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Recent Posts
The Baby Steps Explained, And Why They Work!
These are the steps that introduced me and my husband to what financial independence is and for that I am eternally grateful. But a lot of important considerations get looked over if you just find a list of the steps…
The post The Baby Steps Explained, And Why They Work! appeared first on Modern Frugality.
Source: modernfrugality.com
An Alternative to Paying Mortgage Points
If and when you take out a mortgage, youâll be faced with an important choice. To pay or not pay mortgage points. In short, those who pay points should hypothetically secure a lower interest rate than those who do not pay points, all else being equal. Thatâs because mortgage points, at least the ones that [&hellip
The post An Alternative to Paying Mortgage Points first appeared on The Truth About Mortgage.
Source: thetruthaboutmortgage.com
How to Find My Citibank Routing Number
Are you looking for your Citibank routing number? It’s quite easy and simple. Below is how to find it.
If youâre sending or receiving money to friends and family members using your Citibank account, you need to make sure youâre having the right routing number.
CIT Bank Savings Rates: How Much Can You Earn
What is my Citibank routing number?
In brief, the Citibank routing number is a nine-digit number that the bank uses to identify themselves. Citibank routing number is sometimes known as ABA numbers, check routing numbers or routing transit numbers.
You need your routing numbers for several reasons. For instance, you need it for:
- To set up direct deposit
- For ACH payments;
- To transfer funds between accounts at different banks;
- For bill payments;
- To receive government benefits;
- To receive tax refunds;
- For wire transfers;
- To have payments like paycheck deposited into your account.
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PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
Citibank Routing Number For Each State
Citibank routing number is different for each state. So, itâs important to know it. But your Citibank routing number is associated in the state you opened your bank account.
So, if you have moved to Illinois for example, but you had opened Citibank account in New York, your routing number is associated in New York.
It is as simple as that.
Here is a table of the Citibank routing number by each state:
State | Citibank Routing Number |
---|---|
Citibank Northern California (CA) | 321171184 |
Citibank Delaware | 31100209 |
Citibank Illinois (IL) | 271070801 |
Citibank Nevada | 322271724/ 322271779/ 321070007 |
Citibank New York (NY) | 21000089 |
Citibank Texas (TX) | 113193532 |
Citibank Washington DC | 254070116 |
Citibank Connecticut | 221172610 |
Citibank Florida | 266086554 |
Citibank Maryland | 52002166 |
Citibank New Jersey (NJ) | 21272655 |
Citibank South Dakota | 21000089 |
Citibank Virginia | 254070116 |
Citibank California, Southern | 322271724 |
Citibank routing number to make ACH Transfers
To make an ACH transfer, youâre going to have to choose the Citibank routing number for your particular state.
For example, if you live in Florida, then you will use the Citibank routing number for Florida which is 266086554. If you live in another state, look at the ACH routing number for your particular state in the table above.
Citibank routing numbers for Wire Transfers
Wire transfers are a quicker way to send money than an ACH transfer. However, there is going to be a fee.
If youâre making a domestic wire transfer, however, you will need to use the routing number in your state, see the table above.
To make domestic wire transfers, and in addition to the routing number, you will also need the following:
- The name of of the person whom youâre making the transfer to;
- The name and address of the personâs bank;
- The personâs account number as well as the routing number.
For international wire transfers, you will need both the Citibank routing number in your state and a SWIFT Code: CITIUS33. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.
In addition, you will need the following to make an international wire transfer:
- The name of of the person whom youâre making the transfer to;
- The name and address of the personâs bank;
- The personâs account number
- Purpose of the payment; and
- The currency being sent
Where to find your routing number?
So, you want to know where to get your routing number from Citibank? Hereâs where to get it:
Your Citibank personal check
You can find your Citibank routing number on the bottom left-corner of a check. However, note the routing number on your check might be different than the routing number for a wire transfer. So, before youâre making a transaction, make sure you check with your bank to get the accurate routing number.
Learn How to Write A Check.
Citibank routing number on this page
We have listed the routing numbers for each state on the table above for ACH transfers. We have also listed the routing number for domestic and international wire transfers.
Your Bank statements
You can find your routing number as well on your monthly bank statements.
Citibank online
Your can find your routing number online by simply going into online banking.
On the Federal Reserve website
You can look up your routing number on the Federal Reserve website.
Customer service
Lastly, you can always call customer service at 800-374-9700: to get your routing number. Itâs available 24 hour a day, 7 days a week. However, note that you will have to provide some details to identify yourself.
Which routing number to use?
Depending on your financial transactions, you will need to use different routing numbers.
Domestic ACH Transfer
For domestic transfers, use the ABA routing number from your state (see the table above).
For Domestic Wire Transfer
Use the Citibank domestic wire transfer number in your state in the table above.
For international wire transfers
Use your state routing number: and the SWIFT code: CITIUS33
Citibank routing number: bottom lime
In conclusion, if you have a Citibank account, youâll likely need to your routing number. You will need to set up direct deposit, to set up automatic payments, or to wire transfer. So, itâs important to know it and keep it handy. Also, make sure you verify the number before you make a transaction. If you miss one digit or get one digit wrong, your money can go somewhere else.
Related:
- Wells Fargo Routing Number
- How to Find Your Well Fargo Routing Number for Texas
Speak with the Right Financial Advisor
- If you have questions about your finances, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
- Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
The post How to Find My Citibank Routing Number appeared first on GrowthRapidly.
Source: growthrapidly.com
How Much Money Do You Need to Buy a House?
