Factors to Consider When Switching Banks

March 29, 2010 By

Customer Service
This is an extremely important attribute of a good bank. Nowadays, banks are expected to provide top-notch in person and online customer service. It’s also good to become acquainted with the employees at your local branch. You should only choose a bank that provides the best customer service available on the market. If you’re less than satisfied with your current bank’s customer service, it might be time to look elsewhere.

High Rates
The competition between banks is cutthroat, and you should only invest in banks that are offering the highest interest rates and greatest benefits. Shop around to see what bank offers that high-yield savings account. Perhaps there is a bank that is giving away cash for opening an account? Either way, you should pursue the bank that will facilitate the growth of your money.

Protect Your Finances
All of the points listed above can help you decide if you need to switch banks. You should never feel like a stranger in your own bank, and you deserve to find the best services available. So, empower yourself as a consumer and choose only the best bank you can find.

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A Handy Guide to Series EE Bonds and their Savings Rates

March 5, 2010 By

Savings bonds often outcompete savings rates when it comes to interest rates. While savings accounts traditionally earn between one to two percent savings rates, Savings bonds, on the other hand, can earn upwards of 5% interest. Here, we’ll take a quick look at Series EE bonds and their investment potential.

Where Can I Buy Series EE Bonds?
Normally, Series EE bonds are readily available at banks and other financial institutions. Brokerage firms also offer Series EE bonds. Some firms have access to special baskets of government bonds. You may be able to take advantage of payroll deduction purchase plans that are offered by your employer.

The easiest way to buy savings bonds is through TreasuryDirect, the government’s online bond merchant. When you buy a bond on TreasuryDirect, you can manage and sell that bond electronically via your TreasuryDirect account.

Face Value Prices of Series EE Bonds
The Fed offers a variety of face value prices on Series EE bonds, notably: $50, $75, $100, $200, $500, $1,000, $5,000, or $10,000. You can purchase each of these bonds for half of the face value price.

You are permitted to buy up to $30,000 of Series EE bonds in any calendar year. Series EE bonds earn fixed interest rates that are determined by the Fed.

Benefits of Series EE Bonds
Series EE bonds are known for paying powerful interest rates and staying ahead of inflation. These bonds tend to offer strong rates even when the interest rate environment is weak. That’s because these bonds are linked to a variety of different government coffers, and can withstand a low interest rate marketplace.

However, it’s wise to always check out prevailing interest rates before you buy Series EE bonds. Since these are fixed investments, you want to make sure that you purchase them when interest rates are strong.

Find other financial information here.

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Why You Should Choose Trust Funds Over Savings Rates

March 2, 2010 By

If you want to invest in your child’s  future, forgo traditional savings rates in favor of a trust fund. While savings rates are secure and easy, trust funds will often pay better rates for the benefiting party.

What is a Trust Fund?
Basically, a trust fund is a type of investment that creates sustained benefits for another person. Often, parents will establish trust funds for their children so that the children can have a steady flow of cash in their adult years.

You can also establish trust funds to benefit charities or non-profit organizations. Many trustees combine a variety of financial resources into trust funds. You don’t have to put only cash in there. Trust funds can contain property, stocks, bonds, and many other types of investments.

The Responsibilities of the Trustee
The person who takes command of the trust fund is called the trustee. There can be one or more trustees who operate the fund. The trustee is responsible for creating the fund so that it serves the needs of the fund’s beneficiary.

Normally, trustees will place restrictions on the trust fund. Sometimes, the beneficiary will only be able to withdraw funds after a certain age. However, the trustee can establish certain stipulations that allow the beneficiary to withdraw a limited amount for the time being.

Trust Fund Goals and Processes
The entire concept of a trust fund is to provide sustained support to the beneficiary rather than just bequeathing tons of money to the person. This way, the trustee can ensure that the beneficiary will be mature enough to handle the assets once they assume control of the trust.

Trustees can also receive compensation from trust funds, but it has to be structured within the trust fund.

Filed Under: Investing Tips