In simple terms, a checking account is used to pay for expenses, while a savings account is intended to store money for later use. Checking accounts are designed for everyday transactions — your morning cup of coffee or a tank of gas. Savings account funds, however, are meant to remain in the bank and earn interest over time. Consider the following to decide what’s best for you. Fees and Interest Savings accounts carry a higher interest rate than checking accounts, so it's wise to leave...
There’s a heavy focus on the importance of building your savings account. An increasing number of people are realizing how necessary it is to have a “rainy day fund” to fall back on. Businesses, for example, know that they need a 10% “rainy day” or contingency fund that will cover 10% of their annual income. What does that look like for an individual? While you can always add more to your savings account, there are certain minimum amounts that you should always have handy. Your...
How does a Traditional IRA differ from a Roth IRA? Which one is right for you? Once you know the answer to the first question, you may be able to answer the second. Exploring Your IRA Options: The Basics A Traditional IRA may make sense if you: are eligible for a Traditional IRA deduction, are not eligible to contribute to a Roth IRA, anticipate a higher tax rate while saving, anticipate a lower tax rate during retirement, are interested in taking required minimum distribution amounts...
A credit card isn’t just a credit card. Sure, they may all be the same size and generally have the same concept, but when you read the fine print, they’re all different in some way. Research has shown that credit unions specifically tend to provide users with a better experience and better results when it comes to credit card ownership. There are many benefits of obtaining a credit card from a credit union, and following are only a few of them. Why Obtaining...
We know merging retirement plans can be confusing, but the process doesn’t have to be. Rolling over your retirement plan assets to another retirement plan or an IRA can be stress-free when you understand the rules. Rolling Over Your Retirement Plan in a Nutshell A retirement plan rollover is the movement of eligible retirement plan assets to another eligible employer-sponsored retirement plan or IRA. Rolling over your retirement plan assets generally preserves their tax-preferred status. When You Can Roll It Out Rolling over your retirement...
You’re on your way to an Atlanta Falcons game and your car engine busts — causing your car to completely break down. What do you do? If you have Mechanical Breakdown Insurance (MBI), you're covered, meaning that instead of going to the mechanic and paying an arm and a leg for a repair, you can save that extra cash for your next hot dog at Mercedes-Benz Stadium. What is Mechanical Breakdown Insurance? Mechanical Breakdown Insurance is an optional, supplemental car insurance policy that covers major...
Since there are no major holidays in August, it seems that once the Fourth of July has passed, all the stores start marching out their "Back to School" signs and sales. The seasonal aisles are full of notebooks and folders and pens and it’s enough to make both parents and kids groan. Summer has barely started, but here comes the pressure to get ready for fall. Nothing can change the fact that summers go by too fast. But there are ways to lessen the pressure...
You do a lot to prepare for a trip: book the flight, find the perfect hotel, take time off work months ahead of time, buy new bathing suits, get a pedicure, and on and on. However, there’s one important thing to do before a trip that most people overlook: telling your credit union or your credit card company about your travel plans. Credit card companies and credit unions like ours have standards in place to identify suspicious credit or debit card use. If transactions occur...
Moving into a Roth IRA from a Traditional IRA or SIMPLE IRA may be a great way to maximize your IRA savings. Converting is easy to do, and may have positive effects on your financial future. The Basic Facts A conversion is the taxable movement of Traditional or SIMPLE (Savings Incentive Match Plan for Employees of Small Employers) IRA assets to a Roth IRA. The financial organization administering the conversion reports the movement of assets to the IRS, while you include any pretax amounts converted...
People you do business with may know your credit score. Do you? Creditors and insurance agencies often check your credit score numbers upon beginning a relationship with you. They also periodically check the scores to see if other products might suit your needs or just to ensure you’re still in good standing credit wise. Knowing where you stand is important for you too. There are three major credit bureaus: TransUnion, Equifax, and Experian. Information is submitted to each individual bureau separately, so your credit report and credit score...