Understanding how much money you need to buy a house can give you an idea of how much you should expect to save.
You’re probably excited about the thought of buying your first home? If so, you have every right to be.
But how much money do you need to buy a house? A calculator can help you determine that. But the average cost of buying a $300,000 is typically around $17,000.
In this article, we’ll go over the main costs of buying a house including the down payment, inspection cost, appraisal cost, closing cost, etc.
Check Current Mortgage Rate
How much money do you need to buy a house?
Out of Pocket Cost of buying a house
The five main out of pocket costs of buying a house are 1) the down payment; 2) inspection cost; 3) the appraisal cost; 4) earnest money and 5) closing costs. These out of pocket costs or upfront costs are money yo need to pay before you become the owner of the property.
In addition, some lenders also require you have some cash reserves to cover 2 to 3 months of the mortgage repayments.
Determining how much cash needed to buy a house depends on the type of loan you’re using.
Let’s suppose you’re buying a $300,000 house with an FHA loan.
An FHA loan requires a 3.5% of the home purchase price as a down payment as long as you have a 580 credit score. So, for the down payment alone, you will need $10,500.
Here’s a quick breakdown for how much cash needed to buy a $300,000 house:
- Down payment: $10,500
- Inspection cost: $300
- Appraisal cost: $300
- Closing cost: $6000
So, $ 17,100 is how much money you need to buy a house.
Whether you’re buying a house with a 20% down payment or 3.5% down payment, you can certainly find a loan with both the price and features to suit your needs as a first time home buyer. You can compare First Time Home Buyer home loans on the LendingTree website.
The down payment
The biggest cost of buying a house is obviously your down payment. But that depends on the type of loan you are looking for.
For example, a conventional loan requires a 20% down payment. You can pay less than that, but you will have to pay for a private mortgage insurance – which covers the lender in case you default on your loan.
A 20% down payment however can also mean that you’ll get a better interest rate, which also means you’ll save money on interest.
For an FHA loan, you only need 3.5% down payment as long as your credit score is 580.
FHA loans are very popular these days. Not only it’s easier to get qualified (low down payment and low credit score), but also your down payment can come from a friend, a relative or your employer.
Using our example above, you only need $10,500 for a down payment for a $300,000 house.
If you’re using a VA loan then you pay $0 down payment.
Check to see if you’re eligible for an FHA loan or VA loan
How much money do you need to buy a house also depends on other factors, such as whether you are a first time home buyer or not. Your state may have a range of programs that may contribute toward your down payment.
So visit your local government office to find out if you are eligible for any down payment assistance for first time home buyers.
Inspection cost
Another upfront cost of buying a home is the inspection cost.
It is highly recommended to perform inspection for your home for any defects so there are no surprises later on.
Inspections typically cost between $300 to $500, but it depends on the property and your local rates.
Compare home loans for first time home buyers with LendingTree
Appraisal cost
Before a lender can give you a loan to finance a house, they will want to know how much the house is worth. So appraisal means an estimate of the home’s value. A home’s appraisal usually costs between $300 to $500. A home appraisal will also determine what your property tax will likely be.
If you’re pay the home appraisal, it will be deducted from the closing cost. (see below).
Earnest money
Earnest money is a deposit you will have to pay upfront as soon as an offer is accepted, while you working on other aspects such as getting the home inspected, etc…
This deposit is part of the down payment, and it is usually between 1% to 3% of the final sale price. It is held by an escrow firm or attorney until the closing process is completed.
So if the sale is successful, that money is applied to your down payment. If it’s not, you get 100% of your money back.
Closing costs
The closing costs are fees by the lenders. They typically cost 2% to 5% of the final price. The costs include fees for homeowner’s insurance, title insurance, title insurance, property tax, HOA dues, private mortgage insurance.
It’s possible to lower these costs by comparing mortgage options.
Other costs of buying a home:
In addition to upfront costs, there are other recurring costs associated with buying a home. They include moving fees, repair costs, furniture, remodeling, etc. So consider these costs when making your budget to buy a house.
So how much money do you need to buy a house? The answer is it depends on the type of loans you’ re using. But if you’re buying a $300,000 house with an FHA loan, which requires a 3.5% down payment, $ 17,100 is how much money you need.
For more information about upfront costs of buying a house, check out this guide.
Read more cost of buying a house:
- How Much House Can I Afford?
- How Long Does It Take to Buy a House?
- Buying a House for the First Time? Avoid these Mistakes
- 5 Signs You’re Not Ready to Buy a House
Work with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
The post How Much Money Do You Need to Buy a House? appeared first on GrowthRapidly.
Source: growthrapidly.com
What Are Mutual Funds? Understanding The Basics
If you’re one of those investors with very little time to research and invest in individual stocks, it might be a good idea to look into investing in mutual funds.
Whether your goal is to save money for retirement, or for a down payment to buy a house, mutual funds are low-cost and effective way to invest your money.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
What is a mutual fund?
A mutual fund is an investment vehicle in which investors, like you ad me, pool their money together. They use the money to invest in securities such as stocks and bonds. A professional manages the funds.
In addition, mutual funds are cost efficient. They offer diversification to your portfolio. They have low minimum investment requirements.
These factors make mutual funds among the best investment vehicles to use. If you’re a beginner investor, you should consider investing in mutual funds or index funds.
Investing in the stock market in general, can be intimidating. If you are just starting out and don’t feel confident in your investing knowledge, you may value the advice of a financial advisor.
