Where to Find Better Interest Rates For Your Savings

Are you tired of earning a pittance on your hard earned savings? Not too long ago you could earn 3%, 4%, 5% or more by sticking your cash in a high yield savings account. But today? Not even close. Interest rates now top out in the low 1% range, and it seems like there’s no light at the end of the tunnel.

So what’s a savvy saver to do? Well, you could just accept the low rates as an unavoidable consequence of the current economic landscape, or… You could get creative and get at least a bit more bang for your buck. Here are three ways to get a better rate for your savings.

High yield (rewards) checking accounts

While savings accounts were once home to the highest interest rates, checking accounts are now getting in on the action. Be forewarned that you may have to jump through some hoops – like setting up direct deposit and making a minimum number of debit card transactions per month – but if you’re up to the challenge, you can score a great rate.

For example, MoneyRates.com currently lists reward checking accounts with rates as high as 5.01% APY. Note that many of these offers are regional, so you may have to shop around a bit, but there are some killer deals out there for the taking.

Long-term CDs with low penalties

I’ve mentioned this one in the past, but if you can find a bank with a low penalty for early withdrawal, you can use long-term CDs to get a higher interest with minimal downside risk. For example, Ally Bank has a 60 day interest penalty if you break their CDs early.

Given that Ally’s five year CD rates are paying roughly double what you can get from an online savings account, the break-even point is roughly four months. Beyond that point, you’ll come out ahead relative to having your money in a savings account, even if you have to access the money before the CD matures. And if rates rise dramatically, you can simply break your CD and re-invest.

If you go this route, here’s a tip: Split your money into multiple CDs. That way you can access just a portion of it without paying a penalty for early withdrawal of the full amount.

Series I savings bonds

Another solid option is to use Series I savings bonds, which are inflation-indexed bonds offered by the U.S. government. Rates on I bonds are updated semi-annually in May and November. As of right now, newly-issued I bonds are paying 4.6%, though that number will fluctuate over time depending on the inflation rate.

The downside here is that I bonds cannot be redeemed during the first 12 months, so they’re not a great vehicle for your emergency fund – or at least not for yourentire emergency fund. But once that 12 months is up, you can redeem them. Between 1-5 years after they’re issued, there’s a 90 day interest penalty, and after five years you can redeem them penalty free.

Beyond offering a decent interest rate (at least relative to a savings account), interest that you earn from I bonds isn’t taxed until redemption (i.e., it’s tax deferred) and it’s also exempt from state income taxes – as well as federal taxes if you use the proceed to for eligible education expenses.

But don’t get greedy…

And now… A word to the wise. In general terms, if you’re holding cash, you probably want if to be both safe and reasonably liquid. You should thus avoid locking it up or taking unnecessary risks with it. In this vein, I would recommend shying away from things like peer lending.

While outfits like Lending Club tout 8-10% annual returns, and you sometimes see them mentioned in discussions related to improving your interest rates, the reality is that they are neither risk-free nor liquid. While investments like this may have their place in your portfolio, they’re far from being a cash equivalent.

http://www.fivecentnickel.com/2011/08/01/where-to-find-better-interest-rates-for-your-savings/

Blog hosted by Sterling Van Dyke Credit Union

Types Of Home Loans

The biggest purchase a family will probably ever make is their home.  Researching how to make an informed choice on where and what type of home loan to apply for can seem to be a lot of work. It truly isn’t though.  Anyone who has access to the Internet can cut their research time down by merely researching instead on different types of home loans.

There are literally thousands of articles out there that can educate a consumer on any topic they need. This is truly a benefit that the age-of-Internet has brought to consumers. There are many online sites that will give you the benefit of their research to help anyone to find just the right home loan.  So researching via the Internet, will find a person all they would need to know about the different types of loans.

In this regard, the Internet makes it so much easier for the consumer who is contemplating becoming a first time home owner, to research types of home loans. Letting someone else who has done all the research inform the consumer is a great time-saving tool for busy consumers.

