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2012年9月13日 星期四

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.




For more information on how to send money online visit the http://www.sendmoney101.com/ home page and learn how to send money almost anywhere in the world.





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張貼者： 於 下午1:35 0 意見
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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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張貼者： 於 清晨7:24 0 意見
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2012年9月6日 星期四

How Does Your 401k, IRA, and Certificates of Deposit Compare in Their Value to You?


What will your retirement account look like when you reach that age when it will be your only means of living? Well let me tell you, there is a surprising kick of reality when most people consider their final forecast for their retirement savings. In this article, we will compare the three scenarios mentioned in the title, and see how well they will each provide a retirement.

But lets ask a question, first. When you consider the long-term value of your retirement savings, does it look like you will have poor living conditions when you retire, or doe is look like you will be well off? Does it even look like you will be able to retire at all as you have planned?

With the current losses that have been imposed on those having a 401k, it becomes obvious that we need to use other means of securing a nest-egg for our golden years. And there are several options aside from having a 401k.

Considering the Advantages of a 401k
Concerning the 401k, the advantages are that we can have our money taken out pretax, while we are still in a larger tax bracket, and then withdraw the money at retirement when we are in a lower tax bracket. And to top it off, the company we work for may even match a certain percentage of our contributions.

But lets consider our 401k contributions a little further. To make it simple, if you make $50,000.00 a year and you contribute 3%, your total contributions for 30 years, that would be a grand total of $45,000.00 ($1,500.00 x 30). And if your company matches that, your total contributions for 30 years would be the total of $90,000.00 ($3,000.00 x 30). That is not a lot of money to retire on. And considering that you may be able to earn compound interest-if there are no great losses in the meantime-on that money, you can easily have over $100,000.00. But that is still not enough. The average person will probably need approximately $500,000.00 in the bank to have a descent retirement.

The Benefits of an IRA
The benefit of an IRA is that you can contribute your money after tax, and, therefore, you do not have to pay taxes on it when you retire, which can be a nice feature. But you need to remember that you will probably be in a lower tax-bracket when you retire. And so you are left with the choice to either not save the money because you do not want to pay the higher tax-which you will do anyway, if you do not save it-or you can save the money in a way that is not as good as earning interest on the non-taxed portion of your money, as your 401k does.

The Benefits of a CD
Another way to save money is a CD. And similar to a 401(k) plan, a CDs money is tied up. (However, it does guarantee a higher interest than you will get from a regular savings account.)

The Best Opportunity to Accumulate Money
But the best opportunity you can have is owning a home. If you own a home, or if you even purchase a home now, you can use the banks systems to pay your mortgage off in less than half the time. (That is better than the bi-weekly program.) Then you can begin to save the money you would have paid in your mortgage for more than 15 years and combine it with your 401k savings and earn interest on it instead of paying interest to the bank.

This will provide you several advantages. You will save tens of thousands of dollars in interest on your mortgage loan, after which you can then start saving what you would have paid to the bank in mortgage payments, and then you can even begin to contribute at least most of it in your 401k and gain compound interest on this money. This could quite possibly more than double your retirement savings. And to top it off, you will own your own home free and clear.




I hope you find this information helpful.





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張貼者： 於 晚上11:00 0 意見
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2012年6月26日 星期二

How to Compare Savings Accounts Online


Over 50% of American adults don't have any savings. It's all to easy to buy what you want now with credit and loans within easy access to fund purchases. If your looking to get debt free and save for purchases or have a cash reserve for lifes unexpected costs then a online savings account could be the answer. Before rushing off to apply you need to look out for features to compare such as introductory offers, interest rates, minimum investment and any fees or interest penalties.

Banks, of course, are always looking to attract new customers, and introductory interest rates are one way they do that. Just as credit cards may offer zero-percent rates to bring in new customers, banks offer higher-than-normal interest rates for a specific amount of time. When comparing savings accounts, this is one thing to take into consideration, but not the only thing.

If your planning on a longer term investment then the ongoing rate will be of far greater importance than a short term introductory offer. If on the other hand you have a large lump some cash investment, such as a home deposit, that you know you'll be using within six months or so then you may be able to make use of the high introduction rates.

Some of the best long term savings accounts do have opening offers but others use the offers to pull you in but have downsides hidden in the small print. In some cases banks require a minimum balance to be maintained either permanently or for a certain period after you open the account to avoid being penalized by fees. If you withdraw before the specified time period is up, you'll pay for it. In some cases the penalty amount can more than negate the interest you earned.

