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USAlliance financial offers 2.75% on one year CD September 2018 best rate

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If you want to leverage the fed-rate rise leading to increase in interest rate of certificate of deposits it is perfect time to move your cash balances from your checking account, online savings account, money market account onto CD’s
There are plenty of banks offering 1 year CD at enticing rate of 2.50% per annum
When we look at the profile of these financial institutions they are all FDIC insured upto maximum limit of 250000 per depositor account
I asked them how do they count the 250000 balances and they mentioned that it is combination of balances in all accounts with that particular bank
As such September 2018 is another fantastic month as far as CD rates are concerned. Get 1 year CD at their promotional rate of 2.75% per annum from USAlliance Financial credit union. This is a credit union and covered by NCU
There are many more labor day specials at this credit union

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Homebuyer Checklist with details on How To Buy A Home At USA And Canada

It is the optimal phase for purchase of new home. If you’re curious to purchase a new home, start with a to do checklist to be successful in your endeavor and stay organized with your home search process. Though globally applicable, certain agencies and websites specified in this post are geared towards USA and Canadian Home buyers.
1) Get a free copy of your credit report. It is very important. It can be obtained from websites like
2) Know your rights and eligibility. For more details visit Housing Unit Development website
3) Look out for mortgage companies. Some banks like Chase offer 1% cash back in your mortgage (contact chase representative to find more details. I just found a flyer in my mail box today. I’m not sure about terms and conditions. Just wanted to share the information with you all). Research a lot and find out mortgage companies. Look out for best interest Rates
4) Know what loans are available for a first-time home buyer. Common form of loans include 30-year fixed rate mortgage which is the most popular loan option, 15-year fixed mortgage, 10-year fixed mortgage whose mortgage rate remains fixed throughout the life of the loan. There are variable interest rate options including 3/1 year ARM, 5/1 year ARM, 7/1 year ARM wherein the interest rate remains constant for 3,5,7 years. After this based on market conditions the rates vary. while determining the best option for you look for principal and interest rate split-up details in EMI chart. This will tell you more details on which one will offer you great benefits. The mortgage interest can be deducted towards your federal income taxes. To know more on this contact your tax filer to get to know how much you can earn back in form of ta credits. Note that in addition to mortgage interest property taxes are also tax deductible
5) Get pre-approved from mortgage broker, bankers, federal credit union who offer home loan, mortgage products. It is to be noted that the pre-approval is the first step needed for your home search process. Also, it is not mandatory for you to stick onto one single mortgage broker. Just like shopping, shop around for cheapest rates, incentives in form of $0 loan officer fees, $0 closing cost, points purchase that will lower down your overall interest rates erc
6) Know your affordable limits. Calculate your own budget. Make sure that you dont default in future. In a way pre-approval limit does gauge your financial condition and provides some inputs on how far you can stretch your limits with home purchase
7) Make a decision on if you’re going for a new home, resale old home or foreclosure home that becomes available via auctions, sherifs sale etc in your local county office, new homes sold by builders, home sold by owner themselves and such different type of homes . I spoke to mortgage loan officer last week and they confirmed that we can get loan for all types of homes including foreclosure homes. There is a common thought in market that foreclosure deals can be honored only in the form of all cash deals. This is not correct
7.1) Type of home – Based on your financial situation, current job position determine type of home you want to settle down. This can be single family home, town home, apartment condo, co-ops , mobile homes etc
8) Check out the local school districts. It is very essential (if you’ve small kids). I checked with a neighbor recently and they mentioned that while checking the school rating the primary item to look out for is always high school rating as that plays essentially important role in determining the future of your kids
9) Start looking at homes. Typically this starts working with realtor, roaming around your neighborhood on evenings, weekends to see sale boards that talk about homes sold by builders directly, homes sold by owner etc
10) Visit the place and talk to neighbors in that area. You will get to know more details as a stranger if you are totally new to the locality
11) Neighbourhood is very essential for a peaceful life. Get your local crime report, details on radon gas leakage, environmental issues etc. These details are essentially included as part of home inspection report. But it is better to be proactive and have good insight on this before you zero down the locality
12) Pick a real estate agent. It is optional . It is highly recommended for new home buyers if you are not 100% sure. In north american countries almost 90% of the sale process starting with home search all the way upto closure happens only with the help of realtor
13) Find an attorney. In many cases the title check is to be done by real estate attorney. Your realtor works with such attorneys. Also, mortgage bankers work with title check, attorney review, appraisers, home inspectors and you can get some bulk discount on such home related service package. Always shop around and look for best pricing package
14) Check comparable sales in neighbourhood
15) Make an offer
16) Start negotiating. Don’t hesitate to drop the proposal if you’re not interested in proceeding further
17) Ask the seller to purchase a home warranty
18) Sign the contract
19) Apply for homeowner’s insurance
20) Get the home inspected. be careful while inspecting home
21) Set a closing date. Be prepared with closing costs
22) Do a final-walk through of the home. You’re done.

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Checklist needed for homebuyer that helps you plan better

Buying a new home is a dream come true. For most of us we want to know the basics before buying a home. Purchasing a new home happens to be dream of lifetime and it is investment of lifetime. Though it may sound familiar here are my simple tips on prepare yourself before purchasing your next new home 🙂
1) Credit Score – You get loan at better rates if you have better credit score. Follow simple steps to have better credit score
1.1) Pay credit card bills on time
1.2) Pay all the bills on time – Some expenses like utilities demand payment from bank account. As such make sure you pay bills on time. Once a bill hits collection this affects your credit score
1.3) Make sure you maintain good credit score atleast 1 year before home purchase
1.4) Simple trick – Pay $1 more than your minimum payment due. This creates impression that you repay more than minimum payment amount and it improves your credit score
1.5) Check your credit score periodically in free credit score websites
2) Open Bank Account – We recommend to look for FDIC insured trusted bank that pays better interest. Have this fund in good standing for atleast 6 months so that you can submit your statement without any delay during mortgage loan processing. In case of joint contract if you maintain joint bank account it becomes really easy to process and approve loan
3) Check for best mortgage rates and lock-in your rates well in advance – Last few months have shown drastic fluctuation in interest rates. If you find a better interest rate,try to lock-in the best interest rate well in advance
4) Start checking out home prices today – For success the main hindrance is laziness and procrastination. This equally applies to home purchase as well. As a debut home buyer, look for prices of homes in your locality starting today. This gives you feeling of what the prices are like in your locality
4.1) Most mortgage providers demand 20 to 25% of home purchase price as down payment to avoid mortgage insurance and get best rates. Mortgage insurance is a totally separate topic and lets discuss in detail later
5) Plan your taxation – It would be interesting to note that be it your own home or rental home, all your mortgage interest, property insurance , mortgage insurance can be deducted in federal taxes. Some states do offer property tax deduction. Even if you own rental property the depreciation calculation helps you bring down the tax liability. Talk to your tax consultant to see how much can end up saving
6) Set-up automatic deposit into Bank account – This would be an indirect disciplinary attitude that automatically deposits money in your account and it grows automatically yielding more interest

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Meet credit card minimum spending to earn cashback and rewards

Every day we get lots of promotional letters in our mailbox. They are typically credit cards from different banks, financial institutions enticing us to sign-up for one. There are few offers that are really worth it.
These offers demand spending certain amount of money within stipulated time period to enjoy the benefits of rewards in the form of statement credits, travel reward points etc. Icing on cake happens to be that this income is 100% tax free. If you would have carefully observed any statement credit that you would have made is typically adjusted towards existing balances, future purchases etc.
In this post lets see what are all the ways and means to meet the spending requirements if that does exceed your regular spending limits. Lets take example of chase card that demands $4000 to be spent within 3 months from the date of registration. The rewards offered is definitely an enticing option that can’t be overlooked.
In a normal family of two, three, four $4000 within 3 months is bit extravagant spending. This does not take into account all of your spending. We should note that only credit card spending is considered towards this. When it comes to single the chances of spending this is even reduced. Lets see what are all the tricks we can apply to take best advantage of such offers
1) Joint Spending – If your family members, relatives, friends haven’t received this offer owing to their bad credit score, you can choose to spend with them in joint fashion. In return you can offer to extend portion of rewards for using your credit card. No one will say no to FREE money
2) Utility bills – Electricity bill, cable bill, natural gas bill, water tax are all can be consolidated to be paid from this credit card for next 3 months
3) Home maintenance bills – Garbage disposal (if this is not paid by your county), snow removal, lawn maintenance, exterminator and such bills can be paid using credit cards. A trick is to pay the home maintenenace personnel well in advance using credit card for an upcoming later schedule. This depends on your rapport with your handyman
4) Grocery bills – Instead of paying grocery bills using cash use credit cards to pay grocery bills
5) Laundry – Instead of using coin operated laundry, go for laundry that does operate using pre-paid cards. This helps you spend your money at the same time earn rewards
6) Support vacation of others – This is an extended help with free coupon for your friends and family members to book their tickets, hotel, rental cars, spend their vacation expenses using your credit card. Offer them portion of sign-on bonus. Make sure they take of the bills 🙂
7) Pay rent using credit card – If you live in an apartment complex, owner tenant leasing option etc try to pay bill using credit card instead of cheque, ACH transfer. Most rental payment services charge as low as 3% to 3.5%. You will have to do it for 3 months maximum but the sign-on bonus you earn is much bigger. In some expensive rental areas this could be less than two months worth of rent
8) Pay mortgage using credit card – This is same as rental payment. Mortgage again can be paid using credit card with little fees for one or two months
9) Pay insurance premium using credit card – Auto insurance, home insurance, mortgage insurance, health insurance, flood insurance, pet insurance and what not? All these can be paid using credit card
10) Buy gift cards in bulk – If you plan on gifting your family and friends after few months, you can make that purchase now and make sure the gift card is valid for more days. This future expense can be done now and you can meet your spending requirement
11) Gas purchase using credit card – If you are using cash as the cashback rewards are not a great option, for 3 months try using credit card to meet minimum spend
12) Car expenses – This starts with auto insurance, car maintenance, car repair, car tire change,car upgrades etc. All can be done within 3 months to meet the threshold. Car inspection is a mandate when you live in states like CT. Pay the bill using credit card. You can choose to pay early on to take advantage of the offer
13) Pay taxes early – State taxes can be paid early. If you think your bill is going to be more pay the amount using credit card well in advance. There is a credit card charge. Make manipulation to see if it is economical to make tax payment using credit card
14) Pay your tax advisor well in advance – Most tax advisors accept cash and bank cheque payment. Chosen few accept credit card payments. You can pay well in advance for upcoming tax season

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Interest Rate Calculation Premature Fixed Deposit Closure

RBI has been changing basis points starting last july as a result of which interest rate fluctuations have been wild. Be it resident account, NRO, NRE, FCR desposit most of us keep on changing it over a period of time. As most of us don’t really pay attention on how much we will be getting upon closure of fixed deposit on a premature basis (before maturity period), this post will be an eyeopener on whether it is really needed to make the FD switch to take advantage of new interest rate

Some facts on premature closure of fixed deposit are as follows

1) Fixed deposit is a fixed contract between bank and depositor

2) The tenure is equal to number of days for which you have maintained account with the bank

3) Interest rate chart at the time of opening deposit should be considered while calculating the interest of premature desposits that are closed. Make a note here – It is old interet rate chart and not the current one. So, if current interest is more for same tenure you can’t take advantage of it. As well as if it is less you don’t loose any money. It is a contract established at the time of opening and it is fixed except for the fact that it changes with tenure

4) Premature penalty of 0.50% to 1% can be waivedby bank at will. Don;t ignore to ask your bank officials on this. This is inherent and most of us miss to make use of it

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Financial Planning from Marriage Till Death Every 5 Years

Savings Age Target Expense
21-26 Marriage, Retirement Savings
27-31 Children, School Donation, Retirement Savings
32-36 Home Down payment, Retirement Savings
37-41 Retirement Investment , continue homeloan EMI, Retirement Savings
42-46 Kids Education, Continue homeloan EMI, Retirement Investment, Retirement Savings
47-51 Complete Home Loan, Retirement Investment, Retirement Savings
52-60 Retirement Investment, Retirement Savings

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PersonalCapital Visual way to track progress easy and perfect way