The simple act of typing what the loan is needed for and asking for the top recommendations from experts can prepare them to get their loan. Using all the technological tools available will greatly minimize finding out all a person needs to know on this subject.

The consumer contemplating the types of home loans can learn all they need to know about the difference in each. There are VA loans or Veterans Association loans. If at any time you’ve served in the service a consumer may qualify for this type of mortgage. It basically is a mortgage that is secured by the military. Basically, they the military, becomes the co-signer.

Then another option is the FHA or the Federal Housing Association. FHA loans are usually made available to lower income consumers, which reside in America. These loans are usually backed by the government. These loans can be very helpful to people that cannot afford a conventional down payment.

Then there are variable rate loans and fixed rate loans. The difference between a fixed rate and a variable rate are in how they set the interest that a consumer needs to repay. Obviously the fixed rate is one interest rate that is set for the term of the loan. A variable rate is one that the interest rate fluctuates during the course of the loan. Obviously there are advantages and disadvantages to each and a fair amount of research will be required to pick out just the right rate for the prospective home owner.

Here is where types of home loans come in handy. The research to be an informed consumer in the area of home loans can be greatly cut down by the Internets vast amount of available research. Not only can a consumer learn exactly what’s available out there for them to choose from, but, they can learn the right questions to ask when actually picking one.

http://howtomanagemoneytips.com/types-of-home-loans/

Blog by Sterling Van Dyke Credit Union. Sterling Van Dyke Credit Union services anyone working or living in Macomb, Oakland or Wayne County, Michigan. Current residents, retirees receiving a pension or social security and immediate family members are eligible to join. Sterling Van Dyke Credit Union is owned and operated entirely by its member and strives to follow the purpose of the credit union as set forth in the bylaws.

Seven Frugal Ways to Keep Your Kids Busy This Summer

For kids, summer is a lovely long stretch of day camps, playing with friends, going to the pool, and generally having fun. But for parents, struggling to keep those little folks busy can get costly. Trips to amusement parks, sporting events, museums, and such can seriously stretch a budget. And that’s not even counting thefamily vacation!

But it doesn’t have to be that way. While some summer outlays cannot be avoided, many expensive activities can be replaced with cost-free alternatives. Here are seven cheap ways to keep junior busy.

Treasure hunt

Write clues on scraps of paper and hide them in your yard, house, garage, wherever, and have each clue direct your kid to the next clue. Make the clues as easy or hard as needed, depending on how clever you believe your child is. If your child is into math, make the clues involve some calculations. Make the last clue lead to some treat. You can do this game with a group of kids, too, by dividing them into teams and setting up multiple clue trails.

Scavenger hunt

An alternative to the treasure hunt is a scavenger hunt. Make a list of items your child (or each team) is required to find. As with the clues in the treasure hunt, make the items as easy or hard to find as needed depending on your child’s abilities.

Camera day

Remember when using a camera was an expensive proposition, with the cost of film, developing, and prints? That’s a thing of the past — your digital camera doesn’t cost anything to use… But your kids will still get a thrill out of being photographers for a day.

Take them to favorite places and let them shoot away. Get on the bus or train, visit the park or beach, anyplace you like going. They’ll get an extra thrill documenting every step of the way. Upload the photos to your computer and print out a select few to create a collage. It will be a day to remember, and your wallet will be just as thick as it was when the day started.

Magic show

Do you remember the fun you had the last time you saw a magic show? Let your kids in on the action by having them set up their own magic show for friends and family. Here are two easy tricks any kid can master:

1. Shuffle a deck of cards and quickly glance at the bottom card. Let someone pick a card, any card. Have the person put the card at the bottom of the deck. Lightly shuffle the deck again. Flip through the deck until you find the card that was originally on the bottom; the next card should be the card the person picked. Pull it out with a flourish!
2. Next hold a carrot under a handkerchief as if it’s your finger. Tell the crowd you’ve discovered a secret formula for resisting pain. Poke a pin deep into the carrot… The crowd will shudder while you coolly pull it back out without a wince.

