Personal Finance 360’s Post

Today’s Personal Finance Question: Should you open a high-yield savings account or a certificate of deposit (CD)? Both options are insured and offer growth potential for your savings while shielding you from risks associated with stock investments. Here’s the distinction: High-yield savings accounts offer a higher interest rate while allowing you to access your money without restrictions. So, what’s the tradeoff? The higher interest rate isn’t guaranteed and can fluctuate with the market. On the other hand, CDs provide predictable earnings at a guaranteed rate for a fixed term, but during that term, withdrawing funds will incur a penalty. Regardless of your preference, everyone should be considering a CD or a high-yield savings account for extra cash right now, according to Jennifer White, senior director of banking and payments intelligence at J.D. Power. Learn more about your financial options from Jennifer White at CBS News: https://hubs.la/Q02t_dyz0 #SavingsAccount #FinanceTips #PersonalFinance

I don't often post about regular savings cash accounts, so here's something to consider. Many banks/building societies offer regular savings accounts with what seem to be fantastic interest rates e.g. 7%/8% etc. The thing is that because you're putting money into these accounts each month, you're not actually getting that rate on the whole balance—you're only getting that rate on your first payment. On average, you'll get around half of the advertised rate on the total amount you save during the regular saver term. So if you can afford to put a lump sum in rather than a regular amount, you might actually be better off with an account which pays a lower advertised interest rate. #regularsavingsaccounts #interest

Some of the folks I've been meeting with have asked me how to save better. If there is one big piece of advice I can give it is to take what you've saved and make sure it is in a high-interest savings account, money market account, or even a Certificate of Deposit (CD). The goal is to grow your wealth, and even a low 0.X% savings account is better than nothing. But there are good options to do even better. Look for high-interest savings accounts or money market accounts that offer higher rates, potentially 4.X% or even higher. Keep in mind these rates can change, so check with different banks. There are also options like CDs that might offer higher rates for larger sums of money, but they typically lock your money away for a set period. The compound interest on these accounts can help your money grow faster over time. I'm capturing stuff like this in the book, but thought it might be good to share this now since its already helped a couple people I met with.

📍Let’s Have This Conversation: How Much Should Be Left in Your Checking Account? 💸 I’ve heard $2,000, $3,000, $20,000, and even $30,000.🤔🤔 However, from a smart money perspective, your checking account should only hold the amount you need to cover one month’s expenses for yourself or your family. Anything more should be moved to a high-interest savings account, where you can earn at least 4% interest. 💡 Why let your money lose value due to inflation while traditional banks offer a meager 0.01% interest? Instead, make your money work for you by leveraging high-interest savings accounts. It’s a no-brainer to maximize your savings with minimal effort. 💰 What about you? How much do you leave in your checking account? Let’s discuss this in the comments! 👇 #SmartMoney #FinancialPlanning #HighInterestSavings #Inflation #budgeting #MoneyManagement #FolaTaj #FinanceTips #LinkedInFinance #PersonalFinance #SavingsStrategy #FinanceCoach #Canada

Are you getting the best rate for your cash? Is your money in a HIGH YIELD SAVINGS ACCOUNT? What is a high yield savings account anyway? A yield is what you earn by putting your money in a savings account. A HIGH YIELD savings account offers better earnings than a traditional savings account. Typically online and credit unions offer the best rates. Some of the best rates as of May 2, 2024 are at 4.25%. So if you have $10,000, you could earn $35 a month for money just sitting there! These rates fluctuate and will start going down soon, so get your money working already!!! Let's talk about money market mutual funds real quick. A high yield savings account is FDIC insured, which means if the bank fails, the government steps in. A money market mutual fund is not FDIC insured, it is an investment. Money market mutual funds typically look to liquid, super conservative options like CDs, Treasury Bills and government obligations. Money market mutual funds pay higher and now you can find one paying 5.27% or $44 a month with $10,000. Which one is best for you? They are both options to consider, so let's make a plan!

Thinking about opening a savings account? But still want to have some access to your funds? Here's two options! Both a Money Market account and a Savings account are options for keeping money secure while earning interest on the balance. Both come with their own benefits and limitations. ⚪ Money market accounts typically require a higher minimum balance than a savings account. ⚪ Savings accounts can be ideal for smaller, short-term financial goals while money market accounts may be better for slightly longer-term or higher-value goals. ⚪ Money market accounts tend to offer better interest rates and flexibility, while savings accounts typically have lower initial deposit & balance requirements. #finance #banking #foryou #moneymarket #savings #accounts #money

Have cash earning little to no interest? Consider a High Yield Savings Account. According to https://bit.ly/2Ik7pX3, the average rates are about 4.6%. These accounts are great for emergency funds and short-term goals like saving for a house or car. https://bit.ly/3Z2u7fu

The process of purchasing Treasury securities for an IRA and transferring them to different accounts is important. Banks and brokerage firms can offer marketable securities like bills, notes, bonds, TIPS, and floating-rate notes for IRA investment. Fees and procedures for purchasing Treasuries through IRAs vary by institution, with some offering online transactions at no cost, but certain securities, such as I bonds, cannot be held in an IRA due to registration requirements. If you’re interested in learning more, check out this article: https://lnkd.in/gmE_Auaq

𝐌𝐨𝐬𝐭 𝐨𝐟 𝐮𝐬 𝐡𝐚𝐯𝐞 𝟐 𝐨𝐫 𝐦𝐨𝐫𝐞 𝐁𝐀𝐍𝐊 𝐀𝐂𝐂𝐎𝐔𝐍𝐓𝐒!   But do we use it properly? Most of them may be unused. 𝐇𝐚𝐯𝐞 𝐲𝐨𝐮 𝐭𝐡𝐨𝐮𝐠𝐡𝐭 𝐨𝐟 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐛𝐚𝐧𝐤 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬? Managing everything from a single bank account can get messy. That’s why having more than one account can make your life easier and your finances way more clearer. You can start by 𝐬𝐞𝐩𝐚𝐫𝐚𝐭𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐚𝐧𝐝 𝐬𝐚𝐯𝐢𝐧𝐠. One account for everyday expenses, another strictly for savings. This way, you know exactly where your money is going without mixing things up. Then, make a separate 𝐄𝐦𝐞𝐫𝐠𝐞𝐧𝐜𝐲 𝐅𝐮𝐧𝐝 𝐀𝐜𝐜𝐨𝐮𝐧𝐭. This is important for your unexpected situations and stops you from accidentally dipping into it. Plus, different banks offer better 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐫𝐚𝐭𝐞𝐬 𝐚𝐧𝐝 𝐩𝐞𝐫𝐤𝐬, take advantage of that! By spreading your money across different accounts, you can get better at your Money Management, can maximize your benefits and stay organized. Try this strategy and see the difference. How many bank accounts do you have? And how many do you use to organise your money? 𝐆𝐢𝐯𝐞 𝐢𝐭 𝐚 𝐭𝐡𝐨𝐮𝐠𝐡𝐭!! -𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐛𝐲𝐬𝐡𝐞𝐳𝐚 #finance #personalfinance #moneymanagement #financebysheza #bankaccounts

## 10 Common Personal Finance Mistakes People Make and How to Avoid Them. ## **Avoid Using Credit Cards Irresponsibly** Credit cards can be useful, but misusing them can lead to growing debt and financial stress. **The Mistake** Many people make the mistake of paying only the minimum due or overspending on their credit cards. This leads to high-interest debt, which can quickly get out of control. **How to Avoid It** Pay your credit card bills in full every month to avoid interest charges. Limit usage to 20–30% of your credit limit to maintain a healthy credit score and avoid overspending. **Example** If your credit limit is ₹1 lakh, aim to keep your spending between ₹20,000 and ₹30,000 per billing cycle. This helps with financial discipline and improves your credit score. #PersonalFinance #CreditCardTips #DebtFree #MoneyManagement #FinancialDiscipline #CreditScore #WealthBuilding #SmartSpending #BudgetingTips #FinancialGoals #CreditCardManagement #FinancialFreedom #DebtManagement #MoneyMatters #FinancialHealth