Up up and away. Mortgage interest rates continue on their upward trajectory. 30 Year mortgage rates went from 6.32 to 6.42. 15 year notes rose from 5.93 to 6.02 and 5 year arms rose almost 20 basis point going from 5.7 to 5.89. 1 Year arms rose this week from 5.09 to 5.19. But unlike the other mortgage products (which are higher) 1 Year Arms remain about where they were a month ago. As we have talked about for the last several months since the FED is no longer cutting rates we can expected rates to rise throughout the summer. The only question is when they will stop rising and start stabilizing. Below is the rates for the last month.

June 19,2008
30-yr 6.42 15-yr 6.02 5-yr ARM 5.89 1-yr ARM 5.19

June 12,2008
30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09

June 5,2008
30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06

May 29,2008
30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22

May 22,2008
30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24

May 15, 2008
30-yr 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18

Using our free mortgage calculator lets see how the increasing rates have changed the payment on a 200k loan.

June 19th
30-yr $1253.63
15-yr $1689.87
5-yr ARM $1184.99
1-yr ARM $1096.98

May 15th
30-yr $1196.53
15-yr $1639.47
5-yr ARM $1149.41
1-yr ARM $1103.16

Mortgage payments on most of the mortgage products went up quite a bit over the last month. Looking at a 30 year note the mortgage on a 200k loan has increased $57.10 or about 4.8 percent in a little over a month. In fact the only mortgage product to fall is the 1 Year Arm ($6.18 or about 0.5 percent). Why banks would want to push ARM which is the very loan product that caused all the problems in the first place is anyones guess. Although I typically avoid ARMs the cost savings on a 1 or 5 Year ARM is hard to ignore. That said I would only look at ARMs if you think their is a reasonable chance you will sell your property in that time frame. The general expectation is that rates should be higher and not lower in a few years.

So the question remains where are rates going to be in the next month. While I was fairly confident that rates would rise this month I am not as sure what will happen in a month. If the FED continues to avoid anymore rate cuts I would expect to see mortgage rates at about the same level or higher. Banks have been dealing with massive losses from foolish bets on subprime loans and are looking to make up for these losses through higher mortgage rates.

Another change occuring with loans is a limit on the number of investment properties an individual can recieve a loan on. It looks like most banks are limiting the number of investment property loans per individual to 4. This should obviously have a negative effect on investment properties. I also expect to see more cash offers from investors looking to pick up properties at currently depressed prices.

Personally I think this rule is a little bit foolish. I would make more sense to limit loans based on some networth to total loan amount ratio. For instance if someone has 2 million in the bank it seems reasonable to allow them to buy 5 duplexes for 180k. But if the banks were well run they probably would not be swimming in subprime debt right now.

Ki helps buyers interested in Austin real estate http://www.escapesomewhere.com his website has a free search of the Austin MLS http://www.escapesomewhere.com/realestate_searchthemls.html along with updates on his Austin real estate blog http://www.escapesomewhere.com/austinblog/

The soaring fuel prices have triggered a massive surge in free gasoline promotions by banks and credit card providers that are way too good to pass up. Major Banks and credit card companies are now using free gasoline to entice us to use their products or services. They are offering free gasoline if you’ll just walk through their door in a number of instances.

Most of us are wasting time looking for cheap gasoline stations instead of looking for free gasoline source . . . Which is a giant error. What you should do is instead of shopping for gas stations that may sell gasoline at a penny less than the competition, you want to point yourself in a broader direction.

Free gasoline can most often be found at your bank. . . The big billion dollar companies that are seeing less and less money being deposited in their vaults, and if you didn’t know, banks can’t make money without your money.

The next time you are looking a gift horse in the mouth, don’t just smile, but kiss it! Today I’m discussing about the great deals being offered by many banks and/or credit card issuers.

