Bank Deals Blog: Deposits Education and Strategies

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...

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

Just like in March, today’s decision was unanimous with all FOMC participants voting in favor of the rate hike.

In addition to announcing the rate hike, the FOMC statement described the state of the economy and the changes since the last...

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 a rate hike in June still looks very likely. The language in the FOMC statement describing the economy supports the continuation of the Fed’s gradual rate hikes. A few small changes in the statement language may be seen as increasing the odds of four rate hikes in 2018 (instead of just three). One is the change in the description of inflation:

We can all pretty much agree that a college education is an investment in any young adult’s future — and a significant one at that. The average net cost of a four-year degree today is over $58,000. And, according to Fidelity’s Annual College Savings Indicator study, parents are on track to cover only 29% of college tuition by the time their child reaches college age.

One common way parents can save for their child’s future college expenses is by using a 529 college savings plan. 529...