Types of mutual funds
There are different types of mutual funds. They are stock funds, bond funds, and money market funds.
Which funds you choose depends on your risk tolerance. While mutual funds in general are less risky than investing in individual stocks, some funds are riskier than others.
However, you can choose a combination of these three types of funds to diversify your portfolio.
- Stock funds: a stock fund is a fund that invests heavily in stocks. However, that does not mean stock funds do not have other securities, i.e., bonds. It’s just that the majority of the money invested is in stocks.
- Bond funds: if you don’t want your portfolio to fluctuate in value as stocks do, then you should consider bond funds.
- Money market funds: money market funds are funds that you invest in if you tend to tap into your investment in the short term.
- Sector funds. As the name suggests, sector funds are funds that invests in one particular sector or industry. For example, a fund that invests only in the health care industry is a sector fund. These mutual funds lack diversification. Therefore, you should avoid them or use them in conjunction to another mutual fund.
Additional funds
- Index funds. Index funds seek to track the performance of a particular index, such as the Standard & Poorâs 500 index of 500 large U.S. company stocks or the CRSP US Small Cap Index. When you invest in the Vanguard S&P 500 Index fund, youâre essentially buying a piece of the 500 largest publicly traded US companies. Index funds donât jump around. They stay invested in the market.
- Income funds: These funds focus invest primarily in corporate bonds. They also invest in some high-dividend stocks.
- Balance funds: The portfolio of these funds have a mixed of stocks and bonds. Those funds enjoy capital growth and income dividend.
Related Article: 3 Ways to Protect Your Portfolio from the Volatile Stock Market
The advantages of mutual funds
Diversification. You’ve probably heard the popular saying “don’t put all of your eggs in one basket.” Well, it applies to mutual funds. Mutual funds invest in stocks or bonds from dozens of companies in several industries.
Thus, your risk is spread. If a stock of a company is not doing well, a stock from another company can balance it out. While most funds are diversified, some are not.
For example, sector funds which invest in a specific industry such as real estate can be risky if that industry is not doing well.
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Professional Management.
Mutual funds are professionally managed. These fund managers are well educated and experienced. Their job is to analyze data, research companies and find the best investments for the fund.
Thus, investing in mutual funds can be a huge time saver for those who have very little time and those who lack expertise in the matter.
Cost Efficiency. The operating expenses and the cost that you pay to sell or buy a fund are cheaper than trading in individual securities on your own. For example, the best Vanguard mutual funds have operating expenses as low as 0.04%. So by keeping expenses low, these funds can help boost your returns.
Low or Reasonable Minimum Investment. The majority of mutual funds, Vanguard mutual funds, for example, have a reasonable minimum requirement. Some funds even have a minimum of $1,000 and provide a monthly investment plan where you can start with as little as $50 a month.
Related Article: 7 Secrets Smart Professionals Use to Choose Financial Advisors
The disadvantage of mutual funds.
While there are several benefits to investing in mutual funds, there are some disadvantages as well.
Active Fund Management. Mutual funds are actively managed. That means fund mangers are always on the look out for the best securities to purchase. That also means they can easily make mistakes.
Cost/expenses. While cost and expenses of investing in individual stocks are significantly higher than mutual funds, cost of a mutual fund can nonetheless be significant.
High cost can have a negative effect on your investment return. These fees are deducted from your mutual fundâs balance every year. Other fees can apply as well. So always find a company with a low cost.
How you make money with mutual funds.
You make money with mutual funds the same way you would with individual stocks: dividend, capital gain and appreciation.
Dividend: Dividends are cash distributions from a company to its shareholders. Some companies offer dividends; others do not. And those who do pay out dividends are not obligated to do so. And the amount of dividends can vary from year to year.
As a mutual fund investor, you may receive dividend income on a regular basis.
Mutual funds offer dividend reinvestment plans. This means that instead of receiving a cash payment, you can reinvest your dividend income into buying more shares in the fund.
Capital gain distribution: in addition to receiving dividend income from the fund, you make money with mutual funds when you make a profit by selling a stock. This is called “capital gain.”
Capital gain occurs when the fund manager sells stocks for more he bought them for. The resulting profits can be paid out to the fund’s shareholders. Just as dividend income, you have the choice to reinvest your gains in the fund.
Appreciation: If stocks in your fund have appreciated in value, the price per share of the fund will increase as well. So whether you hold your shares for a short term or long term, you stand to make a profit when the shares rise.
Best mutual funds.
Now that you know mutual funds make excellent investments, finding the best mutual funds can be overwhelming.
Vanguard mutual funds.
Vanguard mutual funds are the best out there, because they are relatively cheaper; they are of high quality; a professional manage them; and their operating expenses are relative low.
Here is a list of the best Vanguard mutual funds that you should invest in:
- Vanguard Total Stock Market Index Funds
- Vanguard 500 Index (VFIAX)
- Total International Stock index Fund
- Vanguard Health Care Investor
Vanguard Total Stock Market Fund
If you’re looking for a diversified mutual fund, this Vanguard mutual fund is for you. The Vanguard’s VTSAX provides exposure to the entire U.S. stock market which includes stocks from large, medium and small U.S companies.
The top companies include Microsoft, Apple, Amazon. In addition, the expenses are relatively (0.04%). It has a minimum initial investment of $3,000, making it one of the best vanguard stock funds out there.
