Money market savings account and their interest rates

People are always enticed investing in money market savings account literally because they pay you high money market interest rates which in turn yield high. Apart from high money market account rates, there are decreased level of transactions along with safety as well as guarantee.

Money market savings account

money market interest rates

These savings accounts are just phenomenal because they yield you with best return on investments. The money market interest rates vary from one country to the other depending on the economical condition. These accounts are basically offered by banks, credit unions and other huge financial institutions. The money can be saved for a time period of 1 year or even more. Though there are advantages of using theses money market account, there are drawbacks as swell. Let us look about the advantages as well as the disadvantages in detail:

  • Security: These accounts are basically insured by FDIC (Federal Deposit Insurance Corporation) and hence they are basically secured. Even if the bank fails to secure your savings, FDIC definitely will and hence the depositors will not have to worry about losing their cash. The risk factor is completely low when compared with other investment plans like stock market and mutual funds.
  • High minimum balance: The main drawback of using these accounts is none other than having a high minimum balance. The account holder or the depositor is asked to have at least a minimum balance of $5000. Even if an account holder fails to maintain the minimum balance, then the financial institution might incur a penalty.
  • Maintenance costs: If you are on the safer side in sustaining the specified minimum balance, then there wouldn’t be any fees charged on you but once you drop down from the minimum balance, then you will have to pay them with certain cost. There are certain banks which put up separate charge for maintenance every year. Though it is common for all the banks, the charges differ from one bank to the other, thus look for the ones that charges less.
  • Limited transactions: These accounts will generally ask you to make transactions only for a specified number of times in a month. Even if you exceed the quantity of transactions in withdrawing funds, then you will have to pay the financial institution a penalty.
  • Liquidity: Compared to other accounts, these possess high liquidity because they are easily accessible. They are completely flexible but the drawback is that they are not as liquid as the checking account. In these money market accounts, there are restrictions in the usage of checks.
  • Yields: Since they are completely insured by the FDIC and as well as offer high interest rate, the yields are also high. The more cash you drop in the account, more will be the yield. Talking about the risk, they are less when compared to the other investment plans.

Before choosing these accounts, you will have to research a lot of financial institutions offering these accounts. You need to look into the money market account rates offered by banks and other financial institutions. You will have to shortlist few of the service providers and use a comparison tool to check for the best interest rate offered by the service provider. You need to check if the account will suit all your needs. You need to check on every factor associated with the financial institution as well as the bank.


What is best bank interest rate for home loans?

Who doesn’t wants to live in own homes? Everybody has this wish and there might be times when people may not be able to afford with all the expenses related to buying a home. At such critical times, banks can really help you. But you will have to take cautious step in picking up a loan so that you don’t find it hard to repay them. You will have to look for the best bank interest rates. There are certain banks which offer high interest rates and one must never pick such banks as it becomes really difficult to repay the loan amount which you have borrowed. To qualify the best bank interest rates, you definitely need to possess a good credit score and shouldn’t be blacklisted in ChexSystems. Even if you have been blacklisted, then you can recover from it with the help of second chance bank accounts.

As there are lots of people involved in buying homes, you can see a lot of financial companies coming forward to the customers with various interest rates readily offering loans. Some companies will have high interest rates and some can be low. You shortlist the ones that offers less interest rates. You will have to do a complete research on the financial company so that you can find a good loan. Also you will have to search for the various options that are there in the market. There are certain banks that offer different rates for the people who are salaried and who owns a business. You must check with every little thing that you fit into. You need to pick the one that helps you in fulfilling all the basic requirements. You need to plan accordingly so that you can repay the entire loan amount on time along with the interest. In spite of researching a lot, if you do not really find attractive interest rates offered by the banks, you can get the assistance of a broker who can really help you in getting the finest rates. While hunting for the loans, you should not only look at the interest rates, but also you must be able to know information about the company’s reputation, total cost, duration etc.