Most people have a learned distrust when it comes to dealing with and using credit cards because we know there is almost always fine print. However, in this gas chomping times there is no need for fine print; banks are simply offering you free gasoline if you use their cards because they are as desperate to increase the money in their vaults the same as we are getting more and more desperate to save on our gasoline costs.

If a bank offers you a 10 % to 20% rebate this is free gasoline and free gasoline is all ways better than cheap gasoline. Understand what a 10% to 20% reduction in your fuel cost can do for you. It can be significant savings that should not be ignored.

Let’s presuppose you are paying around $100 per week on gasoline like many of us are doing right now. If you used one of the banks rebate cards that pay you up to 20% back on all of your gasoline purchases you would be saving a solid $20 per week. Add that up for or over the course of a year and that total would increase to over a thousand dollars, that’s $1,000 per year in free gasoline.

These types of savings can save your yearly vacations. They can keep you afloat from as your other expenses increase along with the rest of inflation. Free gasoline is different that cheap gasoline. Cheap gasoline’s effects are not very apparent, but as you are seeing $20 checks being mailed to your home or being deposited in your account that is something that is measurable.

Some little known banking rules even allow you and your family to get a $1,000 per month, and sometimes you can get even more in free gasoline. Become more informed and be empowered by the wisdom you’ve learned from your past to know what not to do now and in the future.

Michael Littles invests much of his free time researching and discovering companies that offer free gasoline. The best places to get free gasoline is outlined in a video he makes freely available. Get your free video by visiting: http://www.ocentgas.com

Individuals not familiar with the World Wide Web (or perhaps too familiar with the occasional security breaches that it involves) still hold payday loan stores as more feasible centers for procuring payday loans. In the fast-paced world of today, time is definitely a factor, and credit must be given to the World Wide Web for bringing the entire world at one’s fingertips, accessible at the single click of a mouse. However, most would agree that an offline appointment is still the most secure form of transaction that still exists. Payday loan stores are still coming up in different locations to serve as centers for providing short-term loans on an emergency basis.

Payday loan stores are often also referred to as payday loan retailers. Anyone looking for a payday loan can visit a retailer nearest his or her location with the required documents and procure the cash advance quickly and easily. It is probably due to the speed and convenience that procuring payday loans involves that has established this loan as one of the quickest and most convenient forms of short-term loans.

The advent of online payday loans has somewhat diminished the prospects of payday loan stores. However, it would be grossly inaccurate to segregate these two terms. In fact, payday loan websites are generally extensions of payday loan retailers having stores offline. A number of websites offering payday loans apply the term payday loan store to designate them. This is not at all inaccurate, since these websites offering payday loans online are really virtual versions of the payday loan store. All the transactions that can be made in a real-life payday loan store can be carried out on these websites.

Payday loan stores have often been criticized for offering loans at a very high rate of interest. However, it should also be noted that established and authentic payday loan retailers generally do not breach the legal norms set down to delimit the rates of interest to be applied in the repayment of payday loans. Considering that these are loans provided as emergency aids, the claim for high rates of interest may somewhat be supported. Nevertheless, one should plan on taking a payday loan that one may repay successfully immediately on one’s subsequent payday. Borrowers who do otherwise have to renew their payday loans. The consequence of this is that the very purpose of having taken the loan gets nullified.

Having established themselves in both actual and virtual worlds, payday loan stores are geared to provide credit or cash whenever an emergency arises. Prospective borrowers simply have to visit a payday loan store to get the loan. If queues at the stores are too intimidating or discouraging, prospective borrowers can access their websites and procure the loan through simple online transactions that are convenient as well as secure, requiring only a few documents and verifications in order to enforce that kind of security in the transactions. Payday loan stores are the quickest way of getting credit.

