Are You Getting the Best Certificate of Deposit Rates?

Whether you are making your first purchase, or have been investing in the same product for years, it is wise to do the necessary research to make sure that are getting the best certificate of deposit rates. Sometimes, making decisions about investment options can be overwhelming, difficult, or boring. However, it is your money, so it is important that you choose wisely. Your time spent on the research portion can have a direct result on your returns.

The first step is to do your due diligence for best certificate deposit rates. Educate yourself on all of the terms and traditional and nontraditional CD products. Check your current rates and then look into other options available. The internet can be a great tool for this. A simple search can bring up a myriad of results about rates in various markets. Make notes on your findings and then compare them to the products you are using or are thinking of using.

It is important to make sure that you have the right product for your needs. A typical CD works by giving a set dollar amount to an institution for a set duration. After the pre-determined time has past, you receive your original amount back, along with a set percentage rate of returns. Often, the best certificate of deposit rates are for those CDs that are held for a longer period of time with a larger portion of money. However, some specialized products might be a better fit for your situation.

If you already have a connection at a bank, it is good to reach out to your contact and ask to meet with them. While you should already have a good understanding of definitions, product options, and normal returns for your market, your banker might have some good deals or products that you weren’t aware of. As a good customer, they are interested in keeping you happy and are glad to help you find best certificate of deposit rates for your situation.

If you would like to learn more about the best certificate of deposit rates in Dallas, click here.

How to Teach Your Kids About Online Banking Safety

This day and age, kids are familiar with how to use the internet, but they might needs to learn some best practices for online banking. Most understand the importance of security, but they may not understand specific potential risks and how to avoid them. One of the best lessons a parent can offer their children is how to be responsible with money. This life skill can serve them for the rest of their lives.

Even many adults don’t have the knowledge of how to only spend money if you have it and how to protect themselves by saving. Your kids might have received their income through gifted money due to special occasions, payment for household chores, or their first real job. Whatever the source, they need to know how to handle the funds responsibly. The first step is to teach your kids general fiscal responsibility. Help them open their own bank account and let them check on the progress as they save and spend, through online banking portals.

Instill in them the importance of paying themselves by saving money. Young ones can be encouraged to save for a specific large purchase of a toy, such as a gaming system, bike, or telescope. Older children can be challenged to reach life goals, like saving for a car, college, or even retirement. The lesson can be taken a step further by teaching them how to budget. If they use their money going to the movies or buying junk food, they won’t have enough for their larger goal of going on that spring break ski trip with their friend’s family.

Whether they have a bank card, checks, or both, children with new accounts need to know the benefits of monitoring and tracking their account activity and balance. Online banking is a great tool for this, since they are likely already computer and internet savvy. Show them how to log into their account and check the activity. They should access their account from a secure device and never share their login information with anyone, even friends. Show them how to set up account reminders and notifications. That way, if there is any suspicious activity, they will know about it quickly and can take immediate action.

Shopping online is another area to help children with online banking. Show them how to verify that a site is legitimate and not an illegal scamming front. The old adage of something being too good to be true stands strong, even in the digital age. Not having necessary funds, being hacked, or being conned is a hard lesson that you can help them avoid, with responsible money practices and online banking.

If you would like to learn more about online banking in Houston, visit Green Bank.

5 Quick and Dirty Facts About Certificates of Deposit

1. FDIC Certificates of deposit are a safe type of investment

Some forms of investments carry more risk than others. For instance, some stocks fluctuate up and down, which could mean you make a lot or you lose a lot, and there is no way to absolutely predict which will happen. With FDIC certificates of deposit, there is a very low risk of loss, but a guaranteed rate of return, making it a stable investment option. Plus, the investment is insured by the FDIC.

2. Gains are taxable

After the security of deposit matures and the gains are paid to you, the amount you made over your original investment amount is considered taxable income. The exception is when the certificates are structured in a tax-differed or tax-free account, but those are not typical features and need to be discussed with the offering bank.

3. They are best for short term investments

FDIC certificates of deposit are best for set amounts of money to be invested for a short period of time, such as $5,000 for 5 years or $500 for 5 months. Because there is typically no access to the money, and because of the relatively lower return rates than other investment options, CDs are not generally considered for a long-term investment.

4. Withdrawing early will require penalties to be paid

For most certificates, if the money is needed before the time period has passed, then serious penalties for withdrawing early will be applied to the payoff amount. This investment environment is best for cash that can be applied and not touched for the few months or years of the contract.

5. A few specialty options are sometimes offered

Most FDIC certificates of deposit hold your money for a fixed time in return for a fixed rate. However, some allow you to raise the interest rate if the market improves or to make early withdrawals. Others don't pay out, but instead reinvest the funds into another CD for another term. The key to deciding if these specialty offers are worth your time is to compare the offered interest rates and time periods with the added benefits.

If you would like to learn more about FDIC certificates of deposit in Austin, visit Green Bank.

5 Tips for Save Online Banking

With the rise of computers and mobile devices has come a surge in the popularity of online banking. There are a number of conveniences and benefits, but it is always good to be wise with your online dealings. Thieves are just as happy to take advantage in the virtual world as they are in the real one.

1. Be careful with your password

Being password savvy means both protecting its secrecy and picking something complicated. An unusual word with symbols or numbers substituted for a few letters is perfect for online banking. The same goes for the PIN. 1-2-3-4 isn't very secure, but your high school locker combination might be more difficult for hackers to find.

2. Know the bank's URL

Some thieves go to great efforts and set up fake websites that look a lot like a real bank. To make sure you end up on the right page, type in the bank's actual website and always check the address bar for the proper information. Often, there will be a lock icon added, to indicate a secure site.