Vanguard S&P 500 (VFIAX)
The Vanguard 500 Index fund may be appropriate for you if you prefer a mutual fund that focuses on U.S. equities. This fund tracks the performance of the S&P 500, which means it holds about 500 of the largest U.S. stocks.
The largest U.S. companies included in this fund are Facebook, Alphabet/Google, Apple, and Amazon. This index fund has an expense ration of 0.04% and a reasonable minimum initial investment of $3,000.
Vanguard Total International Stock Market
You should consider the Vanguard International Stock Market fund of you prefer a mutual fund that invests in foreign stocks.
This international stock fund exposes its shareholders to over 6,000 non-U.S. stocks from several countries in both developed markets and emerging markets. The minimum investment is also $3,000 with an expense ratio of 0.11%.
Vanguard Health Care Investor
Sector funds are not usually a good idea, because the lack diversification. Sector funds are funds that invest in a specific industry like real estate or health care. However, if you want a fund to complement your portfolio, the Vanguard Health Care Investor is a good choice.
This Vanguard mutual fund offers investors exposure to U.S. and foreign equities focusing in the health care industry. The expense ration is a little bit higher, 0.34%. However, the minimum initial investment is $3,000, making it one of the cheapest Vanguard mutual funds.
Bottom Line
Mutual funds are great options for beginner investors or investors who have little time to research and invest in individual stocks. When you buy into these low cost investments, you’re essentially buying shares from companies.
Your money are pooled together with those of other investors. If you intend to invest in low cost investment funds, you must know which ones are the best. When it comes to saving money on fees and getting a good return on your investment, Vanguard mutual funds are among the best funds out there.
They provide professional management, diversity, low cost, income and price appreciation.
What’s Next: 5 Mistakes People Make When Hiring A Financial Advisor
Speak with the Right Financial Advisor
- If you have questions beyond knowing which of the best Vanguard mutual funds to invest, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
- Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
The post What Are Mutual Funds? Understanding The Basics appeared first on GrowthRapidly.
Source: growthrapidly.com
Donât Freak Out About the Recent Mortgage Rate âSpikeâ
Queue the panic. Mortgage rates have officially spiked and the media is all over it. Yep, the average rate on a 30-year fixed mortgage increased from 2.65% to 2.79% this week, per Freddie Macâs weekly survey. Freddie Mac Chief Economist Sam Khater noted in the weekly news release that mortgage rates have been under pressure [&hellip
The post Donât Freak Out About the Recent Mortgage Rate âSpikeâ first appeared on The Truth About Mortgage.
Source: thetruthaboutmortgage.com
Money Market Vs Savings: What’s The Difference?
Money market accounts and savings accounts have a lot of similarities than you may think. Among other things, both allow you to achieve your saving goals risk-free or very low risk.
However, the choice between money market vs savings accounts often boils down to interest rates and fees. So, before you decide on which account to open, it’s important to compare many of their features.
Money Market vs Savings: Overview
Money market accounts and savings accounts have a lot in common.
Both types of accounts allow you to deposit a certain amount of money with a bank and you get some type of interest on your money in return.
Your money in a savings account and a money market account are FDIC insured. There are some key differences, though. Money market accounts offer a higher interest rate than savings accounts.
CIT Bank Member FDIC | Savings Builder that fits your lifestyle. Earn up to 0.95%APY. Open an account today and start earning. Minimum monthly deposit of $100 OR minimum balance of $25k. LEARN MORE |
Most savings accounts require no minimum balance, while money market accounts usually require a high minimum balance–around $1,000.
Savings accounts are very liquid, meaning that you can easily transfer money between checking and savings accounts.
On the other hand, money market accounts, while also liquid, will penalize you if you fall below the minimum required deposit.
Money market accounts have check writing privileges, while savings account have none.
Click here to open a money market account today.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
Money Market vs Savings: Table
This table below compares some of the features found in savings and money market accounts.
Money Market Accounts | Savings Accounts | |
---|---|---|
FDIC-insured | Yes–up to $250,000 | Yes–up to $250,000 |
Checks | 6 check per month | No |
Minimum balance | Yes –usually $1,000 | None |
Transactions | 6 per month | 6 per month |
Interest rate | Yes | Yes |
Best Account | CIT Bank Money Market Account | CIT Savings Builder |
What Is A Money Market Account?
A money market account or MMA is a type of bank savings account, but with some additional and different features than a regular savings account.
The interest rate on money market accounts are better than that of savings accounts. Moreover, they offer check-writing privileges.
That means you can write checks to 3rd parties, typically up to 3 per month, against your balance. They even offer debit card privileges as well.
Lastly, the FDIC insures MMA up to $250,000, just like a savings account.
One thing to note is that you should not confused MMAs with money market funds.
While they are great place to park your money as they invest in short-term investments such as certificate of deposit, treasury bills, and other government securities, they are not the same thing.
Pros & Cons of Money Market Accounts
Pros
1) Interest rates
One of the reasons most people prefer an MMA is the fact they offer a much higher interest rate than savings accounts.
2) Check writing and debit card privileges
MMAs offer check writing and debit card privileges. But there is a limit. You can only write six checks per month against your balance.
So, MMAs are best for those who do not need to write more than six checks. Also, there is no penalty when withdrawing your money.
3) FDIC insured
The Federal Deposit Insurance Corporation (FDIC),an independent federal agency, insures money market accounts, just like savings accounts, up to $250,000.
Cons
1) Account minimums
MMAs generally require a deposit minimum amount to open the account and requires you to maintain a minimum balance to receive the best interest rate.