The interest rates keep changing. It completely depends on the nation’s economical status. To save some cash for your needs, you can drop your money in the banks as they are the safest place to invest in. The risk factor is completely less when compared to other investments. Since it is connected to the bank, they are completely secured and safe with a guaranteed income even it is less. The bank will pay high if it performs well in the market. Generally banks will make money with the interest rates they get from the mortgages and loans which they offer to people. This is connected deeply with the economy as well. Only if the country’s economy is well, people will earn well and they will be able to pay down all the interest rates on the money they have borrowed from banks which in turn bank can earn some. Finally you will get good returns from the bank on the amount you have invested. Everything is interconnected to each other. Yet another factor that affects a bank’s interest rate is none other than inflation. Inflation is none other than sudden price hike in all the commodities and goods which we use in our day to day life. For example you might saw news about the sudden increase in the prices of vegetables, fruits, oil, diesel, petrol, gold, silver and many more.

What are second chance bank accounts?

If you think that only when you purchase savings bonds, you can secure yourself, then it can be wrong. There are second chance bank accounts as well in the market that can help you to save better. Let us have a closer look on some things.

What are second chance checking accounts?

When you often write down some bad checks for over-drawing cash from the bank account, then you soon might be blacklisted in ChexSystems. As this happens with you, banks will never let you to open a new account unless all the problems associated with the previous banks are cleared. There are certain banks which readily help you in correcting all your mistakes down if you have been blacklisted in ChexSystems. These types of banks can help you a lot in rectifying all your previous mistakes. You will have to pay a small price in order to get the credit back. They offer similar features same as that of normal checking account but has some safety measures for total protection. The safety measures took by the bank for them are as follows:

  1. The accounts are checkless which literally means that you will not have rights on check-writing.
  2. There are no chances of over drafting the account you hold and the limits on spending is set by the bank alone.

Most of these accounts will offer a card for accessing the ATM machine in order to withdraw some cash. Other than the ATM facility, it also offers online banking facility, online bill payments as well as monthly statements through online. To qualify for these second chance checking accounts, you will have to clear up all the problems which you had with the previous banks. You must then pay back all the cash that you owe from others. It also requires a minimum balance to be deposited while you open it. There will be monthly charges as well which can be either $10 or $25. This charge completely depends on the bank you choose. Once you know that you have been blacklisted in Chex, it is better to find for a 2nd chance checking account so that you can improve your credit score quickly.

What are second chance bank accounts?

second chance bank accounts

The second chance banking accounts are for people who are not able to acquire the traditional checking account or a savings account. The second chance bank accounts are an ideal solution when you have been blacklisted in TeleCheck or ChexSystems. These two are just like the 3 credit agencies that take care of your credit score. If you have been blacklisted in any one, then you will have to take some action. The second chance banking will assist you in making a new start with a fresh responsibility. When you have a bank account, you will be able to save all the cash in a safe way and earn some interest with the amount you have deposited. To open up the 2nd chance bank accounts, you will have to pay a very less amount. There is no requirement of credit check with such accounts. The procedures for opening these accounts are really very simple. All you have to do is to fill in the application form with all the necessary details along with a photocopy of your ID and a tiny deposit. When the account has been opened, you are free for making some transactions. There is plethora of companies that have started to offer such accounts but you will have to make a complete research on it so that you can pick the best one and which fulfills all your requirements.

What are government and national savings bonds?

Apart from knowing “what is earnest moneyin the previous article, you should have good knowledge on the savings bonds as well. You can purchase savings bonds in order to secure your future. The bonds have always been a good way of investment as they are completely secured and help to overcome a financial crisis. When you purchase savings bonds, you have to make a complete research on it so that you can pick up the one that is best in the market. Bonds can be of many types like: Government savings bonds, national savings bonds etc. Let us look in detail about these two:

Government savings bonds:  If you are watching for a safe investment, then probably this is the place to invest. Government bonds have low risks and guaranteed income. You can earn with the interest rates put up by the bank on the principal amount you have deposited. Bonds can basically be classified into 2 types which are as follows:

  • Series EE bonds: This type of bond involves very minimum risk and you can buy them with the help of a Treasury Direct account. The rate of interest depends on the current market condition. The bonds that were purchased after 2005 can earn an interest rate that is fixed whereas the bonds that were purchased between the years: 1997 (May) and 2005 (April) earns a varying interest.
  • Series I bonds: Investing in this type of bond is termed as liquid investment as it protects you from inflation. You can earn a good income with such bonds. You can purchase them with the help of a Treasury Direct account. You can earn interest for about 30 years.

