2012年9月19日 星期三

Certificates of Deposits For Retired Workers


After retirement sets in the investment years are mostly over.

We saw a glowing example of a retiree losing a huge amount of

his retirement money in the Enron debacle. He was profiled on television

testifying in the Enron investigation that he lost $4 million dollars with the fall

of Enron.

He retired years ago, yet he kept his money in their company

stock, which was the stock of his past company. This goes against the conventional

wisdom of not putting all of your eggs in one basket.

What are some of the alternatives he could have investigated to place his

money in less risky venues. He could have taken it out, rolled it over, and

placed it in a number of venues to increase it's safety.

One much less risky venue would have been a CD or certificate of deposit.

A certificate of deposit is a fixed income savings account issued by a

bank with a better interest rate than a savings account.

A CD has a maturity date of from 1 month to 5 years. Money you may need

in the very short term could be place in a 1 month, then some in the 1 year,

and so on. The CD has a fixed interest rate and is insured by the bank. It

is structured so you don't get your money at any time, but you can get it

before the maturity date, but you will usually loose some or all of your interest.

You can think of the CD as a short term, low-risk, interest-paying savings

account.

This is how it works. If you put $10,000 into a CD at an interest rate of 6%,

you will have (10,000 x 1.06), or $10,600 at the end of one year.

If the Enron retiree had (4,000,000 x 1.06) in a CD account, he would have

had $4,240,000 at the end of one year, instead of zero (0), after the one

Enron stock he invested in collapsed.

Before you invest in a CD at your bank there are a few questions you should ask.

1. When does the CD mature.

You should only keep the money in for the period of time you absolutely will not

need it, if there is any chance you will need the money before 2 years, don't

get a CD that matures in in two years.