For more information please visit http://www.pagerank10.co.uk/finance/low_interest_payday_loans/

People often think they don’t have anything valuable to use as collateral for a small secured personal loan – like you might get at a pawn shop. The fact is, the average person’s house is crawling with junk that a pawn shop would be happy to hold onto, if you just know where to look. Here are some of the things pawn shops love to lend money for:

Electronics
Pawn shops love electronics, and they are probably the most common thing people use to pawn or as collateral for a loan. Some examples of electronics equipment to use as collateral are: CD Players or CDs, Computer systems, Laptops or notebook computers, DVD players and DVD movies, Video Game Consoles and Video Game Software, Cameras (digital and analog, still frame and video), and Televisions. Because of the common nature of electronics in pawn shops, however, you need to be ready to prove that the item in question is in good, working condition, and that all the necessary parts are included. As with any other item, the lender is likely to decline if the item you’d like to use as collateral is broken, in need of repair, or just overly dirty.

Musical Instruments
Musical instruments are another great item. Guitars nearly always go well, assuming that they are in working order, and all strings are attached and in good shape. Electric, Acoustic, and Bass guitars all are good examples of musical instruments that could be used as collateral. Accessories like effects pedals, P.A. Instruments, and speakers do will also, along with Keyboards, microphones, Orchestral instruments, or drums.

Jewelry
Jewelry is a staple of small secured loans collateral – its small, valuable, and it almost never breaks. Items like diamonds of any size, gold in any form, pocket watches, Silver (in any form), or wrist watches all will do fine. Furthermore, fine china or crystal service is often accepted as well.

Sporting Goods
Sporting goods work exceptionally well for quite a few people – some items can be difficult to use as collateral because the lender is likely to require the property stay on site for the duration of the loan. As such, practical items like vehicles aren’t always a good choice to use. However, sporting goods are items that are required only for leisure activities. Giving them up for a while won’t likely make much of an impact on your day to day routine, and since you’re short on money in the first place, you wouldn’t likely be using them anyway. Some of the items in this category are: Bicycles, Boats and boat motors, fishing equipment, golf clubs, jet skis, snow skis, and knives or swords, Guns are often accepted as well, but its important to note that guns require proper paperwork and id.

Vehicles
Lastly, vehicles are nearly always accepted as collateral – its a simple equation for the lender: vehicles are very practical items, and nearly everyone needs one, so no matter what, he’ll likely be able to sell the item should you stop making your payments. As noted above, in many situations the lender is required to keep the vehicle on premises for the duration of the loan, so this can be an impractical solution for some. Other related items often used are Motorcycles, Trailers, Go-Carts, Golf Carts, or Four Wheelers.

Mike helps people understand credit and finance at his blog Credit Doctor, located at http://credit-doctor.org

Years ago the only way to pay for something was with a check or a credit card. The idea of debit cards didn’t even exist and people were accustomed to paying for things with checks. Paying with checks offered some cushion for people, though, because checks usually took a few days to clear one’s checking account.

That means if payday is on Friday and you buy groceries on Wednesday with a check you will most likely have the funds in your account when the check clears. Today, that is not an option. Even if you use a check it is processed digitally so that it actually becomes a debit payment.

So, you must have funds in your bank account when you pay for something with a check or the check will not be honored. This is important for you to remember because many people are accustomed to “floating” checks a day or two and now that is no longer an option. So, the best policy is to only write a check when you have funds in your checking account to cover it.

Of course, most companies around the world are happy if you don’t try to pay with a check and many more are flat out refusing them. Some companies that don’t have the digital technology don’t accept checks because they don’t want the hassle of returned checks, NSF fees, and the like.

This makes complete sense and is the reason why so many people no longer use checks. Companies that receive your payment from a debit or credit card know they have been paid at the time of the transaction. There is no hassle collecting the funds, tracking you down, or even hiring a lawyer to collect the funds should the check not be able to be cashed.

It has become really difficult for some folks to make the transition from paying with a check to paying with a debit card. In fact, some older people flat out refuse to use a debit card regardless of how easy a debit card could make their life.