3. Set up alerts

One of the best new conveniences that comes with online banking is the ability to set up reminders and alerts. With only a few easy steps, you can set auto texts, emails, or calls to be sent to you if a charge over a certain amount is made or if your balance drops below a certain level.

4. Use encrypted data

Encrypted data means that the content sent and used on the website is put into a code by scrambling the data that only your secured login and the bank can read. This makes it difficult for hackers to simply pull your information.

5. If something looks fishy, it probably is

Banks take the security for their online banking customers seriously and spend a lot of money to prevent hackers and thieves. They wouldn't do anything that could cause you to be confused or to compromise your information. They would never ask for sensitive information in a call or email, especially one that wasn't initiated by you. If you receive an odd communication, it is best to not reply and contact your bank immediately to check the activity.

If you would like to learn more about online banking in Houston, visit Green Bank.

5 Benefits of Opening a Business Savings Account

A business savings account could provide your company with a number of benefits.

1. Can help you achieve business goals

Whether the goal is small (purchase a ping pong table for the staff break room) or large (expand the business through a new product line), having the cash available is preferable to taking out a loan. Through a business savings account, you have a built-in way to save money for the things that your business needs.

2. Access to the funds when you need them

While some types of investments are known for high returns, not all of them allow easy access to the invested funds. Often, the money must be left in its environment for a set time period and is otherwise subject to steep fees. Investments could be a part of the business portfolio, but a highly liquid savings option is essential.

3. Protection from loss

Typically for investments, the greater the return, the greater the risk. A business savings account can often offer competitive returns, but the biggest benefit is the FDIC protection if the bank or economy suffers greatly. Because the funds are being held in a bank, the funds are backed by the United States government. The same is not true for other types of investments, like mutual funds, stocks, or bonds.

4. Financial services held in one, convenient place

Chances are that at some point, the company will need some way to save money and make that money work for them. If they are invested in bonds or the stock market, then that is just one more website to visit or report to read. If the funds are in a business savings account, the funds can be on the same statement as the checking account, making it eaiser to keep track of everything in one place and monitor progress.

5. Why not?

Saving funds for a business is always a good idea. A reserve of funds makes the company less sensitive to economic downturns or industry issues. While fees are involved in the account, most institutions will offer reduced fees and increased benefits for bundling services or maintaining a certain balance. The benefits of a cash pool plus relatively unrestricted access to it certainly outweigh the costs.

If you would like to learn more about a business savings account in the Houston area, click here.

How to Have a Great Relationship With Your Commercial Banker

Commercial banking can be complicated. While it isn't necessary to be best friends with your banker, it could be beneficial to at least have a good working relationship, so they can help you understand the many delicate details involved in banking. As with any professional relationships, it is important to have respect for the professional knowledge of a colleague or vendor. More often than not, they can help you navigate the many pitfalls of business through their experience and industry know-how.

Simply scheduling quarterly meetings with your banker for a review and projection session could be all it takes to help. Some of those meetings could also include a tour of your facility to see your production levels, equipment, and meet your staff. Referrals is one of the best reasons to get to know each other. They have industry experience and could provide access to vendors and connections that could help you grow. In return, you probably have colleagues that could use commercial banking services they can trust. As you grow, you will likely need more services. That means that as you do more business with the bank, some fees could be bundled, making banking less expensive and more convenient. The banker knows you, what you need, and when an opportunity or issue arises.

The main ingredient to any relationship is trust. There is no exception for commercial banking. By getting to know each other and working together often, trust can be built on both sides. That means that when you are ready to ask about loans, they know the quality of business and the level of integrity you have. They will be more apt to help because they trust you and already know your financial history, with much of your information already on file. Likewise, you can trust them to suggest services that could help your company. Without that trust, you may think added products will simply be an unnecessary financial drain and could miss the benefits they offer. Through a trusting relationship, the banking experience has more benefits and less hastle.

If you would like to learn more about commercial banking in Dallas, visit Green Bank.

Do I Need a Business Checking Account If I'm Self Employeed?

If you are self employed, you may think that simply using your personal banking account is sufficient for all of your needs, but getting a business checking account could help. Even though you work for yourself, you are still running a business. In order to help keep budget and tax information separate and clear, it is helpful to have the cash flow in and out tracked through an account different than your personal accounts. While a business account may include different fees, it is also structured with tools that could help your business. 

 

If you have a hobby or startup business and it looses more than it brings in, you might be under the impression that it is easier to simply use your personal accounts to handle the financial transactions. However, by taking advantage of a business checking account, you help make the business more credible. Customers and banks can take the company more seriously if they make a payment to a business name, rather than your name. That could be the nudge your young company needs to make it viable. It can also help separate the losses of the business from affecting your household cash needs.

Especially for those businesses that are structured as a corporation, partnership, or LLC, it is important to be very careful about keeping personal and business transactions labeled correctly through a business checking account. If charges and income are confused between the two, there could be unfavorable legal repercussions. Both entities could be sued for liabilities. While you may think it easy to simply remember which transaction belongs to which entity, the hectic pace of life could easily cause a mistake. You may accidentally attribute a trip to an office supply store to the business, when it was actually for your children's school supplies.

Companies that are sole proprietorships are the least affected by using a two-for-one approach to banking. However, having separate accounts will make it easier to keep the books when the business is handled in its own accounts. Otherwise, you end up with situations such as worrying if the mortgage payment will bounce because a large business expense had to be made. It is important to speak with your accountant and banker to ask the important questions about your particular situation to make sure a business checking account is good for you.

If you would like to learn more about a business checking account in the Huston area, visit Green Bank.