From the Financial Hotline
By: Financial Hotline
Summer 2018 (Vol. 36, No. 2)
Call, fax or e-mail for answers to all your financial questions.
Q: Are there any websites where I can get current quotes on Certificate of Deposit (CD) rates?
A: Yes, sites like Bankrate.com give daily updated information for CD, money market and saving account rates across from financial institutions across the United States.
Q: What do I need to know when shopping for a CD?
A: As a rule, the longer the term, the higher the interest rate. CDs with higher annual percentage yield rates give you a better yield on your deposited money. Be sure to check for minimum deposit amounts, account setup fees or any additional charges you may incur.
The biggest risk associated with traditional CD accounts is the early withdrawal penalty if you need to take your money our before the CD’s maturity date. These penalties could easily eat up any expected gains and even grab some of your principal.
In general, CDs are a safe place to stash cash. They are insured up to $250,000 at banks by the Federal Deposit Insurance Corp. and at credit unions by the National Credit Union Administration.
In addition to traditional CDs, some institutions offer specialty CD rate options. These can include jumbo CDs, bump-up CDs, liquid CDs, callable CDs and zero-coupon CDs.
Find the best CD rates for you by considering the annual percentage yield (APY), term, minimum deposit required and don’t forget to check for extra fees and note the early withdrawal penalty.
Q: I heard there are areas in the United States that will give you cash or other incentives to relocate to their city. Is this true?
A: Yes, several U.S. cities are offering major incentives to relocate right now. Here are some current offers:
Detroit, Michigan: Challenge Detroit offers paid fellowships for out-of-state college graduates to move, live, and work in the city. Every year, about 30 fellows are chosen to work with local companies and nonprofits, with the option to settle down in the city after the 12-month-long program finishes.
Burlington, Vt.: Vermont is willing to pay new residents up to $10,000 toward moving expenses, as well as a computer and a co-working space for those who move to the state and work remotely.
Marne, Iowa: Marne officials are offering new residents a free plot of land in the town, which is located between Omaha and Des Moines. The free lots average 80 feet by 120 feet. New residents can use the land to build a conventional or modular home.
New Haven, Conn.: New Haven offers up to $80,000 in incentives for new homeowners, including $30,000 for energy saving home upgrades; $10,000 in interest-free loans for first-time buyers to use as a down payment; and $40,000 for college tuition to any in-state college for kids who graduate from New Haven public schools.
North Platte, Nebraska: If you relocate for a job you can receive up to $10,000 in hiring incentives.
Baltimore: The Buying Into Baltimore program offers $5,000 to those relocating anywhere in the city. For those who also work in the city, they’ll throw in another $5,000 toward a first home. For those who buy a fixer-upper through the city’s ‘Vacants to Value Booster’ program, they’ll receive up to $10,000 to purchase a vacant home and renovate it.
Harmony, Minn.: The city is offering up to $12,000 in cash for new residents who decide to build a home there.
Hamilton, Ohio: The Ohio metro is offering up to $5,000 to new residents toward their student loans. Applicants are required to then live in the city’s urban core and show proof of employment in the greater Hamilton area.
Ludington, Mich.: Small-business owners may be lured to Ludington’s annual contest that awards an entrepreneur with $50,000 for their startup idea. The winner of its Momentum Business Plan Competition is then required to locate their business to Mason County.