Most retailers prefer debit cards because they are fast, easy, and there is no need for correct change. The debit cards only approve purchases when there are funds in the individual’s account so there is no worry of a bounced payment.

As time goes on it will become even more difficult to use checks. Things are even changing for companies making payroll. Some no longer write checks to their employees but rather give them a debit card.

It is not a bank account, but rather like a pre-paid visa debit card with their paycheck on it. They can use it to withdraw money, make purchases, and the like. This has become wildly popular and will probably continue to do so.

Direct deposit is also very popular with employers and the money goes straight to your bank account. That means you don’t have to go to the bank to make a deposit and your funds are available sooner! The world of banking is changing and may say it is changing for the better.

When you can operate current accounts at http://www.thriftyscot.co.uk/banking/ and saving accounts at http://www.thriftyscot.co.uk/saving-account/ online why go all the way to the bank? Know more about the bank charges at http://www.thriftyscot.co.uk/bank-charges/ by visiting us.

Many people group banks into one big group as if they are all the same. However, that is not the case at all. Banks vary significantly depending on what services they offer, how they treat their customers, and the interest rates they offer.

So, you should know that all banks are not the same and it could mean the difference of thousands of dollars to you to do the research and find the best bank for you. All you need to do is go out looking and taking notes. In a little while you will have a good idea what bank is best for you and your money?

All banks are different, but people are different too. Some people want a bank that offers an interest bearing checking account while others prefer a lower interest rate on their home mortgage. The best bet is to find one bank that offers you as much as possible so it can cover most of your banking needs.

But, feel free to shop around and have your mortgage at one bank, a checking account at another, and a money market account at another. It’s your money, so you should be the one who decides where it is spent and how it is managed. Consider the following points when looking for a bank. They just might help you find the right one.

Tip 1. Interest rates

Interest rates are really important because they can affect how much your money earns you as well as how much you pay. You want to look for a bank with high interest rates of return on checking accounts, CDs, money market accounts, and the like. However, you want a bank with the lowest possible rates for home loans, personal loans, car loans, and the like.

Finding one bank that specializes in everything is not going to happen. So, decide what you are looking for and compare banks based on that asset alone. Remember to include online banks in your search, too, because many times they can offer you better rates than brick and mortar banks simply because they don’t have the overhead.

Tip 2. Fees

Banks charge fees. That is just another way they make money. However, some banks charge lower fees than others. As a potential client of a bank you will want to do your research and find out what fees you will be charged and how often.

Knowing this information up front will allow you to compare better. Many banks are willing to negotiate with you and you will find credit unions generally have the lowest fees. Look around, search the web, and in no time you will find the bank with the lowest fees and best service.

Tip 3. Customer Service

Customer service is really important when you are looking for a bank. That’s because without customer service you won’t get the help you need and this can make you quite angry. Save yourself the frustration and anger and find a bank known for its customer service. You will be glad you did.

Find variety of bank accounts at http://www.thriftyscot.co.uk/banking/ . We also help you compare saving accounts at http://www.thriftyscot.co.uk/saving-account/ to make your choice and avail facilities like reclaim bank charges at http://www.thriftyscot.co.uk/bank-charges/

Are you just wasting your savings in a traditional savings account? Many Americans out of habit settle for very low interest savings rates. But, you don’t have to. There are many great options today for high interest rate savings.

What are high interest rate savings? These are payments made by the bank to you for leaving your money in the bank. By depositing your money in the bank, your bank utilizes a portion of it in its loan operations where it subsequently earns through interest and loan charges. In effect, the income they receive trickles down to you, their source of money. This savings interest rate is actually an effective incentive system. Why so? If you save more money in your bank account through your deposits and savings, you end up receiving a higher return on the savings interest rate than other people would.

The last one is perhaps the most obvious feature of the bank that people do not take advantage of. A bank, being a financial intermediary, can actually help you save money efficiently. Here’s how.

