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2012年9月13日 星期四

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 Any earning made through this particular investment is not taxable until the earned amount is withdrawn, giving you a better advantage over tax control and opportunity for better growth.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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張貼者： 於 凌晨12:33 0 意見
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2012年6月8日 星期五

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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張貼者： 於 晚上7:25 0 意見
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2012年3月16日 星期五

CD Ladders: Hedging Against Risk With Fixed Interest


The certificate of deposit has long been revered as a low-risk investment with a fixed income reward. It is often considered the fail safe investment of both pre and post retirees. However, a certificate of deposit, while less risky than many investments, does have its own set of risks that can be avoided with the right strategy.

What is interest rate risk?

Interest rate risk is the risk involved in any fixed-income investment that locks you in to a fixed interest rate for a set period of time. Because you are locked in to that fixed rate, you are at risk for missing out on the higher interest rates offered during your term.

Anticipating the Risk-and Protecting Yourself against It

There is an easy way to hedge against interest rate risk, and that is by creating something called a CD ladder. With a CD ladder, instead of investing all your money in one CD that is locked in for one term, you spread your money out into several different CDs with graduated maturation dates.

For instance, let's say you have $20,000 to invest in a CD. You can invest the entire $20,000 in one 5-year CD at a given rate. If CD rates increase in 12 months, you may not be able to capitalize on the increase because your early surrender fees could negate any benefit the additional interest would give you.

However, if you invest just $5k into a 5-year CD at a current rate, then invest the rest in small increments and varying maturity dates, then you will have CDs maturing throughout the years and will be able to roll that money over into new CDs at (hopefully) higher rates.

Facing a Financial Emergency with a CD Ladder

If you have a financial emergency and need to tap into your CD before it matures, then you may be charged a penalty. With a CD ladder, your CDs can be maturing often enough that you might not need to take an early withdrawal and pay a penalty when you run into financial need. Additionally, because certificate of deposit are so easy to renew, you can just roll the money over if you decide that you don't need it after it matures, and you will still be taking advantage of an improved rate you will likely consider savings accounts, certificates of deposit and money markets. Unlike CDs and savings accounts, money markets offer two different options-money market accounts and money market funds. Each offers different money market rates. Depending on which you choose, they might even have a variance between annual percentage yields and rates. While this might sound overwhelming at first glance, it is actually pretty easy to understand the difference between each money market type and rate structure.




Yolander Prinzel is a financial writer with over a decade of financial industry experience including as an underwriter, agent and director of marketing. She has written for a number of publications and websites like http://www.DiscoverBank.com, Advisor Today, and the International Travel Insurance Journal (ITIJ).





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張貼者： 於 清晨6:55 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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張貼者： 於 晚上9:25 0 意見
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2012年1月7日 星期六

HSBC Fixed Deposit Interest Rates in Singapore - Value for Your Money


Before jumping onto rates of interests on various kinds of deposits, I think it is important to have a basic know how of what exactly time deposits are. If you already know, just brush up on that knowledge with me. A time deposit is a money deposit with a bank which cannot be withdrawn at the whims and fancies of the investor. There is a strict time limit that needs to be followed before withdrawal. Usually, more the time involved, more are the returns. Now, certificates of deposits and fixed deposits are the two kinds of time deposits or according to some "term deposits".

The current interest rate being offered by HSBC Singapore is the best as far as time deposits in the market are concerned. They are offering the highest rates in the market. The HSBC Singapore has many branches where you could just walk in to invest your money. Some of them are:

HSBC Claymore Branch, claymore hill, Singapore,
HSBC Marine Parade Branch, Marine Parade, Singapore.
HSBC Jurong Branch, Jurong East Street, Singapore.

The rest of the branches of the bank can be located from their website.

Higher rates of interest are a boon for investors. They would be able to get higher rates of interest at the same amount of investment. The interest rates are changed periodically and you can keep a track of such changes from the website of HSBC Singapore. Investing in Singapore Dollar Deposits will get you smart incomes of extraordinary returns.

So if you are opting for fixed deposits this is the best option for you. HSBC is a reputed bank and you need to just visit them to get a loan. They have various loan packages and you can select the best one for you. So wait for a while before you opt for any other bank as you can get the best interest rates loan from HSBC Singapore.




Next Step: More details on attractive bank rates are available for your reference.
Click here ---->> Fixed Deposit Rates.
Click here --------------->> Bank Rates in Singapore.
Balajee Kannan





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張貼者： 於 晚上9:46 0 意見
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2012年1月5日 星期四

High Fixed Deposit Banks in Singapore - Rates


Singapore has many banks. They provide different types of services and products. Fixed deposit is one of them. The basic idea can be understood from the name itself. The customers should invest their money for particular time period. Bank authorities use this time period and manipulate the money. They re-invest the money in other ways and earn more money. The most important thing is time here.

Since the customers deposit their amount for a fixed period, it is called Fixed Deposits. The minimum investment required to start a deposit account is S$1000. Customers get high rate of interest. It is similar to the Certificate of Deposits. List of banks in Singapore is mentioned below here.

List of Banks:


DBS - Great World City Branch, Great World City, Singapore.
UOB - Admiralty Branch, 70 Woodlands Avenue, Admiralty MRT Station, Singapore.
Maybank - Marine Parade Central, Singapore.
HSBC - Tanglin, 6 Claymore Hill, #01-01 Claymore Plaza, Singapore.
Citibank -Cuscaden Road Branch, HPL House 50 Cuscaden Road #02-02, Singapore.

The deposit rate depends upon various factors. The key factors are amount and time duration. Rates of different banks are listed below here.

List of Fixed Deposit Rates:


In Citibank, the interest is 0.35% for amount up to S$50,000.
In DBS and UOB, the interest is 0.45% for amount up to S$50,000.
In HSBC, the rate is 0.48% for amount up to S$50,000.
In Maybank, the rate of interest is 0.75% for amount up to S$50,000.




Click here---> To start up a Singapore Fixed Deposits. Get to know about the latest Singapore Deposit Rates

Divya Kannan





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張貼者： 於 凌晨2:37 0 意見
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2011年12月26日 星期一

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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張貼者： 於 下午2:20 0 意見
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