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Over the years, I've collected my share of free gifts from banks and brokerage firms. These include T-shirts, mouse pads, flash drives, and the most unusual flashlight toolkit . But what is the best gift that you've ever received from a bank or brokerage? To be clear, financial institutions reserve the best gifts for their customers who take a specific action like opening a new account, or making a substantial deposit to an existing account. These gifts are generally much more valuable than a T-shirt or flashlight. Some of the presents that I've claimed in the past include free airline miles, cash bonuses, personal digital assistants (PDAs), and an HDTV set . I have a few PDAs (Palm Tungsten 3, Palm VIIx, and Handspring Visor) that I've received from banks and brokers. Some brokerages like Fidelity offer customers airline miles for opening a new account. I've also opened a couple of credit cards that were offered in conjunction airline mileage programs. ...

Sources: FT: Derivatives Reform Will Not Prevent Next AIG ; Lawmakers Warning on Derivatives Rules ; Banks Anxious Over Fed Regulations A group of New York lawmakers recently sent a letter to US financial regulators including the Federal Reserve and the Commodity Futures Trading Commission, warning that a newly proposed rule on derivatives under the Dodd-Frank Act would hurt the competitiveness of the US financial institutions. The lawmakers also wrote in a letter that the rule would be “inconsistent with Congressional intent.” It is a margin rule that the lawmakers make an issue of, which applies to US banks as well as their foreign subsidiaries located outside the US. Specifically, the rule requires parties to some derivatives transactions to post cash or securities as collateral or “margin” in order to assure their obligations. Under this rule, foreign subsidiaries also have to collect collateral from their foreign clients. Unless foreign regulators do not adopt a similar approach, ...

Sources: Bloomberg: Hong Kong Banks Told To Hold Stress Tests Assuming $89 Billion In Outflows ChinaDaily: HKAB: Banks May Slow Credit Growth FT: Hong Kong Tests Banks’ Ability To Survive Outflows Market Watch: Hong Kong Banks Asked to Conduct Stress Tests Hong Kong banks will conduct another stress test to see whether they could withstand capital outflows of HK$650 billion ($83.52 billion) in customer deposits. Since late 2008, the amount of deposits in Hong Kong banks has grown rapidly by HK$1.38 trillion ($177 billion). As liquidity is tightening and the United States may soon raise interest rates, the Hong Kong Monetary Authority (HKMA), the de facto central bank, requested banks to test whether they could survive if customers withdrew half of such new deposits in six to twelve months. “When the US ends its quantitative easing, monetary policy and global liquidity will tighten, and this may cause more fund outflows in Hong Kong,” said Paul Lee, an analyst at Haitong International...

The brokerage optionsXpress is currently offering a $100 bonus promotion. First of all, don't let their name fool you. In addition to options optionsXpress also lets you trade stocks, bonds, futures, mutual funds and ETFs. And the name is really spelled with a lower-case "o" and an upper-case "X". There are a few conditions that you need to meet in order to receive the $100 bonus. But basically, you have to open a new account, deposit at least $500, and execute 3 trades within 12 months. With optionsXpress, you will have access to innovative, powerful trading tools, investment education, and outstanding customer service. As for commissions, optionsXpress charges $9.95 for stock trades, and $1.25 per contract ($12.95 minimum) for options trades. I will also note that The Charles Schwab Corporation (NYSE: SCHW) has announced plans to acquire optionsXpress Holdings (Nasdaq: OXPS). You can read the Charles Schwab press release here . So, if you were thinking of ope...

Sources: The Miami Herald: Cuba Publishes List of Proposed Economic Changes Guardian Media: Raul Castro has Launched a Campaign of Genuine Renewal and Redirection Guardian Media: Cuba's Theater of the Absurd BBC: Cuba's Economic Changes Last week, the Cuban government announced various broad goals in a 313-point economic plan. The plan details Cuba’s effort to revive and shift its economy from a state-controlled Communist system, in which the government controls every aspect of the economy, to a more market-based economy where citizens will be allowed to participate in private enterprise and sell their products and services in the market. The economic plan was unanimously approved at the Communist Party Congress, but remains for the Cuban National Assembly to work out the specifics and translate the guidelines into law. The plan purports to allow Cubans to purchase and sell homes, a practice which currently only takes place in the black market. Today, the only way for Cubans to...

Sources: FT: New Trade Routes: Latin America FT: China demand drives road and rail traffic China Daily: China to Increase Trade with Latin America Over the past decade, Latin America has been hard at work focusing on infrastructure and promoting trade with some of the world’s fastest growing economies in an effort to shed the image of financial instability that marked the region in the 1990s. Fortunately, the effort has paid off as poverty is diminishing in many Latin America countries and the middle class is increasing, all largely in part due to the vast expansion of commodity-based trade. One of Latin America’s biggest trade partners is China. The fast growth of the Chinese economy has increased demand for many Latin America commodities such as Argentine soya, Brazilian iron ore, Chilean copper, and Peruvian gold. Trade between Latin America and China has increased tremendously in the past ten years. For instance, in 1999, trade between the two regions totaled $8 billion. However, b...

We have yet to meet one person who is not in love with the Groupon concept. It’s easy to see why: the Groupon concept is simple and attractive. Deals for just about anything from shopping discounts to service discounts are made available in certain websites and certain cities. Now, the catch is that the discount or group coupon can only be claimed if a certain number of people purchase the discount. It’s a great deal for both store owner and buyer, because the buyer gets the service for cheap, and the store owner gets enough customers to make the discount worthwhile. The success of the original Groupon concept has spurred on other companies to do the same. Today, there’s a variety of Groupon sites to pick from. Here are a few of our favorites. LivingSocial - It’s safe to say that LivingSocial is one of the biggest Groupon competitors out there. Available in three countries and 89 cities, LivingSocial uses a great marketing gimmick called the "tempt strategy". If a user can t...

Investing in the stock market can be stressful. After all, you're risking your hard earned money in an attempt to make more money. There's no guarantee you won't lose it all. You may also make a killing, and that's what makes people take the chance. If you know next to nothing about the stock market but would like to get your feet wet, you may want to consider starting an investment club. It's a way to gain some experience without having to make all the decisions yourself. Following are a few tips on how to start and sustain a successful investment club. What Is an Investment Club? An investment club is where a group of people get together and pool their money to buy and sell stocks and bonds or pursue other investment opportunities. One of the advantages is that an individual will be able to benefit from the knowledge of others, while offering their own in return. You pool not only your money, but your knowledge and experience as well. How to Start an Investment Cl...

The results of PFStock's latest income survey are in. For a while now, I've had an annual income poll in the sidebar of PFStock that asks readers to respond to the question: "How much do you make?" In total, there were 85 responses to this poll. So, here are the latest poll results: How Much Do You Make (April 2011 Results) Annual Income % of PFStock Readers less than $50k 8% $50k-$99k 25% $100k-$149k 27% $150k-$199k 11% $200k-$249k 8% $250k and higher 18% Note that the percentages do not add up to 100% due to rounding. From these statistics, I found it interesting that a large percentage of my readers fall into the higher income categories. More than 60% of PFStock readers have an income greater than $100,000 per year. Does anybody have a comment on this statement? The last time that I published annual income survey results was in my July 2010 post on the topic. I also found similar results then. Because the 2011 and 2010 surveys covered different income r...

Recently I bought cooking oil that's new to our supermarkets, Canola Oil. I tried it because the label assured me it was lowest in "bad" fats. However, when I had used half the bottle, I concluded that the label told me surprisingly little else and I started to wonder: where does canola oil come from? Olive oil comes from olives, peanut oil from peanuts, sunflower oil from sunflowers; but what is a canola? There was nothing on the label to enlighten me, which I thought odd. So, I did some investigating on the Internet. There are plenty of official Canola sites lauding this new "wonder" oil with all its low-fat health benefits. It takes a little longer to find sites that tell the less palatable details. Here are just a few facts everyone should know before buying anything containing canola. Canola is not the name of a natural plant but a made-up word, from the words "Canada" and "oil". Canola is a genetically engineered plant develo...

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog: 1.15% Discover Bank Online Savings 1.15% American Express High Yield Savings 1.00% Ally Bank Online Savings 1.00% Urban Partnership Bank 1.00% ING Direct Orange Savings 1.00% FNBO Direct Online Savings 0.80% HSBC Advance Online Savings 0.55% Western FCU Money Market 0.30% E*TRADE Complete Savings 0.20% Citibank Ultimate Savings 0.15% Chase Plus Savings 0.07% PayPal Money Market* NOTES: *The PayPal Money Market fund is NOT FDIC insured. In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 6/1/11. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not i...

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog: 1.15% Discover Bank Online Savings 1.00% Ally Bank Online Savings 1.00% Urban Partnership Bank** (fmr Shorebank) Online Savings 1.00% ING Direct Orange Savings 0.90% HSBC Advance Online Savings 0.65% Western FCU Money Market 0.30% E*TRADE Complete Savings 0.20% Citibank Ultimate Savings 0.15% Chase Plus Savings 0.07% PayPal Money Market* NOTES: *The PayPal Money Market fund is NOT FDIC insured. **On August 20, 2010, ShoreBank was closed by regulators, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Accounts were transferred to Urban Partnership Bank of Chicago. The FDIC has issued a press release regarding this matter. Rates are believed to be accurate as of 4/25/11. I did not include banks that had special, or introductory...

Sources: Economist: Cutting It Fine Bloomberg: European Bank Funding Threatened as Basel III Meets Solvency II FT: Banks Endorse Option of Creditor ‘Bail-in’ ; Brussels to Target Bondholders on Bail-outs In many European countries, the maturities of bank debt have shortened dramatically in 2011 compared to 2006, according to data provided by Dealogic. In particular, in countries having sovereign-debt problems such as Greece and Portugal, the maturities of bank debt have fallen more sharply. In other countries such as Spain and Italy, banks also face funding difficulties and have been issuing more short-term bonds or paying higher yields. In the case of Italy, banks pay higher yields on their bonds by 1-1.5 percentage points than banks in France and Germany. Having more short-term funding is worrying because it makes banks vulnerable to a sudden liquidity dry-up in short-term funding markets as it happened during the recent global financial crisis. On the other hand, banks in some count...

Sources: FT: World Bank Sees End to Dollar’s Hegemony ; World Bank: Emerging Market Growth Poles are Redefining Global Economic Structure, Says World Bank Report According to a recent World Bank report, the US dollar will no longer be a single, dominant international currency by 2025 as the economic power shifts to emerging market economies. Instead, the euro and the renminbi will likely emerge as the international currencies along with the US dollar in a “multi-currency” system. The report, “Global Development Horizons 2011-Multipolarity: The New Global Economy,” expects that by 2025, six emerging market economies (Brazil, China, India, Indonesia, South Korea, and Russia) will account for over half of overall global growth. The report also expects that the average GDP growth rate of emerging market economies will be 4.7 percent between 2011 and 2025 while the average GDP growth rate in advanced countries will be 2.3 percent in the same time frame. As the power of global growth s...

Fixed home loans are probably the most popular, and considered the least risky, home loan option that you can get. However, this option may not be right for every borrower. Just like an interest only loan is only right for certain people, the same can be said for a fixed rate home loan. Should You Go With A Fixed Home Loan? There are a variety of products to choose from in the home loan market. One of the most popular choices and the one that most of you will end up settling on is a fixed home loan. Fixed home loans offer a variety of features that many home buyers find desirable, specifically the stable, fixed interest rate that they offer. There are other options you might use, so look around. If you’re trying to decide if a fixed home loan rate is right for you, then here’s a closer look at what these loans offer you. The maximum terms of a fixed home loan is thirty years, and features a fixed interest rate for the entirety of the loan. This allows borrowers to lock in a speci...

Most individuals do not save nearly enough money for their many needs and goals, including for the future and retirement. While personal income is often to blame for not having ‘enough to go around’, there is also blame to be put on the individuals not exploring the opportunities they have when it comes to savings goals and other income-earning opportunities. Savings goals should be a part of everyone’s personal financial system. Without identifying and putting away adequate cash for the savings goals you have, you likely won’t be successful in achieving personal financial success. Saving goals are just as important as your overall budget plan for making ends meet. Many people will struggle just meeting their basic financial obligations because they do not make enough money in their job. They forget about prioritizing their savings goals because there isn’t enough cash on a monthly basis to meet basic bills. However, there are other resources where money can be made and added to on...

Sources: FT: Brazil resolute on rate rises to calm inflation WSJ: Price of Success in Brazil: $15 Movies IMF: Watching Out for Overheating in Latin America CIA: World Fact Book, GDP Real Growth Rate Over the past few years, Brazil’s Gross Domestic Product (GDP) has steadily increased, going from 3.70% in 2006, to 5.10% in 2008, and reaching 7.50% in 2010, making Brazil’s economy one of the most stable, and the country itself one of the wealthiest in South America and the western hemisphere. However, this success has not come without a price, as Brazil’s cities have become some of the most expensive in the world. The Wall Street Journal reported that Brazilians pay the equivalent of $15 for a movie, which is more than New Yorkers pay. Likewise, the jump in the price of food, transportation, and land has resulted in the inability of millions of poor Brazilians to maintain their standard of living as their income remains unchanged but the price of items continue to rise. One reaso...

Sources: WSJ: SEC Aims to Tighten the Rules on Raters Bloomberg: SEC Credit-Rating Rules, 401(k) Bill, WTO’s Airbus Aid Ruling: Compliance SEC: SEC Proposes Rules to Increase Transparency and Improve Integrity of Credit Ratings On Wednesday, the Securities and Exchange Commission (SEC) proposed more restrictive rules on credit rating agencies (CRAs). CRAs rate the “creditworthiness” of debts as well as financial institutions holding debts. During the financial crisis, CRAs were criticized for contributing to the housing bubble by providing inaccurate and inflated ratings for mortgage-backed securities. Congress, in passing the Dodd-Frank Wall Street Reform and Consumer Protection Act, intended to correct such problems, and the SEC’s new rules would implement relevant provisions of the Act. The SEC’s proposed rules aim to “strengthen the integrity and improve the transparency of credit ratings,” said SEC Chairman Mary L. Schapiro. Specifically, new rules would require CRAs to disclose m...

Sources: Guardian: Fix Banks to Avoid Eurozone Meltdown, IMF Warns IMF: IMF Calls for Strengthened Policy Response, Stronger Financial Integration to Bolster Europe’s Recovery WSJ: IMF Weighs Extending Greek Repayments Last week, the International Monetary Fund (IMF) published the latest Regional Economic Outlook for Europe. The IMF expects that economic growth in Europe will not be fast “but still solid and sustainable.” It estimates that economic growth for Europe will be 2.4 percent and 2.6 percent in 2011 and 2012, respectively. In the case of emerging market economies, they are expected to grow at 4.3 percent both in 2011 and 2012. However, the IMF also warns that sovereign debt problems in Greece, Ireland and Portugal could spread to “the core euro area, and then onwards to emerging Europe,” calling for comprehensive and strong policy actions to restore confidence and fix vulnerabilities in the financial sector and accelerate reform efforts. As banks in other countries in Europe ...

Sources: FT: US Jobless Claims Fall to 409,000 ; Mixed US Economic Picture as Jobless Claims Fall Back Economist: America's Labour Market Perking Up BLS: Commissioner's Statement on the Employment Situation Earlier this month, the U.S. Bureau of Labor Statistics released its monthly statement explaining the employment situation in the United States. According to the report, the labor market is showing increased recovery and growth. In April, nonfarm payroll employment, which includes the total number of paid U.S. workers of workers of any business excluding government employees, farm employees, and private household employees, increased by 244,000, compared to its average of 104,000 in the previous three months. Likewise, private-sector employment increased by 268,000 jobs, following an average of 250,000 in the previous three months. The increase in employment was prominent in service-providing industries, manufacturing, and mining. The manufacturing sector has added 141,000 ...