So MMAs are a good choice for those investors and savers who can maintain a high daily balance in the account.
2) Account fees
Another drawback of MMAs is the fee. If you don’t maintain the required minimum balance, a fee will apply.
So, maintaining the minimum balance is important because any fee will eat out your interest or earnings.
What is a savings account
A savings account is a deposit account that you can open at a bank or other financial institution. This account pays very little interest.
However, it is very safe and it is a good option to save your money.
Savings accounts are generally good for students or those with very little money and those who want easy access to their funds without penalty.
They are a good place to save money for short-term goals such as saving money to buy a house, or building an emergency fund.
You have unlimited money withdrawals. However, you can only make six withdrawal transactions.
Click here to open a savings account now.
Pros and Cons of Savings Accounts
Pros
1) FDIC insured
Savings accounts are FDIC insured-or NCUA insured (if offered by a credit union)
2) Liquidity
Savings accounts are very liquid. That means you get quick access to your funds at any time without any penalty.
3) Minimum balance
Unlike money market accounts, savings accounts typically have no initial deposit or minimum balance requirement.
However, a high-yield savings account may require a minimum balance. And a maintenance fee or a penalty may apply if your balance falls below the required minimum.
Cons
1) Interest
A regular savings account pays interest just like a money market account, though the interest paid by a savings account is very, very low.
Money Market vs Savings: which one should you choose?
Best Money Market Accounts
CIT Bank Money Market Account
The CIT Bank money market account is one of the best ones out there. Currently, the money market account offers a 1.0% APY.
This is very competitive comparing to other MMAs. Moreover, CIT Bank’s MMA has a required account minimum of only $100.
Open a CIT Bank Money Market Account.
Best Savings Accounts
CIT bank Savings Builder
The CIT Bank Savings Builder is among the best savings accounts where you can a very competitive interest rate.
In fact, you can earn a better rate with CIT bank Savings Builder than most money market accounts. The Savings Builder is currently offering a 0.95% APY.
To get this competitive rate, you can 1) open the account with a minimum of $100 and deposit at least $100 per month afterwards.
Or, (2) open an account with a minimum of $25,000.
Open a CIT Bank Savings Builder today.
What should you use a money market account and savings account for?
Both MMAs and savings accounts are great places to park you hard earned cash safely. Indeed, they are great places for short term goals like:
Emergency fund: If you’re saving money for a rainy day such as a loss of job, paying medical bills, major car repairs, an MMA or savings account is a good place to do it. The reason is because the money is safe there and you have quick and easy access to it. According to experts, you should have at least 3 to 6 months of living expenses in that fund.
Down payment: Savings accounts and money market accounts are great places for a down payment on a house.
Other popular reasons for saving money in a savings accounts and MMAs are for large purchases such as a car or vacation.
Money Market vs Savings: the bottom line
Deciding on a money market account and a savings account depends largely on what is important to you. For example, are you looking for a better interest rate? If so, an MMA is a better choice.
However, if one of your concern about whether you choose an MMA or a savings account is liquidity, then a savings accounts may be appropriate.
Another factor to consider is how frequently you will need to access your funds. Both accounts however are safe. They are both insured by the federal government up to $250,000.
One thing to keep in mind, however, these accounts generally offer interest rates that are inferior to other investments such as mutual funds or stocks are offering.
For that reason, use these accounts for short-term solutions.
Related:
- CIT Bank Savings: How Much Can You Earn
- 7 Short Term Bonds to Buy in 2020
Speak with the Right Financial Advisor
- If you have questions about your finances, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
- Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
The post Money Market Vs Savings: What’s The Difference? appeared first on GrowthRapidly.
Source: growthrapidly.com
Buying a Home for the First Time? Avoid These Mistakes
Buying a home, especially if youâre a first-time home buyer, can be daunting and nerve racking.
But it does not have to be. LendingTree’s online loan marketplace has got you covered – at least when it comes to getting a mortgage.
A 2016 study by the Office of Research of the Bureau of Consumer Financial Protection reveals that prospective buyers who shop for a mortgage when buying a home for the first time report âincreases consumersâ knowledge of the mortgage market and increases consumersâ self confidence in their ability to deal with mortgage related issues.â
The importance of shopping for a mortgage as a first-time home buyer is that it saves you money in the long term and âreduces the cost of consumersâ mortgages,â the study found.
The home-buying process can be intimidating. So being aware of these mistakes when buying a home for the first time can help you save thousands and thousands of dollars in the long term.
Tips for Buying a Home |
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To guide you through a major financial decision like the purchase of a home, you may want to talk to a financial advisor.
Luckily, SmartAsset’s advisor matching tool can help you find a suitable financial advisor in your area to work with. Get started now. |
10 Mistakes to avoid when buying a home for the first time.
1. Not knowing your credit score.
We are all aware that the higher your credit score, the better.
Yet, despite this fact, many people fail to check their credit score before
buying their first home.
And a low credit score can lead to a high interest mortgage loan, or even worse, a loan rejection. Given the fact that your credit score is the number 1 item mortgage lender looks at, it pays off to know where you stand.
Credit Sesame will let you know what your credit score is for free and monitor it for you. It will also offer tips on how to raise your credit score and reduce your debt.
Just sign up for a free account â it only takes 90 seconds.
2. Not shopping and comparing mortgage rates.
Mortgage rates and fees vary across lenders. In other words, two applicants with the identical credentials can get different mortgage rates. Despite this, however, many fist-time homebuyers fail to shop and compare mortgage rates before buying their first home.