Have you ever wondered if there exists a free alternative to your cumbersome excel sheet that you make use of to track your assets, liabilities, monthly income, cashflow, expenses, networth and lots more including all of your retirement accounts, credit cards, bank accounts including checking account, savings account, CD’s, daily trading accounts, retirement accounts including 401K, IRA, 529, 403(b) and lots more all 100% FREE?
An all in one solution to track your financial progress in beautiful visual way is Personal Capital
One interesting point to be noted while making use of personal capital software happens to be that this powerful visual interface that makes personal finance management a breeze comes 100% FREE of cost
I’m making use of personal capital software to track and manage my personal finances. All I can say is this saves ton lot of time and it would be a smart move to track all your accounts in one portal. List of items that be tracked and managed includes :
1) All Your Accounts, All in One Place – This is 100% true. You can add your checking account, savings account, CD’s, 401K accounts, 403(b), 457, traditional IRA, Roth IRS, Solo 401K, HSA, FSA , personal brokerage trading accounts such as charles schwab account, TD ameritrade account, etrade, Vanguard, Fidelity, Prudential, Capital one and lots more options to choose from. Also, track your debt by adding credit card accounts like bank of america credit card, chase credit card, discover credit card, citi card as well as credit card from merchant vendors like walmart, target, costco and lots more. You can add your jewelry, worth of your house, worth of your car, cash investment value in accounts as manual entry
Interestingly all the account balances are tracked and manged 100% FREE and automatic by personal capital and you can see the net worth changing each and every day in your personal capital dashboard
2) Dedicated Financial Advisors – Once you sign-up FREE for Personal Capital account you will get an opportunity to schedule a free call with financial planner from personal capital team. Based on your portfolio allocation you get advice on case by case basis from them for FREE
3) Personalized Investment Strategy – This is a FREE service offered by personal capital financial advisor during initial free call. They offer overview of your allocation and provide you great advice on full financial picture of your portfolio

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Life without a car to become financially independent retire early soon Switch to public transit

Have you ever wondered to save in any possible form. An average american spends closer to $8000 in car expenses (cost of ownership,fuel gas,insurance,car wash,oil change,maintenance,repair) in a year. If we look at our credit card debt it is going to be in the range of $10000 to $50000 in many cases. Here are simple tips to settle your debt in less than 3 years
1) Try to live without cars – choose alternate transportaion modes that are cheaper -Depending on the location(east coast/west coast) you can choose bicycle, bus,bike etc as an alternate to cars. This helps you save better in your household income. Lets say you save $5000 on this. This money can be used to pay debt and you have not spent $5000. As a whole $10000(5000+5000) is the savings.
2) An average fitness centre cost is around $50 per head per month. For a family it comes around $1000 per month. Here you save $2000. We need to walk, use bicycle and hence there is not going to be need of any workout. Remember that if you sacrifice your car you are welcoming good health
3) Save money less stress – This is a great impact of not spending too much. Stress levels will be low and you can be relieved of your debts
4) Change in attitude – If you want to have a change in lifestyle basic change in attitude plays the vital role. Have a trial period of 1 month before you sell your vehicle. It also increases your level of confidence.

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Financial Instruments to save and grow money