2. What is the interest rate?

3. What is the CD insured for?

4. What is your exact interest rate for the holding period?

5. How much would you loose if you took your money out before the maturity date?

Read all of the literature you are given and know what you are

investing in before you put your money into your chosen CD

account. Remember, all investments come with some risk.

~~~~~~~~~~~~~~~~~




Lois Center-Shabazz is the founder of the personal finance website, Msfinancialsavvy.com and the author of the award- winning book, Let's Get Financial Savvy! http://www.msfinancialsavvy.com





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Simple Facts About Saving With Certificates of Deposit Accounts


A certificate of deposit, more generally referred to as a CD, is categorized as a time deposit. It is a promissory note provided by financial institutions in exchange for depositing funds during a specified term the course of which they cannot be accessed. CDs accrue interest during this term, generally at a higher rate than an average savings account, and are paid upon maturity. Money withdrawn from a CD before its maturity date usually incurs a penalty. The fixed terms offered vary from 3 months, 6 months, 12 months, up to 5 years.

Certificates of deposit are considered a relatively risk free investment as they are FDIC insured,

Currently the higher 1 year CD rates (one year CD rates) are averaging 1.55%, however these numbers vary based on different factors, including location and the amount of deposit. Generally these fluctuations have a bigger effect on CDs with longer maturity dates versus those that are considered short term, which tend to be less disposed to shifts in interest rates. CD interest rates are calculated based on the term of the CD and the current interest rate environment. The rate is usually higher the longer the term or the larger the sum deposited. However, once the CD is purchased and the money deposited, the return is not subject to stock market fluctuations, the earnings on the funds are guaranteed.

Withdrawals made before a CD reaches maturity generally incur a substantial penalty. For example, a five year CD might suffer a loss of 6 months worth of interest. The penalties are in place to ensure the investor keeps the funds in deposit until maturity. The penalties may or may not affect the principal deposit, if for example it is withdrawn after three months of opening with an established six month penalty. Sometimes withdrawal of the principal may require that the entire CD be closed.

Deposit brokers also offer certificates of deposit, often these brokerage firms can negotiate higher 1 year CD rates (one year CD rates) by promising to bring a certain amount of deposits to the financial institution it represents. These CDs are usually issued in large denominations and are then split up in to smaller values and resold to customers. For this reason, brokered CDs are often advertised as having no prepayment penalty associated. In the event an investor wishes to redeem the CD before maturity, the broker can attempt to resell the CD, at times even for a profit. These certificates of deposit are also insured by the FDIC however in the event the bank fails, brokered claims take a little longer to pay than the traditional direct deposit CD.




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2012年9月18日 星期二

A Comparison of Annuities and Certificates of Deposit (CDs)


Similarities:

Fixed Annuities and CDs are low risk investments with guaranteed rate of returns based on interest rates, both are issued by financial institutions, CDs by banks, Annuities are offered by insurance companies. CDs have FDIC protection to guard against Bank failures. Annuities also have safety measures put in place by each State to ensure Insurance companies have reserve pools in place. The guarantee for annuities is based on the claims paying ability of the issuer. Investors can compare the financial strength of Insurance companies using the ratings from firms such as Standard & Poor's, Moody's, A.M. Best, etc.

Differences:

Annuities carry several benefits.


Generally higher returns
Tax-Deferral of earnings
Potential liquidity

Higher Returns:

Fixed Annuities, like CDs, are hinged to interest rates. But when rates are low so are CD returns, but annuities have a minimum guarantee in place, usually 3% or 4%. Your investment will never dip below the guaranteed minimum interest rate during times of falling or low interest rates.

Tax-Deferral:

You pay annual taxes on CD interest earned without being able to withdraw funds until your investment term is over. With Fixed Annuities, there is also a set term, but the earnings are tax-deferred. You only pay taxes on interest earned when money is withdrawn. So with Fixed Annuities the deferred tax on your interest remains in the investment potentially earning you more money, instead of being paid out to state and federal tax agencies on a yearly basis.

Potential Liquidity:

CDs do not allow you to withdraw any monies during term. Some annuities have provisions that allow you to withdraw money, generally 10% of your account value annually. Plus many contracts allow you to remove the earned interest on a monthly basis, of course if you do, it becomes taxable income. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner and/ or his or her spouse, or over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security.




Russell Hill writes articles on a variety of subjects including fixed annuities, variable annuities, indexed annuities and other retirement investment vehicles. More information on annuities can be found at: http://www.annuity-strategies.com





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What Are the Advantages of CDs (Certificate of Deposit)?


Certificate of Deposit is one of the best manners that are often resorted by many in the country - it is often considered as a safe investment. Plenty of choices and options are already in existence on the niche of investments. However, the risks associated with CDs, in comparison to the other types of investment procedures is marginal. This is the primary reason that attracts a vast majority of the population. We always select the best investment plans out there, because we wish to make good use of our hard earned money.

Allow me to emphasize on the returns that can be achieved with CDs. It has become quite customary for financial experts to compare CDs with a savings account. According to them, CDs and the saving account function similarly. However, the profit that is bestowed to you is always greater if you pick out a certificate of deposit plan. In fact, the same investment procedure is advertised with much pomp and show in the social circles by various investment agencies. Have you ever wondered, why many financial organizations publicize such investment schemes? If you look closer, you will realize that you are in turn providing them with a great favor - this will be explained in the following paragraph.

The institution often utilizes the sum that is deposited as CD for various other purposes. Think about the bigger picture. Hundreds will opt for the same investment plan. CD is often associated with a maturation time-period. In simpler terms, the longer the cash remains with them, the better it works out for the financial organization. What do they do with your money? They will invest on other ventures and a part of the profits will be handed over to you. This is how the entire system is noted to function.

Starting a CD account with the nearest financial organization is simple. You will have to complete the preliminaries, which include filling up certain forms. The interest rates are often fixed, and you will be given two options to do away with the interest amount. If you would like to spend the amount on consumables, you can request for the same. Or else (this is what the intelligent is noted to do) you can ask the same organization to deposit the same interest amount to the existing CD deposit. In effect, you are simply multiplying your returns for the greater good.

Now that you might have understood how CDs perform, there remains another vexing query. Which is the best CD plan to be chosen? I will quote the words of financial experts - always stick to those plans that have a high maturation period. As with all the other types of investment plans, high volatility is subjected to the certificate of deposits. In simpler terms, you will be given the option to fix the interest rates. The exact opposite is also prevalent; but it is considered too risky for a nonprofessional who has limited funding sources.

The internet is the best place to initiate your search for the best CD plans. Quite often, quotes will be provided to interested customers. You will have to compare the quotes and come to a favorable decision. Although the niche is slated to be "risk free", the existing economic conditions play a pivotal role in deciding the feasibility of the CD.




Brittany Stanzas is a professional finance writer who works for http://www.zuuply.com if you want more information on CDs feel free to check it out.





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Keeping Your Money Safe and Profitable Through Certificate of Deposit


Nowadays, there are several financial institutions that offer several kinds of services. With the economic ordeals that hit almost everyone, people who were able to save some money are being meticulous in choosing which financial institution to keep their money. Few decide to just keep it at home instead people will always look around for the best financial institution that will ensure their money is safe and earning the most. As much as there are numbers of financial institutions, the types of accounts that you can open also varies.

If you have a significant amount of money to save and you are confident that you will not need it for quite some time then you will be interested in buying certificate accounts. It is a type of investment with fixed deposit structure that you can acquire either from banks or lending institutions. Investors need to deposit funds in a certain timeframe which ranges from 3 months to sixty months or more in order for their money to acquire higher interest rates. Similar to the conventional savings account, certificate of accounts are protected and insured by government agencies.

Banks and credit unions have set specific minimum requisite amount of deposit for people who are interested in buying certificate accounts. Naturally, if you want your money to acquire higher interest rates, you should make higher deposits. In return for the deposit made, the buyer gets a certificate that indicates the necessary details to seal the agreement such as term of deposit, interest rate and the maturity date.

When the deposited money reaches maturity, the principal amount and the earned interest will be awarded to the depositor. In order for the banks and credit unions to keep their business through the number of clients retaining their deposits in a long term investment, heavy penalties are imposed to early withdrawals. Such penalties can be of different forms; either through interest rates earned on a quarter or it can be the overall interest rates for the whole duration of the deposit. It depends on which type of financial institution you deposited your money to. So as not to repel investors, some banks have introduced a different structure of certificate of accounts giving its investors the flexibility of making use of their money in a staggered basis so they can use it in some other purposes.

It is wise to look around before letting your money go to any financial institutions. You are not giving your money away, of course, but the fact that your money has the tendency to sleep with low interest, you might as well find the best options of saving and the best place to keep it. Identify your goals with their corresponding time lines in order to come up with a better decision that has been well thought of before buying certificate of accounts.

Unless you are truly confident that you will not have a need for the money you will be using to buy the certificate of account, consider finding other options that will not impose any penalties when withdrawing your money. Make sure to discuss penalties with your bank or credit union so you are aware of what you will lose in case you have to withdraw your money earlier than the maturity date.




Savings accounts San Luis Obispo can be found at top-ranked, local credit unions. Check into your different options at sites like http://www.coasthills.coop/.





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2012年9月17日 星期一

Do You Like the Certificates of Deposit Rate


Certificates of deposit is really the investment choice of the majority. It is popularly known as CDs. Many people purchase them without any knowledge of certificates of deposit rate and how it might affect them. When you know a little bit more about the rates or what affects the rates, you can maximize the potential of this type of investment and really make it work well for you.

You need to be aware of the fact that certificates of deposits are very similar to savings account and they also have functions like one. One major difference is that certificates of deposit carries a fixed term like three months, six months, one year or even multiple years and most do also have fixed interest rate. The main idea is to leave the money in the CD or certificate of deposit for the chosen term, after which you can withdraw the money with the accrued interest.

Actually, the benefit of certificate of deposit accounts is that because of the fixed term, your interest rate is usually higher than savings account that allows withdrawal anytime. Most certificates of deposits do come with fixed rates, but some banks and credit unions also offer variable interest rates. Some CD's are tied to the stock market or even the bond market. This can be risky as far as the interest rate you get, but the payoff can be huge, depending on how the associated market does during the duration of the certificate of deposits.

Keep this options in mind if you are considering certificates of deposit:

Just so true, the larger your deposit, the higher the interest rate you can expect. Also, the longer terms will get you the highest rate. You should also know that, smaller banks and credit unions generally offer higher interest rates. Your personal CD accounts generally do get higher interest rate than business CD accounts. Some financial institution that are not insured by NCUA or the FDIC often offer higher interest rate because of the risk involved.

As you can see, when you are considering the certificates of deposit rate there is a lot that goes into it. The above rules will apply to about 99% od CD's accounts, you might find some instances where they will not. Remember, financial institutions are able to set up their own rates, so be sure to ask for better terms if you are depositing a very large sum. In some instances it makes more sense to have several CD's for smaller amounts while other times it makes sense to have larger principal amounts. Shop around and choose the certificate of deposit rate that best fits your need and is associated with a term that also fits your needs.




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Brokered Deposits, Where is the Big Bad Wolf


Reuters published an article last week on the "evils" of brokered deposits. And now my gloves are off!

Let's get something straight. Deposits, brokered or otherwise are not the problem. The banks making poor management decisions are the problem. The problem is with the bank's bad loans and poor investment decisions. It is not the accepting of brokered deposits that causes banks to fail.

The perceived problem with brokered deposits is that they are more volatile than a bank's "core" deposits. This may have been true in the Stone Age when we didn't have newspapers and the internet, but it simply IS NOT TRUE in 2008. In a matter of hours, a bank through the internet can take in Millions of dollars. Just look at the recent onslaught of funds that AARP helped Huntington National Bank raise or how about Countrywide Bank? Those internet funds are as volatile (and "expensive" I might add) as any brokered deposit.

There is also another class of deposits that most people outside of the banking industry probably don't even know about. They arrive from a rate listing service. Rate listing services actually have a specific exemption from being considered deposit brokers because they don't "facilitate" the placement of the deposit. They just provide rates and the investment manager makes the decision as to which institution to place the deposit. (Don't even get me started on this one). Again, a bank can list CD rates on these services and within hours raise Millions of dollars. Millions of dollars that are just as volatile as any brokered deposit.

The article written by John Poirier also uses scare tactics and a nice salting of misinformation to give the impression that brokered deposits are evil. Almost every paragraph could be rebutted. But then this post would be 10 pages long.

First, the article leads off with a statement about "cash hungry banks are in danger of failing" because of brokered deposits. The fact is that the banks are cash hungry because they made risky loans that aren't being paid back. Secondly, they are cash hungry because they are losing "core" deposits to high yield savings accounts and checking accounts that are being offered on the internet.

Next the article states that brokered deposits have "fueled a spate of recent bank failures." First, there have only been four failures this year. I wouldn't classify that as a spate. Second, of the four banks, only ANB had a large amount of brokered deposits. Douglas NB had about 3.2% of their deposits listed as brokered and First Integrity had about 4%. Banks that do take brokered deposits usually limit them to no more than 10%.

One of the funnier misstatements is the fact that the author writes, "Brokered deposits are short-term deposits that often attract banks in remote areas to increase lending activity." First, brokered deposits can be far from short-term. They can be anywhere from 90-Days out to 20-years. The term is really dependent on the market. Secondly, the article implies that it was the lure of brokered deposits that caused them to increase risky lending activity. However, usually the bank has already begun the lending activity and suddenly realizes they need more deposits to fund the loans. The increased risk the bank was willing to take (at least during the Housing bubble) was fueled by greed and the low cost of funds, not brokered deposits.

One of the few partially true statements is "Brokered deposits also usually offer higher rates than other bank products such as certificates of deposits..." The true part is often the rates are higher. However, as I stated above, they may be no higher than many internet specials. This author shows just how little time he took with his research. 99% of brokered deposits are certificates of deposits.

Are brokered deposits really more expensive though? If a bank that has $1 Billion deposits needs $5 Million dollars they can make a private offering to brokers without alerting their entire deposit base of these higher rates. So would you rather pay a higher rate on $5MM or $1BB? Moreover, brokered deposits tend to be in higher denominations which means much, much less paperwork and handling for the bank. They also tend to be from other financial institutions. This means the patriot act doesn't apply and the bank doesn't have to worry about OFAC violations. In the long run, brokered deposits cost the bank less. Finally, although a single deposit may be more volatile, the broker is usually able to replace any deposits that close and thus, brokered deposits become a stable funding source. They are certainly more stable than high-yielding savings accounts being offered across the internet that can be withdrawn at anytime.

The author goes on to infer that ANB was a small Arkansas bank. He makes it seem like the evil brokers took advantage of a small little bank. ANB Financial at the time of closing was over $2BB in assets. Most banks do not have over a billion dollars in assets. ANB was a large bank. The management of this bank did not have the wool pooled over their eyes. The brokers didn't come to them as wolves in sheep's clothing.

He states that the FDIC picked up the $214 million tab when ANB was taken over. Pulaski took over a large part of the deposits. As the closure process hasn't been completed and ANB's assets sold off, there is no way to know how much it will actually cost. But if you want to talk about cost, how about the Bear Stearns bailout or the billions and billions of dollars the Fed has pumped into the system. How much is that costing and how much of that are the banks using to continue their mismanagement practices.

Deposits from any source other than the local area should have more scrutiny, if any additional scrutiny is going to be placed. If a bank's insurance premiums are increased for accepting brokered-deposits, the practice of utilizing rate listing services and offering internet specials will increase, thus skirting the intent of the original regulations (which is to make banks keep a watchful eye on their non-core deposits).

If you've gotten through all of above, who is really going to pay for higher oversight and or the higher premiums that have been suggested? You the saver. You the saver are the one that will pay with lower rates. You have already been hit hard with the Fed lowering rates over 3%. The FDIC should scrutinize the entire banking operation, including all sources of deposits and lending practices. The fact is in 2008, all deposits are volatile.

One funny side note. I looked at the deposit breakdown on ANB. And I discovered why they failed. As of 3/31, the FDIC reported that they had about $1.8BB in deposits. Of that, about $1.7BB was listed as core and about $1.5BB was listed as brokered. A deposit can't both be core and brokered. I think ANB failed because they simply couldn't add 1+1. :O)

If you are a bank and need some funding. Give us a call. We have a variety of methods and sources we can use to help you raise deposits. Visit our bank funding page.




Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find quality CD rates nationwide and banks find quality deposits. His clients include individuals, financial institutions, corporations, and public agencies. Discover our CD rates.

Here is the link to the article





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FDIC Creates a National Certificate of Deposit Rate


Starting January 1, 2010, under capitalized banks have to set rates at or below the Weekly rates that the FDIC publishes. Search for "fdic weekly national rates" in your favorite browser for the current certificate rates.

Most frustrating is that even healthy banks are deciding to follow the rate cap. I guess they decided that if the FDIC thinks those are "good" levels they should too. Numerous banks are even setting their rates lower. There has even been rumors of pressure from bank examiners saying, healthy or not, they should not be paying rates above the cap.

I didn't really see this as the outcome the law would have, frankly. I hoped it would make it harder for the unhealthy banks to raise deposits and thus decrease potential losses to the FDIC. I see just the opposite occurring. With the many healthy banks posting lower CD rates, the unhealthy banks are still quite able to easily attract deposits.

Never the less, it is extremely disheartening to see the government stepping in so vigorously to basically regulate the certificate rates that banks offer. Another interesting note, although banks have not strayed too far from the government rates, many are still out there with high yield savings and checking account specials.

Another fascinating development: banks work around the caps with creative penalties. As an example, we have seen a few banks with 2-Year rates with a zero penalty after 1-year. That effectively allows them to use the higher 2-year rate for a 1-year CD. This just goes to show you that ingenuity can "trump" restrictions placed by the government. Also goes to show you that governmental restrictions are rarely thought out well enough and often have the opposite effect of what was hoped or intended.

Two good notes. Credit Unions are not regulated by the FDIC and thus have no rate cap. There are still a few out there posting 2% or above for 1-year CDs. Some banks have low early withdrawal penalties such as 90-Days or 180-Days for 5-year CDs. Some of the rates are well above 3.00% and if you calculate the 2-year and 3-year equivalents, well above other banks offering those terms. By the way, we can do the calculations if you ask us nicely.

In summary, the government can try to regulate rates, but banks will be as "creative" as they always are to work their way around them.




Looking for Certificate of Deposit Rates, give us a visit.

Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us at http://www.jumbocdinvestments.com.





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Top IRA Certificate of Deposit Rates - October 2009


The big player seems to be Alliant Credit Union. Believe it or not you can find CD rate specials here frequently. If you are a current member the process is much faster than trying to become a member and then completing a certificate of deposit. So even if you run out of time, I think it would be a good idea to open a membership. The hardest thing is Alliiant won't lock the rate beyond the current day. So if you put the IRA process into gear and the rate drops, your out of luck. Anyone can become a member by first joining the National PTA. This is $25, I believe. You then can complete the Alliant member application. Be forewarned that their online process has proven difficult for many in the past. It asks a series of questions about information it pulls from the credit bureaus and I've known several people that claimed the information was erroneous and thus they couldn't complete it online. You can always go the route of snail mail if necessary. The current IRA rates are:

1y -- 2.30% APY

2Y -- 2.55% APY

3Y -- 3.00% APY

5Y -- 3.25% APY

Their NCUA# is 67955 and they are based in the windy city of Chicago, IL. They are large for a credit union with over $6 Billion in assets. As of March 2009 data, they have a 4-star rating.

Another big player is Ally Bank, but they don't offer rates for IRA CDs. People's Trust Federal Credit Union has an 18-month IRA for 2.12% APY. They are based in Houston, TX. They have a 2-star rating. People's NCUA # is 177. Looks like they have been around for a while. I did have to make quite a few clicks to get to the rates. I hate that. This is true for many banks and credit unions. They really should make it much easier.

If you're wanting to stick with a bank try Nationwide Bank, FDIC# 34710. Their process isn't too difficult. They are about $2.25 Billion in assets, had a nice second quarter profit, and 4.5 stars. Rates are:

1Y -- 1.95% APY

2Y -- 2.35% APY

2Y -- 2.25% APY

3Y -- 2.45% APY

I think that is a pretty good window into IRA rates across the internet. Let me know what you are finding.

Happy Investing.

cd :O)




Chris Duncan is a NASD Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Check out our CD Rates offers or our California CD rates





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2012年9月16日 星期日

Tax Lien Certificates, 25 Most Commonly Asked Questions


1. Who can buy a tax lien certificate?

Anyone who has the cash to pay the auctioneer.

2. Will I be evicting someone from their house?

No, you are only paying that property owner's delinquent taxes. You are not foreclosing on them.

3. Will I own the property at some future date?

Possibly, all though it is rare that a property owner will forfeit their real estate. In Arizona, for example, 99% of all property owners pay (redeem) the taxes due to the county. The county in turn pays you interest plus a high rate of return. Nationwide, 95% of all tax lien certificates sold are paid (redeemed) by the property owner.

4. Why don't people pay their taxes?

1) People die and no one pays the tax, though heirs may pay the taxes later.

2) People run out of money or they become unemployed and have money problems.

3) Some people won't part with their money until the last minute. They believe they are making more by investing elsewhere.

5. Isn't the county or municipality required or obligated to find the property owner?

Not exactly. They send multiple notices via mail, and put announcements in the public records and the newspapers. That's all they are required to do.

6. What if the property owner dies?

The county will forward tax notices to the last-known address. Additionally they will advertise the tax sale. Often, heirs or family members step forward to pay the taxes.

7. How many tax liens can I acquire?

There's no restriction. You can bid and purchase as many as your finances will allow.

8. Whom do I pay?

You will give your money to a government agency - there are no brokers or intermediaries to pay.

9. Who will pay me my return?

Ultimately the property owner pays you when they pay their delinquent taxes. The government agency (the county or municipality that collected money from you) will contact you and ask you to return your tax lien certificate. Upon receipt they will send you a government check.

10. Will I have to contact the homeowners at any time?

No! You only do business with the government agency.

11. Will I have to foreclose on the property?

Statistically there is less than a 5% chance that you'll ever go through the foreclosure process. An attorney or government employee would do this service for a small fee as it is all controlled by the statutes of the state involved.

12. When do I get paid?

When the county or municipality collects from the property owner, they will notify you. Upon receipt of your certificate they will pay you.

13. How will I know what I'm buying?

First, you are not buying real estate. You are purchasing a lien on the real estate. Should you ultimately foreclose and get the property, then you own real estate.

14. What if I end up with the real estate? What do I own?

Here is how the process works. The county will publish a tax lien sale in the newspaper and public records. Buyer/bidders should research the public records (plot maps, assessment parcel and subdivision maps). The buyer/bidder should also purchase local maps and drive by the subject properties. The drive-by inspection would provide additional appraisal data. Title companies and appraisers, and real estate agents will provide more in-depth information.

15. What happens to the certificate when I buy it? (Do I take it home?)

Yes, you can put it in your safety deposit box or other place for safekeeping.

16. Are the certificates transferable?

Yes, you can assign or transfer the certificates to anyone you want.

17. Are the properties always improved?

No. The properties could be vacant land or improved property. Often large commercial properties are available in the tax lien sale.

18. Is it better to buy improved property or vacant land?

Improved property has the advantage of quick re-sale in many cases. Additionally, improved property will often have mortgage liens. Mortgage holders rarely let properties go to tax sale. Properties with mortgage liens almost always assure you of re-payment of your investment.

19. I want to get a property for sure, not just a tax lien certificate.

That's possible - but highly unlikely. Specialists find that certificate holders get the property in only 1% to 5% of all tax lien sales. We will cover this process in a later chapter in this book.

20. Is the process of purchasing tax lien certificates the same in all states and counties?

No, each state and county uses its own rules. The state legislatures write the statutes. However, they are subject to local (county and municipal) interpretation. Tax lien buyers should research each county before purchasing their tax lien certificate, and should become aware of the local rules.

21. What happens if the property owner does not pay next year's taxes when they are due?

You, the previous year's certificate holder, can buy the subsequent year if the property owner does not. This is like buying another safe high yielding C.D.

22. What if I don't want to buy more than a one-year certificate?

You aren't required to pay more than one year's taxes. However, it would probably be wise to note when the next payment is due and pay those taxes also. You'll get your money back when the certificate is redeemed, plus an exceptional rate of return. If you can't pay the subsequent tax lien, the county will issue a new certificate that they will sell at auction.

23. Is there any way to forecast when a certificate will be paid (redeemed)?

No! That's why you should buy more than one lien certificate. Different certificates will pay off at different times.

24. Can I buy before the auction-sale?

In some counties, prior certificates left un-sold will be available before the auction-sale.

25. Can I lose money buying tax lien certificates? It's possible to lose money in any investment anywhere and at any time. All investments have some risk, even certificates of deposit. However, as a rule, tax lien certificates are considered very safe investments.

The local government issues tax lien certificates and they are the senior liens on the property. The county and municipality have the responsibility to conduct the sale fairly, and they have the authority to award you the right to foreclose on the property if the taxes aren't ultimately redeemed (paid). At that time, you'll own real estate for the taxes you paid plus any foreclosure costs. But remember: When you purchase a Tax Lien Certificate, you are buying delinquent taxes, not real estate.




For more information on Tax Lien Certificates and how you can make money investing in them, please visit us online at [http://www.ultimatetaxlienguide.com] or http://www.tedthomas.com

Ted Thomas Bio:

Ted Thomas is a Florida based publisher and author of numerous money making Home Study Courses. Ted is the guy people go to when they want to improve their business marketing and sales results. Ted's Marketing Master Mind sessions are attended by the important people that make up the Information Marketing Industry. Ted is a recognized expert and in-demand speaker in the United States and in Canada on the subjects of Government Secured and Guaranteed certificates. His title "The Foreclosure Authority" generates many consulting requests. More than 100,000 students have success -fully completed Ted Thomas' Home Study Courses. Ted Thomas





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Types of Certificate of Deposits


For anyone who is interested in saving money, there are a number of options for your money. You can simply deposit it into a savings account, where it will be easily accessible and return low interest on your money. You can also place it into a money market account, where your money will be less accessible but the return on your money will based on a much higher interest rate. Certificate of deposits are another option that you have for your money, but they operate slightly different than a savings or money market account.

A certificate of deposit is basically a certificate the bank gives you in return for you depositing your money into their accounts. These certificates come with a certain amount of time that has to pass before you can get your money back. Some certificate of deposits last for 3 to 6 months, and some last for 1 to 5 years. The interest rate that the bank offers is a fixed rate, meaning that your money will earn the same interest every month until the term is completed. That is a good thing in an economy that is constantly fluctuating, and using the certificate of deposits is a great way to guarantee that you will steadily earn money from the money you are saving.