The study reveals that 30 percent first time homebuyers do not
compare and shop for their mortgages, and more than 75 percent reported
applying for a mortgage with only one mortgage lender.
The study further reveals that âfailing to comparison shop for a
mortgage costs the average homebuyer approximately $300 per year and many thousands
of dollars over the life of the loan.â
An easy way to shop and compare for a mortgage is with LendingTree. Their simple and straightforward platform can help you find and apply for the right loan all in one place.
3. Sticking with the first mortgage lender you meet.
While itâs tempting to work with your local mortgage lender whoâs
only a few blocks away from your home, this decision requires more time. Take
time to meet with at least three mortgage lenders before picking the best match
for you.
Fortunately, LendingTree free online platform, allows you to quickly browse several mortgage rates with several mortgage lenders without visiting a dozen bank branches.
4. Not knowing what loans are available to you.
If you’re buying a home for the first time, one thing you need to address is what types of loans are available to me. Sometimes the answer to this can be quite simple: conventional loan. This is because most people know about this type of loan.
But conventional loan requires at least 20% down payment. And the credit score needs to be in the 700. *Note: You can put less than 20% down payment, but you will have to pay for a private insurance mortgage (PMI).
Sometimes it’s not feasible to come up with that type of money as a first time home buyer. So knowing if other loans are available to you is very important.
FHA loan
One type of loan that is popular among first time home buyers is FHA loan. It is so popular because it’s easier to get qualified for it. And the down payment is very little comparing to that of a conventional loan.
For example, FHA loans require a 580 credit score and a down payment as low as 3.5% of the home purchase price. This makes it easier to qualify for a home loan when you’re on a low income.
VA loans
VA loans are another great option for first-time homebuyers. However, you have to be a veteran. Unlike a FHA or a conventional loan, VA loans require no down payment and no mortgage insurance. This can save you thousands of dollars per year.
So if you’re in market for a loan to buy your first home, you need to educate yourself about the different available loans.
Not All Mortgage Lenders Are Created Equally
When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. Get started today >>>
5. Not getting pre-approved for a mortgage
One of the first time home buying mistakes you should avoid making is not getting a pre-approval letter. You can simply contact a lender and request it. The mortgage lender will pull your credit report to make sure you have the minimum credit score requirement.
They will also need your bank statements, W2s, recent income tax returns, pay-stubs to verify your employment and ability to afford the loan.
Why this is important? A pre-approval letter means that you’re a serious buyer. It signals that you’re able to commit to the house once an offer has been accepted. It also makes you more desirable than the other potential buyers.
Get a Pre-Approval for a Mortgage Today
6. Not knowing how much you can afford
Buying a home is probably going to be the biggest expenses you’ve ever made. But buying a house you cannot afford can lead to financial trouble along the road. Paying an expensive mortgage for 15 to 30 years on a low income can be hard.
So it pays to know how much house you can afford before you start searching for your home.
The best way to know how much house you can afford is to look at your budget. Take into account your expenses and income and other costs associated with owning a home.
7. Not knowing other upfront costs
If you think that the only cost to buying a home is a down payment, then think again. There are several upfront costs associated with owning a house. These upfront costs include private mortgage insurance, inspection costs, loan application fees, repair costs, moving costs, appraisal costs, earnest money, home association dues.
As a first time home buyer, this may come to you as a surprise. So, be ready to have enough money to cover these costs.
8. Failure to inspect your home.
Although some banks would prefer you inspect your home before they offer you a loan, it’s not mandatory. But that does not mean you shouldn’t do it. Not inspecting your home can cost you a lot. Inspection discovers defects that you may not know about. Inspection costs can be anywhere from $300 to $700.
Don’t be stingy with these costs. It’s better to find out about any hidden defects , like a faulty wiring and plumbing, than finding about them later. To avoid regretting your decision or having to spend thousand of dollars on repairs down the road, consider an inspector.
9. Failure to check out the neighborhood.
Just because the street or the neighborhood your potential house is located is quiet or is not run down doesn’t mean crime is not a problem. So before buying your home, you should check out the neighborhood. Take a trip at night to get a feeling of the environment. Talk to residents. Most importantly, check with the local police station – they can be a great resource when it comes to crime rates in a particular location. This is simply one of the first time home buying tips you shouldn’t ignore.
10. Searching for a mortgage on your own.
There are several mortgage lenders available to you. But choosing one that is right for you can be tough.
The LendingTree online platform makes it easy and simple for you to find the right home loan for you. Now you can get matched up to several mortgage lenders all in one place and at the same time. And the whole process just takes a few minutes.
Follow these steps to get matched with the right mortgage:
- Go to www.lendingtree.com;
- Answer a few questions regarding the type pf loan yo need and you’ll use it. Within a few seconds, you’ll see multiple, competing offers from several lenders;
- You then shop and compare offers side by side.
Ready to get started? Find your best loan!
The bottom line is when it comes to buying a home for the first time, you should not take any shortcut. Doing so can cost a lot of money down the road. So before buying your first home, make sure you get the right mortgage loan, inspect the home, and have enough money to cover some of the upfront and ongoing costs associated with owning a house.
Speak with the Right Financial Advisor
Still looking for first time home buying tips? You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
The post Buying a Home for the First Time? Avoid These Mistakes appeared first on GrowthRapidly.
Source: growthrapidly.com
5 Best Short Term Investments to Grow Your Money
Short term investments are those investments that can yield their returns within a short period of time — usually within 1 to 3 years. (contrary to a long term investment such as saving for retirement).
