Archives for January 2009

Capital One Bank through Costco is offering a 7 year CD RATE of 3.97% with an anual percentage yield (APY) of 4.05%. The rate is exclusive to Costco members.

There is also a promo bonus exclusively for Costco members if you open a Captial One Bank certificate of deposit.

Costco Executive Members will receive $60 and Gold Star and Business Members will receive $20 when they open their first account of any kind through the Costco program and deposit at least $5,000 within 30 days of opening the account.

The interest credit will be credited to your account as interest income 4-6 weeks after you fund your account and may occur as two partial interest credits.

Captial One Bank Costco 7 Year CD Rate Application

Capital One Bank is offering an online savings account sign up bonus exclusively through Costco. If you are a Costco Excecutive Member the promotional bonus is $60, Costco Gold Star Member and Business Members get a $20 bonus. The annual percentage yield on the online savings account is a decent 2.70% for balances over $10,000.

Online Savings Account qualifications and details:

• To receive the bonus you must be an Executive Member, Gold Star Member or Business Member before you open the account.
• $5,000 minimum deposit to open the account
• This must be the first time you open a Direct Banking account of any kind using the Costco program and deposit at least $5,000 within 30 days of opening the account
• The interest credit will be credited to your account as interest income 4-6 weeks after you fund your account and may occur as two partial interest credits
• There are no fees associated with the account, and you are not required to maintain a minimum balance to earn interest

Costco Capital One Bank Online Savings Account Applicaiton

Third Federal Savings and Loan is offering an incredible deal on a home equity line of credit (HELOC).

The current rate is 2.60%, that’s prime minus .65%. The rate is for the life of the loan, it’s NOT an introductory rate! Most banks offer prime (currently 3.25%) plus 1.00% or higher. The current national average rate on a home equity line of credit is around 5.00%.

In addition to the great rate Third Federal will also give you $100 in free gas. Also, if you find a lower rate on a similar home equity loan ThirdFederal will beat the rate or give you $1,000.

The 2.60% rate is for balances of $50,000 and more. The rate for balances $10,000 to $49,000 is prime minus .10, currently 3.15% APR.  

As with most banks these days ThirdFederal will only allow you to borrow up to 80% of the value of your home, lone-to-value ratio (LTV).

Additional home equity line of credit (HELCO) benefits.

• No closing costs
• No Application fees
• No annual fee
• No prepayment penalty
• No advance or draw required

ThirdFederal Savings & Loan

As expected, the Federal Reserve announced today that they plan to keep the Fed funds rate at 0% to 1/4% for quite some time. Since the Fed is unable to lower rates any more they have been using other “tools” to stimulate the economy. Including purchasing large quantities of agency debt and mortgage backed securities to provide support to the mortgage and housing markets.

The Fed’s efforts in this area have been working, 30 year conforming mortgage rates have dropped around 1% the day after they announced their intentions.

Here is the full FMOC statement 

“The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

Information received since the Committee met in December suggests that the economy has weakened further. Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly. Conditions in some financial markets have improved, in part reflecting government efforts to provide liquidity and strengthen financial institutions; nevertheless, credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant.

In light of the declines in the prices of energy and other commodities in recent months and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming quarters. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.

The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. The focus of the Committee’s policy is to support the functioning of financial markets and stimulate the economy through open market operations and other measures that are likely to keep the size of the Federal Reserve’s balance sheet at a high level. The Federal Reserve continues to purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand the quantity of such purchases and the duration of the purchase program as conditions warrant. The Committee also is prepared to purchase longer-term Treasury securities if evolving circumstances indicate that such transactions would be particularly effective in improving conditions in private credit markets. The Federal Reserve will be implementing the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Committee will continue to monitor carefully the size and composition of the Federal Reserve’s balance sheet in light of evolving financial market developments and to assess whether expansions of or modifications to lending facilities would serve to further support credit markets and economic activity and help to preserve price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Dennis P. Lockhart; Kevin M. Warsh; and Janet L. Yellen.  Voting against was Jeffrey M. Lacker, who preferred to expand the monetary base at this time by purchasing U.S. Treasury securities rather than through targeted credit programs.”