First, you are required to keep what is called a maintaining balance in your bank account. This means that even if you make deductions in your account, the bank requires you to save a bare minimum in order to continue enjoying their services. And yes, that translates to a forced saving on your part.

When it comes to financial management, even business professionals reach a consensus as to what is the most effective, reliable, and secure means to manage your money, and that is through the bank. Your bank is an effective means to manage your bills payments, keep track of your transactions, receive your income and whatever extraneous cash inflow, and help you save effectively.

Another feature of bank saving is the fact that you are free to continuously add to your account whenever you can. Otherwise, your money will remain safe in your bank. Moreover, while it’s staying in the bank, you are actually earning interest rates on your money.

Banks have a threshold amount for you to be able to participate in the bank’s long-term, higher yield savings schemes. Time-deposit accounts, mutual funds and the like require you to leave your money untouched for a longer period of time. In exchange for the bank’s use of your money for a longer period of time, the percentages of interest return are double those that you would get in a regular savings account. You can add increments of a certain amount in order to increase the capital you invest in your time-deposit account or mutual fund. An increased account obviously translates to bigger interest gains.

Talk to your local bank about their savings schemes. They offer various mechanisms to encourage us consumers to entrust their money to them. In a bank, your money is in a safe place, and it is growing while it stays there.

But, don’t just settle for a low interest rate for your savings account. Do your research. Go online and find a high interest rate and open an account at that bank.

Find out more about how to find high interest savings accounts at http://smartsavings101.com/. If you are also in need of information for paying off your debt, check out http://payoffbaddebt.com/ .

Seychelles offshore banking is best explained by the seeing the list of information that is required by a Seychelles bank to open an account for your offshore company.

A Typical Bank Account Application Form Will Require The Following Details:

01 Type of Account: Corporate / Personal

02 Type of Business: Limited Companies, Companies, Clubs, Associations and Societies

03 Name of Business

04 Country of Incorporation / Registration

05 Name of Signatories and authority given to them

a. to sign this Agreement

b. to enter into any other agreement with the bank for banking products or services with they consider to be in the interests of the Business from time-to-time; and

c. To give instructions to the bank and set up security procedures for giving instructions by telephone.
Including the account type.

06 To agree and accept on behalf of the business:

a. Accept the banks terms and conditions

b. that requests for new accounts shall be in accordance with the mandate held with the bank

c. Bank standard terms and conditions

d. Authority for transfer instructions.

e. Various indemnity covering transfer instructions, checks payable abroad

f. To allow the bank to get credit reference about the person opening the account.

07 The combination of individual / s authorized to give instruction to Bank are:

a. Account operating signatures: Singly, jointly, with limits

08 Information Memorandum

a. Business Name:

b. Registered Office Address:

c. Contact Details: the account holder’s or any others: Phone, fax, email,

d. Correspondence Address/Statement Address

e. Share Capital

09 Banking requirements

a. Currency Required

b. Frequency of Statements

10 Business details

a. Full description of main activities/trade of the company. [Specific]

b. Description of the operation of the business

c. How and where the income to this account will be derived.

d. Any additional useful information:

i. Website Address

ii. Brochures

iii. Publicity Material

iv. Business Plan

11 Source of Funds

a. Please specify where funds to this new account will come from.

b. Specific company names/ individuals if known

12 Specify the countries of operation

13 Expected annual turnover

14 Frequency and size of annual payments into the account.

15 Beneficial Owners.

16 Declaration regarding Money Laundering:

a. We hereby confirm that to the best of our knowledge the company is not and will not be involved in

i. Money Laundering,

ii. Drug Trafficking or

iii. Terrorist Activities.

There are a few other issues related to Seychelles offshore banking that every one wants answers to and I am mentioning them below:

1. Due Diligence

To open a corporate account for an offshore company, all reputable banks including those providing Seychelles offshore banking, will require detailed personal and business information from the owners and controllers of the offshore account.