An advantage to using these certificate of deposits is the fact that the interest rates the bank offers you for your money are usually fairly high. All the interest rates are higher than those offered by savings accounts, and some are higher than those offered by money market accounts. Many banks even offer certificate of deposits that have a variable interest rate, or a rate that the consumer can adjust at different times during the term of the bonds. CDs are an excellent choice for your savings, because the money is insured by the FDIC.

Bump-up certificate of deposits lets you change the interest rate of the deposit according to the performance of the money market. The adjustments can be made during the bond's term, and allows you to increase your interest rate if the overall interest rates on the market increase.

Liquid certificate of deposits are perfect for those who need to access their money but still want to earn a good interest rate. There is a minimum balance that needs to be maintained in the Liquid CD, but you can take out money before the bond matures if needed.

Zero-coupon certificate of deposits are interesting, giving a consumer the option to buy discounted CDs to be redeemed for full value upon the maturation of the bond. For example:

A bond's face value is $100, but the Zero-coupon CD allows you to purchase the bond for $80 but redeem it upon maturity for the full $100.

Callable certificate of deposits are CDs that the bank or financial institution can cash out after a predetermined period of time. An example of a callable CD is a CD that matures in six months, but allows the bank to redeem the CD in three months. This is important if the money market is performing poorly, as it lets the bank cash out before the bond matures without being forced to pay the high interest rates.




2011 Best CD Rates are available at ComplexSearch, a blog that tracks the best bank rates. Find out the current Ally Bank CD Rates, Chase, Wells Fargo, Bank of America, etc.





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How to Get More Than Safety With Certificates of Deposit


This may come as a surprise, but Certificates of Deposit, like those you see on that chalkboard at the bank every week, actually have the potential to yield higher than the advertised rate.

What you may already know: Certificates of Deposit come in all shapes and sizes.

You can buy CDs for as little as $1,000, all the way up to $100,000, in multiples of $1,000, and still be insured by the FDIC. This makes them one of the safest investments you could possibly find. They also have different expiration periods, such as 1 month, 6 months, 1 year, all the way up to 5 years. Naturally, the more time your money is invested, the better the certificates of deposit rate you can expect.

Traditionally, the difference in Certificates of Deposit rates between a 6-month CD and a 5 year CD was around 1.0 whole percent, but nowadays the margin is much closer, with interest rates on the rise as they are in 2006. At the time of this writing, the highest CD rate for both a 6-month and a 5-year CD is almost the same, around 5.50% APR each.

There is one other major factor that sets CDs apart. Some CDs are labeled "equity-linked," which means that they are tied to a portfolio that the issuing bank put together. Doing this offers the possibility of an even higher-yield return than advertised, but it also increases the risk in the case that the bank's portfolio goes down.

In my experience, this is almost always the case, even in growth markets. For much the same reason that I don't let brokers pick my stocks, I refuse to buy equity-linked CDs and do not encourage you to purchase one, despite the possibility of higher returns.

So how do I use non equity-linked CDs to get higher-than-advertised returns?

I build what is referred to as a laddered portfolio. This is where you can purchase a few different CDs with different expiry periods, traditionally one year apart, to combine and pay me the best rate of the day, every year. A major bonus is that you'll have access to a portion of your cash while you enjoy the longer-term rates.

That in itself was a major reason to ladder your CDs when the rates were structured the typical way. But now, as federal interest rates are going up, the tactics are a bit different.

There may not appear to be anything to gain at first by the fact that we're achieving a long-term rate while receiving cash out in shorter intervals, since the long-term and short-term rates are now so similar.

The twist is using the ladder at smaller intervals, to approximate a 1-month CD!

A closer look at laddered CDs in 2006

A couple of years ago, when Greenspan was busy and interest rates were still declining, anyone speaking about a laddered CD portfolio was describing 5 or more FIVE year CDs, bought with expiry periods one year apart. (Example: the first CD expired in October '02, the second in October 03, etc...)

This gave the traditional investor the ability to obtain the five-year rate but still have access to his money, at least a fifth of it, every October.

Today, however, you can simply buy 1-year CDs to achieve the same effect, because there is no difference in the 1-year and 5-year rate of return. (So I doubt anyone is even buying 5 year CDs right now.)

Therefore, the game has to be played differently, and it still works great on the monthly, instead of yearly cycle. Now you can walk into your bank and buy 4-month & 6-month CDs, although you may need to purchase once every other month to keep the cycle seamless. Doing so will give you access to a portion of your cash as often as monthly, but you'll be getting the 4 or 6 month rate of return instead!

I highly encourage you to read all you can about Certificates of Deposit and draw your own conclusion before making any investment in these, or any other, form of investment. In keeping with that tradition, I would like to invite you to drop by my free website for Certificate of Deposit resources. It offers a large volume of facts and figures on CDs that isn't published anywhere else on the web at all.

When was the last time someone showed you a way to beat the bank with 100% safety on your money?




Dennis Gregory is a full-time investor with growing portfolios composed of every major type of financial asset. Learn from his experience at his free Certificates of Deposit rates and resources [http://www.certificates-of-deposit.info/Highest_CD_Rate.html] website; [http://www.certificates-of-deposit.info]





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2012年9月15日 星期六

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





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Cash in Or Borrow From Your Certificate of Deposit to Get Quick Cash


There are two ways that you can get quick cash from your Certificate of Deposit.

Most people are aware that they can cash in their CD early if they need access to immediate funds. Of course, the problem with doing that is that you will pay a hefty penalty for doing so. The penalty for early withdrawal differs but usually it is between three to six months' interest. But cashing in your CD isn't the only alternative that you have to get cash from your CD.

Another option is to borrow against your Certificate of Deposit. You can generally borrow up to 95 percent of the value of the CD Before you decide to do this you should be relatively sure that you will be able to repay the loan. Otherwise, you may lose part or all of your investment. That being said, this is a quick, flexible, and low cost way to get some fast money.

The good thing about using this method is that the CD will still earn interest for you during the life of the loan. The interest you pay on the loan will be 2-3 percent above what you are earning on the CD. However, note that you will also have to pay a loan origination fee.

You should also be aware that most banks will only lend you money against CD's that you have in that particular bank. These days you'll have a difficult time going to Bank 1 and asking them to loan you money on a CD that you have in Bank 2.

Naturally, each bank differs as to repayment terms. However, your repayment choices will likely be varied and flexible. You will probably be able to pay principal and interest, or principal only, or interest only.

Before deciding whether or not to borrow against you CD, you should compare the cost of the loan against the cost of the penalties associated with a cash out of the CD.

Here's Hoping Some Quick Cash Comes Your Way!




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Annuities - Equity-Linked Certificate Of Deposit - The Safer Low-Cost EIA Alternative


Equity-Linked Certificates of Deposit are a safer, low-cost alternative for those who must have an Equity-Indexed Annuity type of investment. These little-known investments allow you to participate in the growth of the market index while your principal is guaranteed by the Government. Read on to find out more.

Equity-Indexed Annuities are probably the most heavily promoted investment for seniors in today's marketplace. The sales pitch is appealing and the payoff to the agent is very big--up to 13%. The enormous commissions have led to sales abuses which leave seniors holding the bag.

Readers of this column have wised up to the flaws of Equity-Indexed Annuities. But what are the alternatives?

The best alternative to Equity-Indexed Annuities is to use a diversified mix of investments and strategies that can provide an income stream between 6% and 10% while limiting any risk of significant loss. That's what I do for my clients--without long-term time commitments or surrender penalties if they want access to their money.

Another alternative is called an Equity-Linked Certificate of Deposit. They provide virtually all the benefits that Equity-Indexed Annuities are designed to provide, without all the negative strings attached.

Equity-Linked Certificates of Deposit are offered by banks. They pay a return that is based on a stock market index, usually the S&P 500. Just like all Certificates of Deposit, they are federally insured by the FDIC up to $100,000 per individual. The minimum purchase for an Equity-Linked Certificate of Deposit is usually $25,000, but some can be found with $1000 minimums.

The return is based on the average performance of the S&P 500 over a set period of time. Just like Equity-Indexed Annuities, how the return is calculated depends on the issuer. The returns are all based on averaging the gains or losses of the index at set points over the life of your contract. Some Equity-Linked Certificates of Deposit guarantee a 3% return. Those doing so will limit the index return. Others provide 100% of the calculated index return.

The only way you can lose your principal with an Equity-Linked Certificate of Deposit is if you pull your money out before the end of the term. Most will have some form of a penalty, but since there wasn't a big commission paid to an agent to sell it, the redemption penalties should be small. (Some don't allow early redemption so investigate before you invest.) All allow early redemption without penalty if the account holder dies.

One of the major benefits Equity-Linked Certificates of Deposit have over Equity-Indexed Annuities is a short term commitment, FDIC insurance of principal, and much lower fees. They allows you much more control and flexibility.

For instance, let's say you intend to invest $75,000 in Equity-Linked Certificates of Deposit. Instead of putting all the money in a single CD, divide that money between three--purchasing one each year for three years. Then as one comes due you can roll it into another 3-year term. This will reduce the negative effects in how the index returns are calculated while giving you access to $25,000 every year.