In other words, short term investing are typically used to meet short-term financial goals (such as buying a house or go on a vacation).
A bank checking account is one of the best known and popular ways to save for such a goal.
But your traditional checking account only pays a meager return, if at all.
If you can’t find an alternative to a checking account, no need to fret.
There are plenty of short term investments that will help keep your money safe and earn a good return at the same time.
Below, we’ve curated the best short term investments to help reach your investment goals.
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Things to consider:
First thing first, before you make any short term investments, you should know about the risk, return and investing time frame of short term investments.
- Average return to expect: 1 to 4% per year;
- Risk: very low to low risk of losing money;
- Time frame: 0 to 3 years
Best short term investments:
If you’re saving and investing money for the short term, i.e., to use it as a down payment on a house, you will not invest that money in stocks or mutual funds, right?
That’s because, stocks are high risk investments. And if you need the money for a certain time, it might not be available due stock market volatility.
Instead, a smart choice is to save that money in a low-risk investment where you can protect the capital invested and earn interest/income at the same time.
If you have a different investing goal, such as saving for retirement, it’s best to look at stocks or mutual funds. Investing in stocks or mutual funds is considered a long term investment as opposed to short term investing.
If you’re interested in investing for the long term, here’s how the stock market works.
So, what are your options? Here are some of the best short term investments to consider to earn some interest on your money.
1. Savings account.
A savings account at a bank is an excellent choice. And they usually pay more interest than a regular checking.
They are quite safe. Savings account are insured by the FDIC, but only for up to $250,000.
That means if a bank goes bankrupt, the government will step up and give you your money back.
In addition, they are very liquid. You have access to your money fairly easy.
CIT Savings Builder – Earn 0.85% APY. Here’s how it works: Make at least a $100 minimum deposit every month. Or Maintain a minimum balance of $25k. Member FDIC. Click Here to Learn More.
2. Certificate of deposit (CDs).
If you want a good rate of return on money that you don’t plan on using within the next couple of years, CDs is a safe place to do invest it.
Banks sell certificate of deposit for a specific dollar amount and length of time. As an investor, you agree to leave a certain amount of money with the bank for a specific time.
When the time is up, the CD matures. Then, you get your money back, plus interest.
CDs are also FDIC insured for up to $250,000. They provide a safe and competitive yield. That makes them some of the best short term investments to consider.
The minimum deposit requires to open a CD depends on the bank. But it usually ranges from a few hundred dollars to thousands.
The CIT Bank is paying 1.30% for an 11-month CD. There is an opening minimum of $1,000. With most CDs, if you tap into your money before maturation, you will get hit with an early withdrawal penalty.
However, with this CIT Bank CD, there is no penalty if you withdraw early.
CIT Bank has various types of CDs. If you prefer longer terms CDs, check them out now at the CIT Bank website.
3. Money market fund
While you can keep your cash at a bank in a savings account because they’re safe there, you don’t have to.
You can try a money market fund. They are safe as well.
A money market fund is a type of mutual fund (but thy don’t focus on stocks or bonds).
Mutual funds companies such as Vanguard offer money market funds.
Money market fund is not insured by the government, so there is a possibility you can lose money. However, they are quite safe.
They’re safe, because they have a dollar invested in securities for every dollar you deposit in your fund.
The principal money you invested does not change in value. When you invest in a money market fund, you earn dividends. That’s a good advantage.
Another advantage of a money market fund as a short term investment is that it provides higher yield than bank savings account.
It also allows you to write checks without incurring any charges.
So, if you’re saving money for a home that you’re going to buy soon, a money market fund is a safe place to grow your money.
4. Short-term corporate bond funds.
Bonds, in general, are similar to CDs. An exception is that they, just as stocks, are securities that trade in the market.
So, they may fluctuate in value, but not as much as stocks.
Bond funds are a collection of bonds from companies (large, medium, or small) from different industries. Hence, the name “corporate bond funds.”
Investing in bond funds can be used as a short-term investment. Sometimes, investors consider corporate bond funds to diversify their investment portfolio.
Just like a money market fund, corporate bond funds are not FDIC insured. But they are just as safe as a money market fund.
Plus, you don’t just invest in one bond or two bonds. If one bond in your investment fund takes a hit, it only affects a small amount of your money.
So while they are riskier than money market funds saving accounts, CDs, short term corporate bonds pay you more. That makes them one of the best short-term investments out there.
5. Treasury bonds.
One of the best ways to invest money in the short term is to buy treasury bonds. Treasury bonds are issued by the U.S. government.
There are three types: treasury bills, treasury notes, and treasury bonds. They are like CDs. Once the bond matures, you get the full money invested, plus interest.
Treasury bonds may provide the same or a better interest rate than CDs. But a big advantage is that, while they’re not FDIC insured, they are backed by the U.S. government.
In other words, the government promises to repay your money, which is considered to be very safe.
So if you have more than $250,000, you should consider a treasury bond.
Another advantage is that while interest on a CD is fully taxable, Treasury’s interest is state-tax-free.
In conclusion, short term investments are those in which you make for a certain and short period of time for a specific goal.
Short term investments aren’t the best if you’re seeking high returns.
But if you’re a beginner investor you should consider placing some of your money into these best short term investments.
Remember: don’t invest your money in stocks when you plan to use it within the next five years, because a stock market drop can dry out your investment portfolio.