* Identify the actual beneficial owner of the offshore company. All owners and controllers of the IBC, as well as everyone who will be granted account signatory rights, need to be properly identified and have to provide a number of documents, such as

- a certified passport copy,

- a bankers and/or professional reference,

- a detailed business description and

- a cash flow forecast.

These requirements may vary in details, but their general scope remains fairly similar to most offshore banks, not just in Seychelles offshore banking. Utilizing appointed directors and nominee shareholders is certainly helpful in respect of avoiding unnecessary public scrutiny, however these confidentiality functions are fairly irrelevant in Seychelles offshore banking account openings.

Any bank will primarily be interested to establish the actual, real owners of the company, and will not be satisfied by merely getting the data on appointed managers or representatives.

2. Anonymous accounts at Seychelles offshore banking?

There is no such thing as ‘anonymous accounts’! All banks are required by law to know their clients in very comprehensive detail. While account introduction through an approved intermediary (like us) is still possible without the personal appearance of the owner of the company, banks still want to know their clients and their business dealings in great detail. This is simply required by the laws, that have become stricter after 9/11, that regulate banking industry and there are no exceptions.

3. Seychelles offshore banking secrecy:

While the banks are required to know their clients in detail, banking secrecy remains a fundamental cornerstone in all offshore financial centers, and certainly in Seychelles! The banking secrecy regulations stipulate that all information relating to the client must remain strictly confidential.

Any confidential banking and personal information may only be divulged if demanded so by a Seychelles court ruling. Such ruling, naturally, would have to be based on extremely serious circumstances under the applicable criminal laws in Seychelles, and following a proper criminal investigation, carried out domestically in Seychelles.

Information sharing, reporting or any kind of release of confidential banking information to any foreign party or foreign government is strictly prohibited. Severe financial and criminal penalties await anyone who divulges client information, and is applicable to both the bankers and the registered agents.

Ramapati Singhania specializes in creating and managing web businesses. His latest website http://www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog, http://www.ramapatisinghania.com

Whenever analyzing a part of the financial industry of Hong Kong as an international financial centre, often (and knowingly) use the technical term – financial intermediation. This technical term refers to the process of routing savings into investments, a process that is extremely important for fuelling economic growth and development. Financial consultants utilize the term extensively in the hope that its repeated mentioning will act as a frequent reminder to all concerned. This includes the regulators and the regulated, the providers and the users of financial services – of this basic purpose of the financial industry. More pin-pointing to the providers of financial services, or financial intermediaries in Hong Kong, it is a reminder of the main function of their existence.

Very often financial markets deliver financial intermediaries in Hong Kong with opportunities for profit that comprise business strategies that may not be satisfactory, having relation to the basic purpose of the financial industry. It is not probable to be precise or comprehensive about the features, and to try the categorization, of such business strategies, so that financial intermediaries might abstain from intentionally getting active. Even though this would definitely provide useful support for the industry. Regulators prefer to hand over this to the financial intermediaries, who are more involved with the markets and who perceive better the aspirations and impacts of specific market plays.

Financial consultants believe that they have the ability to realize that it is in their long-term interest not to be indulged in business strategies that have the impact of weakening the general stability and efficient performance of the channels of financial intermediation for which they have been certified as service providers. Indeed, when certifying them, the regulatory authorities have adopted the view that they were fit and proper, this comprises, significantly, being able to operate in accordance with this valuable fiduciary duty as a licensee.

But every now and then it is well within the rights for regulators to provide such reminders. One by-product of the progress of information technology and globalization of financial markets is that chances to profit at the expense of the general stability and efficient working of financial intermediation channels have rose. For example, the capability to carry out financial deals through cyberspace and book them offshore has lead to a serious lack of market transparency, which is conducive to market manipulation, which erodes the integrity of the market. The development of large and complex international financial institutions has also delivered considerable challenges to the management of such institutions, so that the value of observing the fiduciary duty of financial intermediaries in Hong Kong may not have been provided with the focus it deserves at the working level.