There are several disadvantages to Equity-Linked CDs. They don't normally pay interest until maturity, so these investments are not a good choice of those looking for steady income. And like Equity-Indexed Annuities, you don't really get 100% of the market gains because of the averaging used in calculating the rate of return.

You may be wondering why you haven't heard of Equity-Linked Certificates of Deposit before. In fact, you should wonder why the advisor recommending you buy an Equity-Indexed Annuity hasn't recommended them! The reason is they don't pay a large commission so there isn't a financial incentive for the advisor to do so.

Check with your local bank to see if they offer Equity-Linked CDs. Not all do, but they are becoming more widespread. Any broker or advisor that can sell bonds should also have access to Equity-Linked CDs.

I still believe there are better ways to invest your money than Equity-Linked CDs. But I'd much rather see someone invest in them than an Equity-Indexed Annuity. Don't let advisors who stand to gain so much from your money pressure you into investing in an Equity-Indexed Annuity when an Equity-Linked CD is a much better alternative.




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Safety Deposit Boxes Give You Peace and Security


Banks offer various services aside from accepting deposits and giving out loans. They also provide money transfer; accept bills payments, issue bank checks, drafts and traveler's checks, and a lot more. The banks also do not just secure your cash but also they can secure your documents, jewelries and other personal belongings through safety deposit boxes. Actually there are also other institutions that offer safety deposit boxes, among others are the post offices.

Safety deposit boxes are boxes or containers that are being safe kept inside a vault. Though the banks or any other institutions may have limited liabilities relative to thefts and other crimes that may occur while your possessions are inside the safety deposit box, still many people opted to keep their valuable possessions inside the safe box. This is relatively because of the high security measures that a bank or any other institutions implement compared to the safety and security that you can provide in your own place.

You can put anything you want inside the safety deposit box. This can be a set of precious jewelries, gemstones, valuable metals, other currencies that are so valuable to you, certificates of deposits and securities, and other important documents like your property title certificates, birth certificates, and wills. A hard drive or any computer data storage can also be secured inside the safety deposit box.

Safety deposit boxes come in different price ranges and sizes. In order for you to avail one, you have to pay a rent and you will be given an access key combined with another key that result to dual control to access the box. Your signature and sometimes even a pass code are also being required before you have an access to open the box. In some other banks and institutions, an electronic pass code or biometric security measures are being implemented. The main factor here is the control always requires a counterpart. You can not access the box all by yourself without the counterpart from the bank or the institution you are renting with.

Although in some cases like hotel rooms, cruise ships, resorts, and other facilities of the same nature, offer safety deposit boxes that will only require a single control that will only be known by the user. This is on a temporary basis while you are just staying in their facility and this will only be at your own risk.




We work on Banking, Internet banking, Banking securities, visit me at Regions online banking reviews





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2012年9月14日 星期五

Always Get the Insured Certificate of Deposit Rates (CD)


If you are planning to invest your money in a way which is short term and involves minimal risk then you can consider a Certificate of Deposit or a CD. A CD is quite similar to a normal savings account. It allows you to save money while you earn interest on it. However, in case of a CD one cannot withdraw money according to his wish and that is why it is considered to be a much better alternative. If you successfully get the best CD rates then you will also get the highest return on the amount that you have invested. In short, if the interest rate is high it will gather higher income.

Sometimes you may also find a broker who is offering you the highest CD rates. But we would recommend you to stay away from them, because:

Firstly, they often ask you to invest huge amount of money. But a credit union or bank will never ask you to do so. There are some cases where they have asked for a minimum investment of $10,000 or more.

Secondly, if you are purchasing them from a broker, make sure that it is insured by the Federal Insurance Deposit Corporation (FIDC), otherwise the chances of risk are very high. While purchasing, do mention an insured certificate of deposit. If you feel that the risk is much higher for you then you can always go to a bank or a credit union.

Thirdly, brokerage charges can be outrageously high. Always do a market research regarding the fees before you get into the deal. But, it is always advisable to go to a financial institution because the brokerage charge may go beyond the sum that you would receive from the high rates of interest.

You must be aware of the maturity date of your CD. Some financial institutions and brokers routinely renew the CD when it expires. They will not renew it if you specify them. Therefore, rather than telling them to renew the CD, it is always a better option to collect the amount and reinvest it in different rate, which is higher.

If you are not bothered about keeping the best interest rate, you can always go for the long term CD. If you invest your money for a longer period, the broker or the financial institution will be required to make revenue from it. This is why, they will keep offering high rate of interests. It is always preferable to follow this route as you get high returns on your invested amount.




Read my reviews about term deposit rates, and gold buffalo proof from my websites.





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What Is An IRA Certificate Of Deposit And How To Use It In Your Retirement


There are many different financial products that can help an investor save for retirement. One of the most popular investment products is the individual retirement account, also known simply as the IRA. IRAs can come in several varieties. There is an IRA for every type of investor and his or her tax situation. Traditional IRAs allow individuals to invest in usually mutual funds on a pre-tax basis where the investor would be taxed at the time of withdraw. There is also a Roth IRA which enables an investor to use after tax dollars to invest in a mutual fund and withdraw all of the capital gains, interest, and dividends tax free in retirement. There is also a self-directed version of both the Traditional and Roth IRAs where investors can dictate the types of investments that are held in the retirement account. An investor can hold individual stocks, bonds, certificates of deposit, real estate, options, and a host of other investments in an IRA.

What Is An IRA Certificate of Deposit?

Inside an IRA, an investor can own a certificate of deposit which can also be referred to as an IRA CD. An investor can own either a traditional IRA or a Roth IRA with certificates of deposit inside the accounts. An IRA CD is simply a regular certificate of deposit which is contained within an IRA account earmarked for retirement savings. Most brokerage firms can help investors set up self-directed IRA and purchase the securities such as a certificate of deposit to place inside the account. With a Roth IRA CD, you receive the tax advantages of a Roth IRA with the enhanced security that comes from owning a certificate of deposit.

How To Incorporate IRA CDs In Your Retirement Nest Egg

While most retirement accounts contain stocks and bonds, certificates of deposit can provide a larger rate of return on an investment portfolio's cash position rather than just parking the money in a savings account. Using an IRA, whether it is traditional or the Roth version, can help you shield a portion of your assets from taxes either now or in the future.

An Individual Retirement Account (IRA) is one of the most versatile investments a person can own. The limits of what an investor can do and invest in with these types of accounts are almost only limited by his or her imagination. Certificates of deposit inside an IRA provide investors an additional alternative to the standard savings account.




Hank Coleman is the founder of several financial blogs, focusing on topics such as how plan for retirement and find profitable investing opportunities. He is an entrepreneur and professional in the government sector. Hank holds a Bachelor's degree in Business Administration, a Master's in Finance, and is currently studying for his Certified Financial Planning (CFP) credentials. Always looking for a trusted financial institution for advice and tips he tends to look up information at http://www.discoverbank.com more often than not.





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Finance Basics: Money Market Funds: Treasury Bill, Commercial Paper, Certificate of Deposit


Some Basic Financial Terms and Definitions

Credit Risk

Credit risk is the risk of default of a security. The higher the risk, the higher the yield of the security has to be to be attractive to investors.

Liquidity

Liquidity is measured according to how easily a security can be converted into cash.

Tax Status

The tax status of an investor matters when investing in securities. The higher the tax bracket of the investor, the more taxes need to be paid on the gains/yield of a security.

Term to Maturity

The term to maturity is a specified term of time (days, months, years) that a security needs to exist to mature.

Call Feature

The call feature is an option that allows the issuer of a bond to buy bonds before the maturity date back, at a specified price.

Conversion Feature

The convertibility clause allows investors to convert bonds into shares of common stock. This is beneficial if the market price of a bond decreases, because an investor will have an additional option of converting the bonds into a specified number of shares of common stock, rather than selling the bonds in the market.

Common Instruments of a Money Market Fund

Treasury Bills

Treasury bills are highly liquid, short-term securities issued by the government to borrow funds from investors. Treasury bills are typically sold through auctioning on a weekly basis; however treasury bills with a one year maturity term are issued monthly. The lowest amount of a treasury bill (par value) is $1000 and thereafter in multiples of $1000 and is sold at a discount rate of the par value whereas at the maturity of the treasury bill, the investor receives the par value and therefore has a profit between the par value and the discount price he/she purchased the treasury bill at. A benefit of treasury bills is that they are free of credit default risk, because they are backed by the government.

Commercial paper

Issued primarily by finance and bank holding companies with a maturity date between one day and 270 days, commercial paper is a short-term debt instrument with a goal to either provide liquidity or finance a company's investment. The minimum amount investment in a commercial paper equals $100,000.

Negotiable certificates of deposit