Read more:
- The Best Ways to Invest $1000 For Good Return
- How to Invest With Little Money (Even With $5)
- How to Invest 100k to Build Real Wealth
Speak with the Right Financial Advisor
If you have questions beyond short-term investments, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS* | ||
---|---|---|
PROMOTIONAL LINK | OFFER | REVIEW |
CIT Bank Money Market | 1.00% APY | Review |
CIT Bank Savings Builder | 0.95% APY | Review |
CIT Bank CDs | 0.75% APY 1 Year CD Term | Review |
CIT Bank No Penalty CD | 0.75% APY | Review |
The post 5 Best Short Term Investments to Grow Your Money appeared first on GrowthRapidly.
Source: growthrapidly.com
3 Tips for Finding an Affordable Life Insurance Policy
Life insurance offers protection for your familyâs financial security. Many people buy themselves a life insurance policy that will protect their family. Itâs also possible for people to purchase life insurance policies for someone else. For example, children can purchase policies for their parents and vice versa.
Life insurance coverage offers valuable financial protection. You need to find a policy that meets your coverage needs and fits your budget. Here are three tips that will help you find the right fit:
Understand Policy Options
Premium rates vary based on the kind of policy you choose. There are two broad categories of life insuranceâtemporary and permanent.
Temporary life insurance, or term life insurance, offers a death benefit payout if the insured passes away during the timeframe the policy covers.
Policyholders can choose the length of the term and the death benefit amount. Some companies offer additional coverage options, called rides, that can be attached. These range from accelerated death benefit riders to return of premium riders. These additional riders add more value to the policy, which also affects the rates.
Permanent life insurance has its own two categoriesâwhole life and universal life. Both kinds of permanent life insurance accrue cash value over time. The cash value can be used to purchase paid-up additions, pay premiums or be borrowed against.
Like term life insurance policies, policyholders can choose to add additional coverage with riders. Riders vary by company and affect the monthly premium.
Whole life policies typically have the highest premiums because the coverage is permanent, and thereâs generally a guaranteed cash value growth rate. Most whole life policies come with high death benefit amounts. Policyholders can choose the amount when they sign up for the policy.
However, for those who need less coverage or only enough to cover funeral expenses, final expense insurance policies are a great option. Final expense insurance is designed for seniors. Itâs a type of whole life insurance, but the death benefit amounts are much lower. Because the death benefit is only enough to cover funeral expenses, premiums tend to be lower.
There are a few kinds of universal life insurance policies. The biggest difference with these policies is how the funds are invested. The cash value of variable universal policies is invested in multiple accounts, including stocks and bonds. The cash value of indexed universal policies is invested in indexes, which are diversified investments.
Because there is no guarantee of how the cash value will grow in the investments, universal life insurance premium rates tend to be lower than whole life insurance premium rates.
Work with an independent agent
While the various types of life insurance are common among life insurance companies, not all companies carry every kind. Itâs a good idea to know what kind of life insurance policy you want before starting to work with companies.
If youâre not sure what kind of life policy you want, work with a life insurance agentto ensure that you find an affordable policy that meets your coverage needs. A licensed agent can help you through the entire process of selecting and applying for a policy.
Working with a licensed independent agent also has other advantages. The specific terms, riders and premium rates can vary by company. Independent agents sell policies from multiple companies, so they can help you compare similar policies across companies.
An independent agent can help you understand the underwriting process and find a policy that is a good fit for your situation. In addition to comparing coverage and terms across companies, an independent agent can help you compare premium rates.
Working with an independent agent makes the research process easier for you because you donât have to reach out directly to companies. Instead, you can work with one person to find the best company and rate for you.
Use quote websites wisely
While some people like working with an agent, others may prefer to do independent research. Quote websites come in handy because they make it easy to quickly view your options.
There are many life insurance quote websites to choose from. So, how do you know if youâre working with a good company?
First, itâs important to understand what kind of quote website youâre using. Some websites, like Geico and Progressive, show quotes from multiple life insurance companies. These quotes allow visitors to compare their policy options across companies. However, these companies just show quotes and connect their visitors to companies.
Others, like Bestow, Haven Life and Ladder, only show quotes for the policies they offer. These companies help their clients through the application process, which is another benefit of working with them.
Others, like Quotacy, show quotes from multiple life insurers and help their clients through the application and underwriting process. Quotacy agents even assist their clients in making updates to their policy after they purchase a policy.
Second, itâs important to know what kinds of policies the website shows. Many online tools focus solely on term life insurance. While this is a shared characteristic across many quote websites, each one has its unique features.
For example, Ladder stands out because its policies allow policyholders to adjust coverage during the term as their needs change.
In contrast, other quote websites show quotes for different kinds of permanent life insurance. This is true of many sites that only offer quotes, like Geico and Progressive. Websites that offer more comprehensive services, like Quotacy and Policygenius, also offer quotes for permanent life insurance policies.
Finding affordable life insurance
Life insurance offers valuable financial protection for your family. It can pay off remaining debt, cover funeral expenses and even replace income.
While the protection offered is highly valuable, itâs important to find a plan that fits into your monthly budget. The first step is determining what your needs are and which kind of life policy best meets those needs. From there you can work with an independent life insurance agent and do your research into policies and premium rates offered by different life insurance companies.
Alice Stevens loves learning languages and traveling. She currently manages debt and tax relief, life and health insurance, and car warranty content for BestCompany.com.
The post 3 Tips for Finding an Affordable Life Insurance Policy appeared first on Credit.com.
Source: credit.com