Consider the fiduciary duty of certified banks in Hong Kong as a further testament. Financial consultants consider it the fiduciary duty of certified banks to carry out their business in a manner that does not weaken the general stability and efficient working of the banking system. Consultants do not anticipate, just as an example, that under the Linked Exchange Rate system banks should arrange for speculative attacks on the Link, which has the effect of eroding banking stability. The banking system has been, and will remain so, an unavoidable channel of financial intermediation for financial intermediaries in Hong Kong that is extremely important to economic growth and development. The long-term well-being of the community relies on the banking system in acting this role effectively.

The Zetland Financial Group – http://www.zetland.biz – provides the offshore investor with fiduciary Services, investment management and corporate advisory services, offering personal service and professional advice with total confidentiality.

Seychelles Banking: One of The Best In The World To Transact With.

The Republic of Seychelles comprises of 155 islands spread randomly in the lap of the calm Indian Ocean. Seychelles have population of about 81,000. English, French and Seychellois Creole are the three official languages of the country.

The capital of Seychelles is Victoria. Seychelles gained independence from the United Kingdom in 1976. The people of Seychelles are hardworking and trustworthy. That is why Seychelles has continued its development even after it decided to cast the British crown aside. The economy of Seychelles has developed greatly after its independence.

This growth has been caused by the practical steps being taken by the government of Seychelles to ensure the economy’s growth and to exploit its dependence on the flourishing tourism sector.

In the past few years Seychelles has recognized the importance of the finance and financial services sectors, and that of offshore companies with the introduction of the zero Seychelles tax company as well. The government of Seychelles has focused on the development of these offerings by taking several legislative steps.

The Seychelles Monetary Authority was established in 1978 as the bank of issue. It later became the Central Bank of Seychelles in 1983. Other government banks operating in Seychelles are the Seychelles Savings Bank and the Development Bank of Seychelles.

Five major commercial banks operate in the Seychelles, namely Barclays, Nouvobanq, Banque Francaise Commerciale Ocean Indien, Bank of Baroda, and Habib Bank. Development of an offshore banking center was announced in 1999.

Seychelles banking is governed by the Financial Institutions Act 1984 as amended in 1995. The licenses to banking companies are only issued to those banks which have been incorporated under the Companies Act 1972 or foreign companies which have been registered under the same act.

The banking license issuing authority in Seychelles is the offshore Banking Department of the Central Bank. Licenses are usually issued separately for domestic and offshore banking. But in some cases licenses are issued for both at the same time. When licenses are issued for both offshore and domestic banking, the bank has to provide offshore and domestic Seychelles banking services a different branches.

Banks providing offshore Seychelles banking services are permitted to maintain numbered accounts for their clients. The annual license fee for Seychelles banking companies is not very large. This fee is payable to the Central Bank in any convertible currency. Currently there are five licensed foreign banks in the Seychelles, and two domestic banks which have been listed above.

As the Government of Seychelles is particularly interested in developing the financial sector and tuning it to compete with other tax havens and banking centers such as the Cayman Islands, Switzerland, and Mauritius banking, special dispensation has been granted to the taxation of banks.

All of the licensed offshore Seychelles banking companies are exempted from taxes and duties for a period of 20 years from the date on which license was granted to them. This 20 year tax holiday serve as an attractive incentive to banks willing to go offshore.

An offshore or non domestic bank may decide to pay business tax in Seychelles on its taxable income as agreed with the Commissioner of Taxes.

The National Assembly of Seychelles passed the Central Bank of Seychelles Act 2004 in December 2004. This Act is aimed at providing legislation to enable the Central Bank to operate as an independent institution without any intervention from the government, and to ensure independent growth and regulation of the banking sector ensuring in it, confidence, transparency and efficiency.

Ramapati Singhania specializes in creating and managing web businesses. His latest website http://www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog, http://www.ramapatisinghania.com