NCDs are short-term certificates with maturity terms ranging from two weeks to a year with a minimum investment amount of $100,000. Nonfinancial corporations are the most common investors, while individuals rarely invest indirectly invest in NCDs through money market funds. NCDs offer some liquidity.

Repurchase agreements

Repurchase agreements usually amount for $10,000,000 or more with maturity terms between one day and six months and are agreements where one party sells securities to another party with a certain date and price to repurchase the securities specified in the terms of the agreement. Common participants in repurchase agreements are financial and nonfinancial institutions.

Federal Funds

The most common participants in the federal funds market, which allows depository institutions to lend funds from each other at the federal funds rate, are commercial banks. The transactions are usually completed by funds brokers that receive a commission for their service. Common maturity terms of these transactions are between one and seven days with amounts starting at $ 5 million.

Banker's acceptances

Banker's acceptances are slightly credit risky short-term (usually between 30 and 270 days) agreements between (most commonly) exporters and a bank with the bank accepting responsibility for future payment. For this risky agreement (from the bank's perspective) the bank is reimbursed the funds by the importer in addition to a fee.

Municipal Bonds

A municipal bond is a bond issued by the federal government to finance the difference between spending by the government and the revenues they receive. Municipal bonds have a credit risk of default; the level of risk can be measured by the bond rating issued by Standard and Poor's. The minimum amount for a municipal bond equals $5000. The majority of municipal bonds are callable; generally interest is paid out semiannually to investors and the interest gained from municipal bonds is tax-exempt. Secondary markets for municipal bonds can be either active or inactive. Finally, municipal bonds generally offer a lower yield than Treasury bonds.

Over-The-Counter Transactions

Over-The-Counter transactions are completed through a telecommunications network, which means that a stock is traded through a telecommunications network in a market without a trading floor. Over-the-Counter trades do not require the purchase of a seat for the trade, because they are not listed as organized exchanges.




Nicole Elmore
Entrepreneur. Artist. Writer. Business Woman. Friend. Designer. President and CEO of Elmore Marketing.

My Blog: http://myblog.nicoleelmore.com
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Providing readers with tips, tricks, deals, and reviews in areas of Lifestyle, Shopping, Deals, Health & Beauty, Business, Travel and More





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2012年9月13日 星期四

Best Rates For Certificates of Deposit


As we have written quite often, finding best certificate of deposit rates is no small task. Our goal is to save you some time and point you in the right direction. The FOMC (ie Ben Bernanke) are still promising to hold rates down for an extended period of time. So here are some rates that may soften the blow a bit.

Nordstrom fsb's interest rates are not the highest, but their customer service excels. I've heard nothing but good comments from those that have opened up CDs. For customer service I would give them a 15 out of 10.:O) In addition, they have excellent bank financials. The bank basically supports the credit card business of the Nordstrom department store and given their clientele, they don't seem to be having too much trouble with loan losses. Their current profit is a whopping 15% of assets. You won't see that very often.

FDIC# 33497 -- Star Rating: 5 (*****). They are located in Arizona, but will take a CD from anywhere in the Us with proper documentation, including trusts.

Nordstrom fsb has a competitive 1-year term and okay 5-year. One of the big draw backs is their large early withdrawal penalty. Also, I'm sure the above URL looks strange, but believe me it will save you a lot of time trying to track down the right section for the CDs. That is another potential frustration. The website is designed to feature the store and credit cards. The CD and checking account info is kind of tucked away.

Current CD Rates -- Minimum: $100,000

1-Year: 1.30%

3-Year: 1.80%

5-Year: 2.30%

Current CD Rates -- Minimum: $50,000

1-Year: 1.05%

3-Year: 1.55%

5-Year: 2.05%

Flushing Savings Bank, FSB comes out with good deposit rate specials often and their recent offering will not disappoint. They have a 4-star rating and tied with their offering makes it look quite enticing. It is an online only application, but they will take funds from anywhere in the US.

FDIC# 16049, Star Rating: 4 (****). Penalty: 6-Month loss of interest (5-year CD)

They use their online identity for the CDs: igobanking [dot] com.

Flushing Savings Bank has a very strong 2-year and 3-year rate. There are some good and bad reviews out there. Some noted an easy time at the beginning and then subsequent CDs were more difficult. Primary frustration was a rate drop during the time it took to get the CD set-up and the bank not honoring the higher rate. Of course in a falling rate environment that is frustrating, but what if the rate had increased would they still complain?!?.

1-Year: 0.50%

18-Months: 1.50%

2-Year: 2.25%

3-Year: 2.25%

4-Year: 1.00%

5-Year: 2.50%

North American Savings Bank is another strong player in CD Rate late. Their financial health also looks really good, so your CD is more than likely going to last the term. It is an online only application and they will take regular personal funds from anywhere in the US. They use to take IRAs and trust accounts, but it was too much hassle for them.

FDIC# 9708. Star Rating: 5 (*****). Penalty: 6-Month loss of interest (5-year CD)

North American Savings Bank has a strong 14-month rate, but that is about it. There are other higher interest rates out there on the other terms.

14-Months: 1.51%

30-Months: 1.50%

3-Year: 1.70%

4-Year: 1.70%

5-Year: 2.05%




Chris Duncan is a FINRA Registered Representative. He works for Jumbo CD Investments, Inc., a leading CD research and placement firm. He specializes in helping clients find the highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us for Credit Union CD Rates

Also check out our new section of Featured Banks





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Compare Money Markets to Certificates of Deposit


If you have cash that you would like to put away, you might as well make it work for you. This means that you should be able to earn interest on it while it sits in an account. One of the best ways to do this is to use a money market. Of course, there are a few methods of making interest from your money, with another type being a certificate of deposit. Compare these two techniques before deciding which is best for your situation.

You should first learn the pros and cons of money markets. This kind of account is basically a mutual fund that tends to have a share price of $1 most of the time. Those in charge of the account are responsible for investing the money in certificates of deposit, savings bonds, and other tactics of investment that are generally considered safe. Thus, it is usually thought of as a sure bet that you will get more than your original investment back. Another benefit of money markets is that they are similar to checking accounts, as you typically get a checkbook for it when you open one. This allows you access to your money when you need it, so it is like simply putting it under your mattress, except you stand to make a profit from it. Additionally, money markets are easy to open since most banks offer this feature.

Even though money markets usually allow access to the cash, many banks do have a limit on the amount of money that can be taken out by check every month. Thus, if you need constant access to the account, consider other ways to save. A money market account should be accessed during emergencies only. In addition, you will find that you make a higher rate of interest when you have a lot of money in the account, while you make less when you do not have much. This is unlike some ways of saving cash, as certain investment methods pay more for mature accounts than simply large ones.

If you are interested in an account that pays a higher interest rate for a mature account, you should consider a certificate of deposit. This is also called a CD, and boasts the attractive feature of increasing the interest rate for accounts that have been around longer rather than large accounts. Thus, the longer you keep your money in the account, the more you will make. While you can choose to have access to the cash during this time, you will get a lower interest rate than if you choose a longer maturity period. If you do not anticipate needing to use the money in the account, as you have another savings account, a CD is a good way to make some profit over a long period of time.

There are several ways to make money from your investment, but money markets and certificates of deposit are among the most popular. Compare their pros and cons before choosing one. Also consider speaking to a banker about your options.




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Certificates of Deposit (CDs) - How Do They Compare to Other Investments?


CDs have good potential, IRA or 401k plans have better opportunities, but there is one investment that far out-weighs them all. After reading this article, you should have some understanding of the benefits each of these plans provide, and why CDs-though a solid investment strategy-could be the least in potential to all the others available.

As for the 401k options, there are 2 benefits to this plan:

1) You can commit your money to an interest bearing account before the taxes are taken from it. (This is the most beneficial to those who are in a high tax-bracket. But if you are in a low tax-bracket this feature might not be that good of an incentive.)

2) Your company may match your contributions, in most cases, up to 3%.

An IRA is similar to a 401k program except for the fact that your contributions will be after-tax only. And you will receive no company match. These plans are usually for those who do not have a 401k account available.

The benefit to this options is that once you start withdrawing the money when you retire, it is tax free because you already paid it. (If you are in a high tax bracket now, it would probably be better for you to pay the tax when you retire and you are in a lower tax bracket.)

CDs have their value in the security that they provide. But with interest rates as low as they are these days, a CD is just about the same as only not spending your money. Though the interest is better than what you could get with your regular savings account.

The best investment available can be for those who own a home or can buy a home and already have some equity in it. Why this is the best investment is for several reasons.

1) You do not need a large lump-sum of money up front, as you would with a CD to earn a significant amount of interest.

2) It is the only way you can some day-without moving back home with your parents or something similar-have a home to live in without having a mortgage or rent payment.

3) It is the only investment where you can quickly turn a liability into a saving deposit.

4) For those who do not make a large amount of money and do have a 401k plan available, owning a home can probably generate a much better retirement position than your 401k plan.




I hope you find this information helpful.





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Must Know Differences Between Fixed Annuities and Certificate of Deposits


As a prudent investor, I am certain that you have found out all there is to know about certificate of deposits and fixed annuities. If you have been looking for more information on both these investment products, then you have come to the right place. Here, I am going to give you certain differences and similarities between both these products to help you understand them better and choose an investment plan that best suits you.

When you take both these investment plans in the light of taxation, a deferred annuity has a deferred tax plan. Any earning made through this particular investment is not taxable until the earned amount is withdrawn, giving you a better advantage over tax control and opportunity for better growth. Certificate of deposits on the other hand are very much taxable and the earning through such investment plans are taxed every single year. Depending upon how much your CD has earned and depending upon the tax bracket you come under, the returns on the investment plan can definitely be affected to a great extent. Since any annuity is taxed as an income of an individual, it would be best if you could make the withdrawal during retirement when the taxes are low or when there is a change in the current tax plan that could possibly be beneficial at that point of time.

As for the safety of investments is considered, both fixed annuities and certificate of deposits are equally safe and safer than all other investment plans available. It would be best for you to know that unlike a CD, fixed annuities are not backed by government institutions. Therefore, it would be best if you could invest in a company that has an A or a better rating with one of the renowned rating agencies. It would be best to invest in an insurance company that has a lesser return but a higher rating than take a risk with a lesser rating and higher returns. A certificate of deposit on the other hand is definitely more secure since it is backed by FDIC or the Federal Deposit Insurance Corporation. They has protected CD holders to an upper limit of two hundred and fifty thousand dollars each. If your bank fails and if it is unable to pay your deposits back, the FDIC will reimburse you to the mentioned amount.




Darius has been writing online for a while now. He has a wide range of interests and topics that he likes to write about. You can check out some of his websites at [http://www.antispamgratuit.net] and [http://www.citronellabarkcollar.net]





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2012年9月12日 星期三

The Truth About FDIC and Certificates of Deposit (CDs)


When you are told by a banker or receive a promotional letter from a financial institution regarding a special Certificate of Deposit (CD) rate, please think before you act. Most bankers love CD's simply because it will lock your money into a product that will charge a substantial fee if withdrawn prior to maturity. In addition most bankers get a commission for new money deposited into a CD. When I was a banker, I had always been one of the few that disliked CD's for many reasons. I find them only useful for very few things. Since I am no longer a banker I want to give you the dirty truth behind CD's that most do not know and what is your REAL rate of return from those "promotional" CD's you find online or in your current bank.

First off, CD's are a fixed income vehicle that is backed by the FDIC. Many people trust the FDIC for its insurance and the deposit is in fact guaranteed (up to $250,000 per DEPOSITOR until 12/31/2013). What you most likely did not know is how you get paid and when. You are covered up to this a certain amount but the time it takes to pay you however is never documented. From my research and what I was taught years ago as a banker is the following: The FDIC can take up to 99 years to pay (not a typo)! There is no public documentation of how long it takes to pay however based on the fact that if ANYTHING catastrophic was to occur financially, the FDIC will have time to pay. So if you expect immediate payment with a simple claim of lost funds from an FDIC insured product, you are sadly mistaken. The FDIC is also an INDEPENDENT AGENCY of the federal government. They receive no congressional appropriations (money) and it's fully funded by the premiums (payments) from banks and thrift institutions pay per deposit coverage as well as earnings from U.S. Treasuries. Most people do not have to worry however since most major banks are more than willing to buyout smaller/failing financial institutions in order to acquire more clients and show positive PR (public relations) to the masses. This has shown more than enough evidence with what has happened in 2008-2009.

FDIC products are fully taxed. If you purchase a CD, the growth will be fully taxes (state, federal, local) just as if you have earned this income from working. This is based on your tax bracket which is as follows (2010):

Bracket / Single / Married:

10% Bracket / $0 - $8,375 / $0 - $16,750

15% Bracket / $8,375 - $34,000 / $16,750 - $68,000

25% Bracket / $34,000 - $82,400 / $68,000 - $137,300

28% Bracket / $82,400 - $171,850 / $137,300 - $209,250

33% Bracket / $171,850 - $373,650 / $209,250 - $373,650

35% Bracket / $373,650+ / $373,650+

Now, most of you that purchase CD's are aware of this. However, what most fail to realize that CD's do NOT catch up with the rate of inflation. The rate of inflation is measured by the CPI (Consumer Price Index, I have described what this details on a previous article which can be found in my previous post). For whatever investment, income, or interest you earn to not match or exceed the CPI, you are losing money long term. This is a volatile index but long term averages around 2.5%. This means you must earn either 2.5% or more AFTER TAXES long term in order to maintain your cost of living life style.

For example: You are in a 25% bracket and have purchased a 12 month CD at 2% APY for $50,000. You earned $1,010 from the interest which equals 51,010 but you have to pay taxes on the growth (your tax bracket) which will equal to $253. You have earned after FEDERAL taxes $757 (some state and local taxes may occur that will lower your return even further!). Now here is where most people do not pay attention to, the CPI for the year. Let's be fair and say it is 1.6% for the year (less than the average, just to make a point). You would need to earn $800 AFTER TAXES from that 50,000 in order to keep up with the rate of inflation. Your real rate of return is negative $43. In order to keep up with this rate of inflation you would need to find a CD with the rate of (approximately) 2.8% or higher depending on what state you live in. Please remember that we are talking about a tax payer in the 25% bracket which is considered the national average. These rates become considerably higher if you're considered "High-Net-Worth".

Not all CD's are bad. If you are one of many that cannot withstand volatility what-so-ever than it is best to purchase CD's within a IRA this way taxes are deferred or Roth IRA which no taxes are paid after withdrawal (please see my article on IRA's for details). Also, CD's are probably the best product to purchase if you are planning on using the money short-term and cannot risk ANY volatility. Short-term can be considered 2 years or less. I highly recommend CD's for home buyers (in 2 years or less) since the deposit in your home are tax deductable therefore the taxes on interests earned on a CD will be taken care of.

There are many considerably safe products that have low maturity dates and have considerably better returns than a CD. In the end, before you purchase the CD, know what your intentions are and when do you think you're going to need it. If it's for educational purposes, there are products that can be a better option for you and your child (529 plans, UGMA/UTMA for example). If it's for medical bills, there are products out there for that as well (Health saving plans). The point is to use a CD only for short term purchases that can be tax deductable or within tax favor accounts. Many people use CDs to prepare for a birthday or holiday in that year and that is OK as well! The key is "short-term". If it is for emergency funds, your best bet is to simply put it in a money market where there won't be any implications or charges for early withdrawal.

I hope I was able to educate you on CDs and now more aware of what you are getting into. If you have any questions or concerns please feel free to contact me!

Resources:

FDIC: http://www.fdic.gov/about/learn/symbol/index.html

SIFMA Calculators: http://www.investinginbonds.com/story.asp?id=207




Financial Consultant, Risk Manager, Insurance Agent, and Retirement Planner here to give honest opinions on the current financial trends. (*Please note: If you have ANY questions, please feel free to contact me. I will be more than happy to chat with you!). [http://www.MichaelAponte.Biz]





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What to Store in Safe Deposit Boxes


Perhaps you have grown with your mom or grandma telling you to always keep your valuables safe and intact. Thus, you have always thought of getting or renting safe deposit boxes where you can keep your precious possessions. However, there are some items that are worth keeping, and there are some that are not. What are the best items to keep in your safe deposit box, and which ones need to be placed somewhere else?

Keep the Following in Safe Deposit Boxes

The following are the things that you have to place inside safe deposit boxes:

1. Copies of your insurance policies and wills: Take note of the word "copies." There is a very good reason why the real ones should be kept elsewhere or, in fact, handled by someone else such as your lawyer. When you die, there's no one else who will be able to open your safe deposit boxes or have access to them unless you have left some instructions on what to do to a loved one or to your representative. The original copies will then be needed for processing. The copies, meanwhile, will just be for your own protection just in case you need to present proofs in some situations, and the original ones are not with you.

2. Details of your bank accounts, investments, and credit cards: A good investor or even a responsible home owner would keep track of important information pertaining to his bank accounts, investments, and credit cards. These may include numbers, signature specimens; check books, certificate of deposits, stock certificates, and a lot more. You may want to keep them in safes to ensure that there will be no one who will be able to have access to your money. You can just mention in your last will about these details, so your loved ones may be able to use your funds when you die.

3. Divorce decree and marriage license: Your marital status matters, since there are some benefits that are only given to married couples, such as your right to your spouse's estate. Should you go through a divorce proceeding, you also need to present a marriage license. Though these documents will be the last things burglars will be hungry for, you may still want to place them in safe deposit boxes to ensure that no one will make a claim using your papers or just so you would not be able to misplace them. The same goes with the birth certificates of your children.

4. Heirlooms and savings: Heirlooms and your savings are personal assets. The former are not only the most treasured pieces of the family, but they can be of high value when the right time comes. Your savings, meanwhile, can be utilized when you don't have enough cash on hand.

You can improve your safe deposit boxes to include security features like time-delay locks or combination door locks. If you can't open them, you can just call a locksmith. He is well versed when it comes to such problems.




Imaculate Johnson is the professional writer who loves writing on a variety of topics. Currently she is working for many business and companies. She is writing for professional locksmith services for a long time to help people choose a better service. She also writes extensively on how to secure your wealth and other valuables. She also writes with nick name Ima Johnson.





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