Savings Users

An individual development account (IDA) is a type of savings account designed to help low-income individuals build assets and achieve financial stability and long-term self-sufficiency. People use IDAs to save money to start a business, pay for education, or buy a home. 1 Key Takeaways An individual development account (IDA) is designed to help low-income […]

Understanding Health Savings Account (HSA) rules and limits is crucial for maximizing your healthcare savings. An HSA allows you to contribute pre-tax income for healthcare costs if you have a qualifying high-deductible health plan (HDHP). For the 2024 tax year, the maximum contribution amounts are $4,150 for individuals and $8,300 for family coverage. For the

What Is a Savings Club? A savings club is a bank account where the account holder contributes regularly toward a goal. These clubs are usually short-term bank accounts set up by a credit union or bank to help customers save for a specific period. Savings clubs often offer incentives to encourage customers to make their

What Is Joint? Joint is a legal term describing a financial transaction or agreement where two or more parties act in unison. Key Takeaways Joint refers to transactions or agreements involving two or more parties. Joint can also refer to liability, such as when two people share a debt. Joint is used in many situations

What Is a Passbook Loan? A passbook loan is a personal loan made to a savings account holder by the custodial bank, which uses the savings account balance as collateral. These loans may also be called a savings pledged loan, and another version is called a certified pledge loan. Key Takeaways – Passbook loans allow

What Is a Negotiable Order of Withdrawal (NOW) Account? A Negotiable Order of Withdrawal (NOW) Account is an interest-earning demand deposit account. A customer with such an account is permitted to write drafts against money held on deposit. A Negotiable Order of Withdrawal Account is also known as a “NOW Account.” Key Takeaways A NOW

Banks and credit unions offer various options for managing your savings. Traditional savings accounts allow access to funds while accruing interest. On the other hand, money market accounts combine features of checking and savings accounts, offering interest, check-writing, and debit card access. Understanding the differences between savings and money market accounts is crucial. Both are

A deposit interest rate is the amount paid by financial institutions to deposit account holders. This includes various types of accounts such as certificates of deposit (CD), savings accounts, and self-directed deposit retirement accounts. It is akin to a ‘depo rate,’ which refers to interest paid on the interbank market. Key Takeaways: The deposit interest

Choosing the right type of savings account can be confusing. Are you better off with a certificate of deposit (CD)? A traditional savings account? A money market account (MMA)? They’re all taxable accounts you can open at a bank or credit union, and they’re protected by the Federal Deposit Insurance Corporation (FDIC) or National Credit

The Annual Equivalent Rate (AER) is a crucial financial metric for understanding the true interest rate of savings accounts or investment products that compound interest more than once a year. AER takes into account the effect of compounding, assuming that any interest paid is added to the principal, thus affecting subsequent interest payments. Key Takeaways: