that you pay a preliminary tax on the account, which at the time of writing is 22 percent (2018). By only having to pay a tax on savings on the profit that is not raised at the time of saving, one obtains a liquidity-saving. If it had been said that the whole amount of the savings had to be taxed as personal income, one would have to pay up to 54.7% * in tax on the last earned crown.
An investment in shares and bonds can be a good supplement to, for example, property investment, because investing in equities can help ensure that the overall balance has the optimum return-risk ratio.
Invest VSO funds
The majority of the wealth management associations are subject to the rules in section 19 of the Danish Companies Act on tax-free investment companies, and therefore funds covered by the company scheme can be invested in wealth management’s accumulated (taxed) investment solutions.
Contact one of the wealth management wealth advisers for an informal and non-committal review of the possibilities of investing savings in the business scheme through the accumulating wealth management associations.