Personal Finance 360’s Post

Your bank doesn’t want you to know this, but you need to! You can thank me later. 😉 You can earn higher interest on the money in your savings account, similar to an FD. Sounds fake, right? But it’s true. Here’s how it works: 👍 Just activate the Sweep-in facility on your account. With Sweep-in, you set a minimum balance limit for your savings account. When your balance exceeds this limit, the extra money automatically goes into an FD, earning a higher interest rate. You might think, “I can just get an FD myself.” But here’s the advantage: you can withdraw money from this FD anytime without extra cost. And you’ll still earn interest for the time the money was in the FD. This means: 💰 Your money stays liquid in your savings account. 💰 You earn higher FD interest rates. 💰 No need to manually transfer money. 💰 Withdrawal penalties, if any, apply only to the withdrawn amount, not the whole FD. And with the extra interest you earn? Maybe an exotic trip? Or 𝐞𝐧𝐫𝐨𝐥𝐥 𝐢𝐧 𝐦𝐲 𝐮𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐏𝐨𝐰𝐞𝐫 𝐁𝐈 𝐜𝐨𝐮𝐫𝐬𝐞. P.S. – Have you turned on the Sweep-in facility yet? #finance #money

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

📍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

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.

Three Smart Ways to Store Cash This Year Note: Looking for smart ways to store cash this year? Here are three ways to profit off interest-earning. https://lnkd.in/dNfTjhU5 #personalfinance #moneymanagement #banking #taxplanning

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!

Higher interest rates have been a boon for investors with excess cash. With rate cuts looming, it’s essential to understand what you’re actually earning on your liquid reserves. This is especially true when it comes to cash sweep accounts, a practice that has several banks facing legal challenges.

#CreditCardDebt #FinancialAdvice #MoneyManagement Hey everyone! 👋 I’m looking for some friendly advice here. So, I’m in a bit of a pickle with my finances and could really use your insights. Here’s the scoop: I’m 23, and I’ve accumulated **$12,000 in credit card debt** 😳. This mess started with some unexpected expenses and honestly, a bit of poor money management. Here’s how it breaks down: **$8,000** is interest-free until next August (thanks to a balance transfer option). **$4,000** is sitting on a regular low-interest card with a 12.99% rate. I usually pay **$2,200/month** towards my credit card, which should let me clear it in about 7-8 months (that’s factoring in some spending I still do). On top of that, I’ve jumped into the investing world and have **$12,000 saved in stocks**. Now I’m wrestling with a big question: **Should I use all of my savings to wipe out my credit card debt?** 💭 Here's a bit more context: I recently got a **Personal Line of Credit (PLOC... Is Paying Off Credit Card Debt with My Savings the Smart Move? Answers: https://lnkd.in/gdhF9RS9

💡 Understanding Bank Accounts and Their Impact on the Balance Sheet 📊 In the world of finance and accounting, it’s crucial to classify and understand the nature of various bank accounts. Here's a quick guide to help: 1️⃣ Savings/Current Account: An asset on the balance sheet, representing the funds available in the business's bank accounts. 2️⃣ Fixed Deposit Account: Classified as a long-term asset, it reflects money saved to earn interest. 3️⃣ Loan Account (Bank Loan): A liability, as it represents funds borrowed from the bank that must be repaid. 4️⃣ Cash Credit (CC) Account: Another liability, as it’s a loan facility used to finance working capital needs. 5️⃣ Overdraft (OD) Account: Usually a liability, showing short-term borrowings, though it can sometimes be an asset in rare cases. 6️⃣ Bank Guarantee Account: A contingent liability, disclosed separately in financial statements as it depends on specific future events. 📚 This table simplifies the complexities, helping students, professionals, and entrepreneurs understand how different accounts affect a business's financial health. What’s your biggest takeaway from this? Let me know in the comments! 👇 #BankingBasics #FinancialEducation #BalanceSheetExplained #AccountingMadeSimple