All of us work real hard to make money, save money, grow money. Lets see some interesting ways and means to save money by investing in many different financial instruments. As a common man all of us do concern about our hard earned money. This concern does make us look for risk averse financial instruments. Today we will be discussing more details on many different instruments to pick and choose from. You can invest in any one of them depending on your risk potential
1) Bank Savings Account – If you want to start earning money on your salary from the minute it is deposits, open a savings bank account and avail automated deposit facility. If you are playing real safe you can choose nationalized banks with best service like State Bank of India, Bank of Baroda, PNB to name a few. IF not look for Yes Bank the fourth largest private sector bank in India. This offers exorbitant interest rate of 7% in savings account for amount over 1 lakh. If you choose to retain below one lakh you end up making 6% interest in savings account. For amount below Rs.10000 you earn tax free interest. In nationalized banks interest on savings account is around 4%. You still have to pay taxes on interest earned in savings account. This is a risk-free safe instrument
2) Fixed Deposits – You can choose to save your money for better returns in 0% risk option the fixed deposit. Choose your tenure, interest rate in bank of your choice. This is an instrument that can be closed prematurely with some penalty. So, liquidity option is perfect with fixed deposit. You end up paying taxes on interest earned as per Indian Income Tax rules. To save money choose to invest in Sukanya Samridhi Yojana, tax free fixed deposits etc. still interest earned is taxable. But your money is 100% safe but return is taxable and is not so great
Sukanya Samridhi Yojana
Prime minister shri narendra modiji has been much interested in health, education and well being of girl children in India. Following umpteen measures taken by him to promote education and well being of girl children in gujarat, shri modi is now taking necessary steps to extend his service across India. This is a step by Shri modi towards Beti Bachao (Save girl baby) campaign
As a first measure towards that Sukanya Samridhi Yojana Scheme has been introduced. This scheme is geared towards well being of girl children in India
1) You can open an account in name of your girl child in commercial banks like SBI, Union Bank, Bank of Baroda, PNB, Bank of India, Corporation Bank, Central Bank of India to name a few, post office. Look for authorized branches in commercial banks
2) Girl child should be less than 10 years. As an initial buffer government offers 1year age buffer. It means girl child who has attained the age of 10 years 1 year prior to the announcement between December 2013 to December 2014, is also eligible to open account under this scheme
3) The best benefit is that you can avail 1.5 lakhs 80C deduction by investing in this scheme. We can choose to invest as low as Rs.1000 upto Rs.1.5 lakh
4) This is absolutely fantastic as only interest is taxable, deposits are safe yielding better
5) You need birth child, age proof of your girl child before opening account
6) Account is easily transferrable form one bank to another as well as from one post office to another post office
7) Early withdrawal for marriage and education is possible. However, only 50% of amount can be withdrawn. However, the girl baby should have attained 18 years before withdrawing money from account. This prevents early child marriage
8) This scheme offers enticing interest rate of 9.1%. Interest earned is taxable , only principal can be availed towards 80C deduction. The interest remains compounded on an annual basis
9) The validity of this account is 21 years from date of opening, or marriage of girl child who has attained 18 years of age. However, not official the age limit of girls marriage can change from 18 to 21 in future and this validity may or may not change in future
So, what is the meaning of sukanya samridhi yojna? In simple terms it means Girl Prosperity Scheme
3) Mutual Funds – Mutual fund is a basket of stocks. These are picked , managed by mutual fund companies. Investment in mutual fund is possible via online portal of banks. Now the MFUtilities India has brought a single window system. Using a single CAN number you can choose to transact mutual funds across participating AMC (Asset Management Companies). Note that many top rated mutual fund companies are members of MFUtilities India. Mutual fund is set of stocks with proper allocation of money in each stock. This is done by trained fund manager. As the advertisement always says mutual funds are subject to Market Risk. Read Investment document carefully before investing. This is less risky compared to direct stock trading. Mutual fund provides hedging which may not be possible with individual stock trading. Maturity period of most mutual funds can be left to investor. IF you want break and take it today. However, as per tax laws if you choose to hold a mutual fund for more than 1 year you pay no taxes in India. There is a special class of mutual fund called ELSS the Equity Linked Savings Scheme that has lock-in period of 3 years. You can’t break and take it before that. Though the mutual funds offer better return that are riskier than stocks
4) Stock Trading – If you wan to trade stocks in BSE, NSE stock exchanges directly go ahead and do so. Stock trading is the riskiest investment option with best returns and rewards. Open a trading account and start your trading today
5) Bonds – Bond in simple terms is a credit instrument offered by government, public sector agency, private companies. This offers interest rate with period of 1 year upto 10 years. Risk is associated with bonds. they are not 100$ safe as fixed deposits
6) Debentures – Though they serve purpose same as bonds they can be convertible to company shares in future as well as offered in non-convertible form with coupoun rated from 9% to 12%. They can be purchased using trading account. Some popular firms that have raised investment using NCD include Muthoot finance, Shriram transport finance etc
7) Treasuries – These are instruments offered by government that carry low risk
8) Fixed Maturity Plan – They invest in debt instruments that mature within the plan period. They are less risky but can be yielding better at times
9) Liquidity funds – They are offered for less tenure like 91 days. These instruments involve investment in debt instruments and can be liquidated real fast