Different Types of Savings Accounts

Savings accounts have many types, from basic personal savings accounts to intermediate savings accounts that substitute as financial tools. With the growing money market industry, consumers and households are learning that there are more ways to optimize their savings and investments. By understanding each of these advanced savings accounts, you are better prepared to invest your money in the right accounts.

One of the more profitable types of savings account is the money market account. A money market account works like a checking account, wherein the opening deposit is higher than personal savings accounts; usually in the range of $500 to $2,500. The interest rates are also higher or similar to a special savings account. In a money market account, the bank gives you a small quantity of checks, so you can facilitate withdrawal of funds from your account. Ideally, these checks should be used only for emergency purposes, so you can better save your money. However, there is a monthly limit on the number of money market checks that you can issue each month.

Another kind of savings account is certificate of deposit accounts. Certificate of deposit accounts work like a savings account, but they impose heavy restrictions or penalties for withdrawals made before the account matures. This savings account is generally called a time deposit in other countries. Banks that administer certificates of deposit will ask you to freeze your money for a specified period of time that could range from three months to five years or more. The security of this account allows account holders to save money on competitive rates while ensuring that the principal is not exposed to unexpected expenses.

The intermediate savings accounts are recommended only if you have a basic personal savings account. It is also wise that you have a considerable sum of money to put into these accounts to take advantage of the higher interest rates.

What Happens When a CD Matures?

Certificate of deposit maturity is the date upon which your CD account term ends. At this point, the bank will stop paying you your CD’s interest and you can get your money from the bank and do whatever you want with it.

The maturity date will rely on your decision as to when it will end and what interest rate your CD account should be locked in. Be careful on making your final decision when it comes to the maturity particularly if you are the type of investor who often seeks higher interest rates from other banks. The possibilities of early withdrawal are higher when you intend to profit in a short amount of time.

It is important to know if your money will profit right away even with a short term. Certificate of maturity works with both time and interest and playing your cards right will gain you profit.

CD Account Renewal Upon Maturity

In general, many banks will automatically renew or offer you to renew your CD account when it nears maturity. However, you need to know first if the current CD rates will be applied upon renewal.

Most banks that automatically renew CD accounts apply the previous rates, thus hindering the opportunity of the client to gain more profit. You should be careful of your CD’s maturity to prevent the bank from automatically renewing your account. You can get better interest rates from other banks when you regain control of your money after maturity.

You can definitely transfer your money to another bank if deemed necessary. It is yours to take but only after maturity. Do not let your money or yourself be controlled by the bank, instead, take the initiative to work out a plan to gain more profit out of out CD account.

Monitoring Your CD’s Maturity

It is only imperative that you monitor your certificate of deposit’s maturity. No one can do it for you, especially not the bank. The only thing they can do to help you with it is send you notifications about your account’s maturity as this is required under Regulation DD.

If you have an online account, it is easier to check once in a while. For offline accounts, you can always call or talk to a bank representative.

It is best if you take the necessary steps in monitoring your certificate of deposit’s maturity. Knowing beforehand the date of the maturity will be beneficial to you and your money. Just always keep in mind that the bank can only send notifications and if you fail to renew or remove your funds, the bank will keep your money locked-in again under the same rate at a given term.

A certificate of deposit’s maturity is crucial for the growth of your money. It is important that you choose the best term and interest rate to allow profit. But there are circumstances that could force you to withdraw your money prior to maturity. This could hurt your funds drastically through penalties.

If you want to play it safe with your CD’s maturity, try to invest with a shorter term just in case.

Checkpoints When Buying A Foreclosed Home

Having checkpoints when buying a foreclosed home is essential to assess the property you are looking for. For a fact, you’ll never know whether a foreclosed home is in good shape or not unless you inspect it. Same goes with newly built houses that are up for sale, potential clients would want to inspect them before they make a decision.

You need to think ahead before you make a bid or close a deal with someone who has a good offer. Ask the agent to allow you to inspect and assess the house that you are aiming for. Try to have as many options as possible so you’ll see the differences and you’ll be able to make a better choice in the end.

Make checkpoints when buying a foreclosed home. And if you can take an inspector with you, do it. Although it is not always advisable to hire an inspector, since it is quite expensive most of the time, having someone who knows the lingo in home inspection will always help.

Your goal here is to check if the foreclosed home is up for auction or sale is still in good shape. You will never know unless you’ll inspect the property for any damages and flaws that can be too problematic in the long run.

Points To Ponder

Taking your checkpoints when buying foreclosed home will help. But make sure to include all important assessment factors to ensure your success even without an inspector.

Thoroughly inspect the house’s structure at a vantage point and check the for following:

o Check if the walls are flat on all sides.

o Go inside and check all the corners of the house if they are all squared and not bowed.

o Check the living room floor if it is solid and not flexed.

Check the house’s water facility for the following:

o Check if the ground is sloping away from the house’s base.

o Check if the downspouts, gutters and drainage systems will carry the excess water into the basement or away from the house.

o Check if there are any water damages.

Check the finer details of the house’s interior such as tile works, moldings, wall panels, hardware and paint.

Check the roofing if it is properly laid and still in good shape.
Check the electrical system. See if the sockets are sufficient and if the main circuit breaker is at least 100 amperes.

Check the bath and kitchen fixtures such as sinks, tubs and toilets if they have good quality.

o Check which fixture works properly and which does not.

o Flush the toilets and turn on faucets to check if there is adequate water pressure.

Check the plumbing and water heater systems for the following:

o Check if the pipes from the water heater if they are made of copper.

o Check if the water heater is electric or gas.

Check the heating systems of the house.

o Check where and what type of heater is installed.

o Check if other rooms are not heated.

o Check if the house is air conditioned.

Check the insulation by going to the attic and checking the perimeter of the wall. For moderate climates the minimum requirement is R-19; for colder climates R-38.

Check the quality of the fireplace.

o See if it has glass doors or screens, log lighters and dampers.

o Check if there is a combustion vent to draw air from the interiors of the house.

o Check if there is a spark arrestor atop the chimney.

You can still check for the finer details of the house as these are just the basics for assessment. Remember to bring these checkpoints when scouting and buying a foreclosed home. You will always find a good deal if you do.

Things to Know Before Opening a Savings Account

If you are planning on saving some cash, you need to consider a few important factors before going the bank or applying online for a savings account. Saving some money for future use or as additional fund for your retirement is a good way of safekeeping your money and gain some over time.

For those people who are new to the art of saving, there are many benefits that you can get at the onset of your account. You will not only be able to save some cash for future needs, but you can also earn some interest once your savings account has matured.

There are many factors that can help motivate a person to secure a savings account. But here are the top 5 factors that you might find useful courtesy of wealth management blog.

1. When you are planning to open a savings account, the first thing that can come into mind is the interest rate. If you only want to keep money and not spend any dime from your savings, you can opt for high interest savings account from either a land-based bank or online bank.

Most of these online savings accounts require clients to deposit a minimum maintaining balance. This is to ensure that there will be money in your account to keep a moving interest rate in place. If you keep up on your deposits, say for a year, you will gain higher interests as time goes by.

You may look for high interest rates via online search. Look for banks that offer high interests and compare with your other searches to have options.

2. Banking convenience is yet another important factor. For most people, banks are the least place to go since there are too many people waiting in line to talk to the manager or deposit/withdraw over the counter.

There is also the hassle of traveling or commuting just to get to your local bank. The time it takes to get to your bank is precious and most of the time, particularly during weekdays; we are all busy at work and at home. One of the simplest and easiest solutions to this concern is getting an online savings account.

3. You should also consider accessibility when looking for savings accounts. If you wish to make bank transactions even on wee hours or holidays, you may opt for an online bank. But if you only wish to maintain and deposit cash, you can opt for a land-based bank, secure a passbook savings account and refrain from obtaining an ATM for it.

4. Know the minimum maintaining balance of specific savings accounts offered in different banks. ATM savings accounts without passbooks offer lower minimum maintaining balances compared to accounts with passbooks. So, choose whatever is best for you.

5. Lastly, you should take time in making comparisons. Compare banks, interest rate offers, client benefits, terms and conditions, and possible penalty rates. You should know and understand all these factors before opening a savings account.

Getting a savings account shouldn’t be too complicated. But taking your time in learning the factors is vital to better understand and maintain of your account.

WaMu 4.25% Savings & Checking Account

The Washington Mutual 4.25% Online Checking & Savings Account is one of the hottest products of the year. This is a high yield interest online savings account that offers features unmatched by other Internet banks.

For instance, you can withdraw your money at any WaMu ATM for free. Another perk is that there is only a $1 minimum balance to open an account. In addition, the debit card that comes with the account pays cash back.

Also, since this is a checking account, it comes with the usual FREE checks for life. In many ways, the WaMu online savings account is way better than what they offer in the brick & mortar bank, because if you open the account at your local branch, you definitely don’t get the *Internet Only* interest rate.

ETRADE 4.40% APY Savings Account

ETRADE has one of the highest bank rates available right now. Their savings account pays 4.40% APY, which is even better than most of the best CD rates out there. For example, this is a higher interest rate than the OneUnited bank certificate of deposit. Plus, savings / money market accounts are liquid and can be withdrawn at any time without a time penalty.

While ETRADE has been having problems with their mortgage backed securities and their faltering brokerage division, it is still save to deposit funds in this account because it is insured by the FDIC up to $100,000. There are no minimums to open an account.

Tax Exempt Commercial Paper

Tax-free and short term debt issued on behalf of an organization. This tool is backed by federal or state government units. Tax-exempt commercial paper are usually issued to finance short term liabilities that provides debt holders tax preference on their debt earnings. Tax-Exempt Commercial is also used as a form of subsidy from the government to corporations or institutions such as universities. This policy of providing tax-exempt commercial paper encourages investors to front money knowing that the earning on debt will be tax deductible.

Amtrust Direct Bank 5.41% CD Rate

Amtrust Direct Bank is currently offering 5.41% APY CD rates on their 12 month account.

Founding during the late 1880s, Amtrust Direct had its beginnings in the year 1889. Heralded as one of the innovative leaders among today’s financial service companies, Amtrust Direct has simple beginnings as a single institution on Cleveland Ohio. At one time known as a single physical branch called Ohio Savings Bank; today Amtrust Direct has expanded due to acquisitions, mergers and the success of its business to offer the best certificate of deposit rates. In fact, today, Amtrust Direct has more than 15 billion dollars in assets – a tribute to the company’s solid growth and unsurpassable work ethic.

Amtrust Direct is the recipient of a long list of awards, all honoring the business ethics that the company stands by. Honored as a solid presence in the community as well as in the financial industry. Available through Amtrust consumers will find superlative financial offerings. The full services that Amtrust offers include an no fee e money market account, certificates of deposit, free Internet banking services, and more. Amtrust Direct is a member of the Federal Deposit Insurance Corporation and is the sole online division of the Amtrust Bank.

To apply for an account with the Amtrust Direct, applicants will require specific documentation. In addition to one’s social security number, a driver’s license or United States passport, an email address, beneficiary information, as well as other information. Amtrust Direct makes banking possible 24 hours a day, seven days a week via Internet access. In addition, Amtrust delivers relatively high interest rates on interest bearing accounts: passing unique money making opportunities onto its customers worldwide.

What are Jumbo CD Accounts?

Jumbo Certificates of Deposit (CDs) usually must be of minimum value of one hundred thousand dollars and FDIC insurance also has a cap of hundred thousand dollars which means that anything above this amount will not be insured. However, when these considerations are taken into account, there are many banks that will offer the best CD rates at amounts below hundred thousand dollars and it is even possible to pick up Jumbo CDs that require just between twenty-five thousand and fifty thousand dollar minimum amounts invested.

CD Rate Calculators

CD CALCULATOR Most people that are interested in investing in Certificates of Deposit (CD) will find that using a CD rate calculator will help them calculate how much interest he or she will earn on his/her CD. The CD rate calculator is an instrument that can automatically calculate the interest based on inputs from the investor such as initial deposit amount, period of maturity of the CD as well as interest rate that is offered, and so on.

The CD rate calculator will also allow investors to compare the schedule of Annual Percentage Yield and the final balance of the CD when it matures. The Annual Percentage Yield is the amount of interest earned annually on the investment and it does not matter what the frequency of compounding of interest is with regard to the opening balance of the amount invested.

Through the medium of the Average Percentage Yield, investors can measure annual rate of interest and the Average Percentage Yield is also useful for making comparison of interest rates of various CDs as well as their compounding frequencies. The meaning of compounding is that an investor may want to reinvest the interest and then the total interest will be calculated on the combined interest of the CD.