You can find plenty of other easy tricks online.

Lemonade stand

Even if your kid’s not a budding entrepreneur, she’ll love the thrill of the first paying customer. A lemonade stand is an easy proposition — mix up some powdered drink, set up a table on the sidewalk, and make a sign. No one gets rich this way, but it does introduce your child to the basics of sales and profit, and keeps her occupied for a few summer hours.

Scrap paper poetry

Rainy day? No problem. Before you let the kids park in front of the idiot box — I mean TV — engage them in a game of scrap paper poetry. Each player writes ten random words on slips of paper. All the slips go into a hat, and each player draws ten out. The players then arrange the words, and no other words, into simple free-form poems.

This may sound a little silly, but kids have an innate sense of language and find great humor in atypical arrangements of words. This game won’t cost you a penny but could keep the little minds and hands occupied for an hour.

Super bubbles

Every kid likes to blow bubbles using those little wands. Do that traditional pastime one better by creating super bubble wands from old wire clothes hangers. Just bend them out into big circles or ovals, pour the bubble liquid (or dishwashing liquid) into a flat plate or pan, dip the wands in, and wave them in the air. Pennies spent, giant bubbles created!

http://www.fivecentnickel.com/2011/08/02/seven-frugal-ways-to-keep-your-kids-busy-this-summer/

IS IT TIME TO SWITCH TO A CREDIT UNION?

Times are good for credit card divisions’ at most major banks right now.  Credit card APRs have remained stubbornly high, only slightly off the peak reached in February 2010.  It is pretty amazing that despite record low interest rates the average bank’s credit card still carries a 13.5% minimum

APR.

  Credit unions provide a viable option for those fed up with the high rates. Here at SterlingVan Dyke Credit Union we currently have 12.9 % APR to transfer their credit card balances or for purchases on your VISA credit card.     

  We also have shared secured VISA for a 9.9% rate. If your rate is higher than this, now is the time to consider moving your accounts to the credit union.  We offer the same services as banks but we pride ourselves on member service. If you are looking to save money and keep more money in your pocket then now is the time to make the move.  

The Important Of Credit Unions Is Rising

Global CU membership climbs to 196M: WOCCU
http://www.cuna.org/newsnow/system.html#system070612-4


MADISON, Wis. (7/9/12)--The worldwide credit union movement added eight million new members in 2011, reaching 196 million members from 100 reporting countries, according to World Council of Credit Unions' (WOCCU) just-released 2011 Statistical Report.
 

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The annual study revealed that the number of members grew 4.3% from 188 million members reported in 2010, while the number of credit unions fell 3.5% to 51,103 in 2011 from 52,945 in 2010. The decline is an indication of the continuing trend of smaller institutions merging into larger credit unions worldwide, according to Brian Branch, WOCCU president/CEO.
 
"In countries around the world, smaller credit unions are merging to realize greater economies of scale and develop capabilities to deliver more services to members," Branch said. "The dramatic upturn in the number of members shows that credit unions are becoming more influential, and consumers are finding them to be better alternatives than many for-profit financial institutions."
 
Worldwide, credit union loans increased to $1 trillion in 2011 from $960 billion in 2010; reserves jumped to $141.3 billion from $131.7 billion; and global credit union assets grew to $1.6 trillion from $1.5 trillion. Savings volume declined slightly to $1.22 trillion from $1.23 trillion.
 
Global member penetration rose to 7.8% in 2011 from 7.5% in 2010.
 
This is the 40th consecutive year WOCCU has collected statistics on the international credit union movement. WOCCU reports data based on country responses to its annual survey and does not make estimates for non-reporting countries. The report, issued this year in electronic format, provides the most comprehensive data on the global credit union movement available and is cited widely by governments, international institutions and analysts as an expert resource, WOCCU said.




This blog is hosted by Sterling Van Dyke Credit Union. Sterling Van Dyke Credit Union operates with the utmost trust and loyalty to the benefit of its clients. Sterling Van Dyke Credit Union services anyone working or living in Macomb, Oakland or Wayne County, Michigan. Current residents, retirees receiving a pension or social security and immediate family members are eligible to join. Sterling Van Dyke Credit Union is owned and operated entirely by its member and strives to follow the purpose of the credit union as set forth in the bylaws.

10 Ways To Save Money When Borrowing Money

 

When people need to borrow money, they usually focus on how to get the money they need and often ignore the cost of getting that money. Borrowing money will usually entail paying for the borrowed money, but that doesn’t mean that saving money while borrowing isn’t possible. When you do need to borrow money, keep in mind these ten ways that you can save money when you do borrow:

Don’t Carry Balances

One rule of thumb for credit card users is to only charge what you know you can pay off. Of course, everyone has to put some charges on their credit card that they can’t immediately pay off. But if possible, you should try to pay off your balance each month. If you don’t, you run the risk of paying outrageous interest fees. Why would you want to pay more money when you’re already borrowing money?

Find the Best Interest Rates

Before you decide on any type of loan, look around to see who offers the best interest rates. Interest rates can be scarily high, so why would you choose a loan that had a 15% rate when you could instead choose one that might have a 7% rate? Always make sure you have a couple of options so that you can save the most amount possible when taking out a loan or signing up for a credit card.

Don’t Miss Payments

Missing a payment usually means you’re paying a late fee. Sometimes these late fees are only $30. Sometimes they’re 20% of your normal balance. Regardless of how much the late payment fee is, you’re still wasting money. Instead, save that money by always paying on time.

For Car Maintenance

If you’re driving an old or used car that’s constant in need of repairs, you might find that it’s more cost efficient to buy a new car. New doesn’t necessarily mean it has to be a recent model, but one that’s in better condition than your old car. Borrowing money to pay for a better car will save you money. Instead of having to pay hundreds or thousands every month or so, you can pay for a car that will instead last you for years.

Home Renovations

The housing market isn’t exactly booming right now, so borrowing to buy a new home might not be a great idea. If you’re looking to upgrade the space in your house, borrowing money to do so could turn into a smart investment. Using that money to add an extra room or two to your current house will help raise its value. This could pay off in the future, and the selling point could offset the amount you borrowed. Also, you’ll probably have to borrow less for a renovation than you would to buy a new house.

Special Offers

This is a rare example of how to save money when borrowing. Every once in a while a loan company or credit card will have a special deal that offers cash back when you borrow. For instance, a home equity loan company could offer a 2% lower interest rate than your current loan company if you switch providers. Sometimes credit card companies will have deals where you spent a certain amount at a certain store and receive a certain amount back. This method won’t always happen, but it worth it to keep an eye open for special offers that help you save money.

Remember That Borrowed Money Isn’t Free Money

A lot of people who borrow money tend to forget that it’s not free money. Just because your line of credit is large, it doesn’t mean you have to spend all that money, especially if you can’t pay it back. Additionally, don’t fall into the trap of requesting a loan for more money than you need. Doing this will lead to spending that money frivolously, which is an utter waste of money.

Don’t Get Conned by Bad Loan Products

Sometimes people sign up for the quickest and easiest loan, but this often results in them losing more money. Payday loans or car title loans are high-interest and short-term loans that are robbing you of your money. These are also loans that don’t fall under the “good borrowing” practice. They’re useless loans designed to make you pay twice as much as you would borrowing money from a traditional loan company.

Refinancing

Sometimes refinancing is the best option because after renegotiating your current loans and debt, you can lower the amount you have to pay. This is generally what homeowners do to manage their mortgage, as it saves them a lot of money in the long run. It usually means receiving a lower interest rate on your loan, which is never something you should turn down!

Read the Fine Print

Make sure you read over every aspect of your loan agreement. Sometimes there are hidden fees and rules in the fine print. Those hidden fees can range in price, but they’re usually charged for ridiculous reasons. Don’t get conned into signing up for a loan that charges fees you don’t need to pay. Chances are that even if you try to fight these fees, you’ll never get your money back if you’ve already signed the contract.