Some accounts may be assessed fees, either to open, to close, or on an ongoing basis. Again, these must be disclosed, but they're usually in the fine print. Especially if you choose an online high interest account, you'll want to think carefully if there are fees involved. One of the main advantages of online accounts is low or no fees, since the bank doesn't have to maintain brick-and-mortar branches. If the best savings rates are offset with high fees, you may be better off looking elsewhere.

Another thing to look for are hidden interest penalties in the month you withdraw your funds. Many people overlook these in the fine print, but they can make a difference in the amount of money you receive. Getting less than you thought could put a crimp in your plans.

Sometimes, in order to get an advertised rate, you need to deposit a fairly high minimum. This can be $10,000 or more, in some cases. The minimum deposit amount can be combined with an early withdrawal penalty, turning a high interest savings account effectively into a short-term certificate of deposit. Make sure an account with these restrictions will serve your needs before signing up and sending your money.

High interest saving accounts are a great tool whether you make use of an online account or something offered by your regular bank. Just be sure you read all the information about the account before you sign up, and know about any dates for withdrawal and any fees that might be associated with the account, either on a one-time basis or on an ongoing basis.




Richard Greenwood is Director for the Click 4 Group who run a range of websites to help consumers compare savings account products from leading banks including Raboplus savings.





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張貼者： 於 下午3:01 0 意見
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2012年6月9日 星期六

How Does Your 401k, IRA, and Certificates of Deposit Compare in Their Value to You?


What will your retirement account look like when you reach that age when it will be your only means of living? Well let me tell you, there is a surprising kick of reality when most people consider their final forecast for their retirement savings. In this article, we will compare the three scenarios mentioned in the title, and see how well they will each provide a retirement.

But lets ask a question, first. When you consider the long-term value of your retirement savings, does it look like you will have poor living conditions when you retire, or doe is look like you will be well off? Does it even look like you will be able to retire at all as you have planned?

With the current losses that have been imposed on those having a 401k, it becomes obvious that we need to use other means of securing a nest-egg for our golden years. And there are several options aside from having a 401k.

Considering the Advantages of a 401k
Concerning the 401k, the advantages are that we can have our money taken out pretax, while we are still in a larger tax bracket, and then withdraw the money at retirement when we are in a lower tax bracket. And to top it off, the company we work for may even match a certain percentage of our contributions.

But lets consider our 401k contributions a little further. To make it simple, if you make $50,000.00 a year and you contribute 3%, your total contributions for 30 years, that would be a grand total of $45,000.00 ($1,500.00 x 30). And if your company matches that, your total contributions for 30 years would be the total of $90,000.00 ($3,000.00 x 30). That is not a lot of money to retire on. And considering that you may be able to earn compound interest-if there are no great losses in the meantime-on that money, you can easily have over $100,000.00. But that is still not enough. The average person will probably need approximately $500,000.00 in the bank to have a descent retirement.

The Benefits of an IRA
The benefit of an IRA is that you can contribute your money after tax, and, therefore, you do not have to pay taxes on it when you retire, which can be a nice feature. But you need to remember that you will probably be in a lower tax-bracket when you retire. And so you are left with the choice to either not save the money because you do not want to pay the higher tax-which you will do anyway, if you do not save it-or you can save the money in a way that is not as good as earning interest on the non-taxed portion of your money, as your 401k does.

The Benefits of a CD
Another way to save money is a CD. And similar to a 401(k) plan, a CDs money is tied up. (However, it does guarantee a higher interest than you will get from a regular savings account.)

The Best Opportunity to Accumulate Money
But the best opportunity you can have is owning a home. If you own a home, or if you even purchase a home now, you can use the banks systems to pay your mortgage off in less than half the time. (That is better than the bi-weekly program.) Then you can begin to save the money you would have paid in your mortgage for more than 15 years and combine it with your 401k savings and earn interest on it instead of paying interest to the bank.

This will provide you several advantages. You will save tens of thousands of dollars in interest on your mortgage loan, after which you can then start saving what you would have paid to the bank in mortgage payments, and then you can even begin to contribute at least most of it in your 401k and gain compound interest on this money. This could quite possibly more than double your retirement savings. And to top it off, you will own your own home free and clear.




I hope you find this information helpful.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 凌晨4:36 0 意見
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2012年6月6日 星期三

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.




For more information on how to send money online visit the http://www.sendmoney101.com/ home page and learn how to send money almost anywhere in the world.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 中午12:29 0 意見
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2012年5月29日 星期二

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.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 下午1:32 0 意見
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2012年3月6日 星期二

Compare 5 Year CD Rates - How to the Find Best Rates?