National savings bonds: Recently, the NS&I (National savings and Investments) had withdrew the index linked bonds and thus leaving plenty of potential investors to search for the savings bonds. The index linked bonds of NS&I was also known as RPI linked bonds and had a guaranteed income. It was completely free from tax with a five year fixed time duration. The bond became very popular and had a sale of 50000 in 4 short months. The index linked bonds is the only bond that offers total protection from the huge expenses and inflation. Even though the deal is no more there in the market today, experts are looking forward to some other bonds offered by NS&I in coming April. There is a big gap in the market today and there will definitely be tax incurred on the other bonds. In spite of the interest rates being low, the RPI linked bonds has a good position in the market today. The savers will always have to find for a better approach in the bond market so that they can survive when there is a financial crisis. Before investing, you will have to make a complete review on the current interest rates going on in the market. The potential investors who are looking forward in buying the index linked bonds have to be very careful or cautious about the interest rates of inflation. It is essential that you read down all the terms, policies and conditions of any investment plan before investing. Only when you have some idea about it, you can decide things properly in making money. You will also have to be very cautious about the fixed time so that your hard earned cash doesn’t gets locked by chance and you don’t end up in paying penalties for your own money. But there would be separate charges when you withdraw the cash before the time duration. Have a look at every minute thing connected to the bond.

What is escrow agreement and earnest money deposit?

What is escrow agreement?

An escrow agreement has to be established during the phase of software development. The set-up process of escrow has to be very direct and an escrow gent sends you the.doc copy of agreement and requires you to comment on it before forwarding it to the specific client or a supplier to comment further. Once both the parties have commented on particular agreement, it further proceeds with the final approval. As the final approval is finalized, it will be circulated for the signatures where a software owner has to 30 days time to deposit for source code. You need to check with all the things associated to the escrow. Some of the things are as follows:

  • Make sure that all the media are completely free from virus.
  • Check if the media as well as the files can be easily read.
  • Check if the expansion utilities are there if compressions have been used.
  • Check for the source code.
  • Make sure that source code is readable as well as understandable.

To maintain the source code, you will have to note on the following things:

  • Indentation
  • File structure
  • Variable names
  • Procedure names
  • Version numbers
  • Source comments
  • Modification history
  • Appropriate file names

Get to know more about offshore bank accounts as well.

What is earnest money?

escrow agreement

It is none other than the term used in real estate business. It doesn’t have to be money though. It can be anything that holds a good value. For instance – car, elephant etc. As the transaction gets closed, the earnest money can be then applied as either down payment or can be returned in the form of cash back to you. The earnest money deposit is paid in the form of check to a buyer’s agent by signing the initial contract. The earnest money deposit will then be put in escrow account. The earnest money deposit is sometimes referred as good-faith deposit and it is generally deposited in the escrow trust.

Let me explain you with an example. Consider you are buying a real estate land or a property and you have made an offer for it. When an owner of the specific land or property accepts the offer given by you, then the purchase contract will be drafted and the earnest cash will be held by impartial 3rd party company unless the contracts are signed finally. When you offer a perfect earnest money, then it can be enticing to the seller’s eyes and it can help you in accepting your offer soon. When a person deposits the earnest money, it will be regarded as down payment on the property they buy. But it is better not to put in more money as earnest money because things keep changing. To ensure that you are getting the earnest cash back, you will have to cancel a purchase agreement. You need to check if all the contingencies are in place.

You need to know firstly that if you will be able to sell your property or house or land with an appropriate price. If you can then its fine but if you can’t then what strategies you will have to apply in order to push the specific sale. Probably if you are a buyer, then you will also have to check if the house really needs some repairing works. If this is the case, then you can ask a buyer to lower the price as the house is not completely polished. In this way, you can get your earnest money back because these are some of the valid reasons for getting the cash back.