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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. Try MBR’s CD calculator for yourself and see how much interest you will earn before investing in a certificate of deposit. Bank of Internet is offering a high yield checking account that currently has a 3.20% yield. The online checking account has a higher yield then traditional banks because Bank of Internet has less overhead, passing the savings on to depositors. The minimum opening deposit is $500 and there is a monthly fee of $7.50 if your average daily balance is below $5000.
Checking Account Benefits:
The checking account is insured by the FDIC for up to $250,000. Bank of Internet’s FDIC certificate number is 35546. Open A Free Checking Account With Free Debit Card - Up to 3.20% Interest Earning Power!
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.18 percent, with points increasing to 1.17 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The contract rate for 30-year fixed-rate mortgages is the lowest recorded in the survey since the record low of 4.99 percent for the week ending June 13, 2003. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.91 percent from 4.93 percent, with points decreasing to 1.03 from 1.34 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs decreased to 6.36 percent from 6.63 percent, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80 percent LTV loans. If you are in a position to purchase a home or refinance an existing loan now is a good time to do so. The general rule when refinancing is if you can get a mortgage rate 1.0% lower then your existing mortgage it pays to refinance, that is if you plan to be in the home for awhile. MBR has just received word that WTDirect is extending their “Winter Bonus Blast savings account“. When you open an account during this promotion period you will receive a cash bonus up to $250. The promo bonus is based on your average balance between 1/1/09 and 2/28/09. Details:
Promo Bonus Payout: Average balance and bonus WTDirect Winter Bonus Blast! Get a bonus of up to $250* when you open a WTDirect Account today!
Rates on home loans, car loans and consumer loans should also go down, hopefully a full percentage point on average. As for deposit accounts we might see rates stay where they are now since banks are desperately trying to raise their deposit base, time will tell. The Feds also plan to keep rates at these historic lows for awhile since do to the ecomonic conditions. Official FRB press release. “The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent. Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further. Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters. The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time. The focus of the Committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level. As previously announced, over the next few quarters the Federal Reserve will 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 its purchases of agency debt and mortgage-backed securities as conditions warrant. The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. In a related action, the Board of Governors unanimously approved a 75-basis-point decrease in the discount rate to 1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta, Minneapolis, and San Francisco. The Board also established interest rates on required and excess reserve balances of 1/4 percent.”
You can sign up for an account online here in 10 minutes. You will also need the following information:
Hudson City Savings Bank has been around since the Civil War and has 127 branches in New Jersey, New York and Connecticut.
The Retirement Estimator produces estimates that are based on your actual Social Security earnings record, but it’s only an estimate since your earnings will change over time and the future benefit will be adjusted for inflation. To use the Retirement Estimator you will be asked for the following
After you have provided the information you will be asked to provide last year’s earnings to create an estimate. The estimate will look like this ( I ran an estimate for myself ). Estimates are provided for early retirement, full retirement and delayed retirement.
The 1983 Social Security Amendments raised the retirement age because the increase in the average life expectancy. As a result, full retirement age which was 65 gradually increases to 67 for for people born in 1938 or later. You can use the following chart to figure out your full retirement age.
chart source: socialsecurity.gov If you are near retirement and have more questions the Social Security Administration has a Q&A section on their website Social Security Administration Q&A
Even though the Federal Reserve Bank has been lowering rates recently, CD rates have remained relatively stable the past 6 months, the rate for a one year certificate of deposit is still about 3.25%, the same as it was six months ago. Why do you ask? One word, competition. The credit crunch is also affecting banks, the market for commercial paper is pretty much dead right now so banks have to turn to other sources for funds. There is even talk of the investment bank Goldman Sachs opening an online bank to raise more funds. The credit crunch is good news for depositors, banks are raising rates because they are competing for the same pool of deposit funds. You can even find promotional CD rates online, Dime Bank is offering a 1 year CD that has a 4.10% APY ( the APY was recently as high as 5.00%, E-loan’s promo 1 year CD yield 4.36%. You can also find money market accounts, High Internet Savings Accounts and checking accounts that have yields between 3.00% to 4.00% or higher. Though with a checking account you might have to meet certain transactional criteria to receive a promo checking rate. You will have to do some research to find the best bank rates, Monitor Bank Rates (MBR) has tons of promotional rates listed, all you have to do is browse or search through our bank reviews to find the Best Bank Rates.
You can also request a copy of your credit score from a lending institution when you apply for credit, all you have to do is ask for your credit score. You can also pay for a copy of your credit report and credit score if you want to monitor your credit throughout the year. The three major credit agencies are listed below. Experian Equifax Credit Information Services TransUnion Corporation
The interest you earn the account can remain in the certificate of deposit or be transferred to a Discover Bank Money Market Account or to another bank account. Discover Bank will notify you 3 weeks before the certificate of deposit matures with renewal options. If you do not respond the CD will automatically be renew for the same term at the prevailing interest rate. There is a 9 calendar–day grace period after your CDs maturity date, during which you can make changes to your account, such as adding or withdrawing funds or opting not to renew, without paying an early withdrawal penalty. As with all certificate of deposit accounts there are early withdrawal penalties. The penalty for a 5 year CD is 6 months of simple interest on the amount withdrawn. For a 7 year certificate of deposit and a 10 year certificate of deposit the amount is 9 months simple interest on the amount withdrawn.
The minimum opening deposit for the CD account is $500 and the maximum deposit is $100,000. Funds deposited in the account must be “new money” and can not be transferred from an existing Dime Account. Dime Direct is part of Dime Savings Bank of Williamsburgh ( Brooklyn ) New York which was establish in 1864. The Prime Dime Checking Account can be opened with a minimum deposit of $1.00. There is a $15.00 monthly fee if your checking account balance falls below $5,000. To qualify for the CD rate you must also do the following transactions in the checking account. Have a monthly recurring direct deposit of a payroll check, pension check or government benefit or use the online bill payment service at least once per month.
CD brokers usually purchase CDs in large denominations and resell them to customers in smaller amounts. Just like traditional certificate of deposits purchased from banks, brokerage certificate of deposits are FDIC insured for up to $250,000 for individual accounts and $500,000 for joint accounts. The difference between traditional bank CDs and brokerage CDs is the brokerage CDs are tradable like stocks or bonds. Why would one want to trade a CD? To access their funds without paying an early withdrawal penalty like you would with bank CDs. A brokerage CD will return an investor’s principal at maturity, its value if sold prior to maturity will fluctuate based on size, time remaining before maturity and the level of interest rates. If you sell before maturity your broker will request bids and contact you with the highest bid for you CD. You will also receive any accrued interest up to the sale date. Another benefit is a brokerage CD can be transferred from one brokerage firm to another, which allows the owner to consolidate assets at one firm. Bloomberg recently reported CD rates are going up.
The bonus is posted into the account within 90 days of opening the account and you must keep the account until the certificate of deposit matures. The minimum opening deposit is $10,000 and the promo is valid for one new 1 year CD account for each new customer. E-Loan 1 Year Promotional CD Application
Requirements to open a savings account
If you need help opening an account call customer service at 1-866-395-8693
You will need the following to open a certificate of deposit account with Sovereign Bank.
You can open multiple accounts to raise your overall limit. We have two examples on raising the insured limit on deposit accounts. Maximizing Your FDIC Insurance Coverage A husband and wife can have deposit accounts totaling $1,500,000 insured by the FDIC, with the following account ownership strategy. Example 1: Husband and Wife
Example 2: Husband and Wife with Child
Costco through Capital One Bank is offering an 18 months CD that currently has an annual percentage yield of 4.46% for both non-jumbo CDs and jumbo CDs. This promotional offer is one of the highest CD rates available for an 18 months CD and is only available to Costco members. The minimum deposit is $5,000. There is an additional promo offer if you have not yet opened an account. 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 bonus is credited to the new account balance and is reported as interest income. A CD account can be opened online by using the link below or by calling 1-866-850-3919. Captial One/Costco 18 Month CD Applicaiton
What is principal? Principal is the amount of money originally invested in an account. It includes any interest earned which has been posted to the account. Principal is the money that earns interest. What is an Annual Percentage Rate (APR)? The APR is the annual rate of interest without taking into account the compounding of interest. What is an Annual Percentage Yield (APY)? The APY is the annualized rate of return on your investment including compounding interest. What is a Certificate of Deposit (CD)? A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. What is a Jumbo Certificate of Deposit (CD)? A Jumbo certificate of deposit usually has a minimum principal deposit of $100,000. What is an Early Withdrawal Penalty? Since certificate of deposits are timed deposits withdrawing monies early will incur a penalty, forfeiting some or all of the interest earned. What is a Certificate of Deposit term? The term of a certificate of deposit (CD) is the length of time your money has to be deposited to accrue the interest promised by the bank. What is Compounding Interest? Compounding refers to earning interest on previous interest earned, this is why the annual percentage yield (APY) is higher then the annual percentage rate (APR). Another good source for information on investing terms is Investopedia.com
Valley National Bank of Wayne New Jersery is offering 4.00% APY on a 9 month CD, 1 year CD, 18 month CD and 2 year CD. These rates are as of October 23, 2008. Valley National Bank has been around for over 80 years. Certificate of Deposit overview:
Certificate of Deposit Application process: To open a CD account with Valley National you can fill out the application online and bring it into a branch office. If you are an existing VNB customer you can mail the form in. For more information go to www.valleynationalbank.com or call 1-800-522-4100
You will need the following information to open a CD account.