(Photo courtesy of quaziefoto)

Why It’s Important to Know How to Manage Your Money

By Dana O. Crandell,

In today’s electronically-oriented society, a surprising number of people never learn to create a budget, balance a checkbook or handle other everyday tasks to keep track of finances. Many of us are simply too busy with our fast-paced lives and believe we can’t afford to take the time. The fact is, though, it’s more important now than ever to know how to manage your money. The high-speed, digital society we live in brings new pitfalls to avoid and the old ones are still there, too. Let’s look at a few good reasons to know where your money is going.

You May Spot Theft Before It’s Too Late

It’s far too easy to become a victim in today’s world. Watch the evening news on any given day and you’ll probably hear at least one story about someone being robbed of their hard-earned money and/or identity. There are new risks around every corner and modern thieves use subtle, intelligent methods that are hard to spot. The best way to know something is wrong is to always know how much money you should have. Spotting discrepancies early means you have a better chance of finding out what happened and taking steps to correct the situation.

There’s Less Chance You’ll Pay For Someone Else’s Mistake

Banks make mistakes. So do creditors, stockbrokers, and cashiers. If you’re always aware of what should be happening with your money, you’ll see the red flags when something goes wrong. Were you charged an extra fee on your checking account this month? Is this month’s water bill significantly higher than normal? There are hundreds of ways you can lose money because of human or machine error. Unless you’re managing your finances, you may never know when it happens to you.

You’ll See Problems Before They Become More Serious

If you’re always aware of where your money is going, you’ll know when too much of it is going to a particular area. If you’re suddenly putting too much gas in the car, maybe it’s time to have it tuned up. Are the heating bills soaring while the temperatures are about the same? Maybe it’s time to check weather-stripping and change the furnace filter. Keeping abreast of your spending will give you a chance to nip potential problems in the bud.

You’ll See What’s Working For You

Managing your money also gives you the opportunity to identify your good investments. You may find that using one credit card pays better dividends than another, or that your recent changes to your checking account are saving you a few dollars a month. Knowing you’re improving your financial status is a good feeling. The best way to know is to see it for yourself.

You’ll Know Where You Have Room For Adjustment

If you’re budgeting and tracking your money correctly, you’ll know what changes can be made when a need arises. If there’s an emergency or any sudden change in your cash flow, you’ll have a better idea of what you can do to maintain stability. A little spending cutback here or there could help you avoid serious damage to your finances and reputation with creditors.

You’ll Improve Your Overall Security

By handling your money management tasks yourself, you limit the number of people that have access to your funds and information. That in turn reduces the risk that information or funds will find their way into the wrong hands.

Your Financial Status Follows You Everywhere

One of the disadvantages to living in the Information Age is the fact that your credit score and financial history are far from private. Those records can affect your buying power, your living accommodations, and even your job. If they’re that important to the people you deal with, it stands to reason that they should be doubly important to you.

It’s Easier Now Than Ever To Manage Your Money

On the positive side of living in today’s world, you have easy, convenient access to all the tools you need to manage your funds. Banking, buying and selling, stock trading and almost anything associated with financing can be handled online, from the convenience of your home or office.

Your Goals Will Be Easier To Realize

The simple, everyday tasks you perform to keep your finances under control will serve as a constant reminder of why you’re doing what you’re doing. You’ll be “keeping your eyes on the prize”, which we all know is the best way to win.

You Aren’t Going To Live Forever

This has always been one of the best reasons to keep your finances in order and it’s even more important today. Whether you’re raising a family of your own or still single, when you die, someone you leave behind will have to be responsible for the expenses associated with your death as well as settlement of your estate. It’s simply not fair to your loved ones to leave nothing behind but debts and it happens far too often – life insurance benefits only go so far.

No matter how small or large your bank account, managing your own money makes sense. It’s your future. Who better to build it than yourself?

(Photo courtesy of meddygarnet)