There are various banks in the United States of America that offers Certificates of Deposit as an investment option for the investors. There are various deposit terms that are available for the CD.


3 months
6 months
1 year
3 years
5 years

You have to choose the deposit term which would be suitable for you. If you want to invest in 5 year CD, then you have to compare the various interest offered by the banks and then have to invest.

Some of the 5 year CD rates offered by the banks are listed below. These certificate of deposit rates vary periodically and you have to check the latest rates from the bank website.

Discover Bank - 2.96%

Ally - 2.9%

Aurora Bank - 2.73%

How to find the best rates?

There are many ways to find the best 5 year Certificate of Deposit rates. You can find some useful guidance for the same.


First you have to list out the banks that offers 5 year CD rates near to your location. Because the Certificate of Deposit rate vary periodically for various locations also. So first you have to list out the banks near to your location.
Once you have listed out the same, then you have to get the complete details offered by them for 5 year CD.
You should compare the same with the other banks and then analyze the best.
There are several reputed websites that provides those details instantly. You can refer those websites also.




Click here to compare the -------->> Best CD Rates. You can also find the details of Bank of America CD rates.
Balajee Kannan





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張貼者： 於 下午1:09 0 意見
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2012年1月25日 星期三

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.




For more information on how to send money online visit the http://www.sendmoney101.com/ home page and learn how to send money almost anywhere in the world.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 凌晨4:41 0 意見
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2012年1月20日 星期五

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.




Do you want to learn the best way to escape paying interest? You can get my free ebook, How to Significantly Lower the Interest on All Your Loans, Including Your Mortgage--and That Without Refinancing.

Click here to get the free ebook: Debt Management Free eBook [http://www.alfredspengly.com/howtoavoidinterestfreeebook].

Alfred Spengly currently works through a company that is registered with the Better Business Bureau since December, 2006 and has zero complaints. It is a company that strives for their customer's satisfaction in providing a method for managing their own money with the tools they need to establish their own financial security.

Personally, Alfred has worked in the financial field for almost 15 years.





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張貼者： 於 下午3:02 0 意見
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2012年1月12日 星期四

How Do the Investment in Company Deposits Compare With Other Fixed Income Instruments?


A large chunk of Indian investors look out for fixed income saving instruments, which comprise of several products ranging from bank fixed deposits, postal savings, government bonds and public provident fund and income funds or liquid funds schemes of mutual funds, to name the few. Of all the fixed income instruments, bank fixed deposits perhaps account for more than 50% of Indian Savings. During the past one and half year, interest rates on bank fixed deposits (also called as term deposits) have come down drastically. Nowadays, the interest rates on bank term deposits of nationalized banks and major scheduled banks are in the range of 6 to 8% depending upon the tenure and the popular postal savings such as NSC, KVP and PPF offer 8%. It is obvious that the Investors would look out for better alternatives in the Fixed Income Products.

If you are seeking higher returns than bank deposits and postal savings and if you do not want to lock in your funds for longer durations, you might consider investments in company deposits, which offer returns in the range of 9% to 12%. Although the returns on company deposits are much better than any other fixed income instruments but you must understand various aspects such as risk, liquidity, taxation and returns before you make up your mind to invest in company deposits. Here are few salient features of investments in company deposits.

Risk: Company deposit is an unsecured loan for the company, that is, as an investor you do not have any lien on the assets of the company. In case the company is facing financial difficulties or it is likely to become bankrupt, lenders of secured assets would get the first priority and your turn comes only after all the secured loans have been repaid by the company. As compared to company deposit, bank deposit is much safer because the repayment of the deposit up to rs. 100,000 is guaranteed by DICGC (Deposit Insurance and Credit Guarantee Corporation of India). Safety of your deposit depends upon the overall financial health of the company.

Liquidity: Although the Company Deposits are issued for the tenure ranging from 1 to 5 years but the Company Deposits are neither Listed on the Stock Exchanges nor Transferable. Generally, the conditions for premature withdrawal are not favorable and therefore, Company Deposits may be termed as more illiquid as compared to Mutual Funds and Bank Deposits.

Taxability: Interest Income from Company Fixed Deposits is taxable in the hands of the Investor and the issuing companies are supposed to deduct tax before paying interest to the investors. The interest income has to be shown under the heading "Income from Other Sources" in your Income Tax Return. You must take the decision to invest in the Company Deposits based on the Tax Bracket applicable to you.

Return: Rate of Interest varies with the companies. Many companies offer the deposits with cumulative interest option with monthly, quarterly or yearly cumulative interest in which case the interest earned gets reinvested at the same interest rate and thus resulting in better yields. Options with monthly cumulative interest provide the highest effective yield. At present, the effective yields on deposits of various companies are in the range from 9% to 14%.

How to Invest: Nowadays, many Online Stock Trading Companies and Brokerage Houses such as HDFC Securities, and ICICI Direct offer online and offline investment facility in Company Deposit.

Factors to be kept in mind while investing in Company Deposits

· Know about the financial position of the company:

· Know the Promoters and their track-record.

· Look out for the profit making companies and the ones that regularly pay dividends.

· Check out the ratings given by Credit Rating Agencies such as CRISIL and CARE.

· Keep a watch about any adverse reports or news about the company.

· Ascertain about the servicing standards such as Mode of Interest Payment and Repayment of Principal Amount, and promptness in the issuance of TDS certificates.

· Learn about the penalties and other terms and conditions for premature withdrawal

· Don't park your funds with one Company. Spread the funds and invest in the Companies engaged in different sectors.

· Risk involved in investing with smaller companies is definitely more than the risk of investing with large corporates of the likes Tata Motors, HDFC etc.




The Author is a Techno-Commercial Consultant and Freelance Content Writer.





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2011年12月20日 星期二

How Does Your 401k, IRA, and Certificates of Deposit Compare in Their Value to You?


What will your retirement account look like when you reach that age when it will be your only means of living? Well let me tell you, there is a surprising kick of reality when most people consider their final forecast for their retirement savings. In this article, we will compare the three scenarios mentioned in the title, and see how well they will each provide a retirement.

But lets ask a question, first. When you consider the long-term value of your retirement savings, does it look like you will have poor living conditions when you retire, or doe is look like you will be well off? Does it even look like you will be able to retire at all as you have planned?

With the current losses that have been imposed on those having a 401k, it becomes obvious that we need to use other means of securing a nest-egg for our golden years. And there are several options aside from having a 401k.

Considering the Advantages of a 401k

Concerning the 401k, the advantages are that we can have our money taken out pretax, while we are still in a larger tax bracket, and then withdraw the money at retirement when we are in a lower tax bracket. And to top it off, the company we work for may even match a certain percentage of our contributions.

But lets consider our 401k contributions a little further. To make it simple, if you make $50,000.00 a year and you contribute 3%, your total contributions for 30 years, that would be a grand total of $45,000.00 ($1,500.00 x 30). And if your company matches that, your total contributions for 30 years would be the total of $90,000.00 ($3,000.00 x 30). That is not a lot of money to retire on. And considering that you may be able to earn compound interest-if there are no great losses in the meantime-on that money, you can easily have over $100,000.00. But that is still not enough. The average person will probably need approximately $500,000.00 in the bank to have a descent retirement.

The Benefits of an IRA

The benefit of an IRA is that you can contribute your money after tax, and, therefore, you do not have to pay taxes on it when you retire, which can be a nice feature. But you need to remember that you will probably be in a lower tax-bracket when you retire. And so you are left with the choice to either not save the money because you do not want to pay the higher tax-which you will do anyway, if you do not save it-or you can save the money in a way that is not as good as earning interest on the non-taxed portion of your money, as your 401k does.

The Benefits of a CD

Another way to save money is a CD. And similar to a 401(k) plan, a CDs money is tied up. (However, it does guarantee a higher interest than you will get from a regular savings account.)

The Best Opportunity to Accumulate Money

But the best opportunity you can have is owning a home. If you own a home, or if you even purchase a home now, you can use the banks systems to pay your mortgage off in less than half the time. (That is better than the bi-weekly program.) Then you can begin to save the money you would have paid in your mortgage for more than 15 years and combine it with your 401k savings and earn interest on it instead of paying interest to the bank.

This will provide you several advantages. You will save tens of thousands of dollars in interest on your mortgage loan, after which you can then start saving what you would have paid to the bank in mortgage payments, and then you can even begin to contribute at least most of it in your 401k and gain compound interest on this money. This could quite possibly more than double your retirement savings. And to top it off, you will own your own home free and clear.




Do you want to learn the best way to escape paying interest? You can get my free ebook, How to Significantly Lower the Interest on All Your Loans, Including Your Mortgage--and That Without Refinancing.

Click here to get the free ebook: Debt Management Free eBook [http://www.alfredspengly.com/howtoavoidinterestfreeebook].

Alfred Spengly currently works through a company that is registered with the Better Business Bureau since December, 2006 and has zero complaints. It is a company that strives for their customer's satisfaction in providing a method for managing their own money with the tools they need to establish their own financial security.

Personally, Alfred has worked in the financial field for almost 15 years.





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