Citibank Mortgage will give $500 off closing costs on refinancing an existing mortgage or on a new mortgage.

You can apply and complete the entire mortgage application online or you can call Citibank Mortgage at 1-866-698-5762.

Be sure to mention offer code 16586 to receive the $500 credit, enter the code on page three of the application.

GMAC Bank is offering one of the best CD rates for a 1 year CD, the current rate is of 2.96%, with a yield 3.00%. Not bad when you compare it to the national average of current CD rates. Along with other banks, GMAC Bank has been lowering the rates they pay depositors. Looks like the government programs, including the Troubled Asset Relief Program (TARP),  is driving rates down. In November 2008, GMAC’s 1 year CD rate was 4.27%, with a yield of 4.36%

You can open a CD online here or by calling GMAC Bank Customer Care at 1-866-246-BANK (1-866-246-2265).

Requirements to open a CD account

• Legal U.S. resident
• Have a U.S Address
• Driver’s License
• Social Security Number

GMAC Penalty for Early Withdrawal of a Certificate of Deposit

The penalty is equal to 90 days of interest that has been or would be earned on a certificate with a term of less than or equal to one year. For certificate of deposits over 1 year the penalty is equal to 180 days of interest that has been or would be earned on a certificate with a term of more than one year.

Citibank is offering a $100 gift card for opening a checking account. When you open the checking account and meet the critera listed below you are awarded 10,000 “ThankYou Points” that can be used to for the $100 retail gift card. Here are the details of the promo checking account offer. Be sure to use code: CGPP

$100 gift card bonus offer details:

• Open a new “qualifying” regular checking account in either a “Citibank Account”or “Citibank Everything Counts Account” relationship packages for the 10,000 ThankYou Points offer or in the “Citigold” account relationship package for the 20,000 ThankYou Points offer.
• Make $1,000 in deposits in the new checking account by 3/31/09 (4/30/09 for accounts opened remotely via CitiPhone Banking or Citibank Online).
• Within 60 days of account opening, you must enroll your new checking account in Citibank’s ThankYou Network
• Complete one direct deposit, two eligible electronic bill payments or five signature-based debit card purchase transactions per month for three consecutive months. 
• Existing Citibank checking customers are not eligible.
• Offer is limited to citizens or resident aliens of the United States (U.S.) with a valid U.S. taxpayer identification number

Citibank $100 Checking Promo Application

Are you maxing out your 401K and IRA contributions every year and want a way to save more for retirement using a pretax method?

Another way of stashing away money pretax for your retirement is using a health savings account (HSA). That’s right, with high deductible HSA plans you can deposit up to $3,000 pretax or $5950 for families into an HSA every year.

Here’s how the money can be saved for retirement.

The money in the account and the interest earned can be withdrawn tax free for medical purposes at anytime*. If you don’t need the money for medical expenses the funds can stay in the account year after year. When You turn 65 the money can be withdrawn for any reason and you won’t pay a penalty. You will pay regular taxes, just like you would with a traditional IRA, but your money would have grown tax free until retirement.

*Some states have not enacted legislation to allow pre-tax treatment of HSA contributions or earnings. You should work with your tax advisor to ensure that you are aware of any changes that may occur in these states. For your convenience, we have identified the following states as having these tax issues: Alabama, California, New Hampshire, New Jersey and Wisconsin.

These days you can get a home equity line of credit (HELOC) with a rate under 5.00%. HELOC’s are usually tied to the prime rate which is currently 3.25%.

Most banks will offer a HELOC rate with plus or minus 1.00% of the prime rate depending on your credit score. Though with rates at historic lows you will be hard press to find a bank offering prime minus 1.00% these days. We were recently quoted a HELOC rate of 4.25% from Citibank for a loan modification.

Getting a HELOC at 4.25% to payoff credit card debt at a lot higher interest rate makes financial sense. Especially if the credit card rate you are paying is in the double digits or higher, which we all know is actually the norm.

Though with a HELOC, rates are flexible since the rate is tied to the prime rate, so you run the risk of rates increasing. Most HELOC’s have a rate hike limit per year and for the lifetime of the HELOC.

You can use our HELOC/home equity line of credit calculator to see if consolidating your credit card, auto and other loans will save you money.

Mortgage rates have recently plunged to record lows. Right now a 30 year conforming fixed rate is around 5.00%, near historic lows and a 15 year conforming mortgage can be had for 4.75%, another historic low.

What better time to refinance your mortgage or purchase a home than now? If you plan to stay in your home a long time, you can ride out any more housing price declines that might occur in the near future. 

Over the past several years, refinancing meant using your home as a piggy bank. You know you can refinance without taking money out. In fact, we recommend that you don’t take money out. Refinancing with a lower interest rate can save you thouands of dollars in the long run.

Will refinancing your mortgage work for you? There are a few general guidelines to consider when refinancing.

1. If you can get a mortgage rate 1% or more lower than your current mortgage rate.
2. How much equity do you have in your home? Most banks are once again requiring that the loan-to-value ratio (LTV) does not exceed 80%. In other words, a bank will lend you up to 80% of the total value of your home. If your home is appraised for $1,000,000, the loan cannot exceed $800,000.
3. Another stringent requirement is an excellent credit score. A couple of years ago banks were handing out mortgages to people who had credit scores in the 500’s. However, most banks are now requiring a minimum score of 725.

If you meet all the guidelines mentioned, you might want to consider looking into refinancing your mortgage. You can use Monitor Bank Rate’s mortgage calculator to help you figure out if refinancing makes financial sense for you.

Bank of Internet is offering one of the highest online savings account yields available in the U.S.. The savings account currently yields 3.51%. There is an initial deposit requirement of $100 but no minimum daily balance requirement.

High Yield Savings Account Features:

• No fees or balance requirements
• Interest compounded daily
• Easy automatic transfers between your BofI accounts
• ATM card available
• Free online statements
• FDIC insured up to $250,000 until December 31st 2009, then up to $100,000

Bank of Internet High Yield Savings Account Application

Sovereign Bank is offering a $100 cash bonus for opening a checking account. To qualify for the $100 checking account bonus you must do the following:

• Open a new Sovereign Premier Checking, Business Owner Premier Checking, Interest Checking or Partnership Checking account by February 27, 2009
• A minimum opening deposit of $10
• Request a Sovereign Visa® Check Card
• Make 6 Check Card purchases within 60 days after you open your account

The $100 bonus will be credited to your new checking account within 15 days after the expiration of the 60 day period. There is a limit of only one $100 credit per customer and your account must be open in order for you to receive the bonus.

The interest rates on the checking accounts are nothing to write home about.

The Sovereign Premier Checking Account and Business Owner Premier Checking Account APY is 0.05% on balances less then $5,000, for balances $5,000 and over the APY is .20%.

The Sovereign Partnership Checking Account and Sovereign Interest Checking Account APY is 0.05% for balances less then $2,000, for balances $2,000 and about the APY is .10%.

Consumers will soon be benefiting from new credit card regulations being enacted by the Federal Reserve Bank and possible new laws being passed by law makers. With the current financial crises it’s no surprise sentiment in Washington has shifted towards the consumer from the banking industry.

Shifting sentiment and the Troubled Asset Relief Program (TARP) in full swing, lawmakers have tremendous leeway over the banks to force changes, more so then any time in recent memory. Lawmakers have to be sure to tread carefully by not let the pendulum swing to far the other way. Creating laws the restrict credit further by lowering the banks profitability and ability to asses risk on credit cards, particularly with riskier credit card holders.

Some unfair credit card practices should be changed, alleviating some of the pressure on consumers. After all, banks are getting relief from the goverment because of their reckless lending, why not the consumer as well?

The Federal Reserve has proposed the following changes:

• Ban double-cycle billing. The practice of charging interest on two billing cycles. Example. You owe $3000 with no prior balance, you pay $1000 by the due date, the next billing cycle comes around, any reasonable person would think they would only have to pay interest on the remaining $2,000, well with double cycle billing you would pay interest on the original $3,000 balance and the remaining $2,000.
• Prohibit applying rate increases to old credit card balance
• Apply credit card payments to all balances proportionally. If you owe $1,000 at a 0% interest rate and $1,000 at a 20% interest rate a $200 pament would be applied equally, $100 for the 0% balance and $100 for the 20% balance. Right now most banks would apply the $200 payment to the 0% balance first.
• A credit card payment received as late as 5:00 pm on the due date would be considered on time.

The Credit Cardholders’ Bill of Rights propose the following changes:

• Ban universal default. If you are late or default on one credit card the other credit card companies could not universally raise your interest rates.
• Require credit card compaines to send bills out 25 days before the due date. Right now some companies sent out bills very close to the due date.
• Require credit card companies to notify credit card holders of any rate increase 45 days in advance.

The proposed bill also contains many of the new regulations the Fed has proposed.

Related: Michigan Bankruptcy

http://www.mylifesuks.com/2009/02/carnival-of-personal-money-management.html

Have you been inundated with 0% balance transfer credit card offers from your banks recently? With interest rates plunging to record lows banks have once again started offering 0% introductory periods for credit card balance transfers, most banks are offering the 0% intro rate for 12 months!

Banks are also trying to raise capital these days to shore up their banking reserves so interest rates on deposits are higher then they normally would be with the Fed Funds target rate at 0% to .25%.  Dollar Direct Savings Bank is offering an online savings account that currently yields 3.50%, MBR reviewed the Dollar Direct online savings account offer back in November 08 when the yield was 4.00%.

Borrowing money at 0% and earning interest at 3.50% on the borrowed money isn’t a bad deal. Borrow $10,000 for a year and earn a 3.50% return or $350.  The trick to making this work is to read the fine print on the credit card offer and to make sure the balance transfer fee is capped, usually the cap is $75.00.  In this example, we borrowed $10,000 at 0% ($75.00 balance transfer fee) and earned a yield of 3.50% giving us a $275 profit.

If you decide to take advantage of the credit card offers make sure to read the fine print on the balance transfer fee, if there isn’t a cap do the math and make sure the transaction is worth the effort. You don’t want to end up lowering your credit score either so be sure to keep your debt to credit available ratio to around 25% on your credit cards, this is the ratio experts recommend.

Update: Craig, one of MBR’s readers has made a good point about this post. We should have named the post ” How to Profit from 0% Cash Advance Offers” and written the post more along line of a 0% cash advance not a 0% balance transfer.

First Command Bank is offering one of the best CD rates for a 12 month CD, the CD rate for balances  $10,000 and up is 3.93% and the APY is 4.00%. Balances under $10,000 receive an interest rate of 3.90% and a yield of 3.95%.

First Command Bank’s parent company is First Command Financial services based in Fort Worth Texas. First Command Bank is also a member of the FDIC, deposits on individual accounts are FDIC insured up to $250,000.

In addition to offering traditional banking services like deposit accounts, bank loans and credit cards First Command Bank also offer financial planning for military personal, government employees and the general public.

FCB also offers IRA-CDs which offer the security and predictability of a Certificate of Deposit plus the tax benefits of an Individual Retirement Account. IRA certificate of deposit contributions may be tax-deductible in the tax year for which they’re made, and earnings are tax-deferred until they’re withdrawn. The rates on IRA-CDs are tired and are the same as the traditional certificate of deposits offered above.

First Command Bank Certificate of Deposit Appication

Update: This promo CD rate has changed since this posting. Please check First Command’s website for more current rates.

Capital One Bank is now offering a rewards checking account with only a $50 opening deposit. The checking account is only available in states where Captial One Bank has branch locations. The states include, New York, New Jersey, Connecticut, Louisiana and Texas.

One can earn airline miles on this account by using a debit card, writting checks or paying bills online. The rewards you earn never expire.

Earning Airline Miles

• 10 miles for every debit card purchase
• 10 miles for every electronic bill payment transaction via Online Bill Pay and recurring pre-authorized payment (up to 10 transactions per month)
• 5 miles for all other customer-initiated withdrawal transactions (up to 10 transactions per month)
• Anniversary bonus of 1000 miles each year the checking account is open and has had at least one debit card purchase transaction in the previous year
• Direct deposit bonus for new accounts. Customers will receive a one-time bonus of 4000 miles when the first direct deposit transaction posts to the new checking account

Using Airline Miles

•  15,000 miles are required for tickets up to $150.00
•  35,000 miles are required for tickets from $150.01 up to $350.00
•  60,000 miles are required for tickets from $350.01 up to $600.00.
• For tickets over $600.00 in value, the required number of miles will be determined by multiplying the cost of the ticket by 100 (ex. $768 ticket requires 76,800 miles).
• The number of miles required to redeem for non-air travel redemptions will vary by rewards product

You can start the rewards checking account application online but you have to visit a branch to complete the application.

Capital One Bank Rewards Checking Account Application

Flagstar Bank of Troy Michigan is offering one of the most competitive CD rates available today. Their 12 to 14 month internet promotional certificate of deposit  currently yields 3.25%. The minimum deposit is $500. The CD is FDIC insured and there is a penalty for an early withdrawal.

The penalty for CDs with a duration of 12 to 14 months is 180 days of interest whether the interest is earned or unearned so be sure you won’t need access to the funds deposited.

Flagstar Bank is also part of the Certificate of Deposit Account Registry Service (CDARS) which allows for up to $50 million in FDIC insurance on deposits.

A Flagstar Bank promo CD account can be opened online or by contacting the bank at 1-900-642-0039.

Flagstar Bank CD Account Application

For more information on CDARS watch this CNBC video.

CDARS Information 

Citibank will give you $25.00 for opening an “Ultimate Savings Account”. All you have to do to take advantage to this promotional checking offer is open an account with a minimum deposit of $1,000. Use Citibank promo offer code CYA8.

To qualify for this offer you must also open and fund a new Ultimate Savings Account by 1/31/2009, maintain a minimum balance of $1,000 for three months after opening the account and the account must be in good standing at the time of the $25 bonus. If all the qualifications are satisifed the $25 will be deposited within 120 days from the date of satisfaction.

The current online savings account annual percentage yield isn’t bad either, currently the yield is 2.50%.

The account can be opened online or by calling Citibank at 1-877-695-9400

Citibank Untimate Savings Account Promo Appication

Flagstar bank, headquartered in Troy, Michigan, will give you $100 for opening a checking account. The minimum account opening deposit is $50. This offer isn’t available online, you will have to walk into a local branch to take advantage of this deal. Flagstar Bank has 170 locations in Michigan, Indiana and Georgia. The promotional checking code is HD.

To qualify for this offer :

• You must be a new Flagstar Bank checking customer
• Have a recurring direct deposit of income of at least $250 per month, excluding interest deposits
• Direct deposit must be established within first 60 days of opening the account
• All accounts must remain open and active for a minimum of six months
• $100 will be deposited into your checking account within 30 days after first direct deposit

Flagstar bank is a member of the FDIC and deposits are FDIC insured up to $250,000 per account.

Flagstar Bank Branch Locator

Compare the features and benefits and determine with your tax for financial advisor which one is most appropriate for your circumstances.

Traditional IRA

A traditional IRA allows tax deferred growth, meaning you do not have to pay taxes on the gains or earnings in your IRA until the money is withdrawn. The amount contributed to the IRA might also be tax deductable depending on your adjusted gross income (AGI).

• You have to be less then 70 1/2 years old to contribute to a traditional IRA.
• For the 2008 tax year individuals under 50 can contribute up to $5,000 and couples under 50 can contribute $10,000. Individuals over 50 can contribute up to $6,000 and couples over 50 can contribute up to $12,000. If one spouse is under 50 and one spouse is over 50 then the max limit is $11,000.
• You have to start withdrawals when you turn 70 1/2 years old, there are penalties if you don’t.
• If you make a withdrawal before age 59 1/2 there are penalties.
• There are exceptions to the early withdrawal penalty, but those funds can only be used for a first time home purchase, certain medical expenses or for education expenses.

Roth IRA

With A Roth IRA one makes after tax contributions into an IRA. Your earnings and gains grow tax free. Best of all, any withdrawals are free from federal tax. Since contributions are made on an after tax bases they are not tax deductible.

• You can make contributions at any age to a Roth IRA.
• You can contribute to a Roth IRA if have earned income and your modified AGI is less than $116,000 for single filers and $166,000 for married filing jointly. These numbers are for the 2008 tax year.
• For the 2008 tax year individuals under 50 can contribute up to $5,000 and couples under 50 can contribute $10,000. Individuals over 50 can contribute up to $6,000 and couples over 50 can contribute up to $12,000. If one spouse is under 50 and one spouse is over 50 then the max limit is $11,000.
• You have to have held the account for 5 years and be at least 59 1/2 when you make the first withdrawal.
• Contributions can be withdrawn at any time without taxes or penalties.
• Earnings can be withdrawn without taxes or penalties if you are at least age 59½ and your account has been open for at least 5 years.
• There are no distribution requirements at any age.
• There are exceptions to the early withdrawal penalty, but those funds can only be used for a first time home purchase, certain medical expenses or for education expenses.

Which IRA is best for me?

As you can see, choosing the right IRA depends on your financial circumstances, your adjusted gross income and your age. Be sure to speak with your advisor to determine which IRA is best for you.

Monitorbankrates.com has just released a new CD ladder calculator. The calculator can help you figure out the return you will receive on a certificate of deposit ladder (CD ladder).

Just enter the total dollar amount you plan to invest, the dollar amount to invest in each CD, how frequently you want the CDs to mature, how interest is compounded, the CD interest rates (up to 5 CDs) and calculate.

The calculator will also compute how much more you will earn laddering a CD then investing in a single CD. To show you how laddering a CD pays-off we calculated $100,000 invested in a 15 month CD ladder would pay $540.37 more then investing in a single 15 month CD. Results will vary depending on the CD terms and interest rate.

The calculator can be found under the calulators tab of MBR and on the main page of the website.

Imperial Capital Bank is offering their iMoney Market Checking Account. The minimum opening deposit is $2,500 and there is a minimum monthly balance of $2,500 for the account to earn interest. The 3.75% APY on balances over $100,000 is one of the top rates available today for a checking, savings or money market account.

The account is like a money market account or savings account with checking writing capabilities. The account is treated like a savings account in regards to withdrawals. Federal regulations limit the number of withdrawals per month, the limit is six. Which includes online banking and online bill payment.

The APY is tiered according to the account balance.

The first order of checks for the account is free. There is a monthly maintaince fee if your account’s average balance falls below $5,000.

Imperial Capital Bank iMoney Market Checking Application

The Federal Reserve Bank has put together a list of government agencies that can help you if you are facing foreclosure on your home. They stress that you seek assistance if you are facing foreclosure.

“If you are having difficulty making your mortgage payment, one of the most important things you can do is seek assistance. The following resources provide information and links to agencies and organizations that may be able to help you.”

Here is the list of agencies that can help you if you are in danger of losing your home to foreclosure.

Department of Housing and Urban Development

• Guide to Avoiding Foreclosure
• Housing Counseling Agencies
• How to Avoid Foreclosure (82 KB PDF)

Department of Justice

• Credit Counseling Agencies Approved Pursuant to 11 U.S.C. § 111

Federal Housing Administration

• You Can Avoid Foreclosure and Keep Your Home

Federal Reserve System

• 5 Tips for Protecting Your Home from Foreclosure
• Federal Reserve System Foreclosure Resource Centers
• Putting Your Home on the Loan Line Is Risky Business

Federal Trade Commission

• Credit & Loans
• Credit Repair: How to Help Yourself
• Foreclosure Rescue Scams: Another Potential Stress for Homeowners
• Mortgage Payments Sending You Reeling? Here’s What to Do

Internal Revenue Service

• Homeowners Who Lose Homes; Tax Relief Available to Many
• Q&A on Home Foreclosure and Debt Cancellation

NeighborWorks® America

• Center for Foreclosure Solutions 
• Consumer Foreclosure Resources 
• NeighborWorks® America Organizations Locator 

Office of the Comptroller of the Currency

• Consumer Tips for Avoiding Foreclosure Rescue Scams

  Related

• Christain Home Business

MonitorBankRates.com has five new financial calculators including a Certificate of Deposit (CD) calculator. The calculators are very easy to use and are located under the “Calculators” tab. A CD calculator will help you determine how much interest you will earn on a CD.

To determine the amount of interest you will be paid on a certificate of deposit, just enter the CD deposit amount, the term of the CD, the CD interest rate and how interest will be compounded, daily, weekly, monthly or annually.

The more frequent interest is compounded the higher the overall return and annual percentage yield will be. To give you a better idea will use this example.

$100,000 deposited in a 12 month CD with an interest rate of 5.00% compounded daily will have an APY of 5.127%. Earning $5,126.74 in interest.

 $100,000 deposited in a 12 month CD with an interest rate of 5.00% compounded annually will only have an APY of 5.00%. Earning $5,000 in interest, $126.74 less then a CD compounded daily.

This is the power of compound interest, earning interest on top of interest. $100,000 deposited in a 5 year CD with the same interest rate above compounded daily will earn $28,400.31, compounded annually will only earn $27,628.13, a difference of $772.18.

So next time you are looking for the best CD rates try MBR’s CD calculator for yourself and see how much interest you will earn before investing in a certificate of deposit.

AIG Bank is offering a high yield money market account, rates on the MMA are tiered, the higher your balance the higher the interest rate. The minimum opening deposit is $2,500. The annual percentage yield for deposits below $10,000 is 2.15% and on the high end the APY is 3.26% for balances over $250,000, here is the rate and yield table below.

 
You will need the following to open a certificate of deposit

• A Social Security Number or Tax ID
• A driver’s license number or state issued ID number
• Information pertaining to your financial transactions (used to verify identity) such as household income, sources to fund your account, employment information, etc.
• The routing and account number of the account you will use to fund your new AIG Bank account (minimum opening deposit: $2,500)
• A valid email address 

AIG Bank Certificate of Deposit Application

eBank is offering a 1 year Certificate of deposit (CD) that currently has a 3.50% annual percentage yield. The minimum deposit is $1,000. One of the interesting benefits of the CD account is you can do an early withdrawal for up to $10,000 without paying a penalty if money is for a medical emergency.

eBank is also offering a business certificate of deposit with the same yield (3.50%) as a personal CD. The minimum deposit is $1,000 and there is a penalty for an early withdrawal

ebank, a subsidiary of ebank Financial Services, Inc., is a federal savings bank that provides a full range of banking, mortgage, and financial products and services to individuals and small businesses.

CD accounts can be opened online or by fax/mail

eBank Personal Certificate of Deposit Application

eBank Business Certificate of Deposit Application

eBank can be contacted at:
2410 Paces Ferry Road
Suite 190 
Atlanta, GA 30339
770-863-9225 
888-278-9898 (toll free)