YOUR TRUSTED ADVISOR

Nicholas G. Vardalos & Company is a full service accounting firm serving clients throughout the Chicago metropolitan area, northwest Indiana and southwest Michigan.

Financial Guides for Banking


                                     CERTIFIED PUBLIC ACCOUNTANT

 For business financing, what kinds of loans exist?

You must know the exact amount of money that you need, what your purpose is and how you will repay it in order to be successful in getting a loan.

 When considering a loan request, what do banks look for?

The bank official who reviews the loan request is focused on repayment. Most loan officers request a copy of your business credit report to determine your ability to repay.

 Does borrowing against my securities make sense?

This could be a low-cost option for borrowing but there is some risk involved.

 Can a Home Equity Line of Credit be beneficial?

A home equity line of credit is a form of credit which allows you to borrow and use your home as collateral.

 What costs are associated?

The costs associated with getting a home equity loan are basically the same as a refinance.

 Which banking fees should I watch for with a new bank account?

Keep in mind that banks are always required to notify you of the fees for their accounts.

 What are the different types of bank accounts I can choose from?

Checking Accounts, Money Market Accounts (MMDA), CDs ...

 What type of account should I go with?

This depends on how you plan to use the account.

 How should I "shop around" for an account?

There are several features of accounts you should investigate at various banks.

 How much protection do I get from federal deposit insurance?

Only deposit accounts at federally insured depository institutions are protected by the FDIC.

 Can I negotiate my checking account fees with my current bank?

Yes. Here are some tips on how to approach this ...

  • See what your fees and charges have been over the past 3 years.
  • Write down your checking needs, i.e. how many checks you write a month, how many ATM visits, how many deposits, how many times you have overdrawn, how often you go below the minimum balance.
  • Take this info and do some research into other banks in the area. Compare their rates and fees to your bank.
  • Go to your bank and ask to speak to a manager. Tell them you want to reduce your banking costs. If they don't negotiate, bring up their competition. If they don't want to lose your business they will negotiate. Also ask them other ways to cut costs.
  • Keep in mind that many banks offer free checking to seniors, students, and the disabled.
  • Don't rule out smaller banks as they may be more willing to cut your costs just to get your business.



* Please consult with your tax adviser before making a final decision as some information may have changed due to IRS rulings.