Have You Considered an Add-On CD?

If you think you know your way around certificates of deposit (commonly referred to as CDs), here’s a twist to this savings product you may not be aware of – an add-on CD.add-on-cd

As a quick refresher, a CD is also known as a “time deposit” or a “term deposit” because it’s set for a certain period of time. The depositor can choose which term they want to go into. CDs are a great way to earn a competitive interest rate (rates for CD accounts are typically higher than traditional savings accounts or money market accounts) and know that the rate will remain in place for the entire duration of the CD term.

But what if you want to see your savings grow faster? Wouldn’t it be a shame if you came into some money and wanted to take advantage of a great CD rate you locked in 6 months ago? Well, if you opened a traditional CD, you’d be out of luck. Once you make your initial opening deposit with a traditional CD, you can’t add money to it during the CD’s term. But that’s not the case with an add-on CD. With an add-on CD, you can continue to pump money into the account throughout the locked-in time period.

As you can imagine, an add-on CD can be extremely helpful during a period of time when interest rates are expected to fall. For instance, say you opened a 24-Month Traditional CD last year, and you’d like to open another, but the interest rate has taken a nose dive. You could end up earning a much lower interest rate for those new funds compared to the money already sitting in your initial CD. If you had opened a 24-Month Add-On CD however, you could invest your additional funds there, and earn interest on them at the same higher rate you locked in at account opening.

An add-on CD can also be a good option if you don’t necessarily have a large amount of money to place in a traditional CD all at once. Maybe at the beginning you only have $1,000 to open the CD, but you know that you’ll have extra funds to devote to it in the coming months. Having one add-on CD can also be easier to manage and track than having your funds scattered across a multitude of CD products with varying expiration dates.

As is the case with traditional CDs however, it’s important to note that with an add-on CD you’ll typically be charged a penalty if you withdraw your funds before the CD matures.

At Bank5 Connect, we offer an add-on CD with a two year term, called the 24-Month Investment CD. This add-on CD requires a $500 minimum deposit, and after that you can add funds to it any time you’d like, in any amount. And all Bank5 Connect CDs, regardless of term length, are insured up to $250,000 by the FDIC, and insured past $250,000 by the Depositors Insurance Fund (also known as DIF). This means that at Bank5 Connect, your CD deposits are insured in full. To learn more about all of the CDs offered at Bank5 Connect, visit http://www.bank5connect.com/home/cds.

For many people, an add-on CD can be a great way to save, but keep in mind that it’s always a good idea to consult with a tax advisor or financial professional before making any major investment decisions.

Make Money with a CD — Guaranteed

Some things in life are a “sure thing,” and a certificate of deposit is one of them. It guarantees that you’re going to make money on your money, no matter what.make-money-with-a-cd-guaranteed

A certificate of deposit, or CD, is a financial product similar to a savings account. Where a CD differs, however, is that it has a specific, fixed term and a fixed interest rate. It is intended that the CD be held until the end of the term, when it “matures”. At maturity, you can either withdraw your money along with the accrued interest, or you can choose to roll over the funds into another term and continue saving.

There are short-term and long-term CDs available at most banks. Short-term CDs can range from three months to a year, while longer term CDs typically range from 18 months to 5 years. Typically, the longer the term length, the higher the interest rate.

At Bank5 Connect, we offer CDs with terms of 6, 12, 18, 24, and 36 months. And the minimum deposit for our CDs is only $500. Our 24-month CD is a special “Investment CD” that provides more flexibility by allowing you to transfer funds into your CD at any time. This can allow you to save even more!

It’s important to point out that there is usually a penalty fee for withdrawing money from a CD before the term is over. Be sure to read all the fine print regarding withdrawal penalties before deciding which term length is right for you.

So, how much can you earn with a CD? We offer a handy calculator that lets you estimate your annual earnings using different average monthly balances and term lengths. Try it out to get a sense of what Bank5 Connect CD product could be right for you.

CDs are considered one of the safest ways to save money with a bank. Unlike stocks and other types of investments where interest earnings can fluctuate drastically or you could be in danger of losing your principal, a bank CD has a guaranteed, fixed interest rate you can depend on, and the money in your account is insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). What’s more, if your CD is with Bank5 Connect, it’s insured past the FDIC limit of $250,000. Because Bank5 Connect is a DIF-member bank, all of our deposit accounts, including CDs, are insured in full. This means that any dollar amount above the FDIC limit is insured by the Depositors Insurance Fund.

To learn more about our CDs, including current rates, go to http://www.bank5connect.com/home/cds. And don’t forget that it’s always a good idea to consult a tax advisor before making any major investment decisions. Happy saving!

Uncovering Your Own Personal “Pot of Gold”

It’s almost St. Patrick’s Day, and we all know what that means – lots of green, plenty of beer, and all the Irish music and food you could want. And if you’re lucky, you could even find your own little pot of gold right at home, without the help of a leprechaun!AdobeStock_58527490

Let’s start with that junk drawer you have in your house; the one that you toss all kinds of stuff into when it’s cluttering your pockets or your countertops. Like that Visa gift card you got for your birthday, or the $50 check that your grandma gave you for Christmas. Or maybe it’s the place where you throw all of your loose change. Whatever it is that you toss in there, you could be pleasantly surprised by some forgotten treasures if you take the time to clean it out.

And did you know that every year, millions of dollars in federal tax refunds sit idly because they could not be delivered, or were never claimed? The Internal Revenue Service (IRS) mails refund checks to your last known address, so if you move and don’t provide a forwarding address to the IRS or the U.S. Postal Service, your refund check could end up going back to where it came from. If you’re expecting a refund check and haven’t received it, you can check the status of your refund online by going to https://www.irs.gov/refundsAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!. Or you can contact the IRS by phone. You can also visit https://www.irs.gov/help-resources/telephone-assistanceAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon! to find the appropriate phone number to call.

And speaking of unclaimed money, most states maintain an unclaimed property division for monetary property that has not been claimed or has been abandoned. Some states even allow you to search online for unclaimed property just by typing your name into a search box. Typically your state’s Treasury Department oversees unclaimed property, so that’s a great place to start your search if you think you may have any unclaimed property out there.

You can also hit a potential “pot of gold” by using a member organization geared toward specific groups of people, such as retirees or car owners. AARP, formerly called the American Association of Retired Persons, is the largest membership club for retired people in the United States, while AAA describes itself as “North America’s largest motoring and leisure travel organization [that] provides its members with travel, insurance, financial and automotive-related services.” Both of these organizations offer their members access to discounts on a variety of services and products, such as life insurance policies and discounts on purchases like concert tickets and hotel rooms. You can learn more by going to www.aaa.comAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon! and www.aarp.comAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!.

No matter where you end up looking, we hope you uncover at least one pot of gold along the way!

Be Budget Savvy in 2017

Becoming healthier is something lots of people strive for in the New Year. Attaining a leaner physique is a popular resolution, but don’t forget about your financial shape. That’s why we suggested last week that a slimmer, trimmer financial you can be achieved by taking the first step of tracking your spending habits.

Now it’s time to assess those habits in detail and then create a workable, realistic budget based on your findings. Of course, part of your budgeting process includes tallying up your income for the week or month. Once you’ve scrutinized both sides of the ledger, you’re ready to move forward.

Don’t make the mistake, however, of becoming too stingy with your funds. After all, you want to enjoy life while still living within your means. You can have both as long as you take a moderate approach.

Other things to consider when crafting your budget include:

  • Taking the money you save on trimming back on “wants” like daily specialty coffee treats or twice-weekly nights dining out and placing it in a savings account. Tip: use direct deposit to accomplish this goal. After all, if you don’t see the money you’re setting aside, you’ll be less inclined to miss it.
  • Paying down credit card debt. If you have multiple credit card balances, tackle the one with the highest interest rate first. It may mean paying the minimums on the other cards while diverting more funds to the one you have targeted. Once that balance is paid off, move onto the card with the next highest rate, and so on. Debt consolidation loans could also be helpful in managing your overall debt if the interest rate and payback terms are reasonable.
  • Using your debit card instead of credit card to pay for things like clothes, groceries and gas. This helps get you off the credit card/debit card merry-go-round, a ride that makes it too easy to spend beyond your means. Put aside a certain amount of money each month and spend only that.
  • Establishing an emergency fund. Experts recommend setting aside enough to cover 3 to 6 months’ worth of living expenses should something arise like loss of a job, an unexpected household repair, or an extended illness. Creating this fund may take some time if you’re faced with other expenses such as credit card debt. But even if you can only place some money in the fund every other week, it’s better than having no back-up fund at all. Setting up a savings account with small direct deposits or automatic transfers from your checking account is a good tip for building an emergency fund.  Make deposits your budget can handle each week or month and watch it grow.

Once your budget is established, don’t be afraid to make adjustments to it. You’ll probably need some time to tailor it to your needs and ensure it’s a healthier fit for your financial lifestyle.