Bank Deals Blog: Deposits Education and Strategies

This is my first weekly review of the Fed, the economy and what we can expect of future deposit rates. My weekly summaries will now be focused entirely on deposit rates and deals, and they will be published on Tuesday evenings (My CD summary is now available at this link). This change was done to separate the economic and political discussion from the deal discussion. Often economic discussion leads to political discussion, and that can create lots of comments which drown out comments on deals and rates. To avoid that,...

As expected, no policy changes were announced today at the end of the two-day FOMC meeting. The Fed decided to hold off on a rate hike. The FOMC statement had nothing to suggest any change to their gradual rate hike policy which means that a December rate hike is very likely.

The economic overview in today’s FOMC statement was very similar to the September statement. There were only two changes. The description of the unemployment rate went from “stayed low” to “declined”. The other change was the “growth of business...

The most recent U.S. Survey of Consumer Finances seems to indicate the younger Americans are, the less they have in savings. We analyzed the federal data to discover the average savings by age.

The analysis reveals the youngest members of the workforce don’t have much to back them in an emergency, as under-35 households in America average less than $5,000 in their savings accounts. As they age and incomes rise, so do the amounts Americans put away in savings and for retirement, but not so much in certificates...

The Fed moved as expected by raising the federal funds rate by 25 basis points. This is the third Fed rate hike of 2018 and the eighth rate hike since the Fed started to raise rates in December 2015. Here’s that all important paragraph in today’s FOMC statement:

This paragraph is shorter than it has been in the past. The Fed removed the sentence about monetary policy remaining accommodative.

The opening paragraph in the FOMC statement that describes the state of the economy is essentially the same as what was...

Financial planners help you save, invest and grow your money. You might hire one for help with a specific goal — readying yourself to buy a house, for example — or to give you a bird’s-eye view of your financial health. Many have an alphabet soup’s worth of letters behind their names while others have none, but one of the most significant credentials is administered by the Certified Financial Planner Board of Standards or CFP Board.

What is a certified financial planner?

A certified financial planner has...

As expected, no policy changes were announced today at the end of the two-day FOMC meeting. The Fed decided to hold off on a rate hike, but slight changes in the FOMC statement point to a higher chance of two more rate hikes this year (which will likely come in September and December). For example, the Fed’s description of the economy went from “solid” to “strong”:

June FOMC statement:

Today’s FOMC statement:

Also, the Fed’s description of household spending went from “picked up” to “grown strongly”:

June FOMC statement:

Today’s FOMC statement:

September Fed...

When you need cash for an emergency but don’t have enough in your “liquid” savings accounts, a bank certificate of deposit, known as a CD, or your retirement account may look like attractive targets. But funds in these accounts are typically locked up for a certain period of time and tapping them early generally comes with penalties.

These early withdrawal penalties can be significant, based on the specified account’s terms and conditions. But there are cases where it’s worth taking the penalty in exchange for better returns. We will...

Combining bank accounts is a big step for any relationship, whether you’re spouses, a parent and child, or business partners who need to share the same account. A joint bank account can simplify cash flow in many ways, but it’s not something to undertake on a whim. It may complicate your tax obligation, and it can raise questions of ownership in light of a dispute or incapacitation.

If you’re considering opening a joint bank account with someone, make sure you know what it means for your money and for...

Venmo is a free mobile wallet and digital payment network owned by PayPal that has revolutionized splitting the dinner bill since its founding in 2009. The platform, which comes in the form of an app, as well as a website, lets users transfer money instantly to friends, family and businesses. Users link their debit card, bank account or credit card to the iOS- and Android-friendly app, and can then pay and receive cash via the platform. Money is stored in a user’s Venmo account until they send it...