Be sure to use promotional offer code HYCD Bank of America 7 month CD Application
Bank of America NEA is offering some of the best CD rates available, particularly for shorter term CD rates. The current yield on a 3 month CD is 4.39% APY. These rates are only available to National Education Association (NEA) members. The minimum opening balance is $1000. Additional CD rates and terms offered by Bank of America NEA.
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The Mortgage Bankers Associations (MBA) said today that its Mortgage Applications Survey increased 48 percent the week ending December 19th and the Refinance Index surged 62 percent. The surge in activity is being driven by record low mortgage rates.
Hudson City Savings Bank of Paramus New Jersey is offering some of the best CD rates for a 5 month certificate of deposit, 91 day certificate of deposit and a 12 month certificate of deposit. The 5 month CD rate is 3.68% with an annual percentage yield of 3.75%, the 91 day CD rate is 3.16% with an APY of 3.20% and the 12 month CD rate is 3.39% with an APY of 3.50%. The minimum balance on all CDs is $5,000.
From time to time you have probably have received a letter from the U.S. Social Security Administration estimating your social security benefits at retirement based on your annual earnings. You can also use the Social Security Administrations’ 
Some of our readers have been asking which direction CD rates and deposit account rates are headed. Deposit accounts include bank accounts and certificate of deposit accounts. 
Monitoring your credit is part of a sound personal financial strategy, so it’s a good idea to check your credit report, which you can do every twelve months for free. To request a copy of your report, call 1-877-322-8228 or visit 
Discover Bank is offering one of the highest CD rates for a 5 year certificate of deposit, the Certificate of Deposit currently has 5.08 annual percentage rate and a 5.21% annual percentage yield. You can earn the same high yield on a 7 year certificate of deposit and a 10 year certificate of deposit. The minimum opening deposit for a CD account is $2,500.
The 5.00% CD rate is back! Dime Direct is offering a promotional 6 month CD that yields 5.00%. To qualify for this promo CD rate you will need to open a Prime Dime Checking Account. The offer is only available in New York, New Jersey and Connecticut.
E-Loan is offering one of the best CD rates for a 1 year CD. The current annual percentage yield for the 1 year certificate of deposit is 4.36%. Plus if you sign up with promotional code “times25″ before December 18th you will receive a $25 bonus.
Dollar Savings Direct is offering a high yield savings account(HYCA) that currently yields 4.00% APY. The minimum balance you have to maintain to receive this HYSA rate is $1000. The account can be opened online at 
The Federal Deposit Insurance Corporation recently raised insurance limits on all deposit accounts to help calm the credit and financial markets. The new limits are only temporary but the limits have been raised from $100,000 to $250,000 for individual accounts. Deposit accounts include checking accounts, savings accounts, money market deposit accounts and certificates of deposit (CDs). 
We often receive questions about investing terms and phrases so we decided to post definitions of some of the terms we use on monitorbankrates.com
Bank of America is offering one of the best CD rates for 7 month CD, this promotional CD rate is currently 3.68% with an APY of 3.75%. The rate is only available online at bankofamerica.com and is only for the initial term of a new CD. The minimum deposit to open a High Yield CD is $5,000 and B of A might limit the amount you can invest to $500,000.
