A wire transfer is an efficient way to move money from one bank account to another. They work electronically, and the transferred money usually arrives at its destination within one or two business days, possibly longer with an international transfer. There is no hold on wired funds once they reach their destination, unlike standard bank policies regarding checks and similar instruments. In order to request and complete a wire transfer, there are a number of steps that need to be followed. Not following them can result in an incomplete transfer, in which the money either ends up in limbo or is returned to the sender.
Fill out a bank account withdrawal slip or check for the amount of money being wired from your account, plus the amount of the wire fee. This is necessary in order to remove the money from your bank account. If you want to wire cash, you will first need to deposit it into your account, due to federal banking guidelines designed to reduce money laundering and terrorism.
Use ink to fill out the wire transfer form with your information, plus the recipient’s complete information, including bank routing number and account number. The recipient’s full name and address are also required. In order for the wired money to electronically reach its destination. This information must be very accurate. The bank routing number is found to the left of the account number on a check. However, if you do not have the recipient’s bank routing number, you or a bank representative will need to verify it with the receiving bank. Also, some larger banks have special wire transfer routing numbers. All of this needs to be verified before the wire transfer paperwork is submitted, otherwise the money may not end up where it needs to go.
Sign the form at the bottom. This is necessary, as your signature approves the wire transfer request. Wire transfer forms are kept as official bank records, so if anything should occur later, such as the recipient not receiving the funds, the signed form provides the first step in the verification process needed to trace the money.
Hand your withdrawal slip or check, and the wire transfer form to the appropriate bank employee. The employee will look over the form to ensure that it is properly filled out. Once the employee verifies the information on the form, he or she will then process the wire, which involves removing the money from your account and placing it in the bank’s official wire account.
A personal bank loan is unsecured financing for use in a variety of endeavors. In contrast to secured debt, a personal loan involves an application review based on your income, credit rating and additional financial data.
The process to obtain a personal loan typically begins with an application or a conversation with a banker. If you have excellent credit, you may even receive preapproved offers from creditors. After you submit your application and supporting documentation, the decision can take anywhere from a matter of minutes to days or weeks depending on how strong your application is and the prospective lender’s policies. Wells Fargo, for example, promotes some types of personal loans with credit decisions in 15 minutes or less. Funding is made the same day of approval. Such efficiency in the approval process isn’t consistent. Submitting online often speeds up the process relative to sending in paperwork.
Materials and Decision Factors
With a secured loan, the bank has recourse in that it can repossess your property if you don’t pay. An unsecured personal loan is a bit more risky. Therefore, the lender relies more on your proven credit worthiness. Your FICO score and overall credit report are big factors in a personal loan decision. The higher your score, the more you can borrow and the better your interest rate normally.
Documentation and materials commonly required for a loan include:
- Completed application: Some banks won’t approve a personal loan if you leave anything blank on your application, according to Forbes. The loan application requests such details as your contact information, employment, income, proposed loan term and the amount you want to borrow.
- Income documentation: On small loans, or in cases where you have excellent credit, you may not have to submit proof of income. If you do, you may need to provide W-2 tax forms, recent pay stubs or both.
- Employment verification – Lenders often are more concerned with your future money stream rather than your historical income. Therefore, the bank may call your current employer as listed on the application to confirm your work status and possibly your income.
In additional to traditional banks, credit unions are another option for applying for a personal loan. There also are online crowdfunded platforms where people who have less-than-stellar credit can apply for loans funded by investors looking to make money on the interest.
A community trust bank is a type of bank that has its operation in a local area. This type of financial institution is typically owned by someone from the local community who is among the residents of the area. The way it works is pretty simple. There may be a resident who wants to run a business locally. He or she may require funds for it. The community trust bank will provide the funds to that person. But the funds are not just given for the business purposes. If the local family has some personal financial issues, they can also contact the bank.
Community trust bank works on a rather personal note. The people who run the bank are also those who know the area and the residents well. They are personally aware of the local families and businesses. The decision whether the money is to be given to someone or not is more or less the subjective discretion of the bank owner or owners. All in all, it means that this type of bank runs locally and serves locally.
Community trust bank does have its impact on the economy of the country as well. The local people trust these banks and hence they find it a safe haven to save their money. They also sometimes prove to be the only source of funds for the locally operated businesses. Many experts say that the community banks such as the community trust bank Surrey is more reliable when it comes to funding the local business as compared to the larger financial institutions.
The bigger banks have a number of clients to cater to across the country and sometimes even internationally. Although they have the local branches but their employees may not necessarily be from the local community. In fact, they hardly have any local employees. Most of the recruitment for these banks happen centrally. This means that they do not have the pulse of the local people, businesses, and the residents. Things are different with the community trust banks. The employee is from the same area and thus evaluating risks